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WESTMARK REPORTS RECORD EARNINGS, RECOMMENDS DISTRIBUTION OF SPACELABS SHARES AS STOCK DIVIDEND

 WESTMARK REPORTS RECORD EARNINGS,
 RECOMMENDS DISTRIBUTION OF SPACELABS SHARES AS STOCK DIVIDEND
 SEATTLE, Feb. 12 /PRNewswire/ -- Westmark International (NASDAQ-NMS: WMRK) announced today record financial results for the fourth quarter. Net income for the quarter rose 169 percent to $10.0 million, or 95 cents per share, as the company's revenues grew 19 percent. Net income for the year was $22.9 million, or $2.24 per share. The financial results reflect a strong acceleration in orders during the second half of the year for Advanced Technology Laboratories' (ATL's) newly introduced Ultramark(R) 9 system with High Definition(TM) Imaging and the continuing excellent financial performance of SpaceLabs throughout the year (see following fact sheets).
 Westmark also announced that its board of directors will recommend to the company's shareholders that Westmark be divided into two separate, publicly traded companies: Advanced Technology Laboratories, its diagnostic ultrasound business, and SpaceLabs, its patient monitoring business. The proposal would be effected by distributing the shares of its subsidiary, SpaceLabs Inc., to Westmark's shareholders as a tax-free stock dividend, each shareholder receiving one share of SpaceLabs for each share of Westmark held. The recommendation is subject to approval by the shareholders at the annual general meeting scheduled for May 1992.
 The proposal is intended to increase the long-term value of the investment of Westmark's shareholders by creating two separate public companies which can focus wholly on their respective dynamic and competitive markets and achieve greater recognition for their businesses from customers and investors. The proposal will also permit each company to offer incentives to its employees that more directly relate to the performance and requirements of its business.
 Dennis C. Fill, chairman and chief executive officer of Westmark and president of ATL, said that "the creation of these two independent companies will represent the successful conclusion of our efforts over the past five years to develop ATL and SpaceLabs into strong entities capable of operating and thriving on their own. Both companies have been managed as standalone operating entities within Westmark since 1987. We believe that the achievements of both companies in 1991, including their strong financial performance, demonstrate that we have achieved our objective.
 "As a result of our substantial investment in ATL's R&D programs and advanced manufacturing capabilities, ATL has built an important propriety position in digital beamforming and broad bandwidth scanhead technologies and has become, we believe, the worldwide technology leader in diagnostic ultrasound imaging. ATL's digital systems offer the physician the ability to diagnose disease with significantly greater certainty and the potential to extend the use of ultrasound into new clinical applications. We are confident ATL's technology will translate over time into both market leadership positions and attractive financial results. ATL's performance during the second half of 1991 is evidence of this potential.
 "SpaceLabs has made great strides over the past five years. It has become an acknowledged leader in patient monitoring primarily as a result of the superior clinical performance and versatility of its PCMS(TM) system and the strength of its management. In 1991 SpaceLabs had its fifth consecutive year of record revenues and income and its highest percent pre-tax return on operating assets. It now enjoys both the market position and the financial strength to operate and prosper as an independent company."
 Carl A. Lombardi, president of SpaceLabs, said, "As part of Westmark, we have built SpaceLabs into a strong competitive force in the marketplace. We believe that we have now reached the stage where we can maximize our potential as an independent company. SpaceLabs and its achievements will have greater visibility which will favorably influence our growing position in the patient monitoring markets in the United States and overseas.
 "All of the employees of SpaceLabs can be proud that their achievements over the recent years have brought us to the position where SpaceLabs can take this step."
 If approved by shareholders, the distribution is expected to be completed at the end of the second quarter. The record date for the distribution will be announced later. Dennis C. Fill would serve as chairman and chief executive officer of ATL, and Carl A. Lombardi would serve as chairman and chief executive officer of SpaceLabs.
 Westmark, with headquarters in Seattle, is a worldwide developer, manufacturer and distributor of diagnostic ultrasound systems and electronic patient monitoring systems through its subsidiaries, Advanced Technology Laboratories Inc. in Bothell, Wash., and SpaceLabs Inc. in Redmond, Wash.
 Westmark's common stock is quoted on the NASDAQ National Market System under the symbol WMRK.
 WESTMARK INTERNATIONAL
 FACT SHEET ON FOURTH-QUARTER 1991 RESULTS (A)
 COMMENTS
 Total Revenues $144.6 million -- Up 19 percent(A)
 ATL Revenues $86.0 million -- Up 20 percent
 -- Shipments of Ultramark 9
 family of products up
 74 percent and constitute
 68 percent of total ATL
 product revenues
 SpaceLabs Revenues $58.6 million -- Up 17 percent
 Gross Margin $69.5 million -- Both ATL and SpaceLabs
 as a percent of 48.1 percent vs. improved their percent
 revenues 47.5 percent gross margins
 SG&A Expense $41.1 million -- Up 8 percent
 as a percent of 28.4 percent vs.
 revenues 31.1 percent
 R&D Expense $15.7 million -- Up 2 percent for company
 as a percent of 10.8 percent vs. as a whole, with ATL R&D
 revenues 12.6 percent expenses down and
 SpaceLabs up
 Pre-Tax Income $14.2 million -- Up 239 percent
 as a percent of 9.8 percent vs.
 revenues 3.4 percent
 Extraordinary Credit $1.1 million -- Utilization of tax net
 operating loss carry-
 forwards in Europe,
 reflecting strong perfor-
 mance by ATL's European
 subsidiaries during
 quarter
 Net income $10.0 million -- Up 169 percent
 NOTE (A): All comparisons are with the fourth quarter of 1990.
 FACT SHEET ON 1991 RESULTS (B)
 COMMENTS
 Total Revenues $504.7 million -- Up 4 percent(B)
 ATL Revenues $279.7 million -- Down 3 percent, with
 revenues down 16 percent
 in first half of year and
 up 11 percent in second
 half
 SpaceLabs Revenues $225.0 million -- Up 14 percent
 Gross Margin $239.1 million
 as a percent of 47.4 percent vs.
 revenues 47.4 percent
 SG&A Expenses $153.2 million -- Up 4 percent
 as a percent of 30.4 percent vs.
 revenues 30.3 percent
 R&D Expenses $60.1 million -- Up 5 percent with ATL R&D
 as a percent of 11.9 percent vs. expenses up 3 percent and
 revenues 11.8 percent SpaceLabs up 10 percent
 Pre-Tax Income $34.0 million -- Up 32 percent
 as a percent of 6.7 percent vs. -- Includes $2.2 million
 revenues 5.3 percent gain from the sale of
 SpaceLabs prior head-
 quarters building and a
 $6.3 million litigation
 award to ATL
 Extraordinary Credit $1.5 million
 Net income $22.9 million -- Up 23 percent
 NOTE (B): All comparisons are with 1990 unless otherwise stated.
 WESTMARK INTERNATIONAL INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands)
 Dec. 27, Dec. 28,
 1991 1990
 (unaudited)
 ASSETS
 CURRENT ASSETS
 Cash and short-term investments $ 74,825 $ 36,758
 Receivables 138,039 125,405
 Inventories 103,059 115,537
 Prepaid expenses 2,912 4,505
 Deferred income taxes 31,002 28,994
 Total 349,837 311,199
 Property plant and equipment, net 80,992 62,496
 Other assets 21,665 22,798
 Total $452,494 $396,493
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Short-term borrowings $ 9,974 $ 8,005
 Accounts payable and accrued expenses 74,923 80,942
 Deferred revenue 27,721 23,882
 Taxes on income 6,090 1,004
 Total 118,708 113,833
 Long-term debt 14,000 --
 Other long-term liabilities 6,229 5,967
 Shareholders' equity 313,557 276,693
 Total $452,494 $396,493
 Common shares outstanding 9,924 9,420
 WESTMARK INTERNATIONAL INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited, in thousands except per-share amounts)
 Three Months Year
 Ended: Dec. 27, Dec. 28, Dec. 27, Dec. 28,
 1991 1990 1991 1990
 REVENUES
 Product sales $127,514 $106,922 $440,260 $425,516
 Service revenue 17,088 15,050 64,482 59,368
 Total 144,602 121,972 504,742 484,884
 COST OF SALES
 Cost of product sales 61,817 52,207 216,622 206,847
 Cost of service 13,263 11,775 49,010 48,267
 Total 75,080 63,982 265,632 255,114
 Gross margin 69,522 57,990 239,110 229,770
 OPERATING EXPENSES
 Marketing and
 administrative 41,102 37,979 153,248 147,117
 Research and
 development 15,666 15,349 60,108 57,022
 Other expense
 (income), net (540) 935 (5,641) 2,620
 Total 56,228 54,263 207,715 206,759
 Income from operations 13,294 3,727 31,395 23,011
 Investment income 1,387 827 4,255 3,683
 Interest expense (505) (371) (1,606) (944)
 Income before income
 taxes and extra-
 ordinary credit 14,176 4,183 34,044 25,750
 Provision for income
 taxes 5,245 467 12,596 9,315
 Income before extra-
 ordinary credit 8,931 3,716 21,448 16,435
 Extraordinary credit -
 realized tax benefit
 of international
 operating loss
 carryforward 1,079 11 1,484 2,267
 Net income $ 10,010 $ 3,727 $ 22,932 $ 18,702
 PER-SHARE INFORMATION
 Income before extra-
 ordinary credit $ 0.85 $ 0.39 $ 2.09 $ 1.61
 Extraordinary credit 0.10 -- 0.15 0.22
 Net income $ 0.95 $ 0.39 $ 2.24 $ 1.83
 Weighted average common
 shares and equivalents
 outstanding 10,545 9,581 10,220 10,239
 -0- 2/12/92
 /CONTACT: Anne Bugge of Westmark International, 206-682-6800/
 (WMRK) CO: Westmark International Inc.; Advanced Technology Laboratories;
 SpaceLabs Inc. ST: Washington IN: MTC SU: ERN


SC-LM -- SE007 -- 9382 02/12/92 16:17 EST
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