UNIDYNE Reports 1998 Results
21 May 1999
UNIDYNE Reports 1998 Results
EXTON, Penn., May 21 -- UNIDYNE Corporation
today reported results for the year ended December 31, 1998.
The Exton, Penn.-based manufacturer of dynamometers, emission testing
equipment and specialized electric motors, reported a net loss of $2.7
million, or $0.29 per share, on net sales of $24.7 million in 1998, compared
with a net loss of $1.8 million, or $0.21 per share, on net sales of $22.1
million in 1997.
UNIDYNE attributed the 11.4% increase in net sales primarily to the
addition of results of Sabina Industries, Inc., the California-based
manufacturer of motor controls the Company acquired in September 1997. The
Company said increased sales of chassis dynamometers and emissions test stands
also contributed to the double-digit gain in revenues. Gross profit increased
4.4% to $7.5 million in 1998, reflecting higher sales levels and a change in
the Company's product mix following the acquisition of Sabina.
Higher sales levels and heightened focus on cost management enabled
UNIDYNE to narrow its loss from operations versus the previous year, despite
non-recurring expenses related to layoffs at the Sabina unit. The Company's
loss from operations decreased by 10% to $1.2 million in 1998, compared with a
loss of $1.4 million in the previous year.
"The past 18 months have been a busy, productive time for UNIDYNE
Corporation," said C. Eugene Hutcheson, chairman and chief executive officer
"We addressed a number of issues, including strengthening our management team
and operations, and laid a solid foundation for success in key market
segments, particularly the chassis dynamometer business. The recent launch of
New Jersey's Enhanced Emissions Inspection & Maintenance programs has resulted
in increased orders for our Maxwell subsidiary's emissions-testing systems,
which utilize dynamometers and other equipment manufactured by other UNIDYNE
subsidiaries."
Hutcheson continued: "The recent addition of Wayne Lorgus as our
president and chief financial officer, as well as other key management changes
at our operating units, have further positioned us to increase accountability
and focus on profitability in the coming year."
UNIDYNE also reported that it filed its Form 10-K with the Securities and
Exchange Commission, and expects to file its Form 10-Q for the period ended
March 31, 1999 by the end of next week.
Exton, Pa.-based UNIDYNE Corporation and its subsidiaries manufacture,
sell, service and finance a variety of products, including vehicle emissions
testing systems, specialized electric motors, and variable speed drives and
controls. UNIDYNE also manufactures engine and chassis dynamometer testing
systems for a variety of large industrial customers, primarily in the
automotive and heavy equipment industries. The Company employs 230 people at
facilities in Kenosha, Wis.; San Francisco, Calif.; Anaheim, Calif.; Hazelton,
Pa; and Exton, Pa.
The statements contained in this news release include certain predictions
and projections that may be considered forward-looking statements under
securities law. These statements involve a number of important risks and
uncertainties that could cause actual results to differ materially, including,
but not limited to, the performance of the emissions testing industry, certain
customer and affiliated companies, as well as other economic, competitive,
governmental and technological factors involving the Company's operations,
markets, services, products and prices.
UNIDYNE CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)
Twelve Months Ended
12/31/98 12/31/97
Net Sales $ 24,629 $ 22,108
Cost of Products Sold 17,105 14,904
Gross Profit 7,524 7,204
Selling, general &
administrative expense 8,572 8,072
Research & development expense 187 505
8,759 8,577
(Loss) from Operations (1,235) (1,373)
Other Income 25 63
Interest Expense (751) (687)
(Loss) before income
tax (benefit) provision (1,961) (1,997)
Income tax (benefit)
provision 435 (534)
Net (Loss) (2,396) (1,463)
Preferred dividends (350) (350)
Loss Applicable to
Common Stockholders (2,746) (1,813)
Basic and diluted
loss per Share $ (0.29) $ (0.21)
Weighted average number
of shares of common stock 9,335,352 8,764,936