Wynn's Reports Q3 Earnings
16 October 1997
Wynn's Reports 12% Revenue Growth and 26% Jump in Earnings
ORANGE, Calif., Oct. 16 -- Wynn's International, Inc.
reported today income from continuing operations of $6,416,000 in
the third quarter ended September 30, 1997, an increase of 18% over 1996 third
quarter income from continuing operations of $5,419,000. Earnings per share
from continuing operations for the quarter ended September 30, 1997 were $.48,
a 26% increase over the comparable $.38 per share amount in the third quarter
of 1996. The growth in earnings per share exceeded the growth in income
because of the Company's April 1997 repurchase of 1.1 million shares (8%) of
its outstanding stock pursuant to a Dutch Auction self-tender offer.
Additionally, all references to shares and per share amounts reflect the 3 for
2 stock split to stockholders of record on December 23, 1996.
Net income for the most recent quarter, including discontinued operations,
was also $6,416,000, a 15% increase over last year's third quarter net income
of $5,599,000. Earnings per share for the most recent quarter, including
discontinued operations, were also $.48, a 23% increase over last year's third
quarter per share results. Net sales for the quarter ended September 30, 1997
were $79,356,000, 12% above last year's comparable quarterly sales of
$70,611,000. For the most recent quarter, the pretax return on sales reached
12.9% compared to 12.2% a year earlier.
Income from continuing operations for the first nine months of 1997
increased 23% to $19,217,000 or $1.40 per share compared to $15,670,000 or
$1.10 per share a year ago. Net income for the nine months, including the
results of discontinued operations, was $19,536,000, an increase of 36%
compared to $14,381,000 in 1996. Earnings per share for the nine months of
1997 were $1.42, a 41% jump over last year's $1.01 per share. Net sales from
continuing operations for the first nine months were $238,283,000, an 11%
increase over the comparable amount for the first nine months of 1996.
Wynn's-Precision, Inc. (Precision), a key supplier of sealing products for
automobiles and other equipment, reported a 20% increase in operating profit
and a 21% increase in revenues in the most recent quarter compared to the
third quarter of 1996. Each of Precision's operating divisions reported
higher sales in the third quarter of 1997. The growth in operating profit was
fueled by the higher sales volume and production efficiencies, especially in
Precision's Tennessee operations.
Wynn Oil Company, a worldwide manufacturer and marketer of specialty
chemicals, equipment and related service programs, reported an 18% increase in
operating profit in the third quarter of 1997 compared to the third quarter of
1996. The North American-based operations were the most significant source of
the increase. Revenues in the most recent quarter grew only 5% over the prior
year period, reflecting the impact during the quarter of the strong U.S.
dollar in those countries in which Wynn Oil operates, especially Europe.
Excluding the impact of foreign exchange rate fluctuations, Wynn Oil's
revenues and profits would have grown 12% and 25%, respectively.
The Company's financial condition remains very good at September 30, 1997
with cash and cash equivalents of $34.8 million; the current ratio at 2.03 to
1; and virtually no interest-bearing debt. Stockholders' equity at September
30, 1997 was $121.1 million or $9.45 per common share. The Company's return
on average equity for the most recent 12 months increased to 20.6% due to
increased earnings and the Company's April 1997 repurchase of approximately
$27 million of its common stock.
James Carroll, Chairman of the Board and Chief Executive Officer said, "We
continue to generate robust quarterly growth in revenues and earnings, strong
cash flow and increased return on sales. Achieving these targets in the
highly competitive markets we serve is a reflection of our sound business
strategies. We expect our growth to continue in the fourth quarter and 1997
to be another year of record performance."
Wynn's International, Inc., founded in 1939, is a worldwide supplier of
high quality 0-rings and sealing products; specialty chemical products,
equipment and related service programs; and builders hardware supplies. The
Company has 2,023 employees and is headquartered at 500 North State College
Boulevard, Suite 700, Orange, California, 92868, telephone: 714-938-3700.
FINANCIAL HIGHLIGHTS
Income Statement Data:
Third Quarter Ended
September 30
1997 1996
Net sales $79,356,000 $70,611,000
Income from continuing
operations before taxes 10,216,000 8,632,000
Provision for taxes 3,800,000 3,213,000
Income from continuing
operations 6,416,000 5,419,000
Income from discontinued
operations, net of
income taxes 0 0
Income on disposal of
discontinued operations 0 180,000
Net income $6,416,000 $5,599,000
Earnings per share
of common stock:
Continuing operations $.48 $.38
Discontinued operations:
From operations 0 0
Income on disposal 0 .01
Total $.48 $.39
Average shares outstanding*13,348,439 14,213,718
Nine Months Ended
September 30
1997 1996
Net sales $238,283,000 $213,900,000
Income from continuing
operations before taxes 30,600,000 25,193,000
Provision for taxes 11,383,000 9,523,000
Income from continuing
operations 19,217,000 15,670,000
Income from discontinued
operations, net of
income taxes 0 71,000
Income (loss) on disposal of
discontinued operations 319,000 (1,360,000)
Net income $19,536,000 $14,381,000
Earnings per share
of common stock:
Continuing operations $1.40 $1.10
Discontinued operations:
From operations 0 .01
Income (loss) on disposal .02 (.10)
Total $1.42 $1.01
Average shares outstanding*13,766,626 14,223,957
Balance Sheet Data:
As of
Sept. 30, 1997 Dec. 31 1996
Cash and cash equivalents $34,823,000 $53,304,000
Working capital 73,932,000 89,589,000
Total assets 200,359,000 205,105,000
Stockholders' equity 121,141,000 132,952,000
Book value per common share $9.45 $9.72
* The number of shares outstanding for the period ended September 30,
1996 have been adjusted retroactively to reflect the 3 for 2 stock split
effected in December 1996.
SOURCE Wynn's International, Inc.