Safety Components Intl, Inc. Announces Fiscal 1999 Q2 Results
11 November 1998
Safety Components International, Inc. Announces Fiscal 1999 Second Quarter Results
FORT LEE, N.J., Nov. 10 -- 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 26, 1998. Sales for the quarter
increased to $53,059,000 from $42,728,000 for the previous year's comparable
quarter. The Company reported net income of $807,000, or $0.16 per diluted
share, for the quarter, compared to net income of $1,282,000, or $0.25 per
diluted share, for the same period in the prior year.
Sales for the six months ended September 26, 1998, increased $34,151,000
to $104,508,000 from $70,357,000 for the comparable period in the prior year.
The company reported net income of $2,350,000, or $0.45 per diluted share, for
the six months compared to net income of $2,717,000, or $0.54 per diluted
share, for the same period in the prior year.
Of particular note, earnings before interest, taxes, depreciation and
amortization (EBITDA) increased $1,261,000 to $7,127,000, or $1.37 per diluted
share, for the second quarter of fiscal 1999, compared to $5,866,000, or $1.15
per diluted share, in the comparable 1998 quarter. EBITDA for the six-month
period increased $5,152,000, to $15,040,000 or $2.89 per diluted share from
$9,888,000, or $1.95, per diluted share.
"We are pleased to report these results given the impacts of the General
Motors strike on our business in the second quarter," stated Robert A. Zummo,
president and chief executive officer of Safety Components International, Inc.
"We believe the GM strike negatively impacted the second quarter resulting
in the loss of approximately $1,100,000 of EBITDA or $0.13 of net income per
share," added Mr. Zummo. "With the strike behind us, we believe the outlook
is bright as production and shipments accelerate on the recent significant
awards from our new and existing customers."
In October, the Company announced that its North American Automotive Group
was awarded an additional 725,000 airbags ($7.2 million of revenues) from a
major module supplier. North American orders from this new customer now
aggregate in excess of 4.4 million airbag cushions and $50 million in annual
revenues once full production commences. Production for orders with this new
customer began in the fourth quarter of fiscal 1998, and full production on
all awards is expected to be reached by the second quarter of fiscal 2000.
During August, the Company announced its first awards from this new
customer in Europe. Production for these awards is scheduled to begin in the
fourth quarter of fiscal 2000 and should approximate 900,000 airbags and
$7 million of revenue per year once full production commences in fiscal 2002.
"Our focus will continue to be on meeting and exceeding customer
expectations, obtaining additional shares of our growing market and
controlling costs through this period of growth," continued Mr. Zummo.
This release contains forward-looking statements. There are certain
important factors that could cause results to materially differ from those
anticipated from the statements above. These factors include, but are not
limited to: worldwide economic conditions; automotive industry trends; the
marketplace for airbag related products; approval of automobile manufacturers
of airbag cushions currently in production; pricing pressures; the ability of
the Company to effectively control costs and the ability to satisfy the
Company's customers on timeliness and quality. 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
of experience 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)
Thirteen Three
Weeks Ended Months Ended
September 26, 1998 September 30, 1997
Net sales $53,059 $42,728
Cost of sales,
excluding depreciation 42,736 34,106
Depreciation 1,811 1,333
Gross profit 8,512 7,289
Selling and marketing expenses 677 623
General and
administrative expenses 2,519 2,133
Amortization of goodwill 575 404
Income from operations 4,741 4,129
Other expense (income), net 30 (70)
Interest expense 2,993 2,165
Income before income taxes 1,718 2,034
Provision for income taxes 911 752
Net income $807 $1,282
Net income per share, diluted $0.16 $0.25
Weighted average number of
shares outstanding, diluted 5,195 5,109
EBITDA $7,127 $5,866
EBITDA per share $1.37 $1.15
Safety Components International, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
Twenty-Six Six
Weeks Ended Months Ended
September 27, 1998 September 30, 1997
Net sales $104,508 $70,357
Cost of sales,
excluding depreciation 83,054 55,262
Depreciation 3,677 2,138
Gross profit 17,777 12,957
Selling and marketing expenses 1,324 911
General and
administrative expenses 5,090 4,296
Amortization of goodwill 1,135 589
Income from operations 10,228 7,161
Other expense, net 78 89
Interest expense 5,796 2,647
Income before income taxes 4,354 4,425
Provision for income taxes 2,004 1,708
Net income $2,350 $2,717
Net income per share, diluted $0.45 $0.54
Weighted average number of
shares outstanding, diluted 5,200 5,064
EBITDA $15,040 $9,888
EBITDA per share $2.89 $1.95