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BMC INDUSTRIES REPORTS SECOND QUARTER RESULTS

 /REPEATING FOR POINTS NEEDED/
 MINNEAPOLIS, July 19 /PRNewswire/ -- BMC Industries, Inc.


(NYSE: BMC) today reported net earnings of $3,806,000 or $.62 per share for the second quarter of 1993, an increase of 30 percent from $2,934,000 or $.52 per share in the year-earlier period. Total revenues rose 6 percent in the second quarter to $49,277,000.
 Paul B. Burke, BMC's president and chief executive officer, said pre-tax earnings continue to provide the most accurate indication of the company's 1993 performance in view of mandated accounting changes in the first quarter.
 Earnings before income taxes rose 59 percent or $1,995,000 in the second quarter to $5,377,000, marking the ninth consecutive quarterly improvement in this category, excluding equipment sales and nonrecurring items. For the first half of 1993, pre-tax earnings increased 78 percent or $3,296,000 to $7,526,000.
 Burke said the significant improvement in pre-tax earnings reflects the company's ongoing focus on high-margin growth opportunities in its primary markets.
 The strongly improved operating income of the aperture mask group was driven by increased volumes of high-margin masks for large-screen color televisions, those manufactured out of a nickel alloy (invar) for high-performance sets, and medium resolution computer monitor masks.
 Operating income of the optics group also continues to strengthen due to significantly increased sales of high-margin polycarbonate lenses and enhanced manufacturing efficiencies. These factors more than offset the impact of the group's slightly lower revenues from lower-margin plastic lens products.
 The company's pre-tax earnings also benefited from reduced interest expense due to further paydowns in total debt, which declined to $35,536,000 at June 30, 1993, from $44,311,000 at the end of 1992. The ratio of total debt to stockholders' equity also improved to .65 at June 30, 1993, from 1.18 at year-end 1992.
 BMC is a recognized leader in its two primary businesses. The company is the largest independent manufacturer of aperture masks for color television tubes and computer monitors. BMC is also a leading producer of polycarbonate, glass and plastic lenses. The common stock of the company is traded on the New York Stock Exchange under the symbol "BMC."
 BMC INDUSTRIES, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
 (Unaudited)
 (In thousands, except per share amounts)
 Three Months Ended Six Months Ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Revenues
 Net sales $48,436 $46,512 $94,344 $93,719
 Equipment and
 technology sales 841 13 954 13
 Total revenues 49,277 46,525 95,298 93,732
 Operating costs and expenses
 Cost of products sold 39,705 38,674 78,861 79,300
 Cost of equipment & technology 43 265 276 449
 Selling 1,951 2,111 3,966 4,166
 Administrative 935 946 2,097 2,436
 Total operating
 costs & expenses 42,634 41,996 85,200 86,351
 Income from operations 6,643 4,529 10,098 7,381
 Other (income) and expenses
 Interest expense 1,281 1,706 2,680 3,558
 Interest (income) (41) (51) (115) (146)
 Foreign exchange losses (gains) 26 (508) 7 (261)
 Earnings before income taxes 5,377 3,382 7,526 4,230
 Income tax provision 1,571 448 2,303 570
 Earnings before cumulative effect
 of accounting changes 3,806 2,934 5,223 3,660
 Cumulative effect of accounting
 changes (note 1) -- -- 12,131 --
 Net earnings $3,806 $2,934 $17,354 $3,660
 Earnings per share before
 cumulative effect of
 accounting changes $.62 $.52 $.86 $.64
 Cumulative effect of accounting
 changes (note 1) -- -- $2.01 --
 Net earnings per share $.62 $.52 $2.87 $.64
 Number of shares included in
 per share computation 6,166 5,646 6,049 5,724
 NOTE 1 - The cumulative effect of accounting changes is composed of the following items:
 -- Effective Jan. 1, 1993, the company adopted Financial Accounting Standards Board Statement No. 106 -- "Employers' Accounting for Postretirement Benefits Other than Pensions." At the time of this change in accounting method, the company immediately recognized the entire transition obligation of $1,148, which decreased net income by $724 net of tax. The Statement requires, during the years that the employee renders service, the accrual of the expected cost of providing postretirement benefits other than pensions to an employee and the employee's beneficiaries and covered dependents. Presently, substantially all of the company's domestic salaried employees and those domestic hourly employees not covered by a labor agreement are eligible for postretirement benefits other than pensions upon retirement. The 1993 impact of accruing postretirement benefits under the new Statement will be to increase annual reported expenses by $156.
 -- Effective Jan. 1, 1993, the company also adopted Financial Accounting Standards Board Statement No. 109 -- "Accounting for Income Taxes." As permitted under the new rule, prior years' financial statements have not been restated. Accordingly, the company accounted for the cumulative effect of this change in accounting method by recording a net deferred tax asset on the balance sheet in the amount of $12,855, with a corresponding increase to net income. The amount of the cumulative adjustment is based upon the company's estimate of its future domestic earnings. The company expects that its domestic provisions for income taxes will be approximately 20 percent to 25 percent of domestic taxable earnings in 1993, increasing to a combined federal and state statutory domestic tax rate by 1995. These tax rates are greater than those that would have been reported under the continued application of its former method of accounting for income taxes. This change in accounting method only changes the timing for recognition of tax benefits for purposes of the company's financial statements. On a cash basis, the company will continue for several years to incur federal income taxes under the alternative minimum tax at an effective rate of 2 percent and state income taxes at statutory rates.
 -0- 7/19/93
 /CONTACT: Merle D. Kerr, CFO of BMC Industries, 612-851-6020/
 (BMC)


CO: BMC Industries, Inc. ST: Minnesota IN: MTC SU: ERN

DS -- MN006R -- 2963 07/19/93 10:17 EDT
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Date:Jul 19, 1993
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