Pall Corporation Announces 27 Percent Increase in Fourth Quarter Earnings.EAST HILLS, N.Y.--(BUSINESS WIRE)--Sept. 1, 1999-- Pall Corporation Pall Corporation NYSE: PLL, formerly Micro Metallic Company, is an East Hills, New York based global business in the diverse field of filtration, separations and purification. Total revenues for fiscal 2006 were $2 billion, with over 11,000 employees and $56. (NYSE NYSE See: New York Stock Exchange : PLL PLL - phase-locked loop ) today reported sales and earnings for the fourth quarter and fiscal year ended July July: see month. 31, 1999. Continuing revenue momentum and results of the aggressive restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). program implemented in March, fueled strong earnings growth of 27%. Sales for the quarter were up 5 1/2% at $319,065,000 compared to $301,759,000 in last year's fourth quarter. The effects of foreign exchange were not significant. Earnings increased 27% to $50,395,000 or 40 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared to $39,726,000 or 32 cents in last year's fourth quarter. Sales for the year also grew 5 1/2% to $1,147,066,000 compared to $1,087,285,000 last year. Foreign exchange added $8.5 million or 1% to sales for the year. Excluding the non-recurring items and the effect of adopting a new accounting standard this year, earnings for the year amounted to $118,752,000 or 95 cents per share compared to $115,655,000 or 92 cents per share last year. After non-recurring items and the adoption of the new accounting principle for start-up Start-up The earliest stage of a new business venture. costs, the company's earnings amounted to $51,507,000 or 41 cents per share for the year compared to earnings of $93,633,000 or 75 cents per share last year. The reported earnings for this year include a charge of 51 cents per share (after pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma tax effect) related to the restructuring and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges mentioned above. The earnings this year also include a charge of 3 cents per share (after pro forma tax effect) to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. previously capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. start-up costs pursuant to the adoption of the AICPA's Statement of Position 98-5, "Reporting the Costs of Start-Up Activities," retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a to the beginning of this fiscal year. The earnings for last year include 17 cents per share (after pro forma tax effect) of net non-recurring charges. Commenting on the results for the fourth quarter, Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Krasnoff, 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. , said, "Sales came in at the high end of expectations. We were quite pleased with the encouraging growth that has continued in several areas of our business and the effects of our restructuring which were clearly evident in our fourth quarter results. Increased plant utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be and the effects of restructuring improved our gross margins sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , and selling, general and administrative expenses combined with R&D reduced 3.4% as a percentage of sales compared to last year's fourth quarter." "Looking at sales this quarter, Health Care's growth was again led by a strong BioPharmaceuticals subsegment, which grew 12% in local currency. Within this segment, Pharmaceuticals grew 12% and Food and Beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. was up 16%. "In the Medical area, blood filter orders were strong, up 70% to blood centers and also up 3% to hospitals. Sales to blood centers grew 30%, continuing the trend away from hospitals we saw earlier in this year and last. Confirming this pattern, hospital sales declined 13 1/2% in the quarter. Overall for the quarter, blood filter sales increased 7% in dollars. Sequentially, prices have remained stable over the last three quarters. The 5% price decline from fiscal year 1998 is now in our numbers for a full year, so as we proceed into the first quarter of fiscal year 2000, the effect of this is behind us. "In Fluid Processing, Microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. was better than expected being almost flat on a reported basis and down just 6% in local currency. Business was particularly strong in the US, where sales grew 23%. Orders showed a global increase of 16% in the quarter. The anticipated recovery of the semiconductor industry appears to be at hand and we anticipate good growth next quarter and next year. "By geography geography, the science of place, i.e., the study of the surface of the earth, the location and distribution of its physical and cultural features, the areal patterns or places that they form, and the interrelation of these features as they affect humans. , Asia was our strongest performer this quarter, showing a reported growth of 29% and a local currency increase of 16 1/2% with a 13% increase in Japan. 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). continued the good performance
we have seen all year with a local currency increase of 8%. Sales in the
Western Hemisphere Western HemispherePart of Earth comprising North and South America and the surrounding waters. Longitudes 20° W and 160° E are often considered its boundaries. were up 2% if we take out the sales of Stratapac(R), a business we sold in the third quarter this year. "The restructuring and cost savings initiated in the third quarter are continuing to show in our reported results. Selling, General and Administrative expenses and R&D costs were down $4.0 million sequentially. Also, Cost of Sales improved sequentially by 1.9%. A great deal of progress has been made in a very short period of time. "We entered the first quarter of fiscal year 2000 with a healthy 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. , momentum in the Medical and Microelectronics business units which had been sluggish last year and in general a business environment more positive than at any time in the past three years."
PALL CORPORATION SALES BY MARKET
(000s omitted)
FOURTH QUARTER ENDED EXCHANGE % CHANGE
JUL. 31, AUG. 1, % RATE IN LOCAL
1999 1998 CHANGE DIFFERENCE CURRENCY
----------------------------------------------------------------------
Medical $ 78,462 $ 72,871 7 1/2 $557 7
BioPharmaceuticals 89,322 79,910 12 (112) 12
------- ------- -----
Total Health Care 167,784 152,781 10 445 9 1/2
Aerospace 36,700 35,163 4 1/2 (217) 5
Industrial
Hydraulics 35,922 36,841 (2 1/2) (551) (1)
------- ------- -----
Total Aeropower 72,622 72,004 1 (768) 2
Microelectronics 18,704 19,147 (2 1/2) 668 (6)
Industrial Process 59,955 57,827 3 1/2 264 3
------- ------- -----
Total
Fluid Processing 78,659 76,974 2 932 1
------- ------- -----
TOTAL $319,065 $301,759 5 1/2 $609 5 1/2
------- ------- -----
YEAR ENDED EXCHANGE % CHANGE
JUL. 31, AUG. 1, % RATE IN LOCAL
1999 1998 CHANGE DIFFERENCE CURRENCY
----------------------------------------------------------------------
Medical $272,913 $260,124 5 $2,549 4
BioPharmaceuticals 332,729 294,202 13 2,192 12 1/2
------- ------- ------
Total Health Care 605,642 554,326 9 1/2 4,741 8 1/2
Aerospace 135,543 124,449 9 478 8 1/2
Industrial
Hydraulics 131,415 134,041 (2) 439 (2 1/2)
------- ------- ------
Total Aeropower 266,958 258,490 3 1/2 917 3
Microelectronics 62,540 87,608 (28 1/2) 1,363 (30)
Industrial Process 211,926 186,861 13 1/2 1,518 12 1/2
------- ------- ------
Total
Fluid Processing 274,466 274,469 - 2,881 (1)
------- ------- ------
TOTAL $1,147,066 $1,087,285 5 1/2 $8,539 4 1/2
--------- --------- ------
PALL CORPORATION SALES BY GEOGRAPHIC REGION
(000s omitted)
FOURTH QUARTER ENDED EXCHANGE % CHANGE
JUL. 31, AUG. 1, % RATE IN LOCAL
1999 1998 CHANGE DIFFERENCE CURRENCY
----------------------------------------------------------------------
Asia $ 53,540 $ 41,475 29 $5,126 16 1/2
Europe 123,587 118,571 4 (4,515) 8
Western
Hemisphere 141,938 141,713 - (2) -
------- ------- ------
TOTAL $319,065 $301,759 5 1/2 $ 609 5 1/2
------- ------- ------
YEAR ENDED EXCHANGE % CHANGE
JUL. 31, AUG. 1, % RATE IN LOCAL
1999 1998 CHANGE DIFFERENCE CURRENCY
----------------------------------------------------------------------
Asia $182,787 $174,110 5 $5,520 2
Europe 455,088 397,880 14 1/2 3,670 13 1/2
Western
Hemisphere 509,191 515,295 (1) (651) (1)
------- ------- ------
TOTAL $1,147,066 $1,087,285 5 1/2 $8,539 4 1/2
--------- --------- ------
PALL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
FOURTH QUARTER ENDED YEAR ENDED
-------------------- ----------
JUL. 31, AUG. 1, JUL. 31, AUG. 1,
1999 1998 1999 1998
----------------------------------------------------------------------
REVENUES
Net sales $ 319,065 $ 301,759 $1,147,066 $1,087,285
COSTS AND EXPENSES
Cost of sales 137,373 130,073 548,006(a) 473,859
Selling, general and
administrative expenses 99,883 102,566 405,956 392,809
Research and development 13,069 14,514 56,490 58,540
Restructuring and other
charges, net - - 64,695(a) 19,222(b)
Interest expense, net 3,412 2,897 13,015 7,870
------- ------- ------- -------
Total costs and expenses 253,737 250,050 1,088,162 952,300
Earnings before
income taxes 65,328 51,709 58,904 134,985
Income taxes 14,933 11,983 7,397 41,352
Net earnings $ 50,395 $ 39,726 $ 51,507 $ 93,633
------- ------- ------- -------
Earnings per share:
Basic $ 0.40 $ 0.32 $ 0.41 $ 0.75
------- ------- ------- -------
Diluted $ 0.40 $ 0.32 $ 0.41 $ 0.75
------- ------- ------- -------
Pro forma earnings per
share excluding
restructuring and other
charges, net:
Basic $ 0.40 $ 0.32 $ 0.95 $ 0.93
------- ------- ------- -------
Diluted $ 0.40 $ 0.32 $ 0.95 $ 0.92
------- ------- ------- -------
Average number of
shares outstanding:
Basic 124,154 124,132 124,329 125,070
Diluted 124,609 124,618 124,755 125,681
(a) During the third quarter of 1999, the Company announced and
implemented a plan to restructure its operations with targeted
payroll and expense cost reductions of over $50 million per
annum. In connection with these actions, the Company recorded
restructuring and other charges of $89,433. During the quarter,
the Company expensed $5,767 of previously capitalized costs when
it adopted the AICPA's Statement of Position 98-5 "Reporting the
Costs of Start-Up Activities," retroactive to the beginning of
the fiscal year. Cost of sales includes $30,505 resulting from
the above charges.
(b) Represents a one-time charge of $27,000 in the third quarter to
write off in-process research and development related to the
acquisition of Rochem, net of $7,778 of other income recorded in
the second quarter.
PALL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
JUL. 31, AUG. 1,
1999 1998
----------------------------------------------------------------
Assets
Cash and short-term investments $ 137,177 $ 28,925
Accounts receivable, net 326,198 291,535
Inventories 205,867 227,254
Other current assets 74,947 54,775
------- -------
Total current assets 744,189 602,489
Property, plant and equipment, net 507,016 520,592
Other assets 220,829 223,838
------- -------
Total assets $1,472,034 $1,346,919
--------- ---------
Liabilities and Stockholders' Equity
Short-term debt $ 339,153 $ 184,907
Accounts payable, income taxes
and other current liabilities 209,384 209,183
------- -------
Total current liabilities 548,537 394,090
Long-term debt 116,815 111,469
Deferred taxes and other
non-current liabilities 79,937 75,745
Stockholders' equity 726,745 765,615
------- -------
Total liabilities and
stockholders' equity $1,472,034 $1,346,919
--------- ---------
With annual sales over $1 billion, Pall Corporation is based in East Hills, New York East Hills is a village in Nassau County, New York on the North Shore of Long Island. It is considered part of the Greater Roslyn area, which is anchored by the Village of Roslyn. As of the United States 2000 Census, the village population was 6,842. , USA and operates directly in 30 countries. Pall Corporation provides innovative solutions to complex filtration filtration: see sewerage; water supply. Filtration The separation of solid particles from a fluidsolids suspension of which they are a part by passage of most of the fluid through a septum or membrane that retains most of the solids and separations problems in three major markets: Health Care, Aeropower and Fluid Processing. The Company's shares are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (PLL) and the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. (0668260). Further information about Pall Corporation is available on the Company's Web site at http://www.pall.com. This release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on current Company expectations and are subject to risks and uncertainties which could cause actual results to differ materially. In addition to foreign exchange rates, such risks and uncertainties include, but are not limited to, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval, market acceptance of new technologies, economic conditions and market demand. |
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