Selas Reports 1998 Income of $3.6 Million or 68 Cents Per Share
24 February 1999
Selas Reports 1998 Income of $3.6 Million or 68 Cents Per Share; Company Plans Transition in Two Business Segments
DRESHER, PA, Feb. 23 -- Selas Corporation of America
(Amex: SLS) reported net income for the year ended December 31, 1998 of
$3,610,000 or $0.68 per diluted share on sales of $99,555,000, compared to
1997 net income of $4,387,000 or $0.82 per diluted share on sales of
$111,165,000.
Consolidated net income for the quarter ended December 31, 1998 was
$367,000 or $0.07 per diluted share on sales of $27,263,000 compared to fourth
quarter 1997 net income of $707,000 or $0.13 per diluted share on sales of
$24,830,000.
Stephen F. Ryan, Chairman, President and Chief Executive Officer of Selas,
said that, for 1998 compared to the prior year, the reduction in revenues was
attributable solely to the large project business of Selas' Heat Technology
Group which more than offset an 11% increase in its Precision, Miniature
Medical and Electronics Group and an 8% increase in revenues at Deuer
Manufacturing. The $777,000 shortfall in consolidated net income resulted
from a $591,000 decrease in heat technology and a $524,000 decrease in the
medical and electronics area from 1997 levels which was partially offset by an
increase in net income at Deuer of $338,000.
"Large project volume, coupled with additional expenses in completing some
current projects, had a negative impact on the Heat Technology Group while the
Asian economic situation, along with presale and design expenses, reduced the
Precision, Miniature Medical and Electronics Group's net income," Mr. Ryan
said.
Ryan said that Selas will transition both of these business segments in
1999 in an effort to focus on areas with greater growth potential. The
Precision, Miniature Medical and Electronics Group will continue to develop
the hearing health market but will put increased focus on other medical
markets, especially the medical infusion business. The Heat Technology Group
will lessen its dependence on large projects by expanding its smaller furnace
product lines such as those manufactured by its recent acquisition, CFR,
Paris, France.
"We are confident that 1999 will be a year of renewed growth for Selas,
but we do not see that growth coming until the second half of the year," Mr.
Ryan said. "We believe that the first two quarters of 1999 will be relatively
flat with growth occurring in the third and fourth quarters."
Selas is a diversified firm with international operations and sales that
engages in the design, development, engineering and manufacturing of a range
of products including precision medical and electronic products, heat
processing equipment and systems, and cable winch products.
Certain statements herein that include forward-looking terminology such as
"may", "will", "believe" or "continue" or the negative thereof or other
variations thereon are, or could be deemed to be, "forward-looking statements"
within the meaning of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are affected by known and unknown risks,
uncertainties and other factors that may cause Selas' actual results,
performance or achievements to differ materially from the results, performance
and achievements expressed or implied in Selas' forward-looking statements.
These risks, uncertainties and factors include competition by competitors with
more resources than Selas, foreign currency risks arising from Selas' foreign
operations, and the cyclical nature of the market for large heat engineering
contracts. Reference is made to Selas' Annual Report on Form 10-K regarding
other important factors that could cause the actual results, performance or
achievement of Selas to differ materially from those contained in or implied
by any forward-looking statement made by or on behalf of Selas, including
forward-looking statements contained herein.
Fourth Quarter Report - 1998
Selas Corporation of America
Comparative Operating Results
(Unaudited)
3 Months 3 Months
Ended 12/31/98 Ended 12/31/97
Net Sales $27,263,000 $24,830,000
Income before income taxes
(benefits) $239,000 $295,000
Income taxes (benefits) (128,000) (412,000)
Net income $367,000 $707,000
Earnings per share
Basic $0.07 $0.14
Diluted $0.07 $0.13
Average shares outstanding
Basic 5,252,000 5,216,000
Diluted 5,302,000 5,342,000
12 Months 12 Months
Ended 12/31/98 Ended 12/31/97
Net Sales $99,555,000 $111,165,000
Income before income taxes
(benefits) $3,950,000 $6,361,000
Income taxes (benefits) 340,000 1,974,000
Net income $3,610,000 $4,387,000
Earnings per share
Basic $0.69 $0.84
Diluted $0.68 $0.82
Average shares outstanding
Basic 5,233,000 5,213,000
Diluted 5,310,000 5,355,000