Sheldahl Inc. Reports Second Quarter 2001 Earnings

    The company's net sales for the period were $30.1 million, an improvement of $1.7 million, or six percent over first quarter 2001 sales. Earnings before income taxes and depreciation and amortization (EBITDA) showed a loss of $3.2 million in the second quarter, an improvement of $4 million, or 55 percent versus the EBITDA loss of $7.2 million in the first quarter. The company said the improvement is primarily a result of a restructuring initiated in March of this year, as well as strengthening demand in the automotive industry.
    "Sheldahl has made substantial progress on its plan to return the business to profitability," said Donald R. Friedman, President and CEO of Sheldahl. "The results of our recent company-wide restructuring are evident in this quarter's earnings. We have upgraded the manufacturing capabilities in our Longmont facility, and anticipate a positive cash flow in the fourth quarter. We are encouraged by the company's overall progress."
    Comparing the merged Sheldahl and International Flex Technologies on a pro-forma basis, the net sales decreased by $9.3 million, or 23.6 percent as compared to the same period last year. Loss per share for the quarter was $0.32 as compared to a pro-forma loss of $0.42 for the same period last year, which represents a 28.6 percent improvement year over year.
    The company also announced that Morgenthaler Partners and Molex Incorporated, both investors in the company, have agreed to provide $3 million in additional subordinated debt financing. This financing will provide Sheldahl additional funds to complete the restructuring plans, including the sale of its technical materials business.
    "We have made substantial progress toward the completion of the sale of the technical materials business," said Friedman. "This sale will further strengthen the company's balance sheet by eliminating a substantial amount of debt."

    About Sheldahl

    Sheldahl, Inc. is a leading producer of high-density substrates, high-quality flexible printed circuitry, and flexible laminates primarily for sale to the automotive, electronics and data communications markets. The company, which is headquartered in Northfield Minnesota, has operations in Northfield; Longmont, Colorado; Endicott, NY; Britton, South Dakota; Toronto, Ontario, Canada; and Chihuahua, Chih., Mexico. Sheldahl's Common Stock trades on the Nasdaq National Market tier of the Nasdaq Stock Market under the Symbol: SHEL. Sheldahl news and information can be found on the World Wide Web at http://www.sheldahl.com.