Selas Reports Results
5 March 1998
Selas Revenues Hit Record Level In 1997; Earnings For Year Increase 6.2% Over 1996
Costs Relating To Proposed Acquisition
Impact Fourth Quarter And Year
DRESHER, Pa., March 5 -- Selas Corporation of America
(Amex: SLS) reported record revenue of $111,165,000 for 1997, an increase of
7.5% over the previous record set in 1996 of $103,426,000. Earnings for the
year increased 6.2% to $4,387,000 or $0.82 per diluted share compared to
$4,130,000 or $0.78 per diluted share in 1996.
Consolidated net income for the quarter ended December 31, 1997 was
$707,000 or $ 0.13 per diluted share on revenues of $24,830,000 compared to
$1,409,000 or $0.26 per diluted share on revenues of $29,671,000 in 1996. The
fourth quarter of 1997 reflects the impact of charges involved with
acquisition expenses and other items.
"We are pleased that Selas continued its profitability in 1997 with all
segments contributing to income," Stephen F. Ryan, President and Chief
Executive Officer of Selas, said. "While the company performed well, the
fourth quarter of 1997 did not keep pace with the dynamic fourth quarter of
1996, and this had a dampening effect on the year. The acquisition costs were
related to MRL Industries, which is no longer being considered, and came in
the fourth quarter, reducing earnings during that period. For the year, these
expenses reduced earnings by approximately $400,000 before taxes."
Ryan said that on-going orders in Asia were not affected by the economic
problems there, but added that several large heat treating projects the
company was anticipating in Asia have been postponed.
Selas is a diversified firm with international operations and sales that
engages in the design, development, engineering and manufacturing of a range
of products including precision electronic components and assemblies, heat
processing equipment and systems, and cable winch products.
Fourth Quarter Report - 1997
Selas Corporation of America
Comparative Operating Results
(Unaudited)
3 Months 3 Months
Ended 12/31/97 Ended 12/31/96
Net Sales $24,830,000 $29,671,000
Income before income taxes $295,000 $2,236,000
Provision for income taxes (benefit) (412,000) 827,000
Net income $707,000 $1,409,000
Earnings per share
Basic
Income per common and common equivalent share $0.14 $0.27
Weighted average common shares outstanding 5,216,000 5,190,000
Diluted
Income per common and common equivalent share $0.13 $0.26
Weighted average common shares outstanding 5,342,000 5,328,000
12 Months 12 Months
Ended 12/31/97 Ended 12/31/96
Net Sales $111,165,000 $103,426,000
Income before income taxes $6,361,000 $6,525,000
Provision for income taxes (benefit) 1,974,000 2,395,000
Net income $4,387,000 $4,130,000
Earnings per share
Basic
Income per common and common equivalent share $0.84 $0.80
Weighted average common shares outstanding 5,213,000 5,190,000
Diluted
Income per common and common equivalent share $0.82 $0.78
Weighted average common shares outstanding 5,355,000 5,272,000
NOTE: Included in the three and twelve months ended December 31, 1997,
are costs incurred on the proposed, but now terminated, merger with MRL, which
approximated $370,000 and $400,000, respectively.
SOURCE Selas Corporation of America