Woodhead Industries Announces Third Consecutive Quarter Of Double-Digit Top- and Bottom-Line Growth.Business Editors DEERFIELD Deerfield, towns, United States Deerfield. 1 Village (1990 pop. 17,327), Cook and Lake counties, NE Ill., a residential suburb of Chicago; inc. 1903. The huge Sara Lee Bakery is its major industry, and there is other light manufacturing. , Ill.--(BUSINESS WIRE)--July 20, 2000 Connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. Products' Continued Acceptance Results in 58% Year-Over-Year Growth in Net Income Woodhead Woodhead (SK091999) is a small and scattered settlement at the head of the Longdendale valley in Derbyshire, England. It lies on the River Etherow and the Trans Pennine Trail. Industries, 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 : WDHD WDHD World Digestive Health Day ), a world leader in connectivity solutions for industrial automation and control, today announced third quarter revenues for fiscal 2000 of $49,962,000 and $0.30 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . The Industrial Connectivity segment continued to drive the Company's top and bottom lines, reaching 66% of total sales for the quarter. Financial Highlights: -- The $49,962,000 of third-quarter total revenue represents a 16 percent increase over the comparable quarter in 1999. -- Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: income from operations increased 27 percent due to the increase in sales without a corresponding increase 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. . -- Net income for the period was $3,520,000 and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings per share were also solid at $0.30 amounting to a 58% and 50% increase, respectively, over comparable results last year. -- The company continued its strong cash flow generation as 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 (earnings before interest, taxes, depreciation and amortization) increased 14% to $8,857,000 compared with $7,757,000 in the same quarter last year. -- Total orders entered in the third quarter were 20 percent ahead of the same period last year. Ending 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. grew 50% to $18 million compared with $12 million at the end of September September: see month. 1999. C. Mark DeWinter, 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. , stated: "Our Industrial Communications and Connectivity Products continue to gain rapid acceptance in the market, as they accounted for almost two-thirds of our revenue stream this quarter. We were not only encouraged by the Connectivity Group's 22% increase in total revenues, but by its 61% increase in Income from Operations. The group's ability to transfer top-line growth to the bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. has always been a high priority for us. Sales of the Company's Electrical Safety & Specialty Products segment grew 5 percent driven by our North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. and continues to be a strong source of cash flow for Woodhead." Philippe Lemaitre, President and COO (Cell Of Origin) See mobile positioning. , stated: "The strength and consistency of our results energizes me as I prepare to take the reigns from Mark at year end. I feel very confident and firmly committed to our vision to transform Woodhead into the world's leader in connectivity solutions. Our award winning RJ-Lnxx(TM) Industrial Ethernet Industrial Ethernet is the name given to the use of the Ethernet protocol in an industrial environment, for automation and production machine control. Until recently, a PLC (Programmable logic controller) would communicate with a slave machine using one of several possible Connector, the world's only IP67-rated industrial Ethernet connection solution, continues to be very well received. Our breadth of highly valued solutions strongly positions us to drive increased productivity on the factory floor. I also look forward to working more closely with all of our shareholder constituencies in the coming years." Certain statements contained herein constitute "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. " within the meaning of 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. Such forward-looking statements involve numerous assumptions, known and unknown risks, uncertainties and other factors, which may cause actual and future performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include: achieving sales levels to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. revenue expectations; the absence of presently unexpected costs or charges, certain of which may be outside the control of the Company; general economic and business conditions; competition; and other factors described in the Company's SEC filings. About Woodhead Industries Woodhead Industries, Inc. (NASDAQ: WDHD) develops, manufactures, and markets electronic and industrial communications products, primarily serving the global automation and control market with connectivity solutions, and specialty electrical products. Note: A replay of Woodhead's July July: see month. 20th telephone conference call will be available through the Woodhead web site, www.woodhead.com, from 1:00 p.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) July 20th through August 20th. (Tables follow) Woodhead Industries, Inc. Consolidated Income Statement (Unaudited) (Amounts in thousands, except per share data) 13 weeks ended: 07/01/00 07/03/99 % Change Net sales $49,962 $43,190 15.7% Cost of sales 29,098 24,636 18.1% Gross profit $20,864 $18,554 12.5% % of net sales 41.8% 43.0% Operating expenses 14,261 13,340 6.9% % of net sales 28.5% 30.9% Income from operations $6,603 $5,214 26.6% % of net sales 13.2% 12.1% Other expenses (income) Interest expense 742 882 (15.9%) Other expenses(income),net 339 (11) Net other expenses 1,081 871 24.1% Income before taxes $5,522 $4,343 27.1% % of net sales 11.1% 10.1% Provision for income taxes 2,002 2,112 (5.2%) Net income $ 3,520 $ 2,231 57.8% % of net sales 7.0% 5.2% Earnings per share Diluted $0.30 $0.20 50.0% Weighted-average common shares outstanding Diluted 11,890 11,418 4.1% Dividends per share $0.09 $0.09 0.0% EBITDA (Earnings before interest, taxes, depre- ciation & amortization) $8,857 $7,757 14.2% Segment Data Net Sales ---------------------- Industrial Communica- tions Connectivity Products $32,925 $26,894 22.4% Electrical Safety & Specialty Products 17,037 16,296 4.5% Total $49,962 $43,190 15.7% Income From Operations ---------------------- Industrial Communica- tions Connectivity Products $4,684 $2,915 60.7% Electrical Safety & Specialty Products 2,507 2,733 (8.3%) Corporate and Other (588) (434) 35.5% Total $6,603 $5,214 26.6% 39 weeks ended: 07/01/00 07/03/99 % Change Net sales $144,593 $126,494 14.3% Cost of sales 82,886 71,977 15.2% Gross profit $61,707 $54,517 13.2% % of net sales 42.7% 43.1% Operating expenses 43,337 39,034 11.0% % of net sales 30.0% 30.9% Income from operations $18,370 $15,483 18.6% % of net sales 12.7% 12.2% Other expenses (income) Interest expense 2,260 2,589 (12.7%) Other expenses(income),net 693 (382) Net other expenses 2,953 2,207 33.8% Income before taxes $15,417 $13,276 16.1% % of net sales 10.7% 10.5% Provision for income taxes 5,701 5,778 (1.3%) Net income $ 9,716 $ 7,498 29.6% % of net sales 6.7% 5.9% Earnings per share Diluted $0.82 $0.66 24.2% Weighted-average common shares outstanding Diluted 11,858 11,389 4.1% Dividends per share $0.27 $0.27 0.0% EBITDA (Earnings before interest, taxes, depre- ciation & amortization) $25,539 $23,628 8.1% Segment Data Net Sales ---------------------- Industrial Communica- tions Connectivity Products $93,141 $76,150 22.3% Electrical Safety & Specialty Products 51,452 50,344 2.2% Total $144,593 $126,494 14.3% Income From Operations ---------------------- Industrial Communica- tions Connectivity Products $11,978 $7,702 55.5% Electrical Safety & Specialty Products 8,533 8,548 (0.2%) Corporate and Other (2,141) (767) 179.1% Total $18,370 $15,483 18.6% Woodhead Industries, Inc. Consolidated Balance Sheet (Unaudited) (Amounts in thousands) Assets: 07/01/00 07/03/99 Current Assets: Cash & short-term securities $ 6,839 $ 489 Accounts receivable 33,403 29,955 Refundable income taxes 376 682 Inventories 24,044 21,626 Prepaid taxes and other expenses 7,126 7,144 Total current assets $71,788 $59,896 Deferred income taxes and other assets $6,672 $4,020 Property, plant, & equipment, at cost $122,359 $119,282 Less -- Accumulated depreciation (61,835) (54,555) Net property, plant & equipment $60,524 $64,727 Goodwill $23,228 $25,963 Total Assets $162,212 $154,606 Woodhead Industries, Inc. Consolidated Balance Sheet (Unaudited) (Amounts in thousands) Liabilities & Stockholders' Investment: 07/01/00 07/03/99 Current Liabilities: Accounts payable $ 9,121 $ 6,282 Accrued expenses 17,915 16,414 Income taxes 362 2,087 Portion of long-term debt payable within one year -- -- Total current liabilities $27,398 $24,783 Other liabilities $ 2,859 $ 1,757 Long-Term Debt, less portion payable $45,000 $50,300 within one year Stockholders' Investment: Preferred stock $ -- $ -- Common stock 11,371 11,122 Additional paid-in capital 11,920 9,977 Deferred stock compensation (263) -- Accumulated other comprehensive income (5,151) (3,357) Retained earnings 69,078 60,024 Total stockholders' investment $86,955 $77,766 Total Liabilities and Stockholders' Investment $162,212 $154,606 For further information contact: Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. G. Jennings Jennings, city (1990 pop. 11,305), seat of Jefferson Davis parish, SW La., on the Mermentau River; inc. 1888. Cotton and rice are grown, there is a bottling plant, and drugs, machinery, apparel, and water-treatment systems are manufactured. , V.P. Finance & CFO See Chief Financial Officer. , (847) 317-2400; e-mail: jennings@woodhead.com. Woodhead home page: http://www.woodhead.com. |
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