Quixote Corporation Reports Fiscal 2002 Third Quarter and Nine Months Results; Declares Regular Semiannual Dividend
CHICAGO--April 25, 2002--Quixote Corporation today reported results for its third quarter and nine months ended March 31, 2002.Net sales for the third quarter were $21,507,000, compared with $22,688,000 in the third quarter of fiscal 2001. The acquisition of Surface Systems, Inc. contributed sales of $1,955,000 for the fiscal 2002 third quarter and was not part of prior year results. Operating profit was $1,126,000, compared with $3,353,000 in the third quarter of fiscal 2001. Net earnings were $569,000, or $0.07 per diluted share, compared with $1,850,000, or $0.23 per diluted share, in the third quarter last year.
Net sales for the first nine months of fiscal 2002 were $62,279,000, compared with $64,288,000 in the first nine months of fiscal 2001. Operating profit was $3,612,000, compared with $9,696,000 in the same period last year. Net earnings were $2,445,000, or $0.30 per diluted share, compared with $5,403,000, or $0.69 per diluted share, for the same period last year.
Leslie J. Jezuit, Chairman and Chief Executive Officer, commented, "The Company's results for the third quarter are in line with expectations. Operating results continue to reflect the general slowdown in U.S. highway construction activity for our products. Shipments also were impacted by the typical seasonal slowdown during the quarter, but we are encouraged by the continued increase in order flow resulting in a record backlog of $13.7 million at the end of the quarter.
Mr. Jezuit continued, "During the quarter we have taken important steps to position the Company for future growth. The Company strengthened its balance sheet by reducing inventories by approximately $2.0 million and long-term debt by $2.3 million. We recently completed the expansion of our primary manufacturing facility in Pell City, Alabama, doubling its size to 300,000 square feet. In addition, during the quarter we acquired the patents for an innovative crossing gate with crash attenuation capabilities of up to 45 miles per hour. This product, approved by the Federal Railroad Administration, could provide an important safety solution at railroad crossings or potentially where security needs require a positive deterrent.
Mr. Jezuit concluded, "We are encouraged by recent improvements in order flow and record backlog and we anticipate a traditional sales acceleration in the fiscal fourth quarter. However, our visibility is limited and we remain cautious about our near-term outlook. Accordingly, we expect fourth quarter earnings to be in the range of $0.40 to $0.45 per share."
The Company also announced today that its Board of Directors has declared the Company's regular semiannual dividend of $0.16. The dividend is payable on July 3, 2002 to all stockholders of record at the close of business on June 5, 2002.
Quixote Corporation will be hosting a telephone conference call at 10 a.m. EST today, April 25, 2002, to further discuss its quarterly results and corporate developments. This conference call will be broadcast simultaneously over the Internet at www.quixotecorp.com and may be accessed and listened to by clicking the icon on the Company's homepage.
Quixote Corporation, (www.quixotecorp.com), through its wholly-owned subsidiary, Quixote Transportation Safety, Inc., is the world's leading manufacturer of energy-absorbing highway crash cushions, electronic wireless measuring and sensing devices, weather forecasting stations, computerized highway advisory radio transmitting systems, electronic variable message signs, flexible post delineators and other highway safety products.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for its fiscal year ended June 30, 2001, under the caption "Forward-Looking Statements" in Management's Discussion and Analysis of Financial Condition and Results of Operations, which discussion is incorporated herein by this reference. Other factors may be described from time to time in the Company's public filings with the Securities and Exchange Commission, news releases and other communications. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Quixote Corporation
Earnings Summary
Three Months Ended Nine Months Ended
March 31, March 31,
2002 2001 2002 2001
---- ----- ---- ----
Net sales $21,507,000 $22,688,000 $62,279,000 $64,288,000
Cost of sales 13,899,000 12,863,000 40,019,000 36,033,000
------------- ----------- ----------- -----------
Gross profit 7,608,000 9,825,000 22,260,000 28,255,000
Operating expenses:
Selling &
administrative 5,815,000 6,158,000 17,087,000 17,647,000
Research &
development 667,000 314,000 1,561,000 912,000
------------- ----------- ----------- -----------
6,482,000 6,472,000 18,648,000 18,559,000
Operating profit 1,126,000 3,353,000 3,612,000 9,696,000
Other income (expense):
Interest income 2,000 9,000 27,000 60,000
Interest expense (240,000) (378,000) (949,000) (1,042,000)
Other 830,000
------------- ----------- ----------- -----------
(238,000) (369,000) (92,000) (982,000)
Earnings before
income taxes 888,000 2,984,000 3,520,000 8,714,000
Provision for
income taxes 319,000 1,134,000 1,267,000 3,311,000
------------- ----------- ----------- -----------
Earnings from
continuing
operations 569,000 1,850,000 2,253,000 5,403,000
Earnings from discontinued
operations, net of
income taxes 192,000
------------- ----------- ----------- -----------
Net earnings $ 569,000 $ 1,850,000 $ 2,445,000 $ 5,403,000
============= =========== =========== ===========
Per share data - basic:
Earnings from
continuing
operations $0.07 $0.25 $0.29 $0.74
Net earnings $0.07 $0.25 $0.32 $0.74
Average common
shares
outstanding 7,744,173 7,367,245 7,651,754 7,343,640
Per share data - diluted:
Earnings from
continuing
operations $0.07 $0.23 $0.28 $0.69
Net earnings $0.07 $0.23 $0.30 $0.69
Average diluted common
shares
outstanding 8,035,561 7,979,747 8,132,445 7,889,014
Quixote Corporation
Balance Sheet Data
As of March 31, As of June 30,
2002 2001
---- ----
Assets
Current assets
Cash and cash equivalents $ 1,557,000 $4,118,000
Accounts receivable, net 19,197,000 21,207,000
Inventories, net 12,526,000 16,871,000
Other current assets 4,257,000 2,382,000
---------------- --------------
37,537,000 44,578,000
---------------- --------------
Property, plant
and equipment, net 22,486,000 17,343,000
Intangible assets
and other, net 35,141,000 26,108,000
---------------- --------------
$ 95,164,000 $ 88,029,000
================ ==============
Liabilities and
Shareholders' Equity
Current liabilities $ 11,770,000 $ 13,542,000
Long-term debt, net 27,853,000 21,526,000
Other long-term liabilities 1,689,000 2,355,000
Shareholder's equity 53,852,000 50,606,000
--------------- --------------
$ 95,164,000 $ 88,029,000
=============== ==============