Dayton Superior Reports Fourth Quarter and Full Year 2006 Results.DAYTON, Ohio Dayton is a city in southwestern Ohio, United States. It is the county seat and largest city of Montgomery County. As of the 2005 census estimate, the population of Dayton was 158,873. -- Dayton Superior Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DSUP DSUP Defense System Upgrade Program DSUP Detective Superintendent ) reports a fourth quarter net loss of $10 million and a full year loss of $18 million, each are significant improvements over the same periods of 2005. Fourth quarter 2006 sales totaled a record $116 million, up 14% over the fourth quarter of 2005. Product sales were $88 million, an increase of 5% from the fourth quarter of 2005. Rental revenue of $18 million increased 36% from $14 million in the fourth quarter of 2005 - the result of an improving rental market. Used rental equipment sales more than doubled to $10 million over the fourth quarter of 2005 due to higher customer demand. Used rental equipment sales may vary significantly from quarter to quarter. Gross profit was $34 million in the fourth quarter of 2006 as compared to $21 million in the same period of 2005. Product sales gross profit was $18 million, or 21% of sales, an increase from the $14 million, or 17% of sales, in the fourth quarter of 2005. The higher gross profit as a percent of sales was due to improved pricing and greater manufacturing efficiencies. Rental gross profit for the fourth quarter of 2006 was $8 million, as compared to $3 million in the fourth quarter of 2005. Depreciation on rental equipment for the fourth quarter of 2006 was $5 million, as compared to $8 million in the same period of 2005. The difference was due to a change in the estimated useful lives of certain rental equipment and to the higher sales of used rental equipment in the fourth quarter of 2006. Rental gross profit before depreciation was $13 million in the most recent quarter, a 16% increase from the $11 million reported last year. This increase in rental gross profit is from increased rental revenue and higher fleet utilization compared to 2005. Gross profit on sales of used rental equipment, which fluctuates based on the age and depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. life of the equipment sold, for the fourth quarter of 2006 was better than in the fourth quarter of 2005. Selling, general, and administrative expenses increased to $29 million in the recent quarter from $25 million for the fourth quarter of 2005. The increase was due to improved retirement account funding, higher sales incentive Noun 1. sales incentive - remuneration offered to a salesperson for exceeding some predetermined sales goal bonus, incentive - an additional payment (or other remuneration) to employees as a means of increasing output costs, rising healthcare costs and $2 million of consulting fees for profit improvement initiatives. Stock compensation expense in the fourth quarter of 2006, a non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) , was $2 million and is primarily related to the partial vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: , in connection with the initial public offering, of restricted common shares granted during 2006. Interest expense increased slightly to $13 million in the fourth quarter of 2006 from $12 million in the fourth quarter of 2005 due to higher weighted average interest rates on the revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The Company reported a net loss of $10 million for the fourth quarter of 2006, as compared to $88 million for the fourth quarter of 2005. The fourth quarter of 2005 included a $64 million 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 that did not recur in 2006. In December 2006, the Company successfully completed an initial public offering and raised $87 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). . 2006 full year sales were $479 million, up $60 million, or 14%, from 2005. Product sales were $388 million, an increase of $35 million, or 10%, from 2005. Unit volume was higher due to improving markets, and higher sales prices also contributed to the increase in product sales. Rental revenue of $63 million for 2006 increased 27% from $49 million in 2005 due to an improving rental market. Used rental equipment sales increased to $28 million for 2006 from $17 million in 2005 due to customer demand. Gross profit for 2006 was $138 million, or 29% of sales, an increase from $99 million, or 24% of sales, in 2005. Product sales contributed $92 million, or 24% of sales, an increase from the $76 million, or 21% of sales, in 2005. The $16 million increase was due to the higher unit volume and higher sales prices. The improvement in gross profit as a percent of sales was due to greater manufacturing efficiencies and additional product outsourcing. Rental gross profit for 2006 was $26 million, as compared to $11 million in 2005. Depreciation on rental equipment for 2006 was $19 million, as compared to $24 million in the same period of 2005. The difference was due to a change in the estimated useful lives of certain rental equipment and to the higher sales of used rental equipment. Rental gross profit before depreciation was $45 million in the first half, or 72% of rental revenue, a 25% increase from the $36 million, or 73% of revenue reported last year. The increase in rental gross profit before depreciation resulted from increased rental revenue and higher utilization compared to 2005. Gross profit on sales of used rental equipment for the first half 2006 was better than 2005 and fluctuates based on the age and depreciable life of equipment sold. Selling, general, and administrative expenses increased to $104 million for 2006 from $94 million in 2005. The increase was due to consulting fees for profit improvement initiatives of $4 million as well as improved retirement account funding, higher distribution costs distribution costs distribute npl → Vertriebskosten pl , additional sales incentive costs, and rising healthcare costs. Stock compensation expense in 2006, a non-cash expense, was $2 million and is primarily related to the partial vesting, in connection with the initial public offering, of restricted common shares granted during 2006. Interest expense increased to $50 million in 2006 from $48 million in 2005, primarily due to higher weighted average interest rates on the revolving credit facility. The Company reported a net loss of $18 million for 2006, compared to $115 million in 2005. Eric R. Zimmerman, Dayton Superior's President and Chief Executive Officer said, "2006 was a year of substantial and positive change for Dayton Superior. Our markets improved as did our execution. The combined result was significantly improved financial performance allowing the successful IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. in December 2006. We still have much work to do, but our 2006 performance places a solid foundation under our continuous improvement plans. Current weather challenges aside, as we look through 2007, we are encouraged by the momentum in the non-residential building markets and look forward to regularly appraising our shareholders of our progress." Dayton Superior is the leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. provider of specialized products consumed in non-residential, concrete construction, and we are the largest concrete forming and shoring rental company serving the domestic, non-residential construction market. Our products can be found on construction sites nationwide and are used in non-residential construction projects, including: infrastructure projects, such as highways, bridges, airports, power plants and water management projects; institutional projects, such as schools, stadiums, hospitals and government buildings; and commercial projects, such as retail stores, offices and recreational, distribution and manufacturing facilities. 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 building and infrastructure construction activity, which can be affected by factors outside Dayton Superior's control such as the general economy, governmental expenditures, interest rate increases, and changes in banking and tax laws; the amount of debt Dayton Superior must service; the effects of weather and the seasonality of the construction industry; Dayton Superior's ability to implement cost savings programs successfully and on a timely basis; Dayton Superior's ability to successfully integrate acquisitions on a timely basis; the mix of product sales, rental revenues, and sales of used rental equipment; cost increases in raw materials and operating costs operating costs npl → gastos mpl operacionales ; and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market response to sales price increases. 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. , Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , and current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed with the Securities and Exchange Commission. (tables follow) [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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