Essef reports fiscal 1995 year end and fourth quarter financial results.CHARDON, Ohio--(BUSINESS WIRE)--Nov. 21, 1995--Essef 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 :ESSF ESSF Enroute System Support Facility ) today announced that 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 for the fourth quarter ending September September: see month. 30, 1995, were $39,620,000, up 15.6 percent from $34,285,000 for the fourth quarter of fiscal 1994. Fourth-quarter net income for fiscal 1995 was $1,310,000, or $0.22 per share, and included an extraordinary gain of $920,000, or $0.16 per share, from an insurance settlement for fire damage to the Company's Hobson Hobson may refer to: People with the surname Hobson:
"The fourth quarter's financial results were depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. by a number of variances from our plan that created a very disappointing result," commented Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs B. Waldin, Essef's President and Chief Executive Officer. "We have identified and taken actions to resolve the sources of these variances and expect the corrections to begin to take hold in the first quarter of 1996. The underlying trends in our businesses remain firmly positive leading us to expect a strong rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in earnings for fiscal 1996." "All major operations experienced sales growth for the fourth quarter and full year, except ENPAC," added Mr. Waldin. "This unit faced sharply increased competition during the year, which caused a decline in sales and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. ." "Essef's Swimming Pool and Spa Equipment business segment gained market share in a year with weather-related declining industry Declining Industry An industry where growth is either negative or is not growing at the broader rate of economic growth. There are many reasons for a declining industry: consumer demand may be steadily evaporating, the depletion of a natural resource may be occurring, or there may sales," commented Mr. Waldin. "Sales for this segment increased 6 percent for the fourth quarter and 25 percent for the year. Pool and Spa earnings were break even for the quarter, but below 1994 due to material cost increases and an inability to reduce manufacturing costs in line with the more rapid than normal seasonal volume decline. For the 1995 fiscal year, the Swimming Pool and Spa Equipment business segment had a 21 percent increase in 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. ." Mr. Waldin continued, "For Essef's Water Treatment and Systems business segment, sales were up 26 percent for the fourth quarter and 10 percent for the fiscal year. Profitability declined, however, primarily because of higher costs for raw materials and the ENPAC unit's operating loss of $1.5 million. Raw materials costs are now declining, and we are taking strong actions to boost ENPAC's sales and profits by bolstering its sales force and accelerating product development." For the 1995 fiscal year, net sales advanced 17.5 percent to a record $157,507,000 from $134,020,000 for fiscal 1994. Net income for fiscal 1995 (including the $920,000, or $0.16 per share, extraordinary gain) was $7,511,000 or $1.29 per share. For fiscal 1994, net income was $6,995,000, or $1.22 per share. "We believe that our overall sales growth trend will continue in fiscal 1996," Mr. Waldin said. "The first quarter's results may feel the residual Residual See:Residual value effects of the fiscal 1995 variances, but we expect positive momentum to build throughout the year. "For our established business units, our efforts to turn around sales and earnings are already having a positive impact," Mr. Waldin concluded. The three businesses that Essef acquired in fiscal 1995--ASI, Compool, and Euroimpex--contributed $4.2 million in sales for the fourth quarter and full year. For fiscal 1996, they should generate approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $25 million in sales. Together, these companies made a positive contribution to operating income for fiscal 1995, and we expect this contribution to increase for fiscal 1996." Essef Corporation designs and manufactures components to move, store, and treat water through the application of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" polymeric polymeric /poly·mer·ic/ (pol?i-mer´ik) exhibiting the characteristics of a polymer. pol·y·mer·ic adj. 1. Having the properties of a polymer. 2. materials and innovative process technologies. The Company's Pac-Fab subsidiary is the world's second-largest supplier of swimming pool water treatment equipment, including filters, pumps, heaters, controls, and lights. The Structural 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. division designs, manufactures, and markets cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. fiberglass-reinforced pressure vessels Pressure vessel A cylindrical or spherical metal container capable of withstanding pressures exerted by the material enclosed. Pressure vessels are important because many liquids and gases must be stored under high pressure. that are used in systems that process and store water and other liquids. The Structural 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). subsidiary designs,
manufactures, and markets the full line of Essef products in Europe, the
Middle East, and Africa. ENPAC Corporation's innovative products
help businesses transport, store, and prevent spills of hazardous
materials such as solvents, paints, and lubricants lubricantspreparations for the lubrication of passages to reduce frictional injury, e.g. oily preparations, including petroleum jelly, lanolin or water-soluble preparations such as methyl cellulose. . The Hobson Brothers Aluminum Foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. and Mould mould, n See mold. mould mold. Works is a premier manufacturer of custom blow molds and a supplier of related products. -0-
Essef Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
1995 1994 1995 1994
Net sales $39,620 $34,285 $157,507 $134,020
Cost of sales 30,287 24,337 114,124 93,283
_______ _______ ________ ________
Gross profit 9,333 9,948 43,383 40,737
Operating expenses 8,325 7,646 31,478 28,727
_______ _______ ________ ________
Income from
operations 1,008 2,302 11,905 12,010
Interest expense 503 389 2,075 1,275
Other (income), net (107) ( 94) (471) (639)
_______ _______ ________ ________
Income before income
taxes 612 2,007 10,301 11,374
Provision for income
taxes 222 776 3,710 4,379
_______ _______ ________ ________
Net income before
extraordinary item $ 390 $ 1,231 $ 6,591 $ 6,995
_______ _______ ________ ________
Extraordinary item
(less applicable
income taxes of
$517 from fire
insurance settlement) 920 -- 920 --
_______ _______ ________ ________
Net income $ 1,310 $ 1,231 $ 7,511 $ 6,995
_______ _______ ________ ________
_______ _______ ________ ________
Earnings per share
before extraordinary
item $ 0.06 $ 0.21 $ 1.13 $ 1.22
_______ _______ ________ ________
_______ _______ ________ ________
Earnings per share $ .22 $ .21 $ 1.29 $ 1.22
_______ _______ ________ ________
_______ _______ ________ ________
Average shares and
common share equivalents
outstanding 6,079,389 5,745,726 5,831,098 5,742,705
_________ _________ _________ _________
_________ _________ _________ _________
Essef Corporation and Subsidiaries
Business Segment Information
(Dollars in thousands)
(Unaudited)
Three Months Ended
September 30, Percent
1995 1994 Change
Net sales
Water Treatment and Systems
Equipment $ 21,300 $16,942 25.7
Swimming Pool and Spa
Equipment 18,320 17,343 5.6
________ _______
$39,620 $34,285 15.6
________ _______
________ _______
Income from operations
Water Treatment and Systems
Equipment $ 1,402 $ 1,607 (12.8)
Swimming Pool and Spa Equipment (47) 1,324 (103.5)
Corporate Development and
Administration (347) (629) (44.8)
________ _______
1,008 2,302 (56.2)
Interest expense 503 389 29.3
Other (income), net (107) (94) 13.8
Provision for income taxes 222 776 (71.4)
________ _______
Net income before extraordinary item 390 1,231 (68.3)
Extraordinary item (less
applicable income taxes of
$517 from fire insurance
settlement) 920 -- --
________ _______
Net Income $ 1,310 $ 1,231 6.4
________ _______
________ _______
Fiscal Year Ended
September 30, Percent
1995 1994 Change
Net sales
Water Treatment and Systems
Equipment $ 71,556 $ 65,134 9.9
Swimming Pool and Spa Equipment 85,951 68,886 24.8
________ _______
$157,507 $134,020 17.5
________ _______
________ _______
Income from operations
Water Treatment and Systems
Equipment $ 5,714 $ 7,330 (22.0)
Swimming Pool and Spa Equipment 8,309 6,848 21.3
Corporate Development and
Administration (2,118) (2,168) (2.3)
________ _______
$ 11,905 $12,010 (.9)
Interest expense 2,075 1,275 62.7
Other (income), net (471) (639) (26.3)
Provision for income taxes 3,710 4,379 (15.3)
________ _______
Income before extraordinary
Item $ 6,591 $ 6,995 (5.8)
________ _______
Extraordinary item (less
applicable income taxes of
$517 from fire insurance
settlement) 920 --
________ _______
Net Income $ 7,511 $ 6,995 7.4
________ _______
________ _______
CONTACT: Essef Corp., Chardon Theodore Theodore. For Russian rulers thus named, use Feodor. A. Havens Havens is a surname, and may refer to:
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