Dayton Superior Corporation Achieves Record Fourth Quarter and Full Year Results; 1998 Diluted Earnings Per Share of $1.65 Advance 42% From 1997 Pro Forma Results.DAYTON Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , Ohio--(BUSINESS WIRE)--Feb. 3, 1999--Dayton Superior (NYSE NYSE See: New York Stock Exchange :DSD (Direct Stream Digital) See SACD. ) today reported record sales and earnings for calendar 1998 and the fourth quarter of the year. Sales for all of 1998 were a record $282.8 million, 68.9% higher than reported 1997 sales of $167.4 million. Reflecting strong internal growth and the benefits of the acquisition of Symons Sy·mons , Arthur 1865-1945. British poet and literary critic who translated many French symbolist works into English and wrote The Symbolist Movement in Literature (1899). Noun 1. Corporation, Dayton Superior reported 1998 profit of $10.1 million, or $1.72 per basic and $1.65 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus the $7.0 million, or $1.22 per basic and $1.17 per diluted share, earned in 1997. Earnings of $1.65 per diluted share for the year were 42.2% ahead of the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma profit of $1.16 per diluted share which would have been recorded had Dayton Superior owned Symons during all of 1997. Gross margin for all of 1998 was 38.3%, up from 34.0% last year while SG&A expenses were up as a percent of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight to 27.0% from 22.3% in 1997. Both figures were significantly impacted by the acquisition of Symons Corporation. On a pro forma basis, the combined company's sales increased by 12.1%, while gross margins improved by over two percentage points, increasing to 38.3% from 36.1% in 1997. SG&A costs increased to 27.0% of revenues in 1998 from 26.0% in the prior year on a pro forma basis. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: at 10.5% during the year were up by 1.1% compared to 1997 pro forma results of 9.4% while pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margins increased to 6.5% from the 4.8% pro forma results for 1997. Fourth quarter sales at $64.1 million increased by 8.6%, compared to sales of $59.0 million achieved in the fourth quarter of 1997. Since Symons was acquired on September September: see month. 30, 1997, no fourth quarter pro forma adjustment is required for sales or margin comparisons. Profits rose to $1.1 million, or $0.19 per basic and $0.18 per diluted share, compared to the $0.4 million, or $0.08 earned per basic and $0.08 per diluted share, in the fourth quarter of 1997. The Company benefited from market share gains as well as from generally favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. weather conditions. Gross margins for the most recent quarter moved up to 39.9% from 37.1% in the prior year while SG&A expenses as a percent of sales moved up to 31.1% from 29.5% the previous year. Dayton Superior's operating margins were up with the recent quarter's 7.7% operating margin comparing favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the year earlier operating margin of 6.7% while pretax margins were 3.2% during the recent quarter versus 1.3% in the year earlier quarter. John A. "Chic" Ciccarelli, Dayton Superior's President and Chief Executive Officer said, "The Company's performance in 1998 was truly outstanding. Our sales advanced by 12.1% on a pro forma basis, far outpacing our flat markets, while earnings were up significantly, 42.2%, on a pro forma basis. Our gross margins improved nicely reflecting higher factory utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be levels and combined material purchasing. While our SG&A has moved up moderately on a pro forma basis, this is essentially due to expected growth and integration costs as well as to a higher mix of rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. revenues which are more SG&A intensive. Our acquisition program continues to yield favorable results as we assimilate as·sim·i·late v. 1. To consume and incorporate nutrients into the body after digestion. 2. To transform food into living tissue by the process of anabolism. the three companies acquired last year and the one acquired already this year, all of which are expected to add to our 1999 profits." Mr. Ciccarelli went on to say, "It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have clear that 1998 was an exceptional year by any measure, with record sales and earnings for our Company. I am quite proud of our employees and the results they were able to accomplish. Prospects for this year are also excellent, as we benefit from expanded government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. for the infrastructure under the TEA-21 legislation, from an improving non-residential construction market and from growing contributions from our acquisition program." Dayton Superior Corporation is the largest North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. manufacturer and distributor of metal accessories and forms used in concrete construction and metal accessories used in masonry masonry: see brick; concrete; stonework; tile. masonry Craft of building in stone, brick, or block. By 4000 BC, Egypt had developed an elaborate cut-stone technique. construction and has an expanding construction chemicals business. The Company's products, which are marketed under the Dayton/Richmond(R), Symons(R), 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 Highway Technology(R) and Dur-O-Wal(R) names, among others, are used primarily in two segments of the construction industry: non-residential buildings and infrastructure construction projects. Note: Certain statements made herein concerning anticipated future performance are 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. . These forward-looking statements are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of important factors. Representative examples of these factors include (without limitation) the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of nonresidential Adj. 1. nonresidential - not residential; "the commercial or nonresidential areas of a town"; "community colleges are typically nonresidential" residential - used or designed for residence or limited to residences; "a residential hotel"; "a residential quarter"; "a building and infrastructure construction activity, which can be affected by factors outside Dayton Superior's control such as the general economy, governmental expenditures and changes in banking and tax laws; Dayton Superior's ability to successfully integrate acquisitions on a timely basis; and the seasonality of the construction industry. This list of factors is not intended to be exhaustive, and additional information concerning relevant risk factors can be found in Dayton Superior'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. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. -0-
Dayton Superior Corporation
Summary Income Statement, Unaudited
(in thousands, except share and per share data)
For the fiscal quarter ended:
Dec. 31, 1998 Dec. 31, 1997
Results of Operations:
Concrete Accessories Products $29,258 $26,720
Forming Products 25,855 21,066
Paving Products 4,792 5,638
Masonry Accessories Products 6,094 5,577
Intercompany Eliminations (1,940) 0
Net Sales 64,059 59,001
Cost of Sales 38,502 37,139
Gross Profit 25,557 21,862
Gross Margin 39.9% 37.1%
Selling, General & Administrative 19,924 17,416
31.1% 29.5%
Amortization of Intangibles 684 493
Operating Income 4,949 3,953
Operating Margin 7.7% 6.7%
Interest Expense 2,922 3,250
Other Expense/(Income) (24) (84)
Income Before Income Taxes 2,051 787
Pretax Margin 3.2% 1.3%
Provision for Income Taxes 923 338
Effective Tax Rate 45.0% 42.9%
Net Income $1,128 $449
Basic Weighted Average Common
Shares Outstanding 5,953,903 5,724,998
Basic Net Income per Share $0.19 $0.08
Diluted Weighted Average Common and
Common Equivalent Shares Outstanding 6,183,870 5,947,577
Diluted Net Income per Share $0.18 $0.08
Dayton Superior Corporation
Summary Income Statement, Unaudited
(in thousands, except share and per share data)
For the year ended:
Dec. 31, 1998 Dec. 31, 1997
Results of Operations:
Concrete Accessories Products $131,467 $92,251
Forming Products 104,711 21,066
Paving Products 30,967 29,177
Masonry Accessories Products 24,292 24,918
Intercompany Eliminations (8,588) 0
Net Sales 282,849 167,412
Cost of Sales 174,423 110,528
Gross Profit 108,426 56,884
Gross Margin 38.3% 34.0%
Selling, General & Administrative 76,392 37,277
27.0% 22.3%
Amortization of Intangibles 2,213 1,885
Operating Income 29,821 17,722
Operating Margin 10.5% 10.6%
Interest Expense 11,703 5,556
Other Expense/(Income) (202) (64)
Income Before Income Taxes 18,320 12,230
Pretax Margin 6.5% 7.3%
Provision for Income Taxes 8,244 5,277
Effective Tax Rate 45.0% 43.1%
Net Income $10,076 $6,953
Basic Weighted Average Common
Shares Outstanding 5,867,338 5,703,601
Basic Net Income per Share $1.72 $1.22
Diluted Weighted Average Common and
Common Equivalent Shares Outstanding 6,098,205 5,933,244
Diluted Net Income per Share $1.65 $1.17
Dayton Superior Corporation
Supplementary Information, Unaudited
% Change 1998 vs. 1997:
Fourth Quarter Full Year
Results of Operations:
Concrete Accessories Products 9.5% 42.5%
Forming Products 22.7% 397.1%
Paving Products (15.0%) 6.1%
Masonry Accessories Products 9.3% (2.5%)
Net Sales 8.6% 68.9%
Cost of Sales 3.7% 57.8%
Gross Profit 16.9% 90.6%
Selling, General & Administrative 14.4% 104.9%
Amortization of Intangibles 38.7% 17.4%
Operating Income 25.2% 68.3%
Interest Expense (10.1%) 110.6%
Income Before Income Taxes 160.6% 49.8%
Net Income 151.2% 44.9%
Basic Net Income per Share 137.5% 41.0%
Diluted Net Income per Share 125.0% 41.0%
Dayton Superior Corporation
Summary Balance Sheet, Unaudited
(in thousands)
As of:
Dec. 31, 1998 Dec. 31, 1997
Summary Balance Sheet:
Cash $560 $0
Accounts Receivable 42,996 35,054
Inventories 36,058 32,873
Other Current Assets 8,745 8,791
Total Current Assets 88,359 76,718
Rental Equipment, Net 52,586 38,327
Property & Equipment, Net 41,781 41,352
Goodwill & Other Assets 70,894 70,533
Total Assets $253,620 $226,930
Current Maturities of Long-Term Debt $32 $32
Accounts Payable 20,749 15,753
Other Current Liabilities 22,851 15,568
Current Liabilities 43,632 31,353
Long-Term Debt 118,173 120,204
Other Long-Term Liabilities 17,227 14,844
Shareholders' Equity 74,588 60,529
Total Liabilities & Equity $253,620 $226,930
Dayton Superior Corporation
Summary Cash Flow Statement, Unaudited
(in thousands)
For the year ended:
Dec. 31, 1998 Dec. 31, 1997
Net Income $10,076 $ 6,953
Non-Cash Adjustments to Net Income 6,666 5,727
Changes in Assets and
Liabilities, Net of the Effects of
Acquisitions 2,859 (2,313)
Net Cash From Operating Activities 19,601 10,367
Property, Plant and Equipment
Additions, Net (6,118) (4,425)
Rental Equipment Additions, Net (6,783) (1,247)
Acquisitions, Net of Debt Assumed and
Cash Acquired (1,784) (33,467)
Net Cash Used in Investing Activities (14,685) (39,139)
Repayment of Long-Term Debt
Assumed in Acquisitions (2,245) (47,670)
Issuance (Repayment) of Other Long-
Term Debt, Net (2,031) 80,467
Other, Net (80) (4,228)
Net Increase (Decrease) in Cash 560 (203)
Dayton Superior Corporation
Pro Forma Combined Statement of Operations
(in thousands, except share and per share data)
The unaudited pro forma combined financial information is based
upon the historical consolidated financial statements of the Company
and Symons adjusted to give effect of the acquisition of Symons,
including the portion of the Company's Credit Agreement used to pay
Symons' shareholders and to refinance Symons' long-term debt, as if it
had occurred on January 1, 1997. The unaudited financial information
does not give effect to any other transactions (including the portion
of the Company's Credit Agreement used to refinance the Company's
long-term debt) and does not purport to represent the Company's
results of operations. The pro forma combined information should be
read in conjunction with the Company's historical consolidated
financial statements and notes thereto in the Company's annual report
on Form 10-K and quarterly reports on Form 10-Q.
For the Year % Change
Ended 1998 vs.
Dec. 31, 1997 1997 Pro Forma
Net Sales $252,326 12.1%
Cost of Sales 161,159 8.2%
Gross Profit 91,167 18.9%
Gross Margin 36.1%
Selling, General & Administrative 65,492 16.6%
26.0%
Amortization of Intangibles 1,885 17.4%
Operating Income 23,790 25.4%
9.4%
Interest Expense 11,672 0.3%
Other Expense (Income) 27
Income Before Income Taxes 12,091 51.5%
4.8%
Provision for Income Taxes 5,225 57.8%
Effective Tax Rate 43.2%
Net Income $6,866 46.8%
Basic Weighted Average Common
Shares Outstanding 5,703,601
Basic Net Income per Share $1.20 43.3%
Diluted Weighted Average Common
and Common Equivalent Shares
Outstanding 5,933,244
Diluted Net Income per Share $1.16 42.2%
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion