Wynn's Reports First Quarter Earnings Per Share Of $.39
20 April 1999
Wynn's Reports First Quarter Earnings Per Share Of $.39; Sales Reach All Time Quarterly High
ORANGE, Calif., April 19 -- Wynn's International, Inc.
reported today net income of $7,453,000 in the first quarter ended
March 31, 1999, approximately the same as the very strong 1998 first quarter
net income of $7,494,000, and 14% above the Company's fourth quarter 1998 net
income. Diluted earnings per share were $.39 in the most recent quarter
compared to $.38 per share in the first quarter of 1998. Net sales for the
quarter ended March 31, 1999 were $88,538,000, a record high for sales in a
quarter, and 3% above last year's comparable quarterly sales of $85,809,000.
The pretax return on sales for the most recent quarter reached 13.2% compared
to 11.9% in the fourth quarter of 1998.
Wynn's-Precision, Inc. (Precision), a key supplier of sealing products for
automobiles and other equipment, reported a 5% increase in pretax profit on a
small increase in sales in the quarter ended March 31, 1999 compared to their
very strong first quarter of 1998. The continued strong performance reflects
Precision's new product introductions, constant drive for improved operating
efficiencies, and the high U.S. automotive production rates.
Wynn Oil Company, a worldwide manufacturer and marketer of specialty
chemicals, equipment and related service programs, reported a 7% increase in
sales compared to the first quarter of 1998 mostly occurring in North America
and France. Pretax profit in the quarter ended March 31, 1999 was 14% below
the comparable 1998 quarter, with improvements in France and Canada offset by
declines in the U.S. and Asia/Pacific. The changes implemented early in the
first quarter of 1999, such as replacement of underperforming distributors in
the U.S. and Asia/Pacific, are working and are expected to yield improved
profits in those areas.
The Company's financial condition remains very good at March 31, 1999 with
cash and cash equivalents of $46.2 million; the current ratio at 2.37 to 1;
and no interest-bearing debt. Stockholders' equity at March 31, 1999 was
$141.6 million or $7.53 per common share.
James Carroll, Chairman of the Board and Chief Executive Officer said,
"We've begun 1999 in line with our goals for the year: improved consolidated
results and a return to the higher levels of profitability achieved early in
1998. The new products and programs recently introduced, such as Wynn Oil's
new transmission flush and service programs and Precision's new sealing
products for fuel systems, show great promise for future growth. Precision is
now a recognized leader in developing new sealing products for automotive fuel
system applications. Wynn's financial position remains quite healthy with
cash balances of $46.2 million at March 31, 1999, even after purchasing over
$4.5 million of our common stock during the first quarter pursuant to our
$15 million share repurchase authorization. We are very optimistic about the
outlook for 1999 and we look forward to another year of record consolidated
results."
Wynn's International, Inc., founded in 1939, is a worldwide supplier of
high quality O-rings and sealing products; specialty chemical products,
equipment and related service programs; and builders hardware supplies. The
Company has 2,136 employees and is headquartered at 500 North State College
Boulevard, Suite 700, Orange, California, 92868, telephone: (714) 938-3700.
Certain statements contained in this release are forward-looking and may
involve risk and uncertainties. Such statements include, but are not limited
to, Precision's ability to continue to increase revenues and profits and
improve operating efficiencies, the success of Wynn Oil Company's new market
strategies, products and programs, including those implemented in the first
quarter of 1999, and the Company's expectation that 1999 will be another year
of record consolidated results. These forward-looking statements should be
evaluated together with the many uncertainties that affect our business,
particularly those mentioned in the Forward-Looking Statements section of
Management's Discussion and Analysis of Financial Condition and Results of
Operations in the Company's periodic filings with the Securities and Exchange
Commission.
FINANCIAL HIGHLIGHTS
Income Statement Data:
First Quarter Ended
March 31
1999 1998
Net sales $88,538,000 $85,809,000
Income before taxes 11,646,000 11,934,000
Provision for taxes 4,193,000 4,440,000
Net income $7,453,000 $7,494,000
Earnings per share
of common stock:
Basic $.40 $.39
Diluted $.39 $.38
Average shares outstanding:
Basic 18,804,845 19,289,183
Diluted 19,245,077 19,935,286
Balance Sheet Data:
As of
Mar. 31, 1999 Dec. 31, 1998
Cash and equivalents $46,174,000 $46,511,000
Working capital 95,896,000 97,457,000
Total assets 229,608,000 225,596,000
Stockholders' equity 141,630,000 140,850,000
Book value per common share $7.53 $7.49