Marlton Technologies, Inc. Announces Year End 2001 Results
PHILADELPHIA--March 29, 2002--Marlton Technologies, Inc. (ASE:MTY) today reported its results for the year ended December 31, 2001.Net sales of $77 million for 2001 decreased 17% from 2000 results. A net loss of $1.1 million ($.14 per fully diluted share) reported for 2001 was essentially unchanged from the net loss of $1.1 million ($.15 per fully diluted share) in 2000.
During 2001 the Company incurred operating losses and facility relocation costs of $0.6 million associated with the closing of a manufacturing facility in Florida and recorded an inventory provision of $0.7 million related to a large national retail customer that filed for Chapter 11.
During 2000, the Company recorded a provision of $2 million for accounts receivable and inventory related to customer insolvency and disputes.
The net sales decrease was comprised of an 11% decrease in trade show exhibit sales and a 26% decrease in permanent and scenic display sales. The decrease in sales of trade show exhibits was principally attributable to reductions in many customers' trade show marketing budgets in response to a slower economy.
In addition, the events of September 11th led to many convention and trade show cancellations, which materially reduced fourth quarter 2001 sales volume. The decrease in sales of permanent and scenic displays was primarily due to lower sales of permanent themed displays previously manufactured at the Company's Florida facility.
This manufacturing facility was closed and consolidated into the Company's Atlanta, Georgia production facility in the second quarter of 2001.
For the fourth quarter of 2001, net sales of $16.9 million decreased 20% from the same prior year period. A net loss of $1.4 million ($.14 per fully diluted share) was reported for the fourth quarter of 2001 as compared with a net loss of $0.7 million ($.09 per fully diluted share) reported for the comparable period of 2000.
Fourth quarter 2001 net sales were adversely impacted by the events of September 11th. The Company also recorded an inventory provision of $0.7 million related to a national retail customer that filed for Chapter 11.
Marlton Technologies, Inc., through its Sparks Exhibits & Environments and DMS Store Fixtures subsidiaries, is engaged in the design, marketing and production of trade show, museum, theme park and themed interior exhibits, store fixtures and point of purchase displays, both domestically and internationally.
This press release contains forward-looking statements which are subject to change as a result of various factors, including without limitation the Company's ability to control costs, the availability of financing, the effects of competition and the effects of changes in the economy.
Additional factors which could affect the Company are set forth in the Company's Forms 10-K and 10-Q which have been filed with the Securities and Exchange Commission.
See attached
MARLTON TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except
per share data) FOR THE THREE MONTHS FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2001 2000 2001 2000
====== ====== ====== ======
NET SALES $ 16,873 $ 21,209 $ 76,972 $ 92,533
OPERATING PROFIT (LOSS) (1,595) (318) (115) 60
OTHER (EXPENSE) (389) (404) (1,483) (1,433)
(LOSS) BEFORE INCOME
TAXES (1,984) (722) (1,598) (1,373)
(BENEFIT FROM) INCOME
TAXES (616) (45) (462) (267)
NET (LOSS) $ (1,368) $ (677) $ (1,136) $ (1,106)
NET (LOSS) PER COMMON
SHARE(a):
BASIC $ (0.14) $ (0.09) $ (0.14) $ (0.15)
DILUTED $ (0.14) $ (0.09) $ (0.14) $ (0.15)
OUTSTANDING SHARES:
BASIC 10,088 7,423 8,167 7,381
DILUTED 10,088 7,423 8,387 7,381
(a) Net income per common share amount for each quarter are computed
independently. The total of the quarterly per common share amounts
differ from the full year amount primarily as a result of the weighted
average impact of 5,300,000 additional shares issued in connection
with an investment transaction on November 20,2001.