Wynn's Reports 14% Increase in Sales And 16% Jump in Earnings
18 October 1999
Wynn's Reports 14% Increase in Sales And 16% Jump in Earnings Per Share for Third Quarter
ORANGE, Calif., Oct. 18 -- Wynn's International, Inc.
reported today net income of $6,866,000 in the third quarter ended
September 30, 1999, a 12% increase over 1998 third quarter income of
$6,124,000. Earnings per diluted share for the third quarter were $.36, an
increase of 16% over the $.31 per share recorded in the third quarter of 1998.
Net sales for the quarter were $91,120,000, 14% higher than last year's
comparable quarterly sales of $79,835,000.
For the first nine months of 1999, net income increased 5% to $21,906,000
compared to $20,767,000 a year ago. Earnings per diluted share for the nine
months of 1999 were $1.15, a 10% increase over last year's $1.05 per share.
Net sales for the first nine months were $272,428,000, an 8% increase over the
comparable amount for the first nine months of 1998.
Wynn's-Precision, Inc. (Precision), a key supplier of sealing products for
automobiles and other equipment, reported a 20% increase in pretax profit on
an 11% increase in revenues in the most recent quarter compared to the third
quarter of 1999. Continued high U.S. automotive production rates, combined
with improved operating efficiencies, led to Precision's improved results.
During the quarter, Precision began work on more than 20 new automotive
sealing programs in conjunction with the annual model year changeover.
Wynn Oil Company, a worldwide manufacturer and marketer of specialty
chemicals, equipment and related service programs, reported a 29% increase in
pretax profit on an 18% increase in revenue in the third quarter of 1999
compared to the third quarter of 1998. The strong quarterly results were led
by growth in sales and profits in the U.S., especially the recently introduced
vehicle service contract programs, and improved performance in Belgium and the
Asia/Pacific region.
The Company's financial condition remains very good at September 30, 1999
with cash and cash equivalents of over $60 million; the current ratio at
2.19 to 1; and no interest-bearing debt. Stockholders' equity at September
30, 1999 was $150.6 million, or $8.07 per share. During the nine months ended
September 30, 1999 the Company repurchased $8.0 million of its common stock
pursuant to a $15 million share repurchase authorization.
James Carroll, Chairman of the Board and Chief Executive Officer said,
"Our return to double-digit growth in revenue and profits at both of our major
business units reflects our commitment to continuous improvements and our
focus on new products. Our strong financial position and cash flow enhances
our ability to invest for internal growth, such as Precision's new $8 million
mixing facility, and to pursue acquisitions of compatible businesses. We are
on plan for 1999 to be another year of record consolidated operating results."
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 2,186 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:
Third Quarter Ended
September 30
1999 1998
Net sales $91,120,000 $79,835,000
Income before taxes 10,729,000 9,389,000
Provision for taxes 3,863,000 3,265,000
Net income $6,866,000 $6,124,000
Earnings per share
of common stock:
Basic $.37 $.32
Diluted $.36 $.31
Average shares outstanding:
Basic 18,715,231 19,031,979
Diluted 19,019,457 19,560,959
FINANCIAL HIGHLIGHTS-CONTINUED
Income Statement Data (Continued):
Nine Months Ended
September 30
1999 1998
Net sales $272,428,000 $251,233,000
Income before taxes 34,228,000 32,448,000
Provision for taxes 12,322,000 11,681,000
Net income $21,906,000 $20,767,000
Earnings per share
of common stock:
Basic $1.17 $1.08
Diluted $1.15 $1.05
Average shares outstanding:
Basic 18,752,688 19,205,932
Diluted 19,108,070 19,783,807
Balance Sheet Data:
As of
Sept. 30, 1999 Dec. 31, 1998
Cash and cash equivalents $61,880,000 $46,511,000
Working capital 100,220,000 97,457,000
Total assets 252,443,000 225,596,000
Stockholders' equity 150,612,000 140,850,000
Book value per common share $8.07 $7.49