Penn Engineering Announces Q3 Earnings
29 October 1997
Penn Engineering Announces Third Quarter Earnings, and Declares Quarterly Cash Dividend of Eleven Cents Per Share
DANBORO, Pa., Oct. 29 -- Penn Engineering & Manufacturing
Corp. (NYSE: PNN, PNNA) today announced net income of $3,827,972, or $0.44 per
share, based on 8,685,190 average shares outstanding, on record quarterly net
sales of $42,531,365 for its fiscal third quarter ended September 30, 1997.
For the comparable 1996 quarterly period, net income was $3,674,782, or $0.43
per share, based on 8,638,111 average shares outstanding, on net sales of
$38,713,584.
For the first nine months of 1997 net income was $10,362,795, or $1.19 per
share, based on 8,705,183 average shares outstanding, on net sales of
$123,521,017, as compared to net income of $10,514,096, or $1.41 per share,
based on 7,435,992 average shares outstanding, on net sales of $119,224,887
for the first nine months of 1996.
For the Fastener Operation sales and operating income for the quarter were
$34,432,395 and $4,709,385, respectively, versus $31,658,217, and $4,961,824,
respectively, for the quarter ended September 30, 1996. For the nine months
ended September 30, 1997, sales and operating income were $100,613,805 and
$13,716,835, respectively, versus $96,848,632 and $14,589,642, respectively,
for the nine months ended September 30, 1996.
For the Motor Division, sales and operating income for the quarter were
$8,098,970 and $717,115, respectively, versus $7,055,367 and $492,501,
respectively, for the quarter ended September 30, 1996. For the nine months
ended September 30, 1997, sales and operating income were $22,907,213 and
$1,625,407, respectively, versus $22,376,255 and $1,692,068, respectively, for
the nine months ended September 30, 1996.
Today the Board of Directors declared a quarterly cash dividend of
11 cents per share, payable December 15, 1997 to stockholders of record,
December 1, 1997.
Management Comments:
Kenneth A. Swanstrom, Chairman, President, and Chief Executive Officer of
the company, commented, "we are very pleased to be able to report positive
sales momentum for the third quarter. We have now completed the majority of
our capital expansion program at the fastener operation. Our new
manufacturing facility in Winston-Salem became fully operational during the
quarter, but the Company incurred transitional expenses and additional
depreciation due to that event, which suppressed earnings growth. However, we
now have the capacity to serve our growing end-user markets, and I remain very
optimistic about our future."
Business Summary:
Penn Engineering & Manufacturing Corp. is the leading manufacturer of
self-clinching fasteners used by the computer, datacommunications,
telecommunications, general electronics, automotive, and avionics industries.
The Company's Pittman division manufactures high performance permanent magnet
dc motors used in electronics, medical, and manufacturing applications.
PENN ENGINEERING & MANUFACTURING CORP.
Income Statement Data
(Unaudited)
Amounts in Thousands, Except Per Share Data
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
Net Sales $42,531 $38,714 $123,521 $119,225
Cost of Goods Sold $29,414 $26,454 $85,658 $81,970
Gross Profit $13,117 $12,260 $37,863 $37,255
Selling, General, and
Administrative Expense $ 7,691 $ 6,823 $22,522 $21,108
Operating Earnings $ 5,426 $ 5,437 $15,341 $16,153
Earnings before Income
Taxes $ 5,984 $ 5,875 $16,369 $16,822
Income Taxes $ 2,156 $ 2,200 $6,006 $6,307
Net Income $ 3,828 $ 3,675 $10,363 $10,514
Weighted Average Shares
Outstanding 8,685 8,638 8,705 7,436
Earnings Per Share $ 0.44 $ 0.43 $ 1.19 $ 1.41
PENN ENGINEERING & MANUFACTURING CORP.
Selected Balance Sheet Data (Unaudited)
Amounts in Thousands
September 30, 1997 December 31, 1996
Cash & Equivalents, &
Short-Term Investments $ 17,868 $ 15,066
Accounts Receivable, Net $ 24,992 $ 28,580
Inventory $ 28,863 $ 30,298
Net Fixed Assets $ 73,067 $ 61,832
Total Assets $148,496 $138,538
Debt $ 0 $ 0
Current Liabilities $ 14,496 $ 9,708
Total Stockholders Equity $126,161 $121,137
SOURCE Penn Engineering & Manufacturing Corp.