Wynn's Reports Q1 Earnings
16 April 1998
Wynn's First Quarter Earnings Jump 26% to New Record; Sales Reach All Time Quarterly High
ORANGE, Calif., April 16 -- Wynn's International, Inc.
reported today net income of $7,494,000 in the first quarter ended
March 31, 1998, an increase of 19% over 1997 first quarter net income of
$6,302,000, and a new record high for quarterly income. Basic earnings per
share for the quarter ended March 31, 1998 were $.39, a 26% increase over the
comparable $.31 per share amount in the first quarter of 1997. Diluted
earnings per share were $.38 in the most recent quarter compared to $.30 a
year earlier. The growth in earnings per share exceeded the growth in income
because of the Company's April 1997 repurchase of 1,650,000 shares (8%) of its
outstanding stock pursuant to a Dutch Auction self-tender offer. All
references to shares and per share amounts reflect the 3 for 2 stock split
distributed on January 14, 1998 to stockholders of record on December 22,
1997.
Net sales for the quarter ended March 31, 1998 were $85,809,000, a record
high for quarterly sales, and 10% above last year's comparable quarterly sales
of $77,887,000. The pretax return on sales for the most recent quarter
reached 13.9% compared to 12.9% a year earlier.
Wynn's-Precision, Inc. (Precision), a key supplier of sealing products for
automobiles and other equipment, reported a 13% increase in revenues and a 19%
increase in operating profit in the most recent quarter compared to the first
quarter of 1997. Fueled by the continued strength in the U.S. automotive and
industrial sectors, all major units of Precision reported improved results.
Wynn Oil Company, a worldwide manufacturer and marketer of specialty
chemicals, equipment and related service programs, reported a 10% increase in
operating profit in the first quarter of 1998 compared to the first quarter of
1997. The North American and European operations were the most significant
sources of the increase. Revenues in the most recent quarter grew 7% over the
prior year period, reflecting the continued impact of the strong U.S. dollar
in those countries in which Wynn Oil operates. Excluding the impact of
foreign exchange rate fluctuations, Wynn Oil's revenues and operating profits
would have grown 12% and 15%, respectively.
The Company's financial condition remains very good at March 31, 1998 with
cash and cash equivalents of $45.6 million; the current ratio at 2.42 to 1;
and no interest-bearing debt. Stockholders' equity at March 31, 1998 was
$134.4 million or $6.96 per common share.
James Carroll, Chairman of the Board and Chief Executive Officer said,
"Our strong consolidated results in the first quarter reflect our constant
focus on new product development and continuous improvements throughout
Wynn's. The strategies to increase revenues, earnings and cash flow are
working, and we're looking forward to 1998 being our seventh consecutive year
of record performance."
Wynn's International, Inc., founded in 1939, is a worldwide supplier of
high quality O-rings and sealing products; specialty chemical products,
equipment and related service programs; and builders hardware supplies. The
Company has 2,138 employees and is headquartered at 500 North State College
Boulevard, Suite 700, Orange, California, 92868, telephone: 714-938-3700.
FINANCIAL HIGHLIGHTS
Income Statement Data:
First Quarter Ended
March 31
1998 1997
Net sales $85,809,000 $77,887,000
Income before taxes 11,934,000 10,083,000
Provision for taxes 4,440,000 3,781,000
Net income $7,494,000 $6,302,000
Earnings per share
of common stock:
Basic $.39 $.31
Diluted $.38 $.30
Average shares outstanding*
Basic 19,289,183 20,560,506
Diluted 19,935,286 21,244,515
Balance Sheet Data:
As of
Mar. 31, 1998 Dec. 31, 1997
Cash and cash equivalents $45,617,000 $43,266,000
Working capital 93,028,000 86,497,000
Total assets 218,103,000 207,091,000
Stockholders' equity 134,384,000 127,523,000
Book value per common share $6.96 $6.63
*The number of shares outstanding for the quarter ended March 31, 1997
have been adjusted retroactively to reflect the 3 for 2 stock split effected
in December 1997.
SOURCE Wynn's International, Inc.