Congoleum Corporation Reports Third Quarter Results.Business Editors MERCERVILLE, N.J.--(BUSINESS WIRE)--Nov. 8, 2001 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 third quarter ended September September: see month. 30, 2001. Sales for the three months ended September 30, 2001 were $57.9 million, compared with sales of $61.0 million reported in the third quarter of 2000, a decrease of 5.1%. Net income for the quarter ended September 30, 2001 was $1.2 million versus income of $1.7 million in the third quarter of 2000. Earnings per share for the quarter ended September 30, 2001 were $.14 compared to $.21 in the third quarter of 2000. Sales for the nine months ended September 30, 2001 were $166.6 million, compared with sales of $173.1 million in the first nine months of 2000, a decrease of 3.8%. The net loss for the first nine months of 2001 was $2.4 million, or $.28 per share, a comparable performance to a loss of $2.4 million or $.29 per share for the first nine months of 2000. Roger S. Marcus Marcus, in the Bible: see Mark, Saint. , Chairman of the Board, commented, "Although sales and profitability for the third quarter were below last year's level, they represent a considerable improvement over the first two quarters of 2001. I view this performance as very positive in light of the extremely difficult economic conditions in both the conventional and 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 markets. We believe this progress is the result of several steps we have taken, including but not limited to the following: -- Major cost reductions instituted in the first quarter have positioned the company with a significantly lower break even point. -- The recent launch of a ceramic-like product, Durastone. Retail response to this introduction suggests unprecedented sales potential. -- Lowe's recent appointment of Congoleum as a supplier. These accomplishments, as well as other programs that are under development, should provide further momentum to both top and bottom line performance in the future. While the events of September 11 had some impact on our September business, October October: see month. sales returned to the prior positive trend." 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. which involve a number of risks and uncertainties, including product demand, consumer preferences, the effect of a change in distribution, changes in customer inventories, pricing, competitive factors, raw material prices, general and manufactured housing market conditions, and availability of insurance expenses coverage for resolving asbestos-related claims and other factors. 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 December: see month. 31, 2000 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 For the Nine
Months Ended Months Ended
Sept. 30, Sept. 30,
--------- ---------
2001 2000 2001 2000
---- ---- ---- ----
Net sales $ 57,881 $ 60,979 $ 166,598 $ 173,109
Cost of sales 41,631 45,470 124,903 132,609
Selling, general
& administrative
expenses 12,773 11,771 40,535 40,871
--------- --------- --------- ---------
Income (loss) from
operations 3,477 3,738 1,160 (371)
Interest expense,
net (1,878) (1,383) (5,603) (4,095)
Other income, net 303 296 1,130 1,156
--------- --------- --------- ---------
Income (loss)
before income
taxes 1,902 2,651 (3,313) (3,310)
Provision (credit)
for income taxes 732 926 (961) (898)
--------- --------- --------- ---------
Net income (loss) $ 1,170 $ 1,725 $ (2,352) $ (2,412)
========= ========= ========= =========
Earnings (loss)
per common share $ .14 $ .21 $ (.28) $ (.29)
========= ========= ========= =========
Weighted average
number of common
and equivalent
shares outstanding:
Basic shares 8,260 8,260 8,260 8,269
========= ========= ========= =========
Diluted shares 8,260 8,265 8,260 8,269
========= ========= ========= =========
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