Uniroyal Technology Corporation Reports Fourth Quarter Earnings
14 December 1998
Uniroyal Technology Corporation Reports Fourth Quarter Earnings Per Share Increase Of 80% Versus Prior Year
SARASOTA, Fla., Dec. 14 -- Uniroyal Technology Corporation
today reported that net income for the fourth quarter ended
September 27, 1998 reached $2,302,000 for a gain of 74% versus the $1,324,000
reported in the fourth quarter of the preceding year. Income per common share
was $0.18 versus $0.10 per common share in the preceding year. Income per
common share on a diluted basis was $0.16 versus $0.10 per common share in the
year-ago period.
During the fourth quarter, the Company took a before tax charge of
$633,000 related to plant consolidations within the High Performance Plastics
segment. Such charge was equal to $0.03 per common share (after-tax) on both
a basic and diluted basis. The plant consolidations will be completed in the
second half of Fiscal 1999 and will result in future annual savings of
approximately $2.3 million.
Sales for the fourth quarter were $58.0 million, which was a gain of 5%
versus the $55.3 million of the year-ago period. Sales for the High
Performance Plastics segment and Specialty Adhesives segment increased 6% and
28% respectively versus the prior year, but sales for the Coated Fabrics
Segment declined 5% due to lower automotive sales as a result of the Company's
exiting the automotive coated fabrics business.
Howard R. Curd, Chairman and Chief Executive Officer, noted, "We are
pleased with the results of our fourth quarter. This represents the sixth
consecutive quarter of net earnings gains in excess of 70% versus the prior
period quarters."
High Performance Plastics recorded increased sales of 6% as both Royalite
and Polycast showed volume improvement and sales were also benefited from a
recent acquisition. Earnings from operations were approximately equal to the
earnings of the prior year. The current fourth quarter earnings includes an
allocation of the plant consolidations charge.
The Coated Fabrics segment recorded a sales decline of 5% versus the
previous year due to the gradual phase out of its automotive business.
Earnings from operations for the Coated Fabrics segment increased 36% versus
the year-ago period due to significantly lower costs, particularly related to
the automotive sales.
The Specialty Adhesives segment recorded an increase in sales of 28% and
earnings from operations of $1,605,000 versus a loss of $24,000 in the
preceding year. Significant sales increases in both the roofing and
industrial segments led to the strong gains.
The Company's newest business segment, Optoelectronics, will produce
epitaxial wafers, dies and package-ready dies for light emitting diodes
(LEDs). Optoelectronics is a joint venture in which the Company is a majority
owner and managing partner. The loss of $207,000 represents the Company's
share of start-up costs related to the manufacturing site under construction
in Tampa, Florida.
For the twelve months ended September 27, 1998, sales increased 6% to
$220.6 million versus $208.5 million in Fiscal 1997. Income before
extraordinary item increased to $8,027,000 or $0.61 per common share versus
$379,000 or $0.03 per common share for Fiscal 1997. Income per common share
before extraordinary item on a diluted basis was $0.55 versus $0.03 for Fiscal
1997. Not included in the above figures is an extraordinary after-tax charge
of $5,637,000 in Fiscal 1998 related to costs associated with the early
retirement of debt.
Uniroyal Technology Corporation manufactures and sells proprietary plastic
products and specialty chemical and polymer products. The Company has four
business segments: High Performance Plastics, Coated Fabrics, Specialty
Adhesives and Optoelectronics. Some of the Company's well-known brand names
and products include ROYALITE(R) in thermoplastics products, POLYCAST(R) in
acrylic products, NAUGAHYDE(R) in coated fabrics, SILAPRENE(R) and GUNTHER
ULTRA/BONDO in adhesives and in Optoelectronics, epitaxial wafers, dies and
package ready dies for LEDs. Markets served by the Company's products include
mass transportation, security, technology, construction, aerospace,
recreational and medical. Uniroyal Technology Corporation employs
approximately 1,200 persons at its headquarters in Florida and twelve
manufacturing facilities in Indiana, Iowa, Connecticut, Ohio, New Jersey,
Delaware, Wisconsin, Georgia, California and Florida.
The Company's stock and warrants trade on the Nasdaq/NMS under the symbols
UTCI and UTCIW, respectively.
UNIROYAL TECHNOLOGY CORPORATION
SUMMARY OF OPERATIONS
FOURTH QUARTER AND FISCAL 1998
(In Thousands Except Share and Per Share Data)
Q4 REPORT
FOURTH QUARTER ENDED TWELVE MONTHS ENDED
SEPT 27, SEPT 28, SEPT 27, SEPT 28,
1998 1997 % 1998 1997 %
Net Sales:
High Performance
Plastics $32,822 $31,095 6% $128,580 $118,847 8%
Coated Fabrics 16,738 17,631 -5% 67,907 68,773 -1%
Specialty
Adhesives 8,436 6,603 28% 24,129 20,904 15%
Total Net Sales $57,996 $55,329 5% $220,616 $208,524 6%
Income (Loss) Before Interest Expense,
Taxes and Extraordinary Item:
High Performance
Plastics $3,064 $3,066 --- $16,250 $10,547 ---
Coated Fabrics 2,643 1,940 --- 8,868 2,096 ---
Specialty Adhesives1,605 (24) --- 1,911 (346) ---
Optoelectronics (207) --- --- (207) --- ---
Corporate (1,061) (502) --- (3,806) (1,703) ---
Income Before Interest, Taxes and
Extraordinary
Item $6,044 $4,480 35% $23,016 $10,594 117%
Interest Expense(2,178) (2,166) --- (9,382) (9,384) ---
Income Before
Taxes and
Extraordinary
Item $3,866 $2,314 67% $13,634 $1,210 ---
Tax Expense (1,564) (990) --- (5,607) (831) ---
Income Before
Extraordinary
Item $2,302 $1,324 74% $8,027 $379 ---
Extraordinary
Loss(1) --- --- (5,637) --- ---
Net Income $2,302 $1,324 74% $2,390 $379 ---
Income Per Common Share
Before Extraordinary Item:
Basic $0.18 $0.10 80% $0.61 $0.03 ---
Diluted $0.16 $0.10 60% $0.55 $0.03 ---
Average Number of Shares Used
in Computation:
Basic 13,096,901 13,430,034 --- 13,231,542 13,316,965 ---
Diluted 14,492,994 13,752,608 --- 14,631,068 13,423,554 ---
(1)During the third quarter ended June 28, 1998, the Company incurred an
after-tax extraordinary charge for the earlyretirement of debt which
amounted to $0.39 per share on a diluted basis.