Ceradyne Inc. Reports Q2 and Six-Months 2001 Financial Results
COSTA MESA, Calif.--July 26, 2001--Ceradyne Inc. today reported sales and earnings for the second quarter and six months ended June 30, 2001.Sales for the quarter were $11.1 million compared to $11.7 million in the prior-year second quarter. Net income was $1.3 million, or $0.15 per diluted share, compared to $1.3 million, or $0.16 per diluted share, for the comparable 2000 quarter. Pre-tax income increased 14% to $1.6 million from $1.4 million in the second quarter 2000.
Sales for the six-month period were $23.1 million compared to $22.8 million in the comparable prior-year period. Net income was $2.4 million, or $0.28 per diluted share, compared to the prior year's $2.5 million, or $0.30 per diluted share. Income before provision for taxes for the six months ended June 30, 2001, rose 28% to a record $3.3 million from $2.5 million in the year-ago period.
Provision for taxes for the first six months of 2001 was 25% compared to 2% for the same period in 2000.
Per share income for the quarter and six months 2001 reflect increased average shares outstanding compared to the comparable 2000 periods.
New bookings for the second quarter were $8.9 million compared to $12.5 million in the year-earlier quarter. For the six months ended June 30, 2001, new bookings were $19.2 million compared to $22.8 million for the comparable 2000 period. Total backlog as of June 30, 2001, was $24.2 million (including options of $2.1 million) compared to June 30, 2000, backlog of $23.8 million (including options of $2.6 million).
Commented Joel P. Moskowitz, Ceradyne's president and chief executive officer: "We continue to project the balance of 2001 to be positive with sales and earnings at the current level or higher as the year progresses. The three product areas leading the company's growth are lightweight ceramic armor, "Clarity(TM)" orthodontic ceramic brackets, and Ceradyne's silicon nitride product line for diesel engines and industrial applications.
"Weakness in the company's Thermo Materials operation put pressure on the second-quarter sales and earnings, but is expected to improve in the third quarter due to anticipated missile ceramic radome business."
Moskowitz added, "The increase in the company's gross profit is due to a favorable product mix in Advanced Ceramic Operations and higher productivity and quality levels at its Semicon Associates Division.
"The recent announcement of the opening of our Detroit office managed by Mr. Michael Kurilla is further evidence of the company's commitment to the use of ceramics in the auto and diesel markets," Moskowitz continued.
Moskowitz also stated: "The $2.5 million expansion of our Costa Mesa, Calif., Advanced Ceramic Operations is continuing on schedule with a planned August completion date. The company is funding this expansion from internally generated funds."
CERADYNE INC.
Summary of unaudited comparative results
(Amounts in thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
NET SALES $11,137 $11,699 $23,086 $22,847
Cost of product sales 7,844 8,535 15,998 16,798
GROSS PROFIT 3,293 3,164 7,088 6,049
Operating expenses:
Selling 540 397 1,058 753
General and administrative 1,201 1,082 2,466 2,229
Research and development 89 350 536 619
1,830 1,829 4,060 3,601
INCOME FROM OPERATIONS 1,463 1,335 3,028 2,448
Other income (expense):
Other income 106 40 247 115
Interest (expense) (7) (9) (14) (18)
99 31 233 97
INCOME BEFORE PROVISION
FOR INCOME TAXES 1,562 1,366 3,261 2,545
Provision for income taxes 305 28 815 51
NET INCOME $ 1,257 $ 1,338 $ 2,446 $ 2,494
Earnings per share, basic $ 0.15 $ 0.16 $ 0.29 $ 0.31
Earnings per share, diluted $ 0.15 $ 0.16 $ 0.28 $ 0.30
Avg. shares outstanding 8,668 8,377 8,642 8,326
CERADYNE INC.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, 2001 Dec. 31, 2000
Cash and Cash Equivalents $ 4,054 $ 6,656
Other Current Assets 21,990 16,996
Net Property, Plant and Equipment 13,184 11,398
Other Assets 2,721 3,413
Total Assets $ 41,949 $ 38,463
Current Liabilities 3,852 3,216
Long-Term Debt 208 258
Deferred Revenue 135 --
Stockholders' Equity 37,754 34,989
Total Liabilities and Stockholders' Equity $ 41,949 $ 38,463