Quixote Reports Record Fiscal 2000 Q1 Sales and Net Earnings
19 October 1999
Quixote Corporation Reports Record Fiscal 2000 First Quarter Sales and Net Earnings - Sales up 20%, Net Earnings up 16%
CHICAGO--October 19, 1999--Quixote Corporation today reported record results for the first quarter of fiscal 2000, ended September 30, 1999. Net sales increased 20% to $19,303,000, compared with $16,063,000 in the first quarter of fiscal 1999. Operating profit rose 29% to $3,413,000 in the first quarter of the current fiscal year from $2,655,000 in the first quarter of the 1999 fiscal year. Net earnings for the first quarter of fiscal 2000 increased 16% to $1,912,000 from $1,642,000 in the first quarter of fiscal 1999. Diluted earnings per share increased to $0.23 in fiscal 2000 compared to $0.20 in fiscal 1999 on a 2% increase in average diluted common shares outstanding.The Company noted that the improvement in sales reflected continued strong growth in sales of its premium QuadGuard(r) crash cushions, which increased 24% in the quarter. Nu-Metrics, Inc., acquired in December 1998, again made a strong contribution adding $1,761,000 to sales in the quarter. The Company also noted that net earnings in the current quarter reflected a higher income tax rate of 40% compared to a 35% income tax rate in the fiscal 1999 first quarter. In addition, the Company reduced its bank debt by $3,272,000 to $9,351,000 as of September 30, 1999.
Leslie J. Jezuit, Quixote's Chief Executive Officer, said, "We are beginning to see an increasing amount of interest in our new cost-effective, reusable crash cushion products, the QuadGuard(r) Elite and the Safe-Stop(TM) truck-mounted attenuator ("TMA"). Reusability in a crash cushion allows it to withstand multiple hits with minimum maintenance between impacts. This is a feature that more and more departments of transportation across the country are looking for in highway safety products as it reduces both refurbishment costs and repair times. We were particularly pleased to receive our first sizable order of 33 units for the Safe-Stop TMA shortly after its introduction. While sales in established markets are strong and building, we are also developing new applications, which will further increase our sales and earnings potential. Our efforts at Nu- Metrics, Inc. and Highway Information Systems, Inc. in the intelligent transportation systems market are generating solid profits and continue to have strong growth prospects."
Philip E. Rollhaus, Jr., Quixote's Chairman, commented: "This marks our ninth consecutive quarter of year-over-year improvement in sales and earnings. Driven by favorable industry trends, the market for our products remains strong. In particular, we have been very successful in developing increased penetration in international markets where our sales were up 72% in the quarter. We are also proud of the fact that our products continue to save lives as well as sense and transmit important traffic information. We were particularly pleased that Highway Information Systems, Inc. assisted in the emergency efforts in North Carolina related to Hurricane Floyd by providing its Solar-Max mobile highway advisory radio units to broadcast critical information during this crisis. Looking ahead, federal funding under the six-year 'Transportation Equity Act for the 21st Century' is expected to hit full stride over the coming 24 months and we believe we have positioned ourselves well relative to increased funding for highway safety products."
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, 1999, 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
September 30,
1999 1998
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Net sales $19,303,000 $16,063,000
Cost of sales 10,030,000 8,827,000
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Gross profit 9,273,000 7,236,000
Operating expenses 5,860,000 4,581,000
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Operating profit 3,413,000 2,655,000
Other income (expense) (226,000) (129,000)
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Earnings before income taxes 3,187,000 2,526,000
Provision for income taxes 1,275,000 884,000
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Net earnings $ 1,912,000 $ 1,642,000
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Per share data:
Basic earnings per share $ 0.24 $ 0.21
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Diluted earnings per share $ 0.23 $ 0.20
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Average common shares outstanding 8,083,580 7,920,690
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Average diluted common
shares outstanding 8,341,381 8,217,267
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Quixote Corporation
Balance Sheet Data
As of September 30, As of June 30,
1999 1999
Assets
Current assets
Cash and cash equivalents $ 472,000 $ 2,153,000
Accounts receivable, net 15,146,000 17,078,000
Inventories 7,926,000 8,537,000
Other assets 3,285,000 3,029,000
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26,829,000 30,797,000
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Net property, plant and equipment 15,443,000 15,599,000
Intangible assets and other 25,146,000 25,378,000
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$67,418,000 $71,774,000
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Liabilities and Shareholders'
Equity
Current liabilities $ 8,942,000 $12,218,000
Long-term debt, net 8,629,000 11,901,000
Other long-term liabilities 1,827,000 1,673,000
Shareholder's equity 48,020,000 45,982,000
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$67,418,000 $71,774,000
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