Quixote Corp Reports Record Fiscal 1999 Q1 Sales and Net Earnings
21 October 1998
Quixote Corporation Reports Record Fiscal 1999 First Quarter Sales and Net Earnings
CHICAGO, Ill.--Oct. 21, 1998--Quixote Corporation today reported results for the first quarter of fiscal 1999, ended September 30, 1998.Net sales rose 30% to $16,063,000 compared with $12,334,000 in the first quarter of fiscal 1998. Operating profit increased 31% to $2,657,000 in the first quarter of the current fiscal year from $2,034,000 in the first quarter of the 1998 fiscal year. Net earnings for the first quarter of fiscal 1999 increased 3.4% to $1,642,000 from $1,588,000 in the first quarter of fiscal 1998. Diluted earnings per share of $0.20 in fiscal 1999 compared to $0.20 in fiscal 1998 on a 2% increase in average diluted shares outstanding.
The Company noted that its substantial sales growth reflected an 11% increase in internal sales led by a 23% increase in sales of QuadGuard(R) crash attenuators and a 13% increase in sales of TMAs (truck-mounted attenuators). The remaining 19% of the sales improvement came from the acquisitions of Roadway Safety Service, Inc. and Highway Information Systems, Inc. which were completed in fiscal 1998 and contributed $2,426,000 in sales. Net earnings in the current quarter reflected a higher income tax rate of 35% compared to a 30% income tax rate in the fiscal 1998 first quarter. In addition, the Company reported net interest expense of $129,000 in its fiscal 1999 quarter versus net interest income of $234,000 in its fiscal 1998 quarter. Quixote Corporation ended its fiscal 1999 first quarter with a record backlog of $10.3 million.
Philip E. Rollhaus, Jr., Quixote's Chairman and Chief Executive Officer, commented: "Our record first quarter results reflect continued robust demand for our products. We continued to see very positive responses to our QuadGuard(R) and our 100K TMA(R) lines of impact attenuators as well as strong contributions from Roadway Safety Service, Inc., and Highway Information Systems, Inc. New products, such as the recently introduced modular highway advisory radio system, continue to generate significant interest and are helping us stay at the forefront of the roadway safety industry. The new NCHRP 350 federal highway safety standards were officially mandated and put into full effect this month by the Federal Highway Administration. Our early compliance with these higher standards for products such as ours has placed us in a strong position for continued growth as funds are being allocated for various highway projects. Under the new federal highway bill, 40% more dollars will be spent over the next five years than were spent under the last highway bill over the same number of years. We have begun to see appropriations for new highway projects and we expect them to gradually increase over the coming quarters. The full effect of the new highway bill, however, is expected to begin to be realized during the peak spring and summer construction periods which start in the fourth quarter of our fiscal year."
Quixote Corporation, (www.quixotecorp.com), through its wholly- owned subsidiaries, Energy Absorption Systems, Inc. and the TranSafe Corporation, is the world's leading manufacturer of energy-absorbing highway crash cushions, truck-mounted impact attenuators, computerized highway advisory radio transmitting systems and other highway safety products.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for its fiscal year ended June 30, 1998, under the caption "Forward- Looking Statements" in Management's Discussion and Analysis of Financial Condition and Results of Operations, which discussion is incorporated herein by this reference.
Quixote Corporation
Earnings Summary
Three Months Ended
September 30,
1998 1997
Net sales $16,063,000 $12,334,000
Operating profit $ 2,657,000 $ 2,034,000
Other income (expense) (131,000) 235,000
Earnings before income taxes 2,526,000 2,269,000
Provision for income taxes 884,000 681,000
Net earnings $ 1,642,000 $ 1,588,000
Per share data:
Basic earnings per share $ 0.21 $ 0.20
Diluted earnings per share $ 0.20 $ 0.20
Average common shares
outstanding 7,920,690 7,996,241
Average diluted common
shares outstanding 8,217,267 8,051,993
Quixote Corporation
Balance Sheet Data
As of September 30, As of June 30,
1998 1998
Assets
Current assets $ 22,537,000 $ 26,853,000
Net property, plant
and equipment 13,273,000 13,482,000
Intangible assets 12,334,000 12,553,000
Other assets 893,000 987,000
Assets of discontinued
operations 5,657,000 5,190,000
$ 54,694,000 $ 59,065,000
Liabilities and Shareholders' Equity
Current liabilities $ 5,242,000 $ 11,707,000
Long-term debt, net 7,557,000 7,677,000
Deferred income tax liabilities 795,000 795,000
Shareholders' equity 41,100,000 38,886,000
$ 54,694,000 $ 59,065,000