Dayton Superior Corporation reports fourth quarter and full year earnings.MIAMISBURG, Ohio--(BUSINESS WIRE)--Feb. 18, 1997-- Three major events, the acquisition of Dur-O-Wal in October of 1995, our initial public underwriting in June of 1996, and the concurrent prepayment of previously outstanding debt make our earnings reports complex and difficult to analyze. In order to help shareholders and potential investors make meaningful comparisons, the text below is written on a pro-forma basis, as if all three of these corporate events had occurred on January 1, 1995. However, the tables that accompany this text provide our financial statements both ways on an originally incurred basis and on a pro-forma basis. Dayton Superior (NYSE NYSE See: New York Stock Exchange :DSD (Direct Stream Digital) See SACD. ) reported earnings of $0.03 per share on sales of $27.3 million for the fourth quarter of 1996. This compares with a deficit of $0.58 per share on sales of $24.8 million in the year earlier quarter. Sales advanced at a healthy 10.3% rate year-over-year, helped by modest growth in our markets, growing contributions from new product offerings, and continued market share gains. Gross margins declined by one percentage point, in part because lower margined paving products had the greatest sales gains, and in part because the company elected to make significant investments in depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. rental equipment. As a partial offset, Dayton Superior's Selling, General and Administrative expense ratio improved by 0.3% as costs continued to be tightly controlled. Importantly, this SG&A ratio improvement was achieved despite incurring costs associated with being a publicly owned Publicly owned can refer to:
The ratio of operating profit to net sales. of 4.1% vs. 4.7% in the fourth quarter of 1995. Reflecting the interplay between higher sales and lower operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , the company's operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. were $1,114,000 in the recent quarter versus $1,166,000 in the year earlier quarter. On a year-over-year basis, pretax profit totaled $245,000 in the fourth quarter of 1996 vs. $340,000 in the fourth quarter of 1995. However, fourth quarter 1996 profits were taxed at an effective rate of 23.3% vs. a 167.6% effective rate in the fourth quarter of 1995. In addition, 1995's fourth quarter profits available for common shareholders were burdened by a $3.0 million charge for dividends and redemption premium redemption premium See call premium. oe for common shareholders of $188,000 in the mosllion. This compares with pro-forma earnings Pro-Forma Earnings Projected earnings based on a set of assumptions and often used to present a business plan (in Latin pro forma means "for the sake of form"). It also refers to earnings which exclude non-recurring items. Pro-forma earnings are not derived by standard GAAP methods. per share of $0.28 on revenues of $113.7 million for 1995. proved operating profit margin. As a result, operating profits for the year improved by 27.3%. Pretax profits improved by 39.9%. However, accrual of taxes at a 42.5% rate in 1996 vs. a 25.4% rate in 1995 (which benefited from availability of a tax loss carry forward) limited the gain in after tax net income to 7.8%. In 1996, after tax net available for common shareholders totaled $5,561,000. This compares with after tax net income available for common shareholders of $1,526,000 in 1995. Note that 1995 results were burdened by a $3,634,000 charge for dividends and redemption premium on preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . On a longer term basis, Dayton Superior intends to follow the strategies which have served it so well in the past: continuet acquisition of 1997 - Ironco - is scheduled d masonry construction. The company's products are used primarily in two segments of the construction industry: non-residential buildings and infrastructure constru For the Quarter Ended December 31 Concrete products $21, Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold 19,478 16,465 19,478 17,408 Gross profit 7,846 7,228 7,846 7,361 Gross margin 28.7% 30.5% 28.7% 29.7% 22.9% 23.3% 22.9% 23.2% Amort of intangibles 482 440 482 457 Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 27 832 Other (income) expense Net income (loss) $188 ($549) $188 ($230) Net incomeWeighted average common and common equivalent Sales growth n Superior Corporation Unaudited Financial Information Release Summary Income Statement (in thousands, except share and per sha $98,567 $88,008 $98,567 $88,008 Masonry products 25,919 4,794 25,9 Cost of goods sold 1,749 1,491 1,749 1,830 9.1% xes and extraordinary item 8,154 4,395 9(690) (4,116) (1,759) Effective tax rate(2 0 Net income (loss) $2,302 and common equivalent shares outstanding(3) 4,932,172 3,558,908 5,888,726 5,533,658 Net income per share before extraordinary item $0.94 $0.02 $0.94 $0.28 Net income per share $0.47 $0.02 $0.94 $0.28 Summary financial highlights: Sales growth 34.1% 9.5% Operating income growth 51.7% 27.3% See the accompanying footnotes Dayton ,724 Inventories 14,155 12,392 Rental equipment, net 2,090 1,235 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 2,736 2,303 Total currentreholders' equity 52,872 27,485 the June 1996 initial public offering as if they had occurred on January 1, 1995. The unaudited 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 combined financial income statement does not give effect ton of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . If the Cmmon and common equ ivalent shares outstanding are the December 31, 1995 and 1996 common share and common share equivalent shares outstanding, respectively. CONTACT: Dayton Superior Corporation, Miamisburg John A. Ciccarelli, 937/866-0711, Ext. 400 Fax: 937/866-9448 |
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