Denison International Reports Results for the Second Quarter and Six Months Ended June 30, 2000.Business EditorsMARYSVILLE Marysville is the name of several places. Locations Australia
Denison Denison (dĕn`ĭsən), city (1990 pop. 21,505), Grayson co., N Tex., near the Red River; inc. 1873. It is a rail center with wineries and the manufacture of machinery, apparel, and metal products. International plc (Nasdaq:DENHY) today reported results for the second quarter and six-month period ended June June: see month. 30, 2000. For the current three months ended June 30, 2000, the Company's 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 increased 15.5% to $40.0 million, from $34.6 million in the second quarter of 1999. Net sales, on a same location basis without the impact of the Riva Riva or Riva di Trento (rē`vä dē trān`tō), town (1987 est. pop. 13,200), Trentino–Alto Adige, N Italy, beautifully situated at the north end of Lake Garda. It is a summer resort and excursion center. Calzoni acquisition, completed early in the second quarter of 2000, were $36.3 million, a 4.9 % increase over second quarter 1999. Restated, same location net sales (at 1999 second quarter exchange rates) for the current second quarter were $38.3 million, a 10.7% increase over the comparable 1999 period (with the impact of the Calzoni acquisition the increase on restated net sales was 21.3%). Net income was $3.9 million, or $.35 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, for the second quarter of 2000, compared to net income of $2.9 million and 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 of $.26 for the comparable 1999 period. The continuing strengthening of the U.S. dollar against primarily the Company's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations has had a significant impact on both sales and net income for 2000. Net income, restated at 1999 exchange rates, for the quarter ended June 30, 2000 was $4.1 million, or $.37 per diluted share, as compared to $2.9 million, or $.26 per diluted share for the comparable 1999 period. For the six-month period ended June 30, 2000, net sales of $77.0 million increased by $5.9 million, or 8.3% versus the comparable period of 1999. Net sales, on a same location basis, were $73.3 million, a $2.3 million or 3.2% increase over the comparable 1999 period. Restated, same location net sales (at 1999 exchange rates) were $77.3 million for the six months ended June 30, 2000, an increase of $6.2 million or 8.8% versus 1999 (with the impact of the Calzoni acquisition the increase on restated net sales was $9.9 million or 13.9%). Net income for the six months ended June 30, 2000 was $7.0 million, or $.63 per diluted share, as compared with $5.8 million, or $.52 per diluted share for the comparable 1999 period. Net income, restated at 1999 exchange rates, for the six months ended June 30, 2000 was $7.6 million, or $.68 per diluted share, as compared to $5.8 million, or $.52 per diluted share for the comparable 1999 period. Order receipts were strong for the quarter and six months ended June 30, 2000. For the three months ended June 30, 2000 same location order receipts totaled $39.3 million ($43.2 million with the impact of the Calzoni acquisition) and represent a 21.4% increase over the comparable period of 1999. For the six months ended June 30, 2000 same location order receipts were $80.7 million ($84.6 million including the impact of the Calzoni acquisition), a 13.3% increase over 1999. Commenting on the results, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David Weir
named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market, continue to recover, but still have some way to go before reaching the levels we previously experienced. The strength of our order intake intake /in·take/ (in-tak´) the substances, or the quantities thereof, taken in and utilized by the body. intake, n the substance or quantities thereof taken in and used by the body. on a same location basis is even more evident considering the continued strength of the U.S. dollar against the Euro. For the second quarter of 2000, at 1999 exchange rates, order volume is up 28.1%, and year to date order volume increased 19.7% over 1999. Our order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. at the end of June stands at $34.5 million, including the Calzoni acquisition, versus $24.1 million at the end of June 1999. "We are continuing to control our inventories with a reduction year to date of $1.1 million (before the impact of foreign currency movements and the Calzoni acquisition), with the majority of the reductions in raw and in-process inventory. Finished goods balances have remained relatively unchanged to date for 2000 as we are producing to customer demand. For the first six months of 2000 we have generated free cash of $6.4 million, after adjusting for currency impact and the Calzoni acquisition, in line with our forecasts and expectations. Cash net of debt at the end of the second quarter stands at $24.9 million, or $2.24 per diluted share, with virtually all of the cash required for the completion of the Calzoni acquisition generated in the second quarter, leaving us free to pursue other acquisitions." Weir also added, "With a record order backlog we are going strong into the third quarter, with our only limitation being the historical shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down period in August throughout most of Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and any
additional weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of the Euro against the dollar. With the recovering
markets, the benefits of cost improvements made in prior periods and the
full integration of Calzoni into the Denison product line and
distribution network, we are poised to continue our growth throughout
2000 and into 2001."Segment Information On a segment basis versus second quarter 1999 results, same location sales in Europe for the quarter ended June 30, 2000, decreased 5.2% or $1.0 million (sales increased $2.6 million or 13.5% including the impact of the Calzoni acquisition). The continued strength of the U.S. dollar had a significant impact on the Company's European same location net sales for the second quarter of 2000, with restated net sales (at 1999 second quarter exchange rates), increasing by $1.2 million or 6.1% over the comparable 1999 period. Sales in the Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). region increased by $.9 million or 21.5%, reflecting the Company's increased penetration The successful unauthorized breach of a security perimeter. See penetration test. into the Asian markets and the overall improving economic conditions in the region. Sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. rose by $1.7 million or 16.2% over the second quarter of 1999. European net income for the quarter of $2.2 million was $.4 million or 14.5% unfavorable to 1999, due mainly to exchange rate movements. North American reported net income for the quarter ended June 30, 2000 of $.6 million, as compared to net income of $.5 million for the second quarter of 1999. Net income in the Asia-Pacific region of $.3 million was favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the loss of $.1 million recorded in the second quarter of 1999. Six months ended June 30, 2000 European same location net sales were $38.2 million, 5.2% favorable to 1999 (net sales with the Calzoni acquisition impact were $41.9 million, $1.5 million or 3.8% favorable to 1999), with restated same location European net sales (at 1999 exchange rates), increasing by $2.4 million or 5.9% over the comparable 1999 period. Net sales in the Asia-Pacific region of $9.5 million were $1.3 million or 15.3% favorable to 1999. North American year to date 2000 net sales of $25.5 million were 13.6% or $3.1 million favorable to 1999. Six months ended June 30, 2000 net income in Europe of $4.5 million was unfavorable to 1999 by $1.0 million or 18.4%, primarily reflecting exchange rate movements versus 1999. North American net income of $1.5 million was $.9 million or 143.1% favorable to 1999. Asia-Pacific region for the six months ended June 30, 2000 recorded net income of $.3 million versus a net loss of $.3 million in the comparable period of 1999. Denison International plc designs, manufactures, distributes and services highly engineered fluid power systems and components. Denison distributes its products and services globally to a diverse group of original equipment manufacturers and end users in a broad array of industrial applications, including machine tools and material handling equipment, mobile construction, agricultural and utility equipment, and marine applications, including military equipment. Certain matters discussed in this press release 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. " intended to qualify for the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. from liability established by the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those currently anticipated. Shareholder, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
DENISON INTERNATIONAL plc
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
'(Unaudited)
USD-(000's)
Three Months Ended Six Months Ended
June 30 June 30
-------------------- -------------------
2000 1999 2000 1999
-------- -------- -------- --------
Net Sales $ 39,959 $ 34,593 $ 76,992 $ 71,062
Cost of Sales 25,930 22,182 49,619 46,090
-------- -------- -------- --------
Gross Profit 14,029 12,411 27,373 24,972
% 35.1% 35.9% 35.6% 35.1%
S,G&A 8,821 8,221 17,695 16,846
-------- -------- -------- --------
Operating Income 5,208 4,190 9,678 8,126
% 13.0% 12.1% 12.6% 11.4%
Other Income /(expense) 41 (181) 143 (181)
Net Interest Income 35 64 133 135
-------- -------- -------- --------
Income Before Taxes 5,284 4,073 9,954 8,080
Tax Provision 1,427 1,200 2,935 2,321
-------- -------- -------- --------
Net Income $ 3,857 $ 2,873 $ 7,019 $ 5,759
-------- -------- -------- --------
-------- -------- -------- --------
Basic Earnings per
Share $ 0.35 $ 0.26 $ 0.63 $ 0.52
Diluted Earnings per
Share $ 0.35 $ 0.26 $ 0.63 $ 0.52
DENISON INTERNATIONAL plc
CONDENSED CONSOLIDATED BALANCE SHEETS
'(Unaudited)
USD-(000's)
June 30, December 31,
2000 1999
--------- ---------
Current assets:
Cash & cash equivalents $ 30,921 $ 31,174
Accounts receivable, net 33,924 28,267
Inventories 34,282 31,453
Other current assets 4,705 3,566
--------- ---------
Total current assets 103,832 94,460
Property, plant & equipment, net 25,329 24,519
Other assets 10,781 9,841
--------- ---------
Total assets $ 139,942 $ 128,820
--------- ---------
Current liabilities:
Notes payable to bank $ 5,924 $ 5,586
Accounts payable and other
accrued liabilities 27,623 22,341
--------- ---------
Total current liabilities 33,547 27,927
Noncurrent liabilities 20,435 19,833
Shareholders equity:
Retained earnings 89,710 82,691
Other shareholders equity (3,750) (1,631)
--------- ---------
Total shareholders equity 85,960 81,060
Total liabilities and
shareholders equity $ 139,942 $ 128,820
--------- ---------
--------- ---------
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion