SPRAGUE TECHNOLOGIES REPORTS RESULTS
SPRAGUE TECHNOLOGIES REPORTS RESULTS STAMFORD, Conn., Nov. 14 /PRNewswire/ -- Sprague Technologies, Inc.
(NYSE: SPG) announced today that its board of directors has approved and the company has signed a definitive agreement with Vishay Intertechnology, Inc. to sell Sprague's worldwide tantalum capacitor and U.S. thick film network businesses to Vishay for $120 million in cash (subject to certain adjustments), the transfer of certain real property, and the assumption of certain liabilities of Sprague by Vishay. The transaction is subject to certain conditions, including receipt of necessary financing by Vishay, obtaining necessary governmental approvals and approval by the stockholders of Sprague.
Sprague said that Vishay has received a commitment from a syndicate of banks to provide financing for the acquisition. The financing commitments are subject to the executive of definitive loan agreements and other customary conditions. The businesses to be sold represented approximately $168 million of Sprague's $222.5 million of revenues for the first nine months of 1991. The net book value of the businesses was approximately $133 million at Sept. 30, 1991. The sale does not include the aluminum and film capacitor businesses or Sprague's Belgian subsidiary, which manufactures thick film networks and hybrids. After the closing Sprague's aluminum and film capacitor products will be sold through the ongoing Sprague/Vishay sales and distribution channels. Edward F. Kosnik, president and chief executive officer, commented "With the changing competitive structure of the worldwide component industry, the sale of the tantalum capacitor and the U.S. resistor network operations provides a good value for the company and shareholders." He said that the transaction was expected to close in late January 1992. Sprague also reported that financial results for the third quarter of 1991 were a net loss of $0.2 million, or $0.01 per share, compared to net income of $0.8 million, or $0.04 per share, for the third quarter of 1990. The operating loss for the third quarter was $0.8 million versus operating income of $3.2 million reported for the same period in 1990. Net sales for the period were $69.9 million versus $78.4 million for the comparable quarter in 1990. Net income for the nine months ended Sept. 30, 1991 was $8.1 million, or $0.45 per share, compared to $4.2 million, or $0.23 per share, for the first nine months of 1990. Included in the results is the non-recurring gain of $8.5 million (before tax) on the sale of the company's investment in Nichicon-Sprague Corporation. Operating income for the period was $1.3 million versus $11.2 million in 1990. Net sales were $222.5 million for the nine month period of 1991 compared to $247.8 million for the similar period in 1990. Edward F. Kosnik continued, "Third quarter results reflected the impact of the weak economic environment. European operations were unprofitable and were responsible for the quarterly loss reflecting the continued recessionary environment in Europe, the seasonally slow summer and problems associated with the start-up of new products in Belgium." Sprague Technologies, Inc. is a worldwide manufacturer of capacitors and other electronic components. SPRAGUE TECHNOLOGIES, INC. Financial Highlights (In millions except per share amounts) Period ended Three months Nine months Sept. 30 1991 1990 1991 1990 Net sales $69.9 $78.4 $222.5 $247.8 Operating income (0.8) 3.2 1.3 11.2 Gain on sale of investment -- -- 8.5 -- Income before income taxes (1.2) 0.9 8.1 5.9 Net income (0.2) 0.8 8.1 4.2 Earnings per share (0.01) 0.04 0.45 0.23 Average shares outstanding 18.0 18.2 18.0 18.2 -0- 11/14/91 /CONTACT: R. Kevin Matz of Sprague Technologies, 203-964-8628/ (SPG) CO: Sprague Technologies, Inc. ST: Connecticut IN: CPR SU: ERN SM-OS -- NY087 -- 4529 11/14/91 15:40 EST
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|Date:||Nov 14, 1991|
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