Fourth Quarter Conference Call – Fiscal 2003
11 / 07 / 2003Highlights
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(INTRODUCTION FOR CONFERENCE CALL)
Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our Form 10Q for the quarter ended June 30, 2003, and in certain of our other public filings with the SEC.
Bob Brady, Chairman and CEO:
Good morning. Thanks for joining us. This morning, we’re reporting results for the fourth quarter and our final results for fiscal ’03. We’ll also discuss the trends in our major product lines and we’ll update our projection for fiscal ’04.
The fourth quarter was another very strong quarter. We earned $11.8 million, or 6.1%, on sales of $193 million. Earnings in the quarter were up 15% over last year’s results. Sales were up about 4%. On a per-share basis, earnings of $.75 a share were up 12% from last year. In September of ’03, we sold 2 million new shares of stock with the result that the average shares outstanding were slightly higher this year than a year ago.
In the quarter, an increase in SG&A expenses was more than offset by lower R&D and much-reduced interest expense, with the result that the increase in gross margin of nearly a million dropped directly to pre-tax income.
Results for the entire fiscal year ’03 had very much the same profile as the fourth quarter. We had a big net earnings increase, 14%, to a new record of $42.7 million. The earnings increase was achieved on a 5% sales increase to a total of $755 million.
On a per-share basis, earnings were $2.76 a share, up slightly more than 10% from the $2.50 a share of last year.
As was the case in the fourth quarter, an increase in SG&A for the year was more than offset by lower R&D and much reduced interest expense. As a result, our total operating expenses for the year ’03 were about the same as the year previous, so our increase in gross profits, together with a lower tax rate, resulted in a $5 million increase in net earnings.
Our EBITDA for the year, $105 million, was only slightly higher than last year. Our EBITDA margin is 13.9%. Bob Banta will discuss cash flow and debt levels in just a few moments.
Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our Form 10Q for the quarter ended June 30, 2003, and in certain of our other public filings with the SEC.
Bob Brady, Chairman and CEO:
Good morning. Thanks for joining us. This morning, we’re reporting results for the fourth quarter and our final results for fiscal ’03. We’ll also discuss the trends in our major product lines and we’ll update our projection for fiscal ’04.
Q4 Results
The fourth quarter was another very strong quarter. We earned $11.8 million, or 6.1%, on sales of $193 million. Earnings in the quarter were up 15% over last year’s results. Sales were up about 4%. On a per-share basis, earnings of $.75 a share were up 12% from last year. In September of ’03, we sold 2 million new shares of stock with the result that the average shares outstanding were slightly higher this year than a year ago.
In the quarter, an increase in SG&A expenses was more than offset by lower R&D and much-reduced interest expense, with the result that the increase in gross margin of nearly a million dropped directly to pre-tax income.
Fiscal ’03 Total
Results for the entire fiscal year ’03 had very much the same profile as the fourth quarter. We had a big net earnings increase, 14%, to a new record of $42.7 million. The earnings increase was achieved on a 5% sales increase to a total of $755 million.
On a per-share basis, earnings were $2.76 a share, up slightly more than 10% from the $2.50 a share of last year.
As was the case in the fourth quarter, an increase in SG&A for the year was more than offset by lower R&D and much reduced interest expense. As a result, our total operating expenses for the year ’03 were about the same as the year previous, so our increase in gross profits, together with a lower tax rate, resulted in a $5 million increase in net earnings.
Our EBITDA for the year, $105 million, was only slightly higher than last year. Our EBITDA margin is 13.9%. Bob Banta will discuss cash flow and debt levels in just a few moments.
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