Control Devices, Inc. Announces Record Fourth Quarter Results
26 January 1999
Control Devices, Inc. Announces Record Fourth Quarter Results
STANDISH, Maine--Jan. 26, 1999--Control Devices, Inc. today reported net income for the fourth quarter 1998 increased 30% to $1.9 million or $0.22 per share (diluted), compared to $1.5 million or $0.17 per share (diluted) for 1997. Sales in the fourth quarter increased 21% to $21.9 million from 1997 results of $18.1 million.
For the year, net income was $7.9 million or $0.90 per share (diluted), an increase of 33% from $5.9 million or $0.69 per share (diluted) in 1997. Sales were $80.0 million, an increase of 14% from $70.2 million in 1997.
Commenting on the Company's performance, Bruce D. Atkinson, President and Chief Executive Officer of Control Devices stated, "Control Devices continued to record significant gains in revenues and net income in the fourth quarter despite the negative impact of reduced ceramic shipments resulting from a continued slowdown in the wireless telecommunications market. Strong European markets and increased shipments of non-automotive circuit breakers were the key factors accounting for the 21% revenue gain. Although we remained concerned with the depressed market for our ceramic products, we continue to expect a recovery in 1999. We are particularly pleased with the performance of our circuit breaker products in the fourth quarter. This performance combined with new automotive related products which we are now marketing are providing Control Devices with continued growth opportunities in 1999 and beyond."
Control Devices is a leading supplier of automatically resetting circuit breakers and sensors, to the automotive market and of glass enclosed circuit breakers to the appliance market. In addition the Company also supplies electronic ceramics to the wireless cellular and PCS telecommunications market. In Europe the Company distributes automotive and electronic components through its subsidiary, RDI. The Company supplies its products to major OEM manufacturers such as GM, Ford, Mercedes, Daimler-Chrysler, Volkswagen, Danfoss and Peugeot. Control Devices, whose corporate headquarters are in Standish, Maine, also has operations in Caribou, Maine; Southfield, Michigan; Villepinte, France; and the Dominican Republic.
CAUTIONARY STATEMENT: This document contains forward-looking statements which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, successful introductions of new products and technology, cyclicality of automotive and appliance industries, differing opinions as to the application of, or changes to, the percentage of the Company's profits generated by foreign operations, U.S. and foreign tax laws and regulations, risk of customer labor interruptions, successful assimilation of acquisitions, reliance on OEM's, and competing technologies.
CONTROL DEVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except per Share Amounts)
Three Months Ended Year Ended
January 2, December 27, January 2, December 27,
1999 1997 1999 1997
(Unaudited)
Net sales $ 21,862 $ 18,064 $ 79,979 $ 70,204
Cost of sales 14,708 12,243 52,080 45,279
Gross profit 7,154 5,821 27,899 24,925
Selling, general and
administrative expenses 3,394 2,509 12,077 10,755
Research and development 1,324 1,059 5,377 4,421
Operating income 2,436 2,253 10,445 9,749
Interest expense
(income), net (104) (69) (297) 170
Income before income
taxes 2,540 2,322 10,742 9,579
Income tax provision 643 858 2,878 3,676
Net income $ 1,897 $ 1,464 $ 7,864 $ 5,903
Earnings per share:
Basic $ 0.23 $ 0.18 $ 0.95 $ 0.71
Diluted $ 0.22 $ 0.17 $ 0.90 $ 0.69
Weighted average number
of common shares and
equivalents outstanding:
Basic 8,315 8,282 8,298 8,274
Diluted 8,774 8,615 8,778 8,524
CONTROL DEVICES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
January 2, December 27,
ASSETS 1999 1997
Current Assets:
Cash and cash equivalents $ 10,183 $ 5,016
Marketable securities 5,642 4,980
Accounts receivable 12,844 11,311
Inventories 8,712 6,414
Other current assets 1,529 1,595
Total current assets 38,910 29,316
Property, plant and equipment, net 13,172 14,262
Goodwill, net 8,811 7,471
$ 60,893 $ 51,049
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 141 $ 612
Short-term debt - 320
Accounts payable 6,754 5,706
Accrued employee benefits 4,795 4,250
Accrued expenses 4,657 3,403
Total current liabilities 16,347 14,291
Long-term debt 152 640
Other liabilities 2,446 2,029
Shareholders' Equity:
Common shares 20,302 20,014
Foreign currency translation adjustment (349) (554)
Retained earnings 21,995 14,629
Total shareholders' equity 41,948 34,089
$ 60,893 $ 51,049
(1) Certain reclassifications have been made to prior year
balances to conform to current year presentation.