Printer Friendly

SYBRON SALES AND NET INCOME UP BEFORE EXTRAORDINARY ITEM

 MILWAUKEE, July 26 /PRNewswire/ -- Sybron Corp. (NYSE: SYB) today announced its financial results for the third quarter and first three quarters of fiscal 1993, the period ended June 30, 1993.
 Third Quarter And First Three Quarters Financial Results:
 Sybron Corp. had net income of $6.7 million for the third quarter of the current fiscal year, before an extraordinary item relating to the refinancing of its bank debt, up 1.2 percent from the like period a year ago. The increase came despite the impact on net income of an estimated $1.3 million ($.06 per share) related to the bankruptcy of Healthco International, Inc., a dental products distributor.
 For the first three quarters of fiscal 1993, the company had net income of $19.6 million before the extraordinary item, an increase of 38.0 percent. This was achieved despite a one-time charge to net income during the first quarter of the current fiscal year related to the sale of the company's Brazilian operations which reduced net income by approximately $457,000, and despite the Healthco impact.
 On July 1, 1993, the company completed the refinancing of its bank debt, and on July 15, 1993, the company called its 13 1/4 percent Senior Subordinated Notes for redemption on Aug. 15, 1993. As a result of the refinancing, the company incurred an extraordinary charge net of tax of $8.5 million in the third quarter of fiscal 1993. This charge related to the write-off of unamortized deferred financing fees associated with the company's refinanced bank debt and notes, and a premium associated with the anticipated redemption of the notes. The new financing arrangements include interest rates much more attractive than the previous arrangement which will result in an estimated $11 million annual savings before taxes or $0.32 per share on an after tax basis. The new financing facility also provides flexibility and a line of credit to facilitate acquisitions to complement existing Sybron businesses.
 Net sales for the third quarter of fiscal 1993 totaled $101.0 million compared with $97.9 million for the same period of fiscal 1992, an increase of 3.1 percent. The effects of a stronger dollar reduced the value of foreign currency revenues by approximately $1.1 million in the third quarter of 1993. Had the dollar remained at the same level as the corresponding 1992 period, the sales increase would have been 4.3 percent. If the sales of the company's Brazilian operations, which were sold effective Oct. 1, 1992, were eliminated from the 1992 period along with the currency effects discussed above, the sales increase would have been 5.7 percent. For the first three quarters of fiscal 1993 net sales were $294.5 million, an increase of 4.3 percent. Again, the effect of a stronger dollar reduced the value of foreign currency sales. The year- to-date impact was approximately $2.8 million. Had the dollar remained at the same level as the 1992 period, the sales increase would have been 5.3 percent. Eliminating the Brazilian sales and the currency effects discussed above, the increase would have been 6.6 percent.
 Cash flow continues to be strong, as earnings before interest, taxes, depreciation and amortization (EBITDA) excluding the extraordinary item for the quarter were $26.6 million as compared with $26.5 million for the same quarter of 1992, an increase of 0.4 percent. The Healthco impact reduced EBITDA by approximately $2.0 million for the quarter. Excluding the Healthco impact, EBITDA would have increased by 7.9 percent. EBITDA prior to the sale of the Brazilian operations and the extraordinary item for the first three quarters of fiscal 1993 was $80.4 million, up 9.2 percent from $73.6 million in the 1992 period. Excluding the Healthco impact, EBITDA would have increased by 12 percent.
 For comparative purposes, assuming the company's May 7, 1992, initial public offering had taken place on the first day of each of the 1993 and 1992 periods, net income before extraordinary item would have been $.30 per share on a fully diluted, pro forma basis for the third quarter of the current fiscal year, and for the like pro forma period of a year ago.
 For the first three quarters of fiscal 1993, excluding the sale of the Brazilian operations and extraordinary item, net income would have been $.89 per share on a fully diluted pro forma basis, up from $.66 per share for the like pro forma period of a year ago.
 Such pro forma results for the fiscal 1992 quarter are calculated assuming a reduction in interest expense based upon a repayment of approximately $17.3 million in bank debt and reductions in preferred stock dividends due to the redemption of $92.5 million of Sybron's senior preferred stock from the proceeds of the initial public offering. An additional interest expense for interest savings from the exercise of stock options after the May 7, 1992, initial public offering was made for the fiscal 1993 period.
 Kenneth F. Yontz, chairman, president and chief executive officer, said the company's operating results for the third quarter of fiscal 1993 are essentially on target with the company's expectations in spite of continuing softness in the international markets. As a result of a strengthened U.S. dollar and poor economic conditions overseas, foreign sales (after eliminating 1992 sales in the Brazilian operations) this year were up only 1.9 percent from the same period a year ago. The current year's first three quarters gross and operating margins improved to 50.3 percent and 20.8 percent, respectively, from 49.0 percent and 19.0 percent, respectively, in the like period a year ago, reflecting the effectiveness of tight cost controls in helping to offset the effects of disappointing levels of volume growth from overseas markets. Yontz added that he expected business conditions to remain about the same for the balance of this fiscal year.
 In an unrelated matter, Yontz announced the formation of a new company, called Sybron Dental Specialties, Inc., which will be responsible for Sybron's two dental subsidiaries, Kerr Manufacturing Co. and ORMCO Corp. This will facilitate the formation of a single dental organization which will strengthen the company's global market presence as well as generate other benefits and operating efficiencies. Floyd W. Pickrell Jr., currently president of ORMCO Corp., has been appointed president of the new company. Brian F. Bremer, currently president of Kerr Manufacturing Co., will move to the position of corporate vice president of planning and acquisitions. Yontz stated that Bremer would be assisting him in the formulation and implementation of a sound acquisition program made possible through the recently completed refinancing.
 Finally, Yontz announced that Sybron Corp. plans to seek shareholder approval at its next annual meeting to change its name to Sybron International Corp., an identity consistent with its expanding global presence.
 Sybron Corp.'s subsidiaries design, manufacture and market laboratory and dental supply products worldwide. Brands include Erie Scientific laboratory microscope slides, Nagle Co. reusable and high value disposable plastic labware, Barnstead Thermolyne precision heating and stirring apparatus and water purification systems for laboratories, ORMCO orthodontic products and Kerr dental materials.
 SYBRON CORP.
 (Millions of dollars except earnings per share)
 Third quarter ended June 30, 1993 1992
 Net Sales $ 101.0 $ 97.9
 Gross Profit 50.8 48.1
 SG&A Expenses 30.5 28.6
 Operating Income 20.3 19.5
 Income Before Taxes and
 Extraordinary Item 12.1 10.4
 Income Taxes 5.3 3.7
 Net Income Before
 Extraordinary Item 6.7 6.7
 Extraordinary Item (8.5) ---
 Net Income (Loss) (1.8) 6.7
 Earnings Per Share:
 Earnings Before Extraordinary .30 .19
 Extraordinary Item (.38) ---
 Earnings (Loss) Per Share (.08) .19
 Pro Forma Earnings Per Share .30 .30
 First three quarters
 ended June 30, 1993 1992
 Net Sales $ 294.5 $ 282.5
 Gross Profit 148.2 138.5
 SG&A Expenses 86.9 84.8
 Operating Income 61.4 53.7
 Income Before Taxes and
 Extraordinary Item 34.9 24.4
 Income Taxes 15.3 10.2
 Net Income Before
 Extraordinary Item 19.6 14.2
 Extraordinary Item (8.5) ---
 Net Income (Loss) 11.1 14.2
 Earnings Per Share:
 Earnings Before Extraordinary .87 .16
 Extraordinary Item (.38) ---
 Earnings Per Share .49 .16
 Pro Forma Earnings Per Share .89 .66
 -0- 7/26/93
 /CONTACT: Dennis Brown of Sybron Corp., 414-274-6600; or John Ochotnicky of Hoffman York & Compton, 414-289-9700, for Sybron Corp./
 (SYB)


CO: Sybron Corp. ST: Wisconsin IN: SU: ERN

MP -- NY096 -- 5888 07/26/93 16:43 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 26, 1993
Words:1427
Previous Article:CLARK REPORTS INCREASED EARNINGS FOR SECOND QUARTER
Next Article:INTERPUBLIC GROUP REPORTS RESULTS FOR SECOND QUARTER 1993
Topics:


Related Articles
SYBRON SECOND QUARTER, FIRST HALF NET INCOME, SALES UP
SYBRON ANNOUNCES RECORD YEAR FOR SALES AND NET INCOME
SYBRON ANNOUNCES RECORD YEAR FOR SALES AND NET INCOME
SYBRON INTERNATIONAL ANNOUNCES RECORD YEAR FOR SALES & NET INCOME AND A 2-FOR-1 STOCK SPLIT
Sybron International Announces Record Year for Sales & Net Income
Sybron International Announces First Quarter Net Income And Sales Up
Sybron International Announces Second Quarter Record Sales and Earnings, and Five New Acquisitions
Sybron International Announces Third Quarter Record Sales and Earnings
Sybron International Announces Record Year for Sales and Net Income
Sybron International Announces Record Quarter for Sales and Net Income

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters