Ceradyne Inc. Reports Record First-Quarter 2001 Results
COSTA MESA, Calif.--April 24, 2001--Ceradyne Inc. today reported results for the first quarter ended March 31, 2001.Sales for the quarter reached a record $11.9 million, a 7 percent increase from $11.1 million in the first quarter of 2000.
Net income was $1,189,000, or 14 cents per share diluted and basic, compared with net income of $1,156,000, or 14 cents per share diluted and basic, in the first quarter of 2000. The tax provision for the quarter ended March 31, 2001, for the combined federal and state tax rate was 30 percent, compared with 2 percent in the year-ago quarter. Income before provision for taxes rose 44 percent to a record $1,699,000 from $1,179,000 in the first quarter 2000.
New bookings for the quarter also increased, rising 11 percent to $11.7 million from $10.5 million in 2000. Order backlog on March 31, 2001, was $26.4 million, 16 percent higher than the prior-year backlog of $22.7 million.
Ceradyne Chief Executive Officer Joel P. Moskowitz commented that the increase in before-tax income was due to stronger gross and operating margins, the result primarily of improving cost efficiencies related to increased production and shipment volumes, and a more favorable product mix.
Moskowitz also stated that the company has embarked on an ambitious expansion program at its Advanced Ceramic Operations in Costa Mesa. The $2.5 million expansion will substantially increase production capacity to meet anticipated growth in demand for lightweight ceramic armor, diesel and automobile ceramic engine components, ceramic orthodontic brackets, and other precision-machined advanced technical ceramics.
Ceradyne develops, manufactures and markets advanced technical ceramics for industrial, electronic, defense and consumer applications. Additional information about the company can be found at www.ceradyne.com.
This news release contains forward-looking statements regarding future events, such as the above referenced expansion and anticipated product demand, and the future performance of Ceradyne that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are described in the company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2000, as filed with the Securities and Exchange Commission.
Below is a summary of unaudited comparative results. Amounts in thousands except per share data.
Three Months Ended
March 31,
2001 2000
NET SALES $ 11,949 $ 11,148
Cost of product sales 8,123 8,263
GROSS PROFIT 3,826 2,885
Operating Expenses:
Selling 517 356
General and administrative 1,263 1,148
Research and development 481 268
2,261 1,772
INCOME FROM OPERATIONS 1,565 1,113
Other income (expense):
Other income 141 75
Interest (expense) (7) (9)
134 66
INCOME BEFORE PROVISION
FOR INCOME TAXES 1,699 1,179
Provision for income taxes 510 23
NET INCOME $ 1,189 $ 1,156
Earnings per share, basic $ 0.14 $ 0.14
Earnings per share, diluted $ 0.14 $ 0.14
Avg. shares outstanding 8,617 8,335
Condensed Consolidated Balance Sheet (in thousands):
March 31, 2001 Dec. 31, 2000
(Unaudited)
Cash and Cash Equivalents $ 5,126 $ 6,656
Other Current Assets 20,603 16,996
Net Property, Plant and Equipment 12,152 11,398
Other Assets 2,848 3,413
Total Assets $40,729 $38,463
Current Liabilities $ 4,071 $ 3,216
Long Term Debt 233 258
Deferred Revenue 202 --
Stockholders' Equity $36,223 $34,989
Total Liabilities and
Stockholders' Equity $40,729 $38,463