Printer Friendly

SHELDAHL YEAR-END, QUARTER EARNINGS AS ANTICIPATED; AUTOMOTIVE MARKET SALES INCREASE 35 PERCENT

 SHELDAHL YEAR-END, QUARTER EARNINGS AS ANTICIPATED;
 AUTOMOTIVE MARKET SALES INCREASE 35 PERCENT
 NORTHFIELD, Minn., Oct. 19 /PRNewswire/ -- Sheldahl, Inc. (NASDAQ: SHEL) announced that its fiscal 1992 year-end and fourth quarter results were as expected. For the year, the company recorded sales of $83,977,000, as compared to $86,753,000 in fiscal 1991. Income from continuing operations for the most recent fiscal year was $174,000 or 4 cents per share, down from $4,238,000 or $.90 per share realized in fiscal 1991. Sheldahl also said that sales in one of its two primary markets, automotive, rose 35 percent, despite the fact that automobile sales remained depressed. This marks a four-year 30 percent compounded annual growth rate for Sheldahl in the automotive market.
 During the year, Sheldahl significantly strengthened its balance sheet, principally through a combined reduction of nearly $3 million in inventory and trade receivables, resulting in a debt reduction in excess of $4.3 million. The company also obtained a favorable extension of its $10 million revolving credit agreement, which will be employed to support its strategic growth and product development initiatives.
 Sales for the fourth quarter of fiscal 1992 were $21,138,000, down from $22,000,000 for the same period a year ago. The company reported a net loss of $266,000 or 5 cents per share for the most recent quarter, as compared to a net profit of $1,200,000 or $.25 per share in the 1991 fourth quarter.
 Sheldahl attributed the slump in sales for the year and the quarter to less than robust economic growth, a decline in materials orders in the military market and limited new product introductions by customers in its second principal market, data communications. The company said that it is addressing this situation with new one-of-a-kind products that will provide it with distinct competitive advantages. Sheldahl recently announced that it had received product and process patents on its new proprietary Novaclad(R) line. The material enables Sheldahl to produce the world's thinnest flexible printed circuit that allows its customers to pack more functions and memory into smaller units, while enhancing the overall value of the finished product.
 In 1992 Sheldahl also made significant investments in a new advanced manufacturing facility; and in strengthening its global sales and marketing, and technical organizations. The company established a presence in Europe when it opened its Birmingham, England, Technical Design Center earlier in the year. Sheldahl expects to begin to realize benefits from these investments in the current fiscal year in the form of increased process yields, accompanied by reduced production costs; as well as a heightened domestic and European sales presence.
 Looking ahead to fiscal 1993, James E. Donaghy, Sheldahl's president and chief executive officer, said "Fiscal 1993 will be a slow growth year for us, with the majority of growth typically occurring during the second half. However, we expect to realize improved profitability because of the investments we've made this past year." Added Donaghy, "We're also seeing accelerating market demand for our new one-of-a-kind products, such as Novaflex, impedance cable and shielding. We're well- positioned to meet our customers' needs in the year ahead."
 Sheldahl, Inc., provides customers worldwide in the automotive and data communications, aerospace, consumer and materials markets with innovative solutions to meet their needs via its materials, special fabrications and flexible interconnect products. Sheldahl has strategically located design and technical centers in the Western, Midwestern and Eastern regions of the United States and in Great Britain.
 SHELDAHL, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 (In thousands, except per share data)
 (Unaudited)
 Fiscal Year Ended
 8/28/92 8/30/91
 Net sales $83,977 $86,753
 Cost of sales 68,476 68,189
 Gross profit 15,501 18,564
 Expenses:
 Sales and marketing 7,648 6,356
 General and administrative 4,090 3,835
 Research and development 2,171 1,828
 Interest 1,366 1,262
 Total expenses 15,275 13,281
 Income from continuing operations
 before provision for income taxes 226 5,283
 Provision for income taxes (52) (1,000)
 Income from continuing operations 174 4,283
 Loss from discontinued operations -- (11,459)
 Cumulative effect of change in method
 of accounting for income taxes -- 571
 Net income (loss) $174 $(6,605)
 Income and loss per share:
 Continuing operations $.04 $.90
 Discontinued operation -- $(2.40)
 Cumulative effect of accounting change -- .12
 Net income (loss) per share $.04 $(1.38)
 SHELDAHL INC. AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share data)
 (Unaudited)
 Three Months Ended
 8/28/92 8/30/91
 Net sales $21,138 $22,000
 Cost of sales 17,262 18,029
 Gross profit 3,876 3,971
 Expenses:
 Sales and marketing 2,105 1,368
 General and administrative 1,109 674
 Research and development 588 472
 Interest 288 320
 Total expenses 4,090 2,834
 Income from continuing operations
 before income taxes (214) 1,137
 (Provision) benefit for income taxes (52) 63
 Net income $(266) $1,200
 Net income per share $(.05) $.25
 CONSOLIDATED BALANCE SHEETS
 (In thousands, except per share data)
 (Unaudited)
 8/28/92 8/30/91
 Assets
 Current assets:
 Cash $498 $595
 Accounts receivable, net 11,006 12,620
 Inventories 10,038 11,413
 Prepaid expenses and other
 current assets 239 870
 Net assets of discontinued operations 753 3,655
 Total current assets 22,534 29,153
 Plant and equipment:
 Land and building 13,860 14,005
 Machinery and equipment 36,060 36,915
 Accumulated depreciation (30,543) (29,597)
 Net plant and equipment 19,377 21,323
 Other assets 514 1,004
 -- $42,425 $51,480
 Liabilities and Shareholders' Investment
 Current liabilities:
 Current maturities of long-term debt $1,225 $1,215
 Accounts payable 5,359 6,466
 Accrued salaries and commissions 1,524 2,002
 Other accrued liabilities 2,723 3,166
 Liabilities of discontinued operations 995 3,055
 Total current liabilities 11,826 15,904
 Long-term debt 9,960 14,322
 Other non-current liabilities 2,702 3,593
 Shareholders' investment:
 Preferred stock -- --
 Common stock, $.25 par value,
 7,500,000 shares authorized;
 4,773,536 and 4,737,436 shares
 issued and outstanding 1,193 1,185
 Additional paid-in capital 7,198 7,104
 Retained earnings 9,546 9,372
 Total shareholders' investment 17,937 17,661
 -- $42,425 $51,480
 -0- 10/19/92
 /CONTACT: John V. McManus, vice president, finance, Sheldahl, 507-663-8000/
 (SHEL) CO: Sheldahl, Inc. ST: Minnesota IN: AUT CPR SU: ERN


AL -- MN008 -- 1641 10/19/92 13:19 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 19, 1992
Words:1080
Previous Article:SPRINT SPONSORS BRITISH AIRWAYS IN-FLIGHT AUDIO PROGRAM
Next Article:SHAWMUT NATIONAL CORPORATION REPORTS PROBLEM ASSETS FELL $259 MILLION, OR 20 PERCENT, IN THIRD QUARTER
Topics:


Related Articles
SHELDAHL ANNOUNCES FIRST QUARTER RESULTS
SHELDAHL ANNOUNCES THIRD QUARTER RESULTS
SHELDAHL PROFITS UP FOR THE QUARTER AND NINE MONTHS
FOR FISCAL 1993 SHELDAHL REPORTS $1.2 MILLION RISE IN NET; INCREASED NEW PRODUCT SALES
SHELDAHL REPORTS PROFITS UP 106% FOR 1994 SECOND QUARTER, UP 86% FOR SIX MONTHS
SHELDAHL THIRD QUARTER INCOME FROM CONTINUING OPERATIONS UP 104% REVENUE UP 17%
SHELDAHL REPORTS RECORD RESULTS FOR QUARTER, HALF
SHELDAHL REPORTS THIRD QUARTER, YEAR-TO-DATE GAINS: FOURTH QUARTER TO BE AFFECTED BY ORDER DELAYS
Sheldahl Posts Record Revenues and Earnings for Fiscal 1996
Sheldahl Reports First Quarter Results

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