Dayton Superior Reports Record Fourth Quarter and Full Year Results; 1999 Diluted Earnings Per Share of $2.30 Advance 39%.Business Editors 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. 17, 2000 Dayton Superior (NYSE NYSE See: New York Stock Exchange :DSD (Direct Stream Digital) See SACD. ) today reported record sales and earnings for calendar 1999 and the fourth quarter of the year. Sales for all of 1999 were a record $322.2 million, 13.9% higher than 1998 sales of $282.8 million. Reflecting strong internal growth and contributions from recent acquisitions as well as a non-recurring gain of $0.07 per share due to a pension plan termination Plan termination for ERISA defined benefit pension plans, is either the voluntary act of a pension plan sponsor who no longer believes that the costs of providing the pension outweighs its benefits, or the involuntary termination by the PBGC when the federal pension agency believes , Dayton Superior reported 1999 profit of $14.3 million, or $2.41 per basic and $2.30 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 $10.1 million, or $1.72 per basic and $1.65 per diluted share, earned in 1998. Gross margin for all of 1999 was 38.1% compared to 37.4% last year while SG& expenses, including amortization, decreased 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 26.1% from 26.9% in 1998. As a result, operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased by 1.5%, with the 1999 operating margin of 12.0% comparing quite 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 10.5%, while pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margins were 8.3% for the year versus 6.5% in the prior year. Sales in the fourth quarter of 1999 were $71.6 million, an increase of 11.8% over sales of $64.1 million in the fourth quarter of 1998. Net income available to common shareholders rose to $1.9 million, or $0.32 per basic and $0.31 per diluted share, compared to $1.1 million, or $0.19 per basic and $0.18 per diluted share, in the fourth quarter of 1998. The Company benefited from continued 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 margin for the most recent quarter was 39.8% compared to 38.9% for the same period in 1998 while SG& expenses, including amortization, were down as a percent of net sales to 30.3% from 31.2% the previous year. Dayton Superior's operating margins were up 1.8%, with the recent quarter's 9.5% comparing favorably with the year earlier operating margin of 7.7% while pretax margins were 5.7% during the recent quarter versus 3.2% in the year earlier quarter. J. A. &uot;Chic&uot; Ciccarelli, Dayton Superior's President and Chief Executive Officer said, &uot;The Company turned in another record performance for 1999 as we continued to build on our outstanding performance in 1998. Our sales advanced by 13.9% while diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased by 39.4%. Revenues benefited from a combination of factors including a good business environment, continued market share gains and contributions of recently acquired companies. This was another year of exceptional performance with record sales and earnings for the Company. I am truly proud of our employees, the results were outstanding and I applaud their efforts.&uot; On January January: see month. 19, 2000, Dayton Superior entered into a merger agreement providing for the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of the company by Stone Acquisition Corp., a wholly-owned subsidiary of Odyssey Odyssey (ŏd`ĭsē): see Homer. Odyssey Homer’s long, narrative poem centered on Odysseus. [Gk. Lit.: Odyssey] See : Epic Odyssey Investment Partners Fund, L.P., a New York-based private equity investment fund, pursuant to which Dayton Superior's shareholders will receive $27.00 in cash for each common share held by them. The merger is conditioned on approval by the Dayton Superior shareholders, receipt of financing, government regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals and other customary conditions. Dayton Superior Corporation, with annual revenues of $322 million, 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 Superior(R), Dayton/Richmond(R), 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. (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. (tables follow)
Dayton Superior Corporation
Summary Income Statement, Unaudited
(in thousands, except share and per share data)
For the fiscal quarter ended:
Dec. 31,1999 Dec. 31, 1998
Results of Operations:
Concrete Accessories $33,032 $29,258
Concrete Forming Systems 30,303 25,855
Paving Products 6,104 4,792
Masonry Products 7,749 6,094
Intercompany Eliminations (5,579) (1,940)
Net Sales 71,609 64,059
Cost of Sales 43,083 39,101
Gross Profit 28,526 24,958
Gross Margin 39.8% 38.9%
Selling, General &Administrative 21,080 19,325
Amortization of Intangibles 608 684
Total Selling, General &Administrative 21,688 20,009
30.3% 31.2%
Operating Income 6,838 4,949
Operating Margin 9.5% 7.7%
Interest Expense 2,716 2,922
Other Expense/(Income) 53 (24)
Income Before Income Taxes 4,069 2,051
Pretax Margin 5.7% 3.2%
Provision for Income Taxes 1,831 923
Effective Tax Rate 45.0% 45.0%
Net Income 2,238 1,128
Dividend on Mandatorily Redeemable
Convertible Trust Preferred Securities,
Net of Income Tax Benefit 320 --
Net Income Available to Common
Shareholders $1,918 $1,128
Basic Weighted Average Common
Shares Outstanding 5,943,183 5,953,903
Basic Net Income per Share $0.32 $0.19
Diluted Weighted Average Common and
Common Equivalent Shares Outstanding 6,152,793 6,183,870
Diluted Net Income per Share $0.31 $0.18
Dayton Superior Corporation
Summary Income Statement, Unaudited
(in thousands, except share and per share data)
For the year ended:
Dec. 31, 1999 Dec. 31, 1998
Results of Operations:
Concrete Accessories $144,722 $131,467
Concrete Forming Systems 122,720 104,711
Paving Products 36,695 30,967
Masonry Products 28,265 24,292
Intercompany Eliminations (10,232) (8,588)
Net Sales 322,170 282,849
Cost of Sales 199,464 177,094
Gross Profit 122,706 105,755
Gross Margin 38.1% 37.4%
Selling, General &Administrative 81,800 73,721
Amortization of Intangibles 2,369 2,213
Total Selling, General &Administrative 84,169 75,934
26.1% 26.9%
Operating Income 38,537 29,821
Operating Margin 12.0% 10.5%
Interest Expense 11,661 11,703
Other Expense/(Income) 230 (202)
Income Before Income Taxes 26,646 18,320
Pretax Margin 8.3% 6.5%
Provision for Income Taxes 11,991 8,244
Effective Tax Rate 45.0% 45.0%
Net Income 14,655 10,076
Dividend on Mandatorily Redeemable
Convertible Trust Preferred Securities,
Net of Income Tax Benefit 320 --
Net Income Available to Common
Shareholders $14,335 $10,076
Basic Weighted Average Common
Shares Outstanding 5,944,667 5,867,388
Basic Net Income per Share $2.41 $1.72
Diluted Weighted Average Common and
Common Equivalent Shares Outstanding 6,376,958 6,098,205
Diluted Net Income per Share $2.30 $1.65
Dayton Superior Corporation
Supplementary Information, Unaudited
% Change 1999 vs. 1998:
Fourth Quarter Full Year
Results of Operations:
Concrete Accessories 12.9% 10.1%
Concrete Forming Systems 17.2% 17.2%
Paving Products 27.4% 18.5%
Masonry Products 27.2% 16.4%
Net Sales 11.8% 13.9%
Cost of Sales 10.2% 12.6%
Gross Profit 14.3% 16.0%
Selling, General &Administrative 9.1% 11.0%
Amortization of Intangibles (11.1%) 7.0%
Total Selling, General &Administrative 8.4% 10.8%
Operating Income 38.2% 29.2%
Interest Expense (7.0%) (0.4%)
Income Before Income Taxes
98.4% 45.4%
Net Income 98.4% 45.4%
Net Income Available to Common
Shareholders 70.0% 42.3%
Basic Net Income per Share 68.4% 40.1%
Diluted Net Income per Share 72.2% 39.4%
Dayton Superior Corporation
Summary Balance Sheet, Unaudited
(in thousands)
As of:
Dec. 31, 1999 Dec. 31, 1998
Summary Balance Sheet:
Cash $4,553 $560
Accounts Receivable, Net 45,085 42,996
Inventories 39,340 36,058
Other Current Assets 10,587 8,745
Total Current Assets 99,565 88,359
Rental Equipment, Net 58,748 52,586
Property &Equipment, Net 43,910 41,781
Goodwill &Other Assets 76,456 70,894
Total Assets $278,679 $253,620
Current Maturities of
Long-Term Debt $32 $32
Accounts Payable 22,802 20,749
Other Current Liabilities 21,262 22,851
Total Current Liabilities 44,096 43,632
Long-Term Debt 105,141 118,173
Other Long-Term Liabilities 21,114 17,227
Mandatorily Redeemable
Convertible Trust
Preferred 19,556 --
Securities
Shareholders' Equity 88,772 74,588
Total Liabilities &Shareholders' Equity $278,679
$253,620
Dayton Superior Corporation
Summary Cash Flow Statement, Unaudited
(in thousands)
For the year ended:
Dec. 31, 1999 Dec. 31, 1998
Net Income $14,655 $10,076
Non-Cash Adjustments to Net Income 11,831 6,666
Changes in Assets and Liabilities,
Net (3,071) 2,859
of the Effects of Acquisitions
Net Cash Provided by
Operating Activities 23,415 19,601
Property, Plant and Equipment
Additions, Net (7,469) (6,118)
Rental Equipment Additions, Net (4,052) (6,783)
Acquisitions (14,054) (1,784)
Net Cash Used in Investing Activities (25,575) (14,685)
Issuance of Mandatorily Redeemable
Convertible Trust Preferred 19,554 --
Securities
Repayment of Long-Term Debt, Net (13,032) (4,276)
Other, Net (369) (80)
Net Increase in Cash $3,993 $560
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