LUMEX REPORTS SHARPLY INCREASED FOURTH QUARTER AND FULL YEAR EARNINGS
BAY SHORE, N.Y., Feb. 24 /PRNewswire/ -- Lumex, Inc. (AMEX: LUM) today reported strong increases in sales and earnings for the fourth quarter and year ended Dec. 31, 1991.
Net income for the fourth quarter increased 44% to $1,410,000, or $0.33 per share, from $979,000, or $0.23 per share, in the same period last year. Net sales were $27.6 million compared to $24.6 million, an increase of 12 percent.
Net income for the full year 1991 was $3,707,000, or $0.86 per share, compared with $204,000, or $0.05 per share, in the prior year. Net sales rose 12.6 percent in 1991 to $100.3 million from $89.1 million in 1990.
The strong improvement in earnings in 1991 resulted from increased sales of new, higher margin products and continued benefits from strategic programs implemented in mid-1990 to reduce costs and improve productivity. CYBEX achieved solid growth in all of its major markets, with sales to the medical market rising sharply due to strong demand for the CYBEX 6000 Extremity Testing and Rehabilitation System, introduced in March. In the fitness market, CYBEX continued to increase market share and sales of CYBEX Strength Systems, including CYBEX Modular Strength Systems.
1991 sales at the LUMEX Division were ahead of last year, as the company benefitted from increased growth of its stainless steel wheelchair line and gains recorded in the patient aids category. The Setma Bathing Systems line of hydrotherapy products also contributed to growth.
Lawrence N. Cohen, chairman and chief executive officer, said, "1991 was an excellent year for Lumex as we reached a milestone of $100 million in sales and
achieved progressive and substantial improvement in earnings. We are especially pleased by the strong sales growth achieved by new products at both the CYBEX and LUMEX Divisions and the success of our ongoing efforts to increase efficiency, including significantly improved management of inventories which has greatly increased our cash flow."
Cohen added, "We expect to show further improvement in earnings and revenues in 1992. The LUMEX Division, under the leadership of newly- appointed president John Cowin, will focus on improving sales growth and profitability through better execution of our market strategies. Our improved balance sheet will also enable us to take advantage of growth opportunities in our markets, particularly by expansion into related product categories through acquisitions."
During the fourth quarter, Lumex continued to improve its financial condition as working capital increased to $28.5 million, cash and temporary investments increased by over $5 million, debt-to-equity improved to 13.7 percent and book value increased to $10.28 per share.
Lumex, Inc. is a leading manufacturer of products for the health care industry through its LUMEX and CYBEX Divisions, serving acute and long-term care, home health care, physical therapy/sports medicine and fitness market segments.
Consolidated Summary of Operations
(in thousands, except per share data)
Three months ended Dec. 31 Increase
1991 1990 (Decrease)
Net sales $27,608 $24,662 11.9
Cost of sales 15,808 14,596 8.3
Selling & admin. expenses 8,693 7,500 15.9
Product development expenses 1,018 996 2.2
Other (income) expenses (24) 104
Income before income taxes 2,113 1,466 44.1
Income tax provision 703 487 44.4
Net Income $ 1,410 $ 979 44.0
Net Income per share $ 0.33 $ 0.23 43.5
Average Shares 4,351 4,211
Twelve months ended Dec. 31 Increase
1991 1990 (Decrease)
Net sales $100,348 $89,120 12.6
Cost of sales 59,313 53,339 11.2
Selling & admin. expenses 31,817 30,502 4.3
Product development expenses 3,855 4,603 (16.3)
Other (income) expenses (230) 392
Income before income taxes 5,593 284
Income tax provision 1,886 80
Net Income $ 3,707 $ 204
Net Income per share $ 0.86 $ 0.05
Average Shares 4,318 4,212
Consolidated Condensed Balance Sheets
(Thousands of Dollars)
Dec. 31, Dec. 31,
Temporary investments $ 9,924 $ 2,165
Accounts receivable 16,301 17,747
Inventories 15,806 17,878
Other current assets 1,385 1,281
Total Current Assets 43,416 39,071
Property, plant and equipment, net 18,248 19,230
Note receivable 2,396 2,565
Intangible assets 2,338 2,480
Other assets 489 732
Total Assets $66,887 $64,078
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings $ - $ 2,250
Accounts payable 5,283 6,496
Other current liabilities 9,633 6,476
Total Current Liabilities 14,916 15,222
Deferred income taxes 2,694 2,774
Long-term debt 5,935 6,755
Stockholders' equity 43,342 39,327
Total Liabilities and
Stockholders' Equity $66,887 $64,078
/CONTACT: June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-986-5900, for Lumex/
(LUM) CO: Lumex, Inc. ST: New York IN: HEA SU: ERN SH -- NY014 -- 1750 02/24/92 09:26 EST