Norcross Safety Products L.L.C. Announces Year End 2004 Results.OAK BROOK A brook is a small stream. Brook may refer to the following places:
United States
For 2004, 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 $440.3 million compared to $372.5 million in 2003. Income from operations was $51.7 million versus $40.9 million in 2003. 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 increased to $62.9 million from $54.6 million last year. NSP had previously announced that it was in the process of exploring strategic alternatives, including a possible sale of the Company. NSP made the decision in the second quarter 2004 to terminate Terminate (terminat.exe) was a shareware modem terminal and host program for MS-DOS and compatible operating systems developed from the early to the late 1990s by the Dane Bo Bendtsen. The last release (5. this process and has therefore expensed $0.6 million in associated costs. These costs are reflected in 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. in 2004. Additionally, NSP recorded a $0.9 million non-cash loss in 2004 and a $0.4 million non-cash gain in 2003 associated with the sale of property, plant, and equipment, which is reflected in other expenses. The 2004 net sales increase of $67.8 million, or 18.2%, was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased net sales in each of our three operating segments. In our general industrial segment, the net sales increase of $51.4 million, or 19.8%, was primarily due to: higher overall net sales in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. exchange rates; the impact of the acquisition of KCL KCL - Kyoto Common Lisp in July July: see month. 2003; and organic growth in our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and African operations. In our fire service segment, net sales increased $8.6 million, or 12.2%, reflecting strong market demand and shipments to Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. under a contract awarded in 2004. In our utility/high voltage The force, or pressure, of electricity. Also known as "potential." "Voltage drop" is the difference in voltage from one end of an electrical circuit to the other. For instructional purposes, voltage is often compared to water pressure. See volt-amps and current. segment, net sales increased $7.8 million, or 18.1%, primarily driven by strong overall market demand, new product introductions, and shipments related to hurricane hurricane, tropical cyclone in which winds attain speeds greater than 74 mi (119 km) per hr. Wind speeds reach over 190 mi (289 km) per hr in some hurricanes. activity in the southeastern United States. Gross profit in 2004 increased by $26.3 million, or 19.9%, primarily due to the increase in net sales. 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. of 36.0% in 2004 was favorable to the 35.5% gross profit margin in the prior-year due to improvements in our general industrial and fire service segments. In 2004, income from operations increased $10.8 million, or 26.5%. In our general industrial segment, income from operations increased by $8.8 million, or 39.5%, primarily due to higher net sales. In our fire service segment, income from operations increased by $1.8 million, or 13.0%, primarily due to the increase in net sales. In our utility/high voltage segment, income from operations increased by $2.0 million, or 22.8%, primarily due to higher net sales. Corporate expenses increased $1.8 million, primarily due to $0.6 million of expenses associated with exploring strategic alternatives and higher payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. and administrative expenses including costs associated with public reporting and Sarbanes-Oxley Act See SOX. related compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). . As of December 31, 2004, NSP had working capital of $121.4 million and cash of $35.7 million. NSP's capital expenditures were $6.4 million in 2004 and $7.4 million in 2003.
The following table reconciles net income to EBITDA and
Adjusted EBITDA:
Year Ended December 31,
------------------------------
2003 2004
-------------- --------------
Net income $6,917 $25,287
Add:
Interest expense, net 33,255 22,224
Income tax expense 1,685 2,972
Depreciation and amortization
expense 12,749 12,371
-------------- --------------
EBITDA(1) 54,606 62,854
Add:
Strategic alternatives - 616
(Gain) loss on the sale of
property, plant and equipment (417) 899
-------------- --------------
Adjusted EBITDA(1) $54,189 $64,369
============== ==============
(1) "Adjusted EBITDA" is defined as EBITDA further adjusted to
exclude expenses associated with exploring strategic alternatives and
a non-cash (gain) loss associated with the sale of property, plant and
equipment. EBITDA and Adjusted EBITDA do not represent and should not
be considered as alternatives to net income or cash flow from
operations, as determined by accounting principles generally accepted
in the United States (GAAP), and NSP's calculations thereof may not be
comparable to that reported by other companies. EBITDA and Adjusted
EBITDA are calculated above as they are a basis upon which NSP
assesses its liquidity position and because NSP believes that they
present useful information to investors regarding a company's ability
to service and/or incur indebtedness. This belief is based on NSP's
negotiations with its lenders who have indicated that the amount of
indebtedness it will be permitted to incur will be based, in part, on
measures similar to its EBITDA and its Adjusted EBITDA. EBITDA and
Adjusted EBITDA do not take into account NSP's working capital
requirements, debt service requirements and other commitments and,
accordingly, are not necessarily indicative of amounts that may be
available for discretionary use.
NSP is a leading designer, manufacturer and marketer of branded products in the personal protection equipment industry. NSP manufactures and markets a full line of personal protection equipment for workers in the general industrial, fire service and utility/high voltage industries. NSP sells products under trusted, long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time and well-recognized brand names, including North, Morning Pride, Ranger Ranger Any of a series of unmanned probes launched from 1961 to 1965 by NASA. The project was NASA's earliest attempt to explore the Moon's surface. Ranger 4 (1962) became the first U.S. spacecraft to hit the Moon, crash-landing on its surface as planned. , Servus Servus (Czech: Servus, Hungarian: Szervusz, Polish: Serwus, German: Servus, Romanian: Servus, Ukrainian: Сервус) is a greeting or parting salute. , Pro-Warrington and Salisbury Salisbury, town and district, England Salisbury (sôlz`bərē) or New Sarum (sâr`əm), town (1991 pop. 36,890) and district, Wiltshire, S England. . NSP's broad product offering includes, among other things, respiratory respiratory /res·pi·ra·to·ry/ (res´pi-rah-tor?e) pertaining to respiration. res·pi·ra·to·ry adj. Of, relating to, used in, or affecting respiration. protection, protective footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). , hand protection, bunker gear Bunker gear is a term used in many fire departments to refer to the system of outer protective clothing worn by firefighters, also commonly known as "turnout gear" or "structural gear". and linemen n. pl. 1. the football players who line up on the line of scrimmage. Noun 1. linemen - the football players who line up on the line of scrimmage equipment. NSP has scheduled a conference call to discuss our financial results on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , March 18 at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The call in number is (888) 313-7413. A recording of the conference call will be available for 72 hours after the completion of the call. The recording can be accessed by dialing (800) 633-8284 and entering reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 21235452. This press release contains forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information. These statements reflect management's expectations, estimates, and assumptions, based on information available at the time of the statement. 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. include, but are not limited to, statements regarding future events, plans, goals, objectives, and expectations. The words "anticipate," "believe," "estimate," "expect," "plan," "intent," "likely," "will," "should," and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors, including those set forth below, which may cause NSP's actual results, performance or achievements to be materially different from any future results, performance, or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by those statements. Important factors that could cause NSP's actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by those statements include, but are not limited to: (i) NSP's high degree of leverage and significant debt service obligations; (ii) the impact of current and future laws and governmental regulations affecting NSP or our product offerings; (iii) the impact of governmental spending; (iv) NSP's ability to retain existing customers, maintain key supplier status with those customers with which we have achieved such status and obtain new customers; (v) the highly competitive nature of the personal protection equipment industry; (vi) any future changes in management; (vii) acceptance by consumers of new products we develop or acquire; (viii) the importance and costs of product innovation; (ix) unforeseen problems associated with international sales, including gains and losses from foreign currency exchange and restrictions on the efficient repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of earnings; (x) the unpredictability of patent protection and other intellectual property issues; (xi) cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of current orders; (xii) the outcome of pending product liability claims and the availability of indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from for those claims; (xiii) general risks associated with the personal protection equipment industry; and (xiv) the successful integration of acquired companies on economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: acceptable terms. NSP undertakes no obligation to publicly update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, or changes to future results over time.
Norcross Safety Products L.L.C.
Consolidated Statements of Operations
(Amounts in Thousands) (Unaudited)
Year ended
December 31,
-------------------
2003(1) 2004
--------- ---------
Net sales $372,524 $440,280
Cost of goods sold 240,408 281,924
--------- ---------
Gross profit 132,116 158,356
Operating expenses:
Selling 36,877 41,901
Distribution 18,550 22,452
General and administrative 33,254 41,203
Amortization of intangibles 2,583 517
Strategic alternatives - 616
--------- ---------
Total operating expenses 91,264 106,689
--------- ---------
Income from operations 40,852 51,667
Other expense (income):
Interest expense 33,372 22,437
Interest income (117) (213)
Other, net (1,002) 1,159
--------- ---------
Income before income taxes and minority interest 8,599 28,284
Income tax expense 1,685 2,972
Minority interest (3) 25
--------- ---------
Net income $6,917 $25,287
========= =========
(1) Year ended December 31, 2003 amounts were obtained from audited
financial statements.
Norcross Safety Products L.L.C.
Consolidated Balance Sheets
(Amounts in Thousands) (Unaudited)
December 31,
-------------------
2003(1) 2004
--------- ---------
Assets
Current assets:
Cash and cash equivalents $16,341 $35,731
Accounts receivable, less allowance of $2,493
and $2,063 in 2003 and 2004, respectively 53,291 61,167
Inventories 80,828 82,532
Deferred income taxes 30 60
Prepaid expenses and other current assets 3,833 3,183
--------- ---------
Total current assets 154,323 182,673
Property, plant and equipment, net 56,213 51,809
Deferred financing costs, net 10,832 9,394
Goodwill, net 130,032 132,662
Other intangible assets, net 5,641 6,256
Due from NSP Holdings L.L.C. 16,113 -
Other noncurrent assets 5,535 5,689
--------- ---------
Total assets $378,689 $388,483
========= =========
Liabilities and member's equity
Current liabilities:
Accounts payable $18,157 $17,871
Accrued expenses 27,837 28,127
Current maturities of long-term obligations 3,378 15,252
--------- ---------
Total current liabilities 49,372 61,250
Pension, post-retirement and deferred compensation 24,318 22,923
Long-term obligations 253,814 238,314
Other noncurrent liabilities 430 1,653
Deferred income taxes 1,937 4,799
Minority interest 124 142
--------- ---------
280,623 267,831
Member's equity:
Contributed capital 116,060 116,060
Accumulated deficit (64,791) (42,447)
Due from NSP Holdings L.L.C. - (17,740)
Accumulated other comprehensive (loss) income (2,575) 3,529
--------- ---------
Total member's equity 48,694 59,402
--------- ---------
Total liabilities and member's equity $378,689 $388,483
========= =========
(1) December 31, 2003 balances were obtained from audited financial
statements.
Norcross Safety Products L.L.C.
Consolidated Statements of Cash Flows
(Amounts in Thousands) (Unaudited)
Year ended
December 31,
-------------------
2003(1) 2004
--------- --------
Operating activities
Net income $6,917 $25,287
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 10,166 11,854
Amortization of intangibles 2,583 517
Amortization of deferred financing costs 2,191 1,777
Amortization of original issue discount 662 92
Write-off of deferred financing costs 7,284 -
(Gain) loss on sale of property, plant and
equipment (417) 899
Deferred income taxes 154 583
Minority interest (3) 25
Changes in operating assets and liabilities:
Accounts receivable (698) (7,876)
Inventories (12,118) (1,704)
Prepaid expenses and other current assets (443) 650
Other noncurrent assets (395) (627)
Accounts payable 2,474 (286)
Accrued expenses 3,196 290
Pension, postretirement and deferred
compensation 1,335 (2,442)
Other noncurrent liabilities (294) 1,223
Other 87 (4)
--------- --------
Net cash provided by operating activities 22,681 30,258
Investing activities
Purchase of businesses, net of cash acquired (18,757) (691)
Purchases of property, plant and equipment (7,432) (6,423)
Proceeds from sale of property, plant and equipment 578 736
Increase in Due from NSP Holdings L.L.C. (9,108) (459)
--------- --------
Net cash used in investing activities (34,719) (6,837)
Financing activities
Payments for deferred financing costs (13,711) (204)
Proceeds from borrowings 286,539 -
Payments of debt (220,333) (3,719)
Net repayments under revolving credit facility (30,960) -
Dividends to NSP Holdings L.L.C. - (2,943)
Increase in Due from NSP Holdings L.L.C. - (1,302)
--------- --------
Net cash provided by (used in) financing activities 21,535 (8,168)
Effect of exchange rate changes on cash 5,082 4,137
--------- --------
Net increase in cash and cash equivalents 14,579 19,390
Cash and cash equivalents at beginning of year 1,762 16,341
--------- --------
Cash and cash equivalents at end of year $16,341 $35,731
========= ========
(1) Year ended December 31, 2003 amounts were obtained from audited
financial statements.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion