Safety Components International, Inc. Announces Second Quarter Results
3 November 1997
Safety Components International, Inc. Announces Second Quarter Results
FORT LEE, N.J., Nov. 3 -- Safety Components International,
Inc. , one of the world's leading manufacturers of automotive
airbag fabric and cushions, today reported results for the second quarter and
six months ended September 30, 1997. Sales for the second quarter increased
126 percent to $42,728,000 from $18,877,000 for the previous year's comparable
quarter. The company reported net income of $1,282,000, or $0.26 per share,
for the quarter, compared to net income of $1,148,000, or $0.23 per share, for
the same period of the prior year.
Sales for the six months ended September 30, 1997, increased 101 percent
to $70,357,000 from $35,049,000 for the same period in the prior year. The
company reported net income of $2,717,000, or $0.54 per share, for the six
months compared to net income of $2,001,000, or $0.40 per share, for the same
period in the prior year.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased $2,942,000, or 101 percent, to $5,866,000, or $1.17 per share, for
the second quarter of fiscal 1998, compared to $2,924,000, or $0.58 per share,
in the comparable 1997 fiscal quarter. EBITDA for the six-month period
increased $5,181,000, or 110 percent, to $9,888,000, or $1.97 per share, from
$4,707,000, or $0.93 per share.
Safety Components attributes the significant growth to its acquisition and
vertical integration efforts. The company specifically credits its purchase
of Valentec International, Phoenix Airbag, and the Air Restraint and Technical
Products Division of JPS Automotive L.P., now Safety Components Fabric
Technologies, which have served to increase sales and, more importantly, have
been immediately accretive to the company's earnings per share.
"The smooth integration of fabric, cushions and metal components has
allowed Safety Components to supply our customers with more content per airbag
module at competitive prices," stated Robert A. Zummo, chairman, president and
chief executive officer for Safety Components. "As we further develop our
global capabilities, we will harmonize all operations on each continent, using
our expertise from North America, to continue to provide our customers with a
low-cost, high-quality product.
This release contains forward-looking statements. There are certain
important factors that could cause results to materially differ from those
anticipated from the statements made above. These factors include, but are
not limited to: the ability of Safety Components to realize anticipated cost
savings and earnings projections by the Valentec division; the continued
performance by the Safety Components Fabric Technologies division at or above
historical levels; world-wide economic conditions; dependence of revenues upon
several major module suppliers and pricing pressures. Additional information
on these and other factors that could potentially affect the Company's
financial results may be found in the Company's filings with the Securities
and Exchange Commission.
Safety Components International, Inc. is a leading, low-cost supplier of
automotive airbag fabric and cushions with operations in North America, Europe
and Asia. The company is also a leading manufacturer of value-added synthetic
fabrics used in a variety of niche industrial and commercial applications. In
addition, Safety Components supplies metal airbag components to its airbag
customers utilizing its machining and stamping capabilities gained from years
as a military ordnance manufacturer and continues as a systems integrator and
manufacturer for ordnance programs.
Safety Components International, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
September 30, September 30,
1997 1996 1997 1996
Net sales $ 42,728 $ 18,877 $ 70,357 $ 35,049
Cost of sales,
excluding depreciation 34,106 14,579 55,262 27,822
Depreciation 1,333 522 2,138 859
Gross profit 7,289 3,776 12,957 6,368
Selling and marketing
expenses 623 395 911 697
General and
administrative expenses 2,133 979 4,296 1,823
Amortization of goodwill 404 154 589 154
Income from operations 4,129 2,248 7,161 3,694
Other expense
(income), net (70) 9 89 73
Interest expense 2,165 240 2,647 250
Income before
income taxes 2,034 1,999 4,425 3,371
Provision for
income taxes 752 851 1,708 1,370
Net income $1,282 $1,148 $2,717 $2,001
Net income
per share $0.26 $0.23 $0.54 $0.40
EBITDA $5,866 $2,924 $9,888 $4,707
EBITDA per share $1.17 $0.58 $1.97 $0.93
Weighted average
number of shares
outstanding 5,021 5,048 5,021 5,059
SOURCE Safety Components International, Inc.