Quixote Corporation Reports Record Fiscal 1999 Fourth Quarter
12 August 1999
Quixote Corporation Reports Record Fiscal 1999 Fourth Quarter and Record Year-End Results
CHICAGO--August 12, 1999--Quixote Corporation today reported record results for its fiscal fourth quarter and for its fiscal year ended June 30, 1999.
Fiscal 1999 fourth quarter sales increased 22% to a record $22,775,000 from $18,715,000 in the same quarter last year, reflecting solid internal growth and the contributions of Nu-Metrics, Inc., which was acquired in December 1998. Earnings from continuing operations rose 25% to $3,869,000, or $0.47 per diluted share, from $3,097,000, or $0.38 per diluted share, in the fiscal 1998 fourth quarter.
Last year, after a loss from discontinued operations of $4,158,000, or $0.51 per diluted share, due to the settlement of three lawsuits involving the Company's discontinued Disc Manufacturing, Inc. subsidiary, Quixote reported a fiscal 1998 fourth quarter net loss of $1,061,000, or $0.13 per diluted share. This year, the Company's net earnings in the 1999 fourth quarter rose to $3,869,000, or $0.47 per diluted share.
For the full 1999 fiscal year, sales increased 29% to a record $71,987,000 from $55,988,000 in fiscal 1998. Earnings from continuing operations rose 23% to $7,562,000, or $0.92 per diluted share, from $6,147,000, or $0.76 per diluted share, in the 1998 fiscal year. Net earnings of $7,802,000, or $0.95 per diluted share, in fiscal 1999 increased from $9,000, or $0.00 per diluted share, in fiscal 1998.
The Company noted that the fiscal 1998 twelve-month period included a loss from discontinued operations of $6,138,000, or $0.76 per diluted share. Net earnings in fiscal 1999 include a gain from discontinued operations of $240,000, or $0.03 per diluted share, due to the reversal of certain accruals resulting from the favorable outcome of some legal proceedings and other contingencies.
The Company stated that long-term debt declined by $2,835,000, or 18%, to $12,623,000 at June 30, 1999 versus $15,458,000 at March 31, 1999.
Philip E. Rollhaus, Jr., Quixote's Chairman and Chief Executive Officer, commented: "All of our companies increased their momentum through the fourth quarter, resulting in our strongest quarter ever. Internal sales were up 12% during the fourth quarter led by strong sales of the QuadGuard line(R) of premium crash cushions. Sales at Highway Information Systems, Inc. increased 21% during the quarter and our most recent acquisition, Nu-Metrics, Inc., contributed sales of $1,876,000.
Mr. Rollhaus continued, "While there have been tremendous strides made over the years in vehicle and highway safety, automobile accidents remain one of the top ten causes of fatalities worldwide according to the World Health Organization. The increase in high profile auto accidents in recent years is raising the emphasis on safety on the road both here and abroad. Quixote is leading the charge towards increased safety on the road with products that are addressing safety needs in innovative new ways. Our Dragnet(R) Vehicle Arresting System is receiving increasing attention for its potential in reducing the number of accidents at railroad-highway crossings, and is currently installed on a test basis at three railroad-highway intersections on the Chicago-St. Louis high-speed rail corridor. Our various models of reusable crash cushions address safety needs in high frequency impact zones by recovering their impact arresting capabilities after an impact, thus reducing the need for frequent maintenance of damaged crash cushions which put both maintenance personnel as well as motorists at risk. We are also reducing the risk of accidents with sales of our traffic monitoring sensors, road and traffic condition monitoring products and weather instrument stations. These products monitor road, traffic and weather conditions to warn motorists of road conditions ahead, provide data to traffic control centers to initiate emergency response actions or otherwise positively effect changes in traffic flows.
Mr. Rollhaus concluded, "This year Quixote celebrates its 30th year in business and the 30,000th life saved by one of our highway safety products. Looking forward, we are increasingly optimistic about Quixote's prospects for greater growth within the areas of transportation and highway safety. New transportation projects funded under the six-year 'Transportation Equity Act for the 21st Century' are expected to hit full stride over the next two years and, for the first time, we are seeing funds earmarked for intelligent highway projects which will benefit our newest acquisitions. International sales, which increased 39% in the current year, continue to build and we are pursuing opportunities to increase our presence in European and Far Eastern markets. Overall, the prospects for continued improvement in the transportation safety markets grow stronger every quarter. We believe Quixote is in an ideal position to lead the charge in the advanced roadside safety products and intelligent roadway segments of the market."
Quixote Corporation, (www.quixotecorp.com), through its wholly- owned subsidiaries, Energy Absorption Systems, Inc. and the TranSafe Corporation, is the world's leading manufacturer of energy-absorbing highway crash cushions, truck-mounted impact attenuators, computerized highway advisory radio transmitting systems, electronic wireless measuring and sensing devices, flexible post delineators and other highway safety products and services.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for its fiscal year ended June 30, 1998, under the caption "Forward- Looking Statements" in Management's Discussion and Analysis of Financial Condition and Results of Operations, which discussion is incorporated herein by this reference.
Quixote Corporation
Earnings Summary
Three Months Ended Year Ended
June 30, June 30,
1999 1998 1999 1998
Net sales $22,775,000 $18,715,000 $71,987,000 $55,988,000
Operating profit $ 6,184,000 $ 4,493,000 $12,483,000 $ 8,553,000
Other income (expense) (47,000) (98,000) (665,000) 199,000
Earnings from continuing
operations before income
taxes 6,137,000 4,395,000 11,818,000 8,752,000
Provision for
income taxes 2,268,000 1,298,000 4,256,000 2,605,000
Earnings from continuing
operations 3,869,000 3,097,000 7,562,000 6,147,000
Gain (loss) from
discontinued operations -- (4,158,000) 240,000 (6,138,000)
Net earnings (loss) $ 3,869,000 ($ 1,061,000)$ 7,802,000 $9,000
Basic per share data:
Earnings from
continuing operations $ 0.48 $ 0.39 $ 0.95 $ 0.77
Gain (loss) from
discontinued operations -- (0.52) 0.03 (0.77)
Net earnings (loss) $ 0.48 ($ 0.13) $ 0.98 $ 0.00
Average common
shares 8,056,622 7,860,067 7,986,094 7,943,653
Per share data assuming dilution:
Earnings from
continuing operations $ 0.47 $ 0.38 $ 0.92 $ 0.76
Gain (loss) from
discontinued operations -- (0.51) 0.03 (0.76)
Net earnings (loss) $ 0.47 ($ 0.13) $ 0.95 $ 0.00
Average diluted
common shares 8,298,994 8,135,767 8,227,775 8,088,354
Quixote Corporation
Balance Sheet Data
As of June 30, As of June 30,
1999 1998
Assets
Current assets $30,797,000 $26,853,000
Property, plant and equipment, net 15,599,000 13,482,000
Intangible assets 24,038,000 12,553,000
Other assets 1,340,000 987,000
Assets of discontinued operations -- 5,190,000
$71,774,000 $59,065,000
Liabilities and Shareholders' Equity
Current liabilities $12,218,000 $11,707,000
Long-term debt, net 11,901,000 7,677,000
Deferred income tax liabilities 1,449,000 795,000
Liabilities of discontinued operations 224,000 --
Shareholders' equity 45,982,000 38,886,000
$71,774,000 $59,065,000