X-Rite Announces First Quarter Results for 2003
GRANDVILLE, Mich.--April 17, 2003--Highlights:
| -- | Net sales increased 12.7 percent over the prior year. |
| -- | Operating income increased to $1.6 million versus a loss of $0.3 million in the prior year. |
| -- | Graphic Arts product line broadened by acquisition of Centurfax ccDot technology. |
| -- | Benjamin Moore selects X-Rite as its exclusive color management solution provider. |
X-Rite, Incorporated , a leading global provider of measurement solutions for color and light, today announced its financial results for the first quarter ended March 29, 2003.
The Company reported a 12.7 percent increase in net sales to $23.6 million for the quarter ended March 29, 2003, compared to $21.0 million last year. Operating income for the quarter was $1.6 million, compared to a loss of $0.3 million in the prior year. Net income for the quarter was $1.0 million, or 5 cents per diluted share, compared with a net loss of $7.9 million, or 39 cents per diluted share in the prior year. The prior year included a non-cash impairment charge of $7.6 million, or 38 cents per diluted share, in connection with the adoption of a new accounting standard for goodwill and intangible assets.
Commenting on the quarter, Michael C. Ferrara, X-Rite, Incorporated's President, said, "We are very pleased with these results. The Company is focused on creating opportunities for growth, developing strategic relationships, and capitalizing on our market position and competitive advantage. Our customer base continues to strengthen and expand as we create a business environment that is customer-centric and rooted in fundamental economics. We are aggressively pursuing color-related acquisitions that will have an immediate impact on our ability to improve and expand the markets we serve. Here are few highlights from this quarter that I believe illustrate X-Rite's "play to win" philosophy:
-- Benjamin Moore & Co. selected X-Rite as its leading color
management solutions provider and signed a comprehensive,
long-term agreement to install MatchRite(R) products
throughout its dealer network. To ensure that we properly
support Benjamin Moore's installed base of color measurement
instruments, we acquired Thermo Electron's ColoRx(R) product
line. Now we can offer uninterrupted service and support to
all Benjamin Moore authorized dealers, as they migrate over
time to our MatchRite color management solutions.
-- With our recent acquisition of the ccDot product line from
Centurfax Ltd., X-Rite can now offer graphic arts customers a
full line of products for the measurement of printing plates,
including flexography, a new capability for the Company. This
specialty printing category uses rubber plates for flexible
plastics, plastic bags and corrugated products. Many of our
existing print customers are pleased to know that X-Rite has
expanded its measurement solutions, and we also believe this
product acquisition will enable us to serve many new customers
who specialize in this type of printing.
-- We are pleased to report that our ShadeVision(R) System was
awarded Most Innovative New Product of the Year at this year's
prestigious REALITY Awards. The ShadeVision System, an
electronic shade-matching device, was singled out based on
actual clinical use combined with research findings by REALITY
Publishing, a recognized authority in product evaluation and
testing for the dental marketplace. With the continued support
of our distribution partner Sullivan-Schein, and over 1,000
units in the market, this product is gaining industry-wide
acceptance.
Conference Call
The company will conduct a live audio webcast discussing its first quarter results on Thursday, April 17, 2003 at 11:00 a.m. Eastern time. The call will be co-hosted by Michael C. Ferrara, the Company's President and Duane Kluting, its Chief Financial Officer. To access this webcast, as well as all future webcasts, use the X-Rite corporate website. Log on to http://www.x-rite.com, go to the Investor Relations page and click on the conference call link for the webcast. In addition, an archived version of the webcast conference call will be available on X-Rite's website shortly after the live broadcast.
About X-Rite
X-Rite, Incorporated is a world-leader in producing precision measurement devices, systems, and processes that enhance the measurement of color and light. Many large, multi-national firms use X-Rite's products and services for a variety of applications in areas as diverse as digital imaging, printing, coatings, plastics, retail color matching, dental and advanced lighting. Sales and service offices are located throughout Europe, Asia and the Americas.
For more information, contact X-Rite, Incorporated: 3100 44th Street, S.W., Grandville, Mich., 49418, USA; Telephone (616) 534-7663; Fax (616) 534-1466; Website: http://www.x-rite.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to the strength and expansion of our customer base, the ability to serve new customers and industry acceptance of our products. Actual results may differ materially from those projected in the forward-looking statements, due to a variety of factors, some of which may be beyond the control of the Company. Factors that could cause such differences include the Company's ability to improve operations and realize cost savings, competitive and general economic conditions, ability to access into new markets, acceptance of the Company's products and other risks described in the Company's filings with the Securities & Exchange Commission.
All product and service names are trademarks or registered trademarks of their respective owners.
Consolidated Financial Highlights
(Unaudited - in thousands)
Q1 Q4 Q3 Q2 Q1
2003 2002 2002 2002 2002
-------- -------- -------- -------- --------
Net Sales $23,625 $30,865 $22,246 $24,401 $20,956
Gross Profit 15,221 19,768 13,980 15,537 12,284
Gross Profit Percent 64.4% 64.0% 62.8% 63.7% 58.6%
Selling and Marketing 7,211 8,037 6,909 7,089 5,734
General and
Administrative 3,352 3,843 3,893 3,594 3,663
R&D and Engineering 3,098 3,049 2,863 3,253 3,211
Operating Income (Loss) 1,560 4,839 315 1,601 (324)
Write Down of Other
Investments (140) (671) - (6,566) -
Other Income (Expense) 40 138 34 (131) (8)
Pre-tax Income (Loss) 1,460 4,306 349 (5,096) (332)
Income (Loss) Before
Cumulative Effect of
Change in
Accounting Principle 1,012 3,701 252 (5,488) (259)
Cumulative Effect of
Change in
Accounting Principle - - - - (7,615)
Net Income (Loss) $1,012 $3,701 $252 $(5,488) $(7,874)
Cash and Investments $12,407 $17,538 $14,032 $13,536 $8,245
Accounts Receivable 18,796 19,773 15,504 15,992 13,563
Inventory 14,054 14,080 14,626 14,360 14,425
Other Current Assets 4,291 2,743 5,053 4,263 8,043
Non-Current Assets 52,804 48,750 49,661 50,057 55,913
-------- -------- -------- -------- --------
Total Assets 102,352 102,884 98,876 98,208 100,189
Liabilities 9,991 11,536 11,380 10,544 8,013
Long-Term Debt - - - - -
-------- -------- -------- -------- --------
Total Liabilities 9,991 11,536 11,380 10,544 8,013
Permanent and Temporary
Shareholders' Equity $92,361 $91,348 $87,496 $87,664 $92,176
Capital Expenditures $1,163 $382 $543 $483 $822
Depreciation and
Amortization $1,307 $1,447 $1,253 $1,428 $1,447
International Sales 43.2% 42.3% 41.7% 40.3% 43.2%
Sales By Market Served
(% of Total)
Coatings 35.9% 38.7% 35.5% 41.1% 38.6%
Graphic Arts 47.6% 41.8% 45.6% 41.1% 41.0%
Bio-diagnostics 8.0% 7.0% 7.0% 7.7% 6.4%
Laboratory 8.5% 12.5% 11.9% 10.1% 14.0%
Consolidated Financial Highlights, continued
(in thousands except EPS)
Quarter Ended
-----------------------
March 29, March 30,
2003 2002
----------- -----------
(Unaudited) (Unaudited)
Net Sales $23,625 $20,956
Gross Profit 15,221 12,284
Gross Profit Percent 64.4% 58.6%
Selling and Marketing 7,211 5,734
General and Administrative 3,352 3,663
R&D and Engineering 3,098 3,211
Operating Income 1,560 (324)
Write Down of Other Investments (140) -
Other Income (Expense) 40 (8)
Pre-Tax Income (Loss) 1,460 (332)
Income (Loss) Before
Cumulative Effect of Change
in Accounting Principle 1,012 (259)
Cumulative Effect of Change
in Accounting Principle - (7,615)
Net Income (Loss) $1,012 $(7,874)
Earnings (Loss) Per Share - Basic & Diluted:
Before Cumulative Effect of
Change in Accounting Principle $0.05 $(0.01)
Cumulative Effect of Change
in Accounting Principle - (0.38)
Total Basic & Diluted EPS $0.05 $(0.39)
Average Shares Outstanding
Basic 20,231 20,198
Diluted 20,619 20,198