Congoleum Corp. Reports Fourth Quarter Results.MERCERVILLE, N.J.--(BUSINESS WIRE)--March 9, 1999--Congoleum Corp. (NYSE NYSE See: New York Stock Exchange :CGM (1) (Computer Graphics Metafile) An ISO/IEC standard format for 2D graphics images introduced in 1987. Primarily a vector graphics format for technical illustrations and geophysical visualizations, CGM also supports raster graphics and text. ) today reported its financial results for the fourth quarter and full year ended Dec. 31, 1998. Fourth Quarter Results Sales for the three months ended Dec. 31, 1998 were $56.9 million, essentially level with sales of $57.0 million in the fourth quarter of 1997. Net earnings for the fourth quarter of 1998 were $2.9 million compared with $1.7 million before extraordinary charges in the fourth quarter of 1997, an increase of 69%. Earnings per share increased to $.32 per share in the fourth quarter of 1998 from $.18 per share before extraordinary charges in the fourth quarter of 1997. In the fourth quarter of 1997, the Company recorded an extraordinary charge of $0.3 million or $.03 per share for early retirement of debt, which reduced net income to $1.4 million or $.15 per share. Year End Results For the year ended Dec. 31, 1998, sales were $259.1 million, an increase of 2.6% from the $252.5 million reported in 1997. Net earnings before extraordinary items were $9.9 million in 1998 compared with $7.0 million in 1997, an increase of $2.8 million or 40%. Earnings per share before extraordinary items were $1.09 in 1998 and $.72 in 1997. The Company incurred extraordinary charges after taxes of $2.4 million in 1998 and $0.3 million in 1997 in connection with the early retirement of certain debt. After these extraordinary charges, net earnings were $7.4 million ($.82 per share) in 1998, compared with $6.7 million ($.69 per share) in 1997. Roger S. Marcus Marcus, in the Bible: see Mark, Saint. , Chairman of the Board, commented, "We were pleased with the increases in sales and profit margins we were able to achieve in 1998 despite the highly competitive industry conditions. We expanded our penetration The successful unauthorized breach of a security perimeter. See penetration test. of home center retailers and strengthened our position as the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae supplier to the manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected industry. We also saw improved manufacturing efficiency from our ongoing capital improvement program. Profit margins further benefited from declining raw material costs during the year." Mr. Marcus continued, "We expect this momentum to continue into 1999. Equipment installed at the end of 1998 should provide further improvements in efficiency. Our latest new product introductions, including our new laminate flooring This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. line, have been well received by retailers. An even more significant new product introduction is planned for later this year. These factors should help overcome the challenges which the competitive environment may continue to pose in the coming year." Congoleum Corp. is a leading manufacturer of resilient See resiliency. flooring, serving both residential and commercial markets. Its sheet, tile tile, one of the ceramic products used in building, to which group brick and terra-cotta also belong. The term designates the finished baked clay—the material of a wide variety of units used in architecture and engineering, such as wall slabs or blocks, floor and plank products are available in a wide variety of designs and colors, and are used in remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling , manufactured housing, new construction, and commercial applications. The Congoleum brand name is recognized and trusted by consumers as representing a company that has been supplying attractive and durable flooring products for over a century. Congoleum is a 49% owned subsidiary of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Biltrite Inc. (AMEX AMEX See: American Stock Exchange :ABL). The above news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which involve a number of risks and uncertainties, including product demand, consumer preferences, changes in customer inventories, pricing, competitive factors, raw material prices, market conditions, capital equipment modifications and other factors. Actual results could differ significantly as a result of these and other factors discussed in the Company's report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. -0-
CONGOLEUM CORP.
UNAUDITED RESULTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
For the Three For the Twelve
Months Ended Months Ended
Dec. 31, Dec. 31,
1998 1997 1998 1997
---- ---- ---- ----
Net sales $56,857 $57,008 $259,126 $252,526
Cost of sales 40,016 42,297 181,997 180,093
Selling, general &
administrative
expenses 11,075 11,357 56,839 57,094
------ ------ ------ ------
Income from
operations 5,766 3,354 20,290 15,339
Interest expense,
net (1,445) (1,301) (5,758) (5,258)
Other income, net 207 501 984 974
------ ------ ------ ------
Income before
income taxes 4,528 2,554 15,516 11,055
Provision for
income taxes 1,653 849 5,663 4,035
------ ------ ------ ------
Income before
extraordinary item 2,875 1,705 9,853 7,020
Extraordinary item -- (279) (2,413) (279)
------ ------ ------ ------
Net income $2,875 $1,426 $7,440 $6,741
====== ====== ====== ======
Net income per
common share before
extraordinary item $.32 $.18 $1.09 $.72
Extraordinary item -- (.03) (.27) (.03)
------ ------ ------ ------
Net income per
common share,
basic and diluted $.32 $.15 $.82 $.69
====== ====== ====== ======
Weighted average
number of common
and equivalent
shares outstanding 9,037 9,589 9,038 9,839
====== ====== ====== ======
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