Selas Reports Results for Second Quarter 1999
28 July 1999
Selas Reports Results for Second Quarter 1999
DRESHER, Pa., July 27 -- Selas Corporation of America
(Amex: SLS) reported income of $32,000 or $.01 per diluted share for the
quarter ended June 30, 1999 versus $1,766,000 or $.33 per diluted share for
the similar quarter in 1998. Sales were $25,391,000 for the second quarter
1999 compared with $25,222,000 for the quarter ended June 30, 1998. Income
for the second quarter of 1998, however, reflects a one-time tax benefit of
approximately $700,000 from a reduction in the valuation allowance of deferred
income tax assets.
For the six months ending June 30, 1999, Selas reported a loss of $322,000
or $0.06 per diluted share on sales of $49,444,000 compared with a profit of
$2,325,000 or $0.44 per diluted share on sales of $47,088,000 for the first
six months of 1998.
Stephen F. Ryan, Chairman and Chief Executive Officer of Selas, said that
a number of factors contributed to performance during the second quarter
including foreign exchange losses on certain transactions; reduced sales
volume for contract business, replacement burners and parts and lower profit
margins on contract revenue in the overall heat technology business segment; a
depressed hearing aid market and the continuing impact of the Asian economy on
precision medical and electronic products. These negatives were offset in
part by an exceptionally strong quarter by the Company's subsidiary, Deuer
Manufacturing, which serves the automotive market.
"While we have a solid backlog in our heat technology area, profits are
recognized on a percentage of completion basis. This means that we will not
see the profit impact from much of this new business until the second half of
this year and beyond," Mr. Ryan said. "We are optimistic that our precision
medical and electronic products segment will also experience profit growth in
the third and fourth quarters and that we will have continued strong
performance by Deuer Manufacturing in the second half of the year."
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
technology equipment and systems, and cable winch products.
Forward Looking Statements
Certain statements herein that include forward-looking terminology such as
"may," "will," "believe," "expect" 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.
SECOND QUARTER REPORT -- 1999
SELAS CORPORATION OF AMERICA
Comparative Operating Results
(Unaudited)
3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended
6/30/99 6/30/98 6/30/99 6/30/98
Net Sales $25,391,000 $25,222,000 $49,444,000 $47,088,000
Income (loss) before
income taxes (benefits) $134,000 $1,370,000 $(249,000) $2,261,000
Income taxes (benefits) 102,000 (396,000) 73,000 (64,000)
Net Income (loss) $32,000 $1,766,000 $(322,000) $2,325,000
Earnings (loss) per share
Basic $0.01 $0.34 $(0.06) $0.44
Diluted $0.01 $0.33 $(0.06) $0.44
Average shares outstanding
Basic 5,219,000 5,227,000 5,235,000 5,226,000
Diluted 5,232,000 5,315,000 5,235,000 5,287,000