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WESTMARK'S FINAL QUARTER REPORTED; EARNINGS 64 CENTS PER SHARE BEFORE SPIN-OFF CHARGES

 WESTMARK'S FINAL QUARTER REPORTED;
 EARNINGS 64 CENTS PER SHARE BEFORE SPIN-OFF CHARGES
 SEATTLE, July 21 /PRNewswire/ -- Westmark International Inc., now renamed Advanced Technology Laboratories Inc. (ATL) (NASDAQ-NMS: ATLI), today reported its results for the second quarter of 1992. The company's net income includes the results for the diagnostic ultrasound business of Advanced Technology Laboratories and the patient monitoring and clinical information business of SpaceLabs Medical (SpaceLabs) (NASDAQ-NMS: SLMD).
 Net income for the second quarter was $6.9 million, or 64 cents per share, excluding two non-recurring charges directly related to the distribution of the stock of its subsidiary SpaceLabs Medical to its shareholders. These two non-recurring charges reduced net income in the quarter by 50 cents per share. Net income was $1.5 million, or 14 cents per share, including the two non-recurring charges.
 Net income for the second quarter of 1991 was $2.2 million, or 21 cents per share, including a 13-cent, non-recurring gain from the sale of a building, and $0.9 million, or 8 cents per share, excluding such gain.
 On June 26, 1992, Westmark distributed the stock of SpaceLabs to its shareholders on a one-for-one basis as a tax-free dividend and changed its name from Westmark International to Advanced Technology Laboratories Inc.
 Revenues for ATL, the diagnostic ultrasound business, increased 32 percent from $58.3 million in the second quarter of 1991 to $77.0 million in the second quarter of 1992. Percent gross margin increased from 42.4 percent to 46.5 percent. Income, before income taxes and before the impact of the two non-recurring charges discussed below, increased from a loss of $4.6 million to a profit of $3.1 million. Net income for ATL on a stand-alone basis was 24 cents per share before the impact of the two non-recurring charges and a loss of 13 cents per share after the impact of the non-recurring charges.
 ATL's ultrasound revenues for the first six months of 1992 increased 24 percent to $152.9 million. Percent gross margin increased from 43.6 percent to 46.4 percent. Income, before income taxes and before the impact of the two non-recurring charges discussed below and before the favorable impact of an arbitration award in the first quarter of 1991, increased from a loss of $6.9 million to a profit of $7.2 million.
 Revenues for SpaceLabs, the patient monitoring and clinical information business, increased 12 percent from $55.8 million in the second quarter of 1991 to $62.6 million in the second quarter of 1992. Percent gross margin increased from 51.1 percent to 52.1 percent. Income, before income taxes and before the impact of the two non- recurring charges discussed below and before the effect of the sale of a building in the second quarter of 1991, increased 20 percent from $6.0 million to $7.2 million. Net income for SpaceLabs was 40 cents per share before the impact of the two non-recurring charges and 27 cents per share after the impact of the non-recurring charges.
 SpaceLabs' revenues for the first six months of 1992 increased 12 percent to $124.2 million. Percent gross margin increased from 51.4 percent to 51.9 percent. Income, before income taxes and before the impact of the two non-recurring charges discussed below and the non-recurring gain from the sale of the building, increased 24 percent to $13.0 million.
 The company's consolidated results for the second quarter of 1992 include two non-recurring charges directly related to the spin-off. The company incurred expenses totalling $2.5 million for legal, accounting, investment advisory, printing, and other fees and expenses relating to the distribution of the stock of SpaceLabs to its shareholders. The company also incurred a restructuring charge of $3.9 million in connection with the distribution. The restructuring charge provides for the closure of Westmark's Seattle headquarters office, the severance of certain personnel as a result of the distribution, the recruiting of personnel to fill positions at ATL and SpaceLabs created by the distribution, and a $1.4-million write-down to estimated market value of ATL's former ultrasound manufacturing facilities in Germany that ATL has unsuccessfully offered for sale and, as a result of the distribution, intends to offer for sale expeditiously to realize the cash benefits.
 Dennis C. Fill, chairman and chief executive officer of ATL, said that "ATL's Ultramark(R) 9 High Definition(TM) Imaging (HDI) technology continues to excel in the marketplace. We believe that the addition of our two new broad bandwidth scanheads -- the C9-5ICT and the A6-3 Annular Array -- further strengthens and differentiates the competitive position of our HDI technology.
 "Our international business remains strong and continues to grow at a rate faster than the domestic market. Revenues and bookings for both our high-end Ultramark 9 family of products and Ultramark 4 systems are doing well.
 "In the domestic markets, revenues and bookings for our Ultramark 4 systems exceeded our forecasts. Revenues for our Ultramark 9 family of products were also strong, but bookings for this group were lower than expected in the important closing days of June. We believe our market share in the high-end continues to increase, although the growth rate in our bookings slowed during the quarter. We also believe that June bookings reflect administrative delays in hospitals and the implementation by ATL of certain pricing policies."
 Carl Lombardi, chairman and chief executive officer of SpaceLabs Medical, said "SpaceLabs' results for the quarter show that we continue to experience revenue growth rates for the quarter and year- to-date which are at the high end of estimated growth levels for the overall market. We are particularly pleased with the progress of our international business, an area very important to SpaceLabs' future growth. Higher revenues and improved gross margins have resulted in pre-tax profit percent increases, before non-recurring items, of 20 percent and 24 percent for the quarter and year-to-date respectively."
 Advanced Technology Laboratories, with headquarters in Bothell, Wash., is a worldwide developer, manufacturer and distributor of diagnostic ultrasound systems. SpaceLabs Medical, with headquarters in Redmond, Wash., is a leading manufacturer of clinical information systems, patient monitoring equipment, diagnostic monitoring products and pre-hospital EMS products.
 The common stocks of Advanced Technology Laboratories and SpaceLabs Medical are quoted on the NASDAQ National Market System under symbols ATLI and SLMD respectively.
 ADVANCED TECHNOLOGY LABORATORIES INC.
 (Formerly Westmark International Inc.)
 CONSOLIDATING SCHEDULE OF RESULTS OF OPERATIONS
 (Unaudited, in thousands except per-share data)
 Three months ended June 26, 1992
 Advanced
 Technology SpaceLabs
 Total Laboratories Medical
 Revenues $139,574 $76,966 $62,608
 Cost of sales 71,195 41,177 30,018
 Gross margin 68,379 35,789 32,590
 Operating expenses:
 Marketing and administrative 41,711 23,847 17,864
 Research and development 16,826 9,487 7,339
 Stock distribution expenses 2,494 1,195 1,299
 Reorganization charges 3,945 3,764 181
 Other expense (income), net 360 333 27
 Total 65,336 38,626 26,710
 Income (loss) from operations 3,043 (2,837) 5,880
 Investment income 1,207 1,145 62
 Interest expense (430) (210) (220)
 Income (loss) before income
 taxes and extraordinary
 credit 3,820 (1,902) 5,722
 Provision (benefit) for
 income taxes 2,332 (451) 2,783
 Income (loss) before
 extraordinary credit 1,488 (1,451) 2,939
 Extraordinary credit-realized
 benefit of international
 operating loss carryforwards -- -- --
 Net income (loss) $ 1,488 $(1,451) $ 2,939
 Per-share data:
 Net income (loss) $ 0.14 $ (0.13) $ 0.27
 Weighted average common
 shares and equivalents
 outstanding 10,772 10,772 10,772
 ADVANCED TECHNOLOGY LABORATORIES INC.
 (Formerly Westmark International Inc.)
 CONSOLIDATING SCHEDULE OF RESULTS OF OPERATIONS
 (Unaudited, in thousands except per-share data)
 Three months ended June 28, 1991
 Advanced
 Technology SpaceLabs
 Total Laboratories Medical
 Revenues $114,152 $58,342 $55,810
 Cost of sales 60,927 33,631 27,296
 Gross margin 53,225 24,711 28,514
 Operating expenses:
 Marketing and administrative 37,745 21,557 16,188
 Research and development 14,433 8,587 5,846
 Other expense (income), net (1,784) (22) (1,762)
 Total 50,394 30,122 20,272
 Income (loss) from operations 2,831 (5,411) 8,242
 Investment income 906 861 45
 Interest expense (217) (94) (123)
 Income (loss) before income
 taxes and extraordinary
 credit 3,520 (4,644) 8,164
 Provision (benefit) for
 income taxes 1,303 (1,881) 3,184
 Income before
 extraordinary credit 2,217 (2,763) 4,980
 Extraordinary credit-realized
 benefit of international
 operating loss carryforwards -- -- --
 Net income (loss) $ 2,217 $(2,763) $ 4,980
 Per-share data:
 Net income (loss) $ 0.21 $ (0.27) $ 0.48
 Weighted average common
 shares and equivalents
 outstanding 10,398 10,398 10,398
 ADVANCED TECHNOLOGY LABORATORIES INC.
 (Formerly Westmark International Inc.)
 CONSOLIDATING SCHEDULE OF RESULTS OF OPERATIONS
 (Unaudited, in thousands except per-share data)
 Six months ended June 26, 1992
 Advanced
 Technology SpaceLabs
 Total Laboratories Medical
 Revenues $277,061 $152,904 $124,157
 Cost of sales 141,650 81,895 59,755
 Gross margin 135,411 71,009 64,402
 Operating expenses:
 Marketing and administrative 81,936 45,774 36,162
 Research and development 32,622 18,160 14,462
 Stock distribution expenses 2,494 1,195 1,299
 Reorganization charges 3,945 3,764 181
 Other expense (income), net 2,283 1,842 441
 Total 123,280 70,735 52,545
 Income from operations 12,131 274 11,857
 Investment income 2,492 2,383 109
 Interest expense (904) (421) (483)
 Income before income taxes
 and extraordinary credit 13,719 2,236 11,483
 Provision for income taxes 5,995 954 5,041
 Income before extraordinary
 credit 7,724 1,282 6,442
 Extraordinary credit-realized
 benefit of international
 operating loss carryforwards 421 421 --
 Net income $ 8,145 $ 1,703 $ 6,442
 Per-share data:
 Income before extraordinary
 credit $ 0.72 $ 0.12 $ 0.60
 Extraordinary credit 0.04 0.04 --
 Net income $ 0.76 $ 0.16 $ 0.60
 Weighted average common
 shares and equivalents
 outstanding 10,699 10,699 10,699
 ADVANCED TECHNOLOGY LABORATORIES INC.
 (Formerly Westmark International Inc.)
 CONSOLIDATING SCHEDULE OF RESULTS OF OPERATIONS
 (Unaudited, in thousands except per-share data)
 Six months ended June 28, 1991
 Advanced
 Technology SpaceLabs
 Total Laboratories Medical
 Revenues $233,823 $122,946 $110,877
 Cost of sales 123,232 69,344 53,888
 Gross margin 110,591 53,602 56,989
 Operating expenses:
 Marketing and administrative 74,068 41,030 33,038
 Research and development 30,016 17,762 12,254
 Other expense (income), net (5,126) (4,050) (1,076)
 Total 98,958 54,742 44,216
 Income (loss) from operations 11,633 (1,140) 12,773
 Investment income 1,801 1,700 101
 Interest expense (530) (310) (220)
 Income before income taxes
 and extraordinary credit 12,904 250 12,654
 Provision (benefit) for
 income taxes 4,775 (160) 4,935
 Income before extraordinary
 credit 8,129 410 7,719
 Extraordinary credit-realized
 benefit of international
 operating loss carryforwards -- -- --
 Net income $ 8,129 $ 410 $ 7,719
 Per-share data:
 Net income $ 0.80 $ 0.04 $ 0.76
 Weighted average common
 shares and equivalents
 outstanding 10,174 10,174 10,174
 SCHEDULE OF FINANCIAL POSITION
 (Unaudited, in thousands)
 June 26, 1992
 Advanced
 Technology SpaceLabs
 Laboratories Medical
 ASSETS
 Current assets:
 Cash and short-term marketable securities $ 65,990 $ 33,365
 Receivables 83,504 52,419
 Inventories 68,381 42,991
 Prepaid expenses 2,924 2,396
 Deferred income taxes 15,080 16,540
 Total $235,879 $147,711
 Property, plant and equipment, net 42,805 38,527
 Other assets 4,813 16,610
 Total $283,497 $202,848
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term borrowings $ 4,524 $ 892
 Current portion of long-term debt -- 700
 Accounts payable and accrued expenses 47,705 28,454
 Deferred revenue 25,369 3,432
 Taxes on income 4,742 1,511
 Total 82,340 34,989
 Long-term debt -- 12,950
 Deferred income taxes 3,663 1,711
 Other long-term liabilities 406 2?5
 Shareholders' equity 197,088 152,373
 Total $283,497 $202,848
 Common shares outstanding 11,111 11,111
 SCHEDULE OF FINANCIAL POSITION
 (In thousands)
 Dec. 27, 1991
 Advanced
 Technology SpaceLabs
 Laboratories Medical
 ASSETS
 Current assets:
 Cash and short-term marketable securities $ 76,533 $ 991
 Due from ATL -- 12,882
 Receivables 91,576 46,463
 Inventories 65,011 38,048
 Prepaid expenses 1,635 1,277
 Deferred income taxes 15,892 15,110
 Total 250,647 114,771
 Property, plant and equipment, net 42,329 38,663
 Other assets 5,532 16,133
 Total $298,508 $169,567
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term borrowings $ 7,985 $ 1,989
 Current portion of long-term debt -- 700
 Accounts payable and accrued expenses 49,128 28,494
 Due to SpaceLabs 12,882 --
 Deferred revenue 24,691 3,030
 Taxes on income 3,361 2,729
 Total 98,047 36,942
 Long-term debt -- 13,300
 Deferred income taxes 3,640 2,174
 Other long-term liabilities 415 --
 Shareholders' equity 196,406 117,151
 Total $298,508 $169,567
 Common shares outstanding 9,924 9,924
 ADVANCED TECHNOLOGY LABORATORIES
 FACT SHEET
 Q2 1992
 Comments(A)
 Revenues $77.0 million - Up 32 percent
 - Revenues for the
 Ultramark(R) 9 family
 increased 59 percent and
 constitute 67 percent of
 ATL's product revenues
 - Revenues for Ultramark 4
 systems ahead of last
 year
 Gross Margin $35.8 million - Improvement reflects
 As a percent of 46.5 percent higher volumes and
 revenues vs. 42.4 percent improved service margins
 SG&A Expense $23.8 million - Up 11 percent in absolute
 As a percent of 31.0 percent dollars but down as a
 revenues vs. 36.9 percent percent of revenues
 - Includes allocation of
 Westmark Corporate
 expenses of $1.1 million
 in 1992 and $1.0 million
 in 1991
 Stock Distribution - Non-recurring charges
 Expense & related to spin-off of
 Reorganization SpaceLabs. Net income
 Charges $5.0 million effect is 37 cents per
 share, including 4 cents
 per share of extra-
 ordinary credit not
 realized as a result of
 the Solingen facility
 write-down
 R&D Expense $9.5 million - Up 10 percent in dollars
 As a percent of 12.3 percent
 revenues vs. 14.7 percent
 Pre-Tax Income $3.1 million(B) - Excluding non-recurring
 As a percent 4.0 percent charges in the second
 of revenues vs. (8.0) percent quarter of 1992, pre-tax
 improved to $3.1 million
 from a loss of
 $4.6 million
 Net income $2.6 million(B) - Excluding non-recurring
 charges, EPS was 24 cents
 per share including a
 4-cent per share
 extraordinary credit
 related to the utiliza-
 tion of tax loss carry-
 forwards in Europe
 NOTE A: Comparisons are with the second quarter of 1991.
 NOTE B: Amount excludes non-recurring items of $5.0 million pre- tax in the second quarter of 1992.
 ADVANCED TECHNOLOGY LABORATORIES
 FACT SHEET
 SIX MONTHS - 1992
 Comments(A)
 Revenues $152.9 million - Up 24 percent
 - Revenues for the
 Ultramark(R) 9 family
 increased 68 percent and
 constitute 67 percent of
 ATL's product revenues
 Gross Margin $71.0 million - Improvement reflects
 As a percent of 46.4 percent higher volumes and
 revenues vs. 43.6 percent improved service margins
 SG&A Expense $45.8 million - Up 12 percent in absolute
 As a percent of 29.9 percent dollars but down as a
 revenues vs. 33.4 percent percent of revenues
 - Includes allocation of
 Westmark Corporate
 expenses of $2.0 million
 in 1992 and $2.3 million
 in 1991
 R&D Expense $18.2 million - Up 2 percent in dollars
 As a percent of 11.9 percent
 revenues vs. 14.4 percent
 Pre-Tax Income $7.2 million(B) - Excluding non-recurring
 As a percent 4.7 percent items, pre-tax approved
 of revenues vs. (5.6) ion(B) - Excluding non-recurring
 charges, EPS was 54 cents
 per share including
 8 cents per share
 extraordinary credit
 NOTE A: Comparisons are with the prior year.
 NOTE B: Excludes non-recurring charges of $5.0 million in the second quarter of 1992 and excludes the arbitration award of $6.3 million and related reimbursement of legal fees received in the first quarter of 1991.
 SPACELABS MEDICAL
 FACT SHEET
 Q-2 1992
 Comments(A)
 Revenues $62.6 million - Up 12 percent, primarily
 from PCMS sales
 Gross Margin $32.6 million - Improvement reflects
 As a percent of 52.1 percent higher sales volume and
 revenues vs. 51.1 percent changes in product and
 distribution mix
 SG&A Expense $17.9 million - Up 10 percent in absolute
 As a percent of 28.5 percent dollars but down as a
 revenues vs. 29.0 percent percent of revenues
 R&D Expense $7.3 million - Increase in accordance
 As a percent of 11.7 percent with planned level of
 revenues vs. 10.5 percent activity
 Pre-Tax Income Before
 Non-Recurring Items $7.2 million(B) - Up 20 percent
 As a percent 11.5 percent
 of revenues vs. 10.8 percent
 Net income $4.4 million(B) - Excluding non-recurring
 As a percent 6.9 percent items, net income was up
 of revenues vs. 6.5 percent 20 percent and EPS was
 40 cents per share --
 compared to 35 cents in
 the prior year
 NOTE A: All comparisons are with the second quarter 1991.
 NOTE B: Amount excludes non-recurring items of $1.5 million expense pre-tax in the second quarter of 1992 and a $2.2-million pre- tax gain from the sale of a building in the second quarter of 1991.
 -0- 7/21/92 R
 /CONTACT: Anne Bugge of Advanced Technology Laboratories, 206-682-6800/
 (ATLI SLMD) CO: Westmark International Inc.; Advanced Technology Laboratories
 Inc; SpaceLabs Medical ST: Washington IN: MTC SU: ERN


SC-LM -- SE009R -- 1852 07/22/92 11:29 EDT
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