Evenflo Reports 3rd Quarter 2000 Results.Business Editors VANDALIA Vandalia (văndā`lyə), city (1990 pop. 13,882), Montgomery co., W central Ohio, a suburb of Dayton; inc. 1848. Automobile parts are among the city's manufactures. , Ohio--(BUSINESS WIRE)--Nov. 14, 2000 Evenflo Company, Inc. (the "Company") today released its financial results for the third quarter and nine months ended September September: see month. 30, 2000. Third quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become and 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 were below year ago. This follows EBITDA gains for the previous six quarters. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a W. Frank, Evenflo's, Chairman 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. , commenting on the third quarter said, "We are clearly disappointed in these results. They reflect a shift in order patterns from the third quarter to the fourth as retailers pared back inventories to make way for Evenflo's fourth quarter shipments of new products. While we continue to experience strong competitive pressure in car seats, feeding, and bed and bath products, we look forward to the positive impact of our product development efforts with increased sales volume in the fourth quarter and throughout 2001." EBITDA (earnings before interest expense, income taxes, depreciation, amortization, and extraordinary items,) for the third quarter ending September 30, 2000 were $5.4 million, compared to $9.2 million recorded in the third quarter of 1999. For the nine months ending September 30, 2000 EBITDA was $18.9 million versus $22.6 million for the same period in 1999. Net sales for the third quarter ending September 30, 2000 were $83.1 million, a $10.5 million or 11.2% decrease from the $93.6 million for the prior year quarter ending September 30, 1999. The Company's 2000 nine months sales of $258.5 million are approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. equal to $258.6 million in the 1999 nine months. U.S. net sales of $72.2 million for the third quarter decreased $9.9 million or 12.1% from the prior year third quarter of $82.1 million. U.S. net sales of $224.8 million for the 2000 nine months, decreased $1.8 million or 0.8% from 1999 nine months of $226.6 million. U.S. sales decreased due primarily to reduction in sales of feeding products and juvenile juvenile /ju·ve·nile/ (ju´vin-il) 1. pertaining to youth or childhood. 2. a youth or child; a young animal. 3. a cell or organism intermediate between immature and mature forms. car seats due to strong competitive pressure. International net sales decreased 5.2% to $10.9 million in the third quarter 2000 from $11.5 million for the 1999 third quarter. In the 2000 nine months, international sales increased by $1.7 million, or 5.3% to $33.7 million from $32.0 million for the 1999 nine months. For the 2000 nine months, international net sales increased principally due to increased sales in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , partially offset by lower sales in Asia and 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). .The Company's gross profit for the latest three months was $18.1 million compared to 1999's gross profit for the comparable period of $23.4 million. As a percentage of net sales, gross profit decreased to 21.8% in the third quarter 2000 from 25.0% in the third quarter of 1999. For the 2000 nine months, gross profit decreased to $59.3 million from $62.4 million for the 1999 nine months. As a percentage of net sales, gross profit decreased to 22.9% in the 2000 nine months from 24.1% in the 1999 nine months. The margin decrease was due to unfavorable manufacturing variances, and a lower gross profit mix due to reductions in feeding products. The unfavorable manufacturing variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality is primarily the result of the Company's incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. increased freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or charges to meet unforecasted customer demand for certain products. Evenflo's selling, general and administrative (SG&A) expenses decreased to $16.9 million for the three months ending September 30, 2000 versus $18.0 million in the three months ending September 30, 1999. During the 2000 three months ending September 30, 2000 the Company reduced SG&A expenses over the same period in 1999 in the following key areas (i) outside services, (ii) customer marketing promotional costs, (iii) recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. expenses and (iv) product liability. The Company increased product-engineering expenses in the three months ending September 30, 2000. For the 2000 nine months SG&A expenses were $52.8 million compared to $52.6 million in the 1999 nine months. In the 2000 nine months, increased product development and engineering expenses resulted in total SG&A expenses being approximately the same as the 1999 nine months. Interest expense in the third quarter 2000 increased to $4.7 million from $4.4 million recorded in the third quarter 1999. For the nine months ended September 30, 2000 interest expense was $13.7 million versus $12.4 million in the nine months ended September 30, 1999. During the third quarter ending September 30, 2000, the company generated $1.1 million in cash before financing activities. Operating activities generated $4.5 million and the Company invested $3.4 million in capital expenditures. For the same period in 1999 the Company generated $4.0 million in cash before financing activities. Operating activities generated $12.8 million and the Company invested $8.8 million in capital expenditures. The Company and the syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism of financial institutions under 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 agreed to amend certain financial covenants included in the revolving credit facility for the period commencing with the third fiscal quarter of this fiscal year. The amendment modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. financial covenants relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc an interest coverage ratio and a leverage ratio, increased bankers' acceptance A bankers' acceptance, or BA, is a time draft drawn on and accepted by a bank. Before acceptance, the draft is not an obligation of the bank; it is merely an order by the drawer to the bank to pay a specified sum of money on a specified date to a named person or to the limit and increased the additional margin on the "eurodollar Eurodollar U.S. dollar that has been deposited outside the U.S., especially in Europe. Foreign banks holding Eurodollars are obligated to pay in U.S. dollars when the deposits are withdrawn. rate" and the "base rate" interest calculation. Borrowings under Evenflo's $100 million long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. revolving credit facility, increased by $2.5 million during the third quarter 2000. At September 30, 2000, the company had $41.0 million of available borrowing capacity under this $100 million revolving credit facility. Certain matters discussed in this press release contain 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. based on the Company's current expectations and estimates as to prospective events about which the Company can give no firm assurance. These forward-looking statements are based on management's expectations as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company does not undertake any responsibility to update any of these statements in the future. Actual future performance and results could differ from that contained in or suggested by these forward-looking statements as a result of the factors set forth in filings with the Securities and Exchange Commission. See Evenflo's cautionary statement relating to forward looking statements filed on our Current Report 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. dated November November: see month. 13, 2000. Evenflo will have its quarterly conference call on Wednesday Wednesday: see week. , November 29, 2000 starting at 3 p.m. Eastern Time. The teleconference dial-in number is (800)-553-0351. The call will also be available for replay beginning at 7:30 p.m. Eastern Time until Monday Monday: see week. , December December: see month. 4, 2000 at 7:30 p.m. Replay numbers is: USA (800)-475-6701, Access Code: 551024. Evenflo is one of the world's most recognized innovators innovators people who will try new things. early innovators important figures in the farming or client community because they are the leaders in the introduction of new techniques and management systems. and marketers of infant and juvenile products. Headquartered in Vandalia, Ohio Vandalia is a city[1] in Montgomery County, Ohio, United States, and a suburb of Dayton[2]. Its population was 14,603 during the 2000 census<ref name="census2000" />. The James M. Cox Dayton International Airport is located in the city. , its lines include car seats, strollers, baby bottles, infant soft and frame carriers, pacifiers, gates, high chairs, activity centers, and cribs Cribs may mean:
"World's Best Baby Care"
Evenflo Company, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
December 31, 1999 and Sept. 30, 2000
(Dollar amounts in thousands, except per share amounts)
----------------------------------------------------------------------
(Unaudited)
September 30, December 31,
Assets 2000 1999
------ ------------- ------------
Current assets:
Cash $ 6,716 $ 3,110
Receivables, less allowance of
$1,050 and $996 65,526 70,772
Inventories 70,312 63,896
Deferred income taxes 12,403 8,066
Prepaid expenses 1,577 654
------------- ------------
Total current assets 156,534 146,498
Property, plant and equipment 129,468 126,246
Accumulated depreciation (72,980) (61,823)
------------- ------------
Property, plant and equipment, net 56,488 64,423
Intangible assets, net 43,618 44,779
Deferred income taxes 14,227 14,429
Other 6,056 6,494
------------- ------------
Total assets $ 276,923 $ 276,623
------------- ------------
------------- ------------
Liabilities and Shareholders' Equity
------------------------------------
Current liabilities:
Accounts payable $ 35,743 $ 29,706
Bankers acceptances and letters of
credit 23,715 18,431
Accrued expenses 22,942 32,068
------------- ------------
Total current liabilities 82,400 80,205
Senior notes 110,000 110,000
Revolving credit loans 23,000 20,500
Pension and post-retirement benefits 5,667 5,742
------------- ------------
Total liabilities 221,067 216,447
Commitments and contingencies
Shareholders' equity:
Preferred stock $.01 par value,
10,000,000 shares authorized,
400,000 shares outstanding
(liquidation value, $40,000,000) 40,000 40,000
Common Stock:
Class A, $1 par value, 20,000,000
shares authorized;
10,000,000 shares outstanding 10,000 10,000
Class B, $1 par value, 5,000,000
shares authorized; none
outstanding 0 0
Paid-in capital 61,387 61,387
Retained earnings (deficit) (51,437) (47,161)
Accumulated other comprehensive
earnings (loss)-currency translation
adjustments (4,094) (4,050)
------------- ------------
Total shareholders' equity 55,856 60,176
------------- ------------
Total liabilities and shareholders'
equity $ 276,923 $ 276,623
------------- ------------
------------- ------------
See Form 10-Q filing for Notes to Condensed Consolidated Financial
Statements.
Evenflo Company, Inc. and Subsidiaries
Condensed Statements of Consolidated Earnings (Loss)
For the three and nine months ended September 30, 1999 and 2000
(Dollar amounts in thousands) (Unaudited)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
------------------ -----------------
2000 1999 2000 1999
---- ---- ---- ----
Net sales $ 83,077 $ 93,550 $ 258,474 $ 258,595
Cost of sales 64,931 70,178 199,197 196,155
--------- --------- --------- ---------
Gross profit 18,146 23,372 59,277 62,440
Selling, general &
administrative
expenses 16,935 18,049 52,832 52,618
--------- --------- --------- ---------
Income from operations 1,211 5,323 6,445 9,822
Interest expense, net 4,708 4,448 13,665 12,417
Currency (gain) loss,
net 183 156 606 (541)
--------- --------- --------- ---------
Earnings (loss)
before income taxes (3,680) 719 (7,826) (2,054)
Income tax benefit (1,820) (605) (3,550) (1,471)
--------- --------- --------- ---------
--------- --------- --------- ---------
Net Earnings (Loss) $ (1,860) $ 1,324 $ (4,276) $ (583)
--------- --------- --------- ---------
--------- --------- --------- ---------
See Form 10-Q filing for Notes to Condensed Consolidated Financial
Statements.
Evenflo Company, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 1999 and 2000
(Dollar amounts in thousands)
----------------------------------------------------------------------
(Unaudited) (Unaudited)
September 30, September 30,
Increase (Decrease) in Cash 2000 1999
--------------------------- ---- ----
Cash flows from operating activities
Net loss $ (4,276) $ (583)
Adjustments to reconcile net loss
to net cash provided (used) by
operating activities:
Depreciation 11,286 10,370
Intangibles amortization 1,161 1,163
Deferred income taxes (4,135) (2,012)
Deferred financing cost
amortization 370 561
Other (75) 46
Change in working capital
components:
Receivables 5,246 7,968
Inventories (6,416) (7,855)
Current liabilities 2,195 2,366
Other, including currency
translation adjustment (826) 760
-------- --------
Net cash provided (used)
in operating activities 4,530 12,784
Net cash used in investing
activities - capital expenditures (3,424) (8,794)
-------- --------
Net cash provided by financing
activities - borrowings from
revolving credit facility 2,500 2,200
-------- --------
Cash - net change 3,606 6,190
beginning of period 3,110 4,197
-------- --------
end of period $ 6,716 $ 10,387
-------- --------
-------- --------
Supplemental cash flow data
Interest paid 16,791 15,104
Income taxes paid 585 541
See Form 10-Q filing for Notes to Condensed Consolidated Financial
Statements.
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