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Special Devices Inc. Announces Q3 1998 Earnings

1 September 1998

Special Devices Inc. Announces Third Quarter 1998 Earnings

    NEWHALL, Calif.--Aug. 31, 1998--Special Devices Inc. , a Newhall-based company that designs and manufactures pyrotechnic devices for the automotive and aerospace industries, reported diluted net earnings per share of $.54 for the third quarter ended Aug. 2, 1998, compared with diluted net earnings per share of $.36 for the third quarter of 1997, according to Thomas F. Treinen, chairman and CEO.
    For the first nine months of the fiscal year, the company reported diluted net earnings per share of $1.46, compared with diluted net earnings per share of $.93 for the same period last year.
    The company reported 1998 third-quarter sales of $43.4 million and 1998 nine-month sales of $129.2 million, compared with sales of $37.0 million and $97.3 million for the comparable periods last year. Operating income was $7.3 million in the 1998 third quarter and $19.8 million for the first nine months of 1998, compared with operating income of $4.5 million for the 1997 third quarter and $11.5 million for the first nine months of 1997.
    Sales for the Automotive Products Division were $33.2 million and $105.0 million for the third quarter and nine months ended Aug. 2, 1998, compared with sales of $30.6 million and $79.1 million for the comparable periods last year.
    Treinen stated: "The increase in sales this year was the result of an increase in the number of initiators sold, offset somewhat by lower average unit sales prices this year."
    The Aerospace Division reported sales of $10.2 million and $24.3 million for the third quarter and nine months ended Aug. 2, 1998, compared with sales of $6.3 million and $18.2 million for the comparable periods last year.
    Treinen stated: "The increase in sales was due to production of a proprietary re-designed bomb ejector this year, and to a lesser extent increased shipments of products used in commercial satellite launch vehicles."
    Special Devices is a nationally recognized leader in the design and manufacture of pyrotechnic devices used by the automotive industry for initiators in airbag systems, and by the aerospace industry in tactical missile and crew escape systems. The company operates facilities in Newhall; Mesa, Ariz.; and Downers Grove, Ill., and employs more than 1,300 people.
    Special Devices has headquarters at 16830 West Placerita Canyon Road, Newhall, Calif. 91321; phone: 805/259-0753.

                         Special Devices Inc.
                     Summary Financial Information
                 (In thousands, except per-share data)

                          Three Months Ended    Nine Months Ended
                           Aug. 2,   Aug. 3,     Aug. 2,   Aug. 3,
                            1998      1997        1998      1997
Net Sales:
Aerospace                 $ 10,247  $  6,330    $ 24,251  $ 18,221
Automotive                  33,153    30,640     104,995    79,079
Total                     $ 43,400  $ 36,970    $129,246  $ 97,300
                                                                 
Gross Profit:
Aerospace                 $  4,418  $  1,842    $  9,051  $  5,490
Automotive                   6,085     5,252      19,807    13,292
Total                     $ 10,503  $  7,094    $ 28,858  $ 18,782
                                                                 
Operating Income:
Aerospace                 $  2,770  $    753    $  5,000  $  2,033
Automotive                   4,535     3,794      14,795     9,514
Total                     $  7,305  $  4,547    $ 19,795  $ 11,547
                                                                 
Net Income                $  4,394  $  2,795    $ 11,829  $  7,172
                                                                 
Diluted net earnings                                             
 per share                $    .54  $    .36    $   1.46  $    .93
                                                                 
Diluted average                                                  
 shares outstanding          8,156     7,761       8,091     7,742