The York Group Inc. Reports Third Quarter/Nine Month Results; Board Declares Quarterly Dividend.HOUSTON--(BUSINESS WIRE)--Nov. 5, 1997--The York Group Inc. (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 :YRKG) today reported 1997 third quarter and nine month sales and net income. The company's financial results have been restated to reflect the operations of Elder Davis Inc., acquired during the third quarter of 1997 and accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. , for all periods presented. The company has also reclassified certain warehousing and delivery expenses from cost of sales to other 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. , which also includes selling, general and administrative expenses. Third quarter 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 29.0 percent to $40.4 million from $31.3 million for the same period last year. Net income declined 17.2 percent to $1.8 million, compared with third quarter 1996 net income of $2.2 million. Net income per share was 20 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. on 9,074,922 average shares outstanding, compared with 26 cents per share on 8,343,419 average shares outstanding for the same period in 1996. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the 1997 third quarter decreased 13.5 percent to $3.0 million from $3.5 million in the third quarter of 1996. Net sales for the first nine months of 1997 increased 18.1 percent to $131.6 million from $111.4 million for the same period last year. Net income increased 12.6 percent to $9.0 million from 1996 nine months net income of $8.0 million. Net income per share was $1.01 per share on 8,824,034 average shares outstanding, compared with $1.05 per share on 7,595,514 average shares outstanding for the same period in 1996. Operating income for the 1997 nine month period remained essentially unchanged at $14.7 million, compared with $14.8 million in the same 1996 period. On Oct. 1, 1997, the company announced that in the third quarter it would report expenses related to realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of its production facilities, and transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). related to its acquisition of Elder Davis. The third quarter and nine month results include approximately $1.5 million related to the facility realignment and $200,000 in acquisition costs. It is expected that the remainder of the realignment expenses, originally expected to be reported to be spoken of; to be mentioned, whether favorably or unfavorably. See also: Report in the third quarter, will be incurred and reported in the fourth quarter of 1997. "The acquisition of Elder Davis and the subsequent realignment of our production facilities give us the capacity for future growth and operating efficiencies," said Bill W. Wilcock, York president 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. . "The Elder Davis product line gives York the full complement of products for all customers, serving both traditional burial and cremation cremation, disposal of a corpse by fire. It is an ancient and widespread practice, second only to burial. It has been found among the chiefdoms of the Pacific Northwest, among Northern Athapascan bands in Alaska, and among Canadian cultural groups. needs. The production facility realignment provides for focused production at our previously owned and newly acquired assembly plants." The realignment consists primarily of reallocation Noun 1. reallocation - a share that has been allocated again allocation, allotment - a share set aside for a specific purpose 2. reallocation of production among the plants and revised assembly line layouts. Also at its meeting on November 4, the Board of Directors declared a quarterly dividend of 4 cents per share, payable November 26, 1997, to stockholders of record as of November 19, 1997. The York Group, Inc. is the nation's second-largest manufacturer of caskets and casket components. York has manufacturing and assembly plants in Alabama, Georgia, Indiana, Mississippi, Missouri and Pennsylvania, company-owned casket distribution operations serving Midwest, New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , Southwest, Southeast, and Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern markets, and a network of independently owned distributors that serve customers in all other U.S. regions. The York Group's funeral home merchandising operation, York Merchandising Systems, and its architectural design services, The Doody Group, are located in New Orleans, Louisiana. The York Agency, Inc., a marketer of pre-need insurance and trust products, is headquartered in Florida. -0-
The York Group Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Net sales $ 40,413 $ 31,333 $ 131,575 $ 111,395
Cost of sales 29,221 24,920 96,050 87,291
Gross profit 11,192 6,413 35,525 24,104
Other operating
expenses 8,203 2,957 20,810 9,354
Operating income 2,989 3,456 14,715 14,750
Interest expense, net (122) (44) (389) (909)
Income before income taxes
and extraordinary item 2,867 3,412 14,326 13,841
Income tax provision 1,075 1,249 5,372 5,152
Income before
extraordinary item 1,792 2,163 8,954 8,689
Extraordinary item,
less applicable tax -- -- -- (736)
Net income $ 1,792 $ 2,163 $ 8,954 $ 7,953
Earnings per share:
Income before
extraordinary item $ 0.20 $ 0.26 $ 1.01 $ 1.14
Net income $ 0.20 $ 0.26 $ 1.01 $ 1.05
Average shares
outstanding 9,074,922 8,343,419 8,824,034 7,595,514
CONTACT: The York Group Inc. Dave Beck, 713/984-5500 |
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