Chicago Miniature Lamp, Inc. Reports Q3 Results
15 October 1997
Chicago Miniature Lamp, Inc. Reports Third Quarter Fiscal 1997 Results
CANTON, Mass., Oct. 15 -- Chicago Miniature Lamp, Inc.
today announced results for the third quarter ended August 31,
1997, with earnings of $4.12 million, or $.22 per share, prior to non-
recurring restructuring charges (net of tax) of $940,000, or $.05 per share,
compared with earnings of $3.10 million, or $.20 per share, for the l996 third
quarter. This is a 33% increase in earnings, prior to non-recurring
restructuring charges. Average shares outstanding in this third quarter
increased 20% to 19.1 million shares compared to 15.8 million shares in the
prior year quarter, primarily due to the October 1996 secondary offering.
For the nine months ended August 31, 1997, earnings, excluding the impact
of other net income items and non-recurring restructuring charges ($.06 and
$.05 respectively), were $12.8 million, or $.67 per share, compared with
$8.5 million, or $.54 per share, for the nine months ended September 1, 1996.
This 50% increase in earnings, as adjusted, and 24% increase in earnings per
share, as adjusted, includes the effect of a 21.8% increase in average shares
outstanding to 19.2 million from 15.8 million.
The nonrecurring restructuring charges of $940,000 after tax were the
result of the closure of redundant operations due to the acquisition of
Sylvania Lighting International (SLI) and consolidation of certain Chicago
operations. The payback for this restructuring is expected to be realized in
less than eight months.
Net sales for the 1997 third quarter were $45.8 million compared with
$25.1 million in the prior year quarter. Gross profit as a percentage of net
sales for the third quarter 1997 was 30.3% and the year to year comparison was
impacted by the change in product mix due to the February, 1997 Power Lighting
Products (PLP) acquisition. The Company expects that cost improvements at PLP
and SLI will continue to impact positively the future performance of this
Company. Additionally, with the SLI acquisition and its major use of
ballasts, and the Company's future strategic plans in the domestic U.S.
market, PLP is expected to play a major role and to provide important new OEM
and distribution channels for Company products. The third quarter 1997
increase in selling, general, and administrative expenses over the prior year
quarter was impacted by the major acquisitions that were completed after the
first quarter 1996, primarily PLP.
Frank M. Ward, President and CEO of Chicago Miniature Lamp, commented,
"The acquisition strategy of CML, with the recent purchase of Sylvania
Lighting International, has maintained the commitment to its investors of
creating a new international lighting company. SLI, with its stepped-up
technology, global manufacturing presence, and significant assets, pulls
together all parts of CML for the creation of a much larger lighting company
with significant potential for continued growth. I am confident CML will meet
or exceed its fourth quarter projections and thus, the $1.10 EPS from
operations for fiscal 1997. I look forward, in conjunction with a very
competent management team at SLI, to maintaining significant and excellent
performance at CML."
Chicago Miniature Lamp, Inc., based in Canton, Massachusetts, is a
vertically integrated designer, manufacturer and seller of lighting systems,
which are comprised of lamps, fixtures, and ballasts. The Company offers a
complete range of lamps (incandescent, fluorescent, compact fluorescent, high
intensity discharge, halogen, miniature incandescent, neon, LEDs, and special
lamps), a near complete range of fixtures, and fiber optic lighting systems.
The Company serves a diverse international customer base and markets, has
major plants in 13 countries and operates throughout the world.
Except for historical matters contained herein, the matters discussed in
this press release are forward-looking statements and are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These forward-looking statements reflect assumptions and involve risks
and uncertainties which may affect Chicago Miniature Lamp, Inc.'s business and
prospects and cause actual results to differ materially from these forward-
looking statements.
Chicago Miniature, Lamps Inc. and Subsidiaries
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
August 31, Sept. 1, August 31, Sept. 1,
1997 1996 1997 1996
Net sales $45,826 $25,091 $131,817 $66,618
Gross margin 13,898 8,682 38,586 22,966
Selling, general and
administrative expenses 8,412 3,820 22,293 9,928
Restructuring charge(a) 1,415 -- 1,415 --
Operating income 4,071 4,862 14,878 13,038
Other (income) expense:
Interest, net (620) 361 (2,591) 684
Minority interest 40 84
Other, net (22) (47) (2,028) (62)
Income before income taxes 4,673 4,548 19,413 12,416
Income taxes 1,489 1,442 6,433 3,936
Net income $3,184 $3,106 $12,980 $8,480
Net income per common share (a):
Net income (before restructuring
charge and other income) $0.22 $0.20 $0.67 $0.54
Restructuring charge (0.05) (0.05)
Other income 0.06
Net income per common share $0.17 $0.20 $0.68 $0.54
Weighted-average
shares outstanding 19,072 15,875 19,201 15,764
(a) Quarter net income per common share is $.22, exclusive of $.05 per
common share nonrecurring restructuring charge. Nine months net
income per common share is $.67, exclusive of $0.06 per common share
of other net income and ($.05) per common share of restructuring
charge.
SOURCE Chicago Miniature Lamp, Inc.