SI Handling Systems Announces Results for Fourth Quarter and FY1999
10 May 1999
SI Handling Systems Announces Results for Fourth Quarter and FY1999
EASTON, Pa., May 7 -- SI Handling Systems, Inc.
, markets, designs, manufacturers, installs, and services
automated materials handling systems that improve productivity in
manufacturing and increase the speed of product delivery by customers
worldwide. Today, SI Handling announced results for the fourth quarter and
FY1999 ending February 28, 1999.
Three Months Ended Fiscal Year Ended
February 28, March 1, February 28, March 1,
1999 1998 1999 1998
Net sales $9,482,000 15,260,000 39,573,000 47,631,000
Earnings before income
taxes 276,000 1,003,000 2,234,000 4,102,000
Income tax expense 108,000 275,000 856,000 1,490,000
Net earnings $168,000 728,000 1,378,000 2,612,000
Basic earnings per share* $.05 .20 .37 .70
Diluted earnings per share* $.04 .19 .37 .70
Backlog of orders to
be shipped $19,884,000 22,092,000
* On October 14, 1997, the Board of Directors declared a three-for-two
stock split that was distributed on November 10, 1997 to shareholders
of record on October 27, 1997. Basic earnings per share for all
periods presented reflect the three-for-two stock split and are based
on the weighted average number of shares outstanding. Diluted earnings
per share for all periods presented reflect the three-for-two stock
split and are based on the weighted average number of shares
outstanding and equivalent shares from dilutive stock options and
phantom stock units.
Compared to last fiscal year's record performance, SI Handling is
disappointed with its FY1999 financial results. These results were impacted
by competitive pressures, stretched resources while absorbing new technology,
a decrease in the financial performance of SI/BAKER, and product mix favoring
high non-proprietary content. An order balance of $3.3 million was suspended
due to a customer's financial condition and removed from the year-end backlog.
The Company is implementing operational initiatives to optimize future
performance.
The Company made investments in new product development in FY1999 that it
believes will help increase sales and margins. These include a revolutionary
high throughput concept for A-Frame picking and Series 3 Cartrac(R)
improvements to our precision assembly systems. Enhancements were also made
in pick-to-light paperless picking capabilities.
A new strategic alliance was completed for an electrified monorail system
capability with Digitron Translift AG, which broadens our product offerings to
the automotive and related markets.
An acquisition of Modular Automation Corp. was completed, positioning the
Company for profitable growth in the AGV business and strengthening our
ability to provide a complete package of solutions for the customers'
horizontal materials handling applications.
The Company projects flat earnings for FY2000. Growth is anticipated to
accelerate in the second half of the fiscal year. SI Handling's marketing
strategy is to focus on higher growth segments of the market. The Company's
compound annual growth rate from a FY1997 revenue level of $24 million is
28.4%.
Several significant events are expected to have an impact on SI Handling:
-- As previously announced, William R. Johnson has been appointed
President and a Director of the Company. Building on the platform
established four years ago, the Company has consolidated activities
into two business units that it believes will better serve customers,
improve profitable growth, and reduce costs. William J. Casey is Vice
President of Production & Assembly Systems and James L. Thatcher is
Vice President of Warehousing & Distribution Systems. Both are highly
experienced long-term employees with broad knowledge of the materials
handling industry. A centralized purchasing organization is being
established to implement a supplier strategy aimed at providing a
competitive advantage for the Company and its customers.
-- Advancements in Internet and other communications have increased demand
for unit picking at existing and potential new customers. A new
product has been developed and will be introduced in FY2000 to
automate replenishment and speed up unit picking.
-- An alliance supplier agreement with Integrated Dispensing Systems, Inc.
[IDS] for a proprietary hospital medical dispensing systems has been
finalized. The technology used on this design has application in
other unit picking applications.
-- Government investments in materials handling automation provide
continued strength in a segment where SI Handling has proven
capabilities.
-- Strategic growth discussions with high quality, complementary
technology leaders in the materials handling business continue.
SI Handling's balance sheet and cash flows remain strong.
SI Handling is recognized as a leading materials handling systems supplier
worldwide as measured by customers.
The Company's Annual Meeting of Shareholders will be held at 11:00 a.m.,
local time, on July 21, 1999 at the GPU Energy Building, 2121 Sullivan Trail,
Easton, PA 18040.
EASTON, Pa. - The Board of Directors of SI Handling Systems, Inc. declared
at its meeting of May 6, 1999, a 10-cent cash dividend, payable on June 4,
1999 to shareholders of record on May 21, 1999. Directors will continue to
review the dividend policy annually at the Company's year end.
Cautionary Statement. Certain statements contained herein are not based
on historical fact and are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Among other things,
they regard the Company's earnings, liquidity, financial condition, and
certain operational matters. Words or phrases denoting the anticipated
results of future events, such as "is anticipated," "believes," "estimate,"
"are expected," "may," "will," "will likely," "will help increase,"
"projects," and similar expressions that denote uncertainty, are intended to
identify such forward-looking statements. The Company's actual results,
performance, or achievements could differ materially from the results
expressed in, or implied by, such "forward-looking statements:" (1) as a
result of risks and uncertainties identified in connection with those forward-
looking statements, including those factors identified herein, and in the
Company's publicly filed reports; (2) as a result of factors over which the
Company has no control, including the strength of domestic and foreign
economies, sales growth, competition, and certain cost increases; or (3) if
the factors on which the Company's conclusions are based do not conform to the
Company's expectations.