Plymouth Rubber Company Reports Q2 Operating Results
15 July 1997
Plymouth Rubber Company Reports Operating Results for Fiscal 1997 Second Quarter and First Half
CANTON, Mass., July 15 -- Plymouth Rubber Company, Inc.
(AMEX: PLRA, PLRB) today announced financial results for the second quarter
and first six months of fiscal 1997.
Net sales for the second quarter, which ended May 30, 1997, rose 22% to
$17,706,000 from $14,566,000 a year ago. This sales increase reflects a
(1) 3% increase in Plymouth's traditional business, as sales continue to be
restricted by capacity limitations, (which the Company is addressing with its
previously announced two year $10 million capital expenditure program), and
(2) sales by the October, 1996 and January, 1997 acquisitions now operating as
Brite-Line Technologies, Inc. ("Brite-Line") and Plymouth Rubber Europa S.A.
("Europa"), respectively. Sales to the domestic automotive market increased
23% over the prior year's second quarter and accounted for 46% of the
quarterly sales. Sales to the export and non-automotive OEM markets declined
12% and 37%, respectively.
Net income for the second quarter was $170,000, or $0.08 per share,
compared to $619,000, or $0.28 per share from the prior year's first quarter,
reflecting the parent company's less favorable product mix, higher raw
material costs, higher plant maintenance expenses, and increased indirect
labor and training costs. The Brite-Line and Europa acquisitions made a small
contribution to the quarter's income. Net income for the second quarter of
fiscal 1996 benefited from an effective income tax rate of 26%, which resulted
from a $117,000 recapture of a Deferred Tax Valuation Allowance.
For the first six months of fiscal 1997, net sales rose 18% to
$32,990,000 from $27,878,000 in 1996's first half. The sales increase was
primarily attributable to the Brite-Line and Europa acquisitions (accounting
for 75% of the increase), and an 18% increase in sales of wire harnessing
tapes to the domestic automotive industry. Small increases were attained in
the other markets, with the exception of sales to the non-automotive OEM
market, which declined 30%, due primarily to capacity restrictions.
Net income for the first six months of fiscal 1997 was $311,000, or
$0.14 per share, compared to $924,000, or $0.41 per share a year ago. Net
income for the first six months of fiscal 1996 benefited from an effective
income tax rate of 26%, which resulted from a $175,000 recapture of a Deferred
Tax Valuation Allowance, and a $147,000 before tax gain from litigation. As
of May 30, 1997, the Company was in technical default with respect to the
minimum fixed charge coverage ratio of earnings before interest, depreciation
and taxes, compared to the current portion of long-term debt, capital leases
and interest covenant contained in its Loan and Security Agreements with a
major lender. The Company has requested a waiver from the lender, and, as of
the date of this release, is of the opinion that the waiver will be granted.
Earnings per share figures have been adjusted to account for a 5% stock
dividend on both Class A and Class B common stock declared on June 11, 1996,
and payable in Class B common shares on August 6, 1996 to shareholders of
record as of June 24, 1996
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities &
Exchange Act of 1934. The Company's actual results could differ materially
from those set forth in the forward-looking statements.
Plymouth Rubber Company, Inc. manufactures and distributes rubber and
vinyl products, including insulating tapes, automotive tapes, and other
industrial tapes and films. The Company's products are used by the electrical
supply industry, electric utilities and automotive and other original
equipment manufacturers.
Plymouth Rubber Company Reports Operating Results
for Fiscal 1997 Second Ouarter and First Half
(In Thousands Except Per Share Amounts)
(Unaudited)
Second Quarter Ended Six Months Ended
May 30, May 31, May 30, May 31,
1997 1996(AB) 1997 1996(AC)
Net Sales $17,706 $14,566 $32,990 $27,878
Net Income $170 $619 $311 $924
Per Share Data:
Net Income $.08 $.28 $.14 $.41
Weighted average number of2,175,475 2,230,952 2,188,390 2,233,967
shares outstanding
NOTE(A): Earnings per share figures have been adjusted to account for a 5
percent stock dividend on both Class A and Class B common stock declared on
June 11, 1996, and payable in Class B common shares on August 19, 1996, to
shareholders of record as of June 24, 1996.
(B) Net income for fiscal 1996's second quarter reflects the recapture of
$117,000 of deferred tax valuation allowance (resulting in an effective tax
rate of 26 percent).
(C) Net income for fiscal 1996's first six months reflects the recapture
of $175,000 of deferred tax valuation allowance (resulting in an effective tax
rate of 26 percent), and a $147,000 before tax gain from litigation.
Plymouth Rubber Company, Inc.
Condensed Consolidated Statement of Operations
(In Thousands Except Per Share Amounts)
(Unaudited)
Second Quarter Ended Six Months Ended
May 30, May 31, May 30, May 31,
1997 1996 1997 1996
Sales $17,706 $ 14,566 $ 32,990 $ 27,878
Costs and expenses 17,117 13,391 31,744 25,968
Operating income 589 1,175 1,246 1,910
Interest expense (345) (327) (681) (629)
Other income 25 (12) (51) (33)
Income before taxes 269 836 514 1,248
Provision for income taxes (99) (217) (203) (324)
Net Income $170 $619 $311 $924
Per Share Data:
Net Income $.08 $.28 $.14 $.41
Weighted average shares
outstanding 2,175,475 2,230,952 2,188,390 2,233,967
Condensed Consolidated Balance Sheet
(In Thousands)
Assets
May 30, Nov. 29,
1997 1996
Current Assets $24,063 $ 21,604
Plant Assets, net 12,507 9,816
Other Assets 3,856 3,330
Total Assets $40,426 $34,750
Liabilities and Stockholders' Equity
Current Liabilities $16,858 $ 16,123
Other Liabilities 16,097 11,439
Stockholders' Equity 7,471 7,188
Total Liabilities and Stockholders' Equity $40,426 $34,750
SOURCE Plymouth Rubber Company, Inc.