Essef reports improving financial trend for fiscal 1995 second quarter and six-month period.CHARDON, Ohio--(BUSINESS WIRE)--April 28, 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 continued growth in sales, net income, and earnings per share for the fiscal 1995 second quarter and six-month period ended March 31, 1995. 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 24 percent to a second-quarter record $39,926,000 from $32,181,000 for the second quarter of fiscal 1994. Second-quarter net income was $2,125,000, or $0.37 per share, for fiscal 1995, up 8 percent from $1,963,000, or $0.34 per share, for fiscal 1994. "Essef's strong sales growth was due primarily to healthy demand for 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. for water treatment applications, and additional sales generated by market share gains in swimming pool and spa equipment from the acquisition of Purex Pool Systems in March 1994," stated 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 were particularly pleased that the operations of 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). are improving and making an increasing
contribution to income."Mr. Waldin added, "As expected, lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of sales partially offset a decline in gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. . Increased 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 , both because of Purex's higher than our historical average manufacturing costs and increased raw materials prices, held back the growth in income. ENPAC is still not contributing profits at previous levels thereby depressing water treatment segment results. Interest expense increased over last year because of the additional debt used to acquire Purex and the rise in borrowing rates between years. "During the quarter, we restructured the Receivable Under Agreement for Deed related to the sale of FAME Plastics in June June: see month. 1991. Under this restructured agreement, Essef received a $750,000 payment of principal and interest. This payment contributed $304,000 to pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income for the second quarter." For the first half of fiscal 1995, net sales advanced 27 percent to $71,945,000 from $56,839,000 for the corresponding period in fiscal 1994. First-half net income for fiscal 1995 was $3,022,000, or $0.53 per share, up 8 percent from $2,798,000, or $0.49 per share, for the first six months of fiscal 1994. "The positive momentum in nearly all of our business units makes us optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about continued growth for the second half of fiscal 1995," concluded Mr. Waldin. "The third quarter is seasonally the strongest period for the Company, and our progress in making Essef more market-focused and customer-sensitive is allowing us to seize seize v. To exhibit symptoms of seizure activity, usually with convulsions. a greater number of market opportunities." Essef Corporation designs and manufactures products for selected markets through the application of high performance 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 equipment, including filters, pumps, heaters, 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. subsidiary 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 which are used in systems that process and store water and other liquids. The Structural Europe 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 lubricants preparations 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 Hobson may refer to: People with the surname Hobson:
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 Six Months Ended
March 31, March 31,
1995 1994 1995 1994
Net sales $39,926 $32,181 $71,945 $56,839
Cost of sales 28,401 21,909 51,469 39,363
_______ _______ _______ _______
Gross profit 11,525 10,272 20,476 17,476
Operating expenses 8,048 7,009 15,141 12,914
_______ _______ _______ _______
Income from
operations 3,477 3,263 5,335 4,562
Interest expense 600 273 990 408
Other (income), net (443) (203) (377) (390)
_______ _______ _______ _______
Income before
income taxes 3,320 3,193 4,722 4,544
Provision for
income taxes 1,195 1,230 1,700 1,746
_______ _______ _______ _______
Net income $ 2,125 $ 1,963 $ 3,022 $ 2,798
_______ _______ _______ _______
_______ _______ _______ _______
Earnings per share $ 0.37 $ 0.34 $ 0.53 $ 0.49
_______ _______ _______ _______
_______ _______ _______ _______
Average shares and
common share
equivalents
outstanding 5,750,349 5,758,300 5,746,384 5,736,515
_________ _________ _________ _________
_________ _________ _________ _________
Essef Corporation and Subsidiaries
Business Segment Information
(Dollars in thousands)
(Unaudited)
Three Months Ended
March 31, Percent
1995 1994 Change
______ ______ _______
Net sales
Water Treatment and Systems
Equipment $17,401 $16,029 8.6
Swimming Pool and Spa
Equipment 22,525 16,152 39.5
_______ _______
$39,926 $32,181 24.1
_______ _______
_______ _______
Income from operations
Water Treatment and Systems
Equipment $ 1,398 $ 1,891 (26.1)
Swimming Pool and Spa
Equipment 2,781 1,851 50.2
Corporate Development and
Administration (702) (479) 46.6
_______ _______
3,477 3,263 6.6
Interest expense 600 273 119.8
Other (income), net (443) (203) 118.2
Provision for income taxes 1,195 1,230 (2.8)
_______ _______
Net income $ 2,125 $ 1,963 8.3
Six Months Ended
March 31, Percent
1995 1994 Change
______ ______ _______
Net sales
Water Treatment and Systems
Equipment $32,749 $31,288 4.7
Swimming Pool and Spa
Equipment 39,196 25,551 53.4
_______ _______
$71,945 $56,839 26.6
_______ _______
_______ _______
Income from operations
Water Treatment and Systems
Equipment $ 2,942 $ 3,708 (20.7)
Swimming Pool and Spa
Equipment 3,593 1,774 102.5
Corporate Development and
Administration (1,200) (920) 30.4
_______ _______
5,335 4,562 16.9
Interest expense 990 408 142.6
Other (income), net (377) (390) (3.3)
Provision for income taxes 1,700 1,746 (2.6)
_______ _______
Net income $ 3,022 $ 2,798 8.0
_______ _______
_______ _______
CONTACT: Essef Corporation, Chardon Theodore Theodore. For Russian rulers thus named, use Feodor. A. Havens, 216/286-2200 |
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