Wynn's Reports 11% Growth in Quarterly Earnings Per Share
20 July 1999
Wynn's Reports 11% Growth in Quarterly Earnings Per Share; Net Income and Sales Reach All-Time Quarterly High
ORANGE, Calif., July 19 -- Wynn's International, Inc.
reported today net income of $7,587,000 in the second quarter ended
June 30, 1999, a new quarterly record and an increase of 6% over 1998 second
quarter income of $7,149,000. Diluted earnings per share were $.40 in the
most recent quarter, 11% higher than the $.36 per share earnings in the second
quarter of 1998. The growth in per share results was greater than the growth
in net income due to the Company's ongoing common stock repurchase program.
Net sales for the quarter ended June 30, 1999 were $92,770,000, also a
quarterly record, and 8% above last year's comparable quarterly sales of
$85,589,000.
For the first six months of 1999, net income increased 3% to $15,040,000
or $.79 per diluted share compared to $14,643,000 or $.74 per share a year
ago. Net sales for the first six months of 1999 were $181,308,000, a
6% increase compared to $171,398,000 for the first six months of 1998.
Wynn's-Precision, Inc. (Precision), a key supplier of sealing products for
automobiles and other equipment, reported a 10% increase in sales and a
17% increase in pretax profit in the most recent quarter compared to the
second quarter of 1998. Productivity gains, coupled with the continued
strength in the U.S. automotive and industrial sectors, led to improved
results at Precision's major units.
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 second quarter of 1998. Pretax profit in the quarter
ended June 30, 1999 was up slightly compared to the very strong 1998 second
quarter and up 19% over the immediately preceding quarter ended March 31,
1999. Results at the U.S.-based operations continued their trend of improved
performance. Internationally, Wynn Oil's results were consistent with the
regional economies. In Europe, operating results were slightly ahead of last
year's second quarter. In the Asia/Pacific region, sales and profits are
recovering from their recent lows.
The Company's financial condition remains very strong at June 30, 1999
with cash and cash equivalents of over $54.3 million; the current ratio at
2.27 to 1; and no interest-bearing debt. Stockholders' equity at June 30,
1999 was $145.7 million, or $7.78 per share. For the six months ended June
30, 1999, the Company repurchased $6.7 million of its common stock pursuant to
a $15 million share repurchase authorization.
James Carroll, Chairman of the Board and Chief Executive Officer said, "We
had a quarter of solid performance with double-digit growth in earnings per
share and further strengthening of our financial position. New products, such
as Precision's radiator gaskets and fuel system seals, and new marketing
programs, such as Wynn Oil's vehicle service programs, led to the record
revenues in the quarter. We will continue to pursue ways to enhance
shareholder value, including share repurchases and business acquisitions. We
remain optimistic about the second half of 1999 and achieving record
consolidated results for the full year."
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 2,155 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 market
strategies, products and programs, 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:
Second Quarter Ended
June 30
1999 1998
Net sales $92,770,000 $85,589,000
Income before taxes 11,853,000 11,125,000
Provision for taxes 4,266,000 3,976,000
Net income $7,587,000 $7,149,000
Earnings per share
of common stock:
Basic $.40 $.37
Diluted $.40 $.36
Average shares outstanding:
Basic 18,738,099 19,296,634
Diluted 19,062,578 19,866,138
Six Months Ended
June 30
1999 1998
Net sales $181,308,000 $171,398,000
Income before taxes 23,499,000 23,059,000
Provision for taxes 8,459,000 8,416,000
Net income $15,040,000 $14,643,000
Earnings per share
of common stock:
Basic $.80 $.76
Diluted $.79 $.74
Average shares outstanding:
Basic 18,771,416 19,292,909
Diluted 19,153,553 19,910,878
Balance Sheet Data:
As of
June 30, 1999 Dec. 31, 1998
Cash and cash equivalents $54,321,000 $46,511,000
Working capital 97,821,000 97,457,000
Total assets 240,517,000 225,596,000
Stockholders' equity 145,702,000 140,850,000
Book value per common share $7.78 $7.49