Congoleum Corporation Reports First Quarter Results.Business Editors MERCERVILLE, N.J.--(BUSINESS WIRE)--May 8, 2002 Congoleum Corporation (AMEX AMEX See: American 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. ) reported today its financial results for the first quarter ended March 31, 2002. Sales for the three months ended March 31, 2002 were $57.9 million, compared with sales of $51.6 million reported in the first quarter of 2002, an increase of 12.3%. The net loss for the quarter (before a required accounting change) was $0.6 million versus a net loss of $3.7 million in the first quarter of 2001. The net loss per share (before accounting change) was $.08 in the first quarter of 2002 compared with $.45 per share in the first quarter of 2001. The Company recorded a non-cash transition charge of $10.5 million or $1.27 per share in the first quarter of 2002 for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill as required for adoption of Statement of Financial Accounting Standards No. 142. Roger S. Marcus Marcus, in the Bible: see Mark, Saint. , Chairman of the Board, commented "Congoleum's results in the first quarter of 2002 showed a quantum improvement over the first quarter of 2001. Several factors contributed to the sales growth. First, shipments of the new DuraStone product continue to surpass even our most optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op projections. Second, the quarter benefited from initial shipments to a major home center chain. A third factor contributing to the improvement was sales of the newly introduced sheet product, Utopia. Fourth, our builder products are selling well as a result of the new designs and constructions we added last fall. Finally, sales 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 were up from the very low levels of the first quarter of 2001. However, the near-term near-term adj. Of, for, or involving a short period of time in the near future. outlook for this segment remains weak and we do not anticipate sales for the balance of 2002 will exceed prior year levels." Mr. Marcus continued, "Despite the increased sales, we reported a loss for the quarter, albeit a much lesser one than the first quarter of last year. Our initial investment for expansion in the mass merchandiser business, combined with costs associated with launching new products, has had a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. negative effect on profitability. This has offset savings from lower raw materials costs and further improvements in manufacturing efficiency. "For the balance of the year, we expect to continue to benefit from sales of our new products. April business was excellent, with incoming orders the best they have been in years despite the tepid tep·id adj. 1. Moderately warm; lukewarm. 2. Lacking in emotional warmth or enthusiasm; halfhearted: "the tepid conservatism of the fifties" Irving Howe. state of manufactured housing. If these trends continue and we maintain the pace of improvement over 2001 that we achieved in the first quarter, we should turn in a very solid performance for the full year of 2002." Congoleum Corporation 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 55% 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: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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although the Company believes that its expectations are based on reasonable assumptions, within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Factors that could cause actual results to differ from expectations include: (i) the future cost and timing of payments associated with and availability of insurance coverage for asbestos-related personal injury claims, as well as other environmental, product and general liability claims, (ii) increases in raw material prices, (iii) increased competitive activity from companies in the flooring industry, some of which have greater resources and broader distribution channels than the Company, (iv) unfavorable developments in the national economy or in the housing industry in general, (v) shipment delays, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able of inventory and increased production costs resulting from unforeseen disruptions of operations at any of the Company's facilities or distributors, and (vi) changes in distributors of the Company's products. Actual results could differ significantly as a result of these and other factors discussed in the Company's Annual 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. for the year ended December 31, 2001 filed with the Securities and Exchange Commission. (See attached table)
CONGOLEUM CORPORATION
RESULTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(Unaudited)
For the Three
Months Ended
March 31,
2002 2001
---- ----
Net sales $ 57,926 $ 51,583
Cost of sales 44,065 42,610
Selling, general &
administrative expenses 13,152 13,179
-------- --------
Income (loss) from operations 709 (4,206)
Interest expense, net (2,007) (1,821)
Other income, net 352 370
-------- --------
Loss before income taxes and cumulative
effect of accounting change (946) (5,657)
Benefit for income taxes (299) (1,980)
-------- --------
Net loss before accounting change (647) (3,677)
Cumulative effect of accounting change (10,523) --
-------- --------
Net loss $(11,170) $ (3,677)
======== ========
Net loss per common share before effect
of accounting change, basic and diluted $ (.08) $ (.45)
Cumulative effect of accounting change (1.27) --
-------- --------
Net loss per common share, basic and
diluted $ (1.35) $ (.45)
======== ========
Weighted average number of common
shares outstanding: 8,260 8,260
======== ========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion