Cade Industries Reports Record Third Quarter/Nine Months Results
21 October 1999
Cade Industries Reports Record Third Quarter/Nine Months Results; Net Income Rises 35% for the Third Quarter
OKEMOS, Mich., Oct. 21 -- Cade Industries, Inc.
, today reported results for the third quarter and nine months
ended September 30, 1999.
Third quarter net income increased 35 percent to a record $1,499,000 or
basic earnings per share of seven cents, from $1,113,000 or basic earnings per
share of five cents for the comparable period in 1998. Revenues were $26.1
million, up 2.4 percent from $25.5 million in last year's third quarter.
Net income increased 35.1 percent for the nine-month period to a record
$4,202,000 or basic earnings per share of 19 cents, from $3,111,000 or basic
earnings per share of 14 cents for the comparable nine-month period of the
prior year. Sales revenues for the nine-month period rose 9.9 percent to
$78.6 million from $71.5 million for the same period in 1998.
Cade President Richard Lund said, "The strong third quarter results
reflect the company's strengthened product mix, which resulted in increased
revenues from its higher margin aftermarket services and OEM engine products.
Engine and airframe overhaul and repair services are vital components of our
growth plan and we are pleased with the solid growth we are experiencing in
this product group."
Cade has secured several new contracts in OEM components and test facility
upgrades that have increased the company's backlog to $90 million, from $81
million as of September 30, 1998, Lund concluded.
Cade designs, develops, manufactures, overhauls and repairs high
technology composite components for the aerospace and air transport
industries, and is a global leader in the design and manufacture of jet engine
test facilities and related ground testing equipment. The company's operating
subsidiaries are located in Lansing, Michigan; San Diego, California; Grand
Prairie, Texas; and Minneapolis, Minnesota.
For more information or to receive a copy of this press release, please
call our Company News On Call at 1-800-758-5804 -- extension 075675 or you can
access the information via the Internet at http://www.prnewswire.com . For
further information on Cade Industries, Inc., you can access the company's web
site at http://www.cade-industries.com .
CADE INDUSTRIES, INC.
Financial Highlights (Unaudited)
For the Three Months Ended For the Nine Months Ended
9/30/99 9/30/98 9/30/99 9/30/98
Sales $26,113,000 $25,502,000 $78,595,000 $71,514,000
Net income $1,499,000 $1,113,000 $4,202,000 $3,111,000
Net income per share:
Basic $0.07 $0.05 $0.19 $0.14
Diluted $0.07 $0.05 $0.19 $0.14
Weighted average common
shares outstanding:
Basic 21,606,000 21,978,000 21,653,000 21,998,000
Diluted 22,201,000 22,572,000 22,162,000 22,618,000
The above statements that involve industry conditions and company sales
and profits are forward-looking statements that involve a number of risks and
uncertainties. Among the factors that could cause actual results to differ
materially from those which are anticipated are the following: business
conditions generally and conditions specifically in the aircraft and aerospace
industries; timing of receipt and delivery of orders; the timing and
satisfactory completion of engine test facilities; product mix; price
fluctuations for raw materials and labor; competitive factors, including price
competition from other suppliers of similar products and overhaul and repair
services; risk of obsolescence of tooling inventory before full amortization
on project costs; insurance proceeds, and cancellation of orders.
CADE INDUSTRIES, INC. AND SUBSIDIARIES
(Unaudited condensed consolidated financial statements)
STATEMENTS OF INCOME THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1999 1998 1999 1998
Sales $26,112,549 $25,501,933 $78,594,877 $71,513,689
Operating expenses
Cost of sales 20,430,434 20,057,461 60,835,829 55,447,508
Selling, general and administrative
expenses 2,807,880 3,602,117 10,400,153 10,731,573
23,238,314 23,659,578 71,235,982 66,179,081
Income From
Operations 2,874,235 1,842,355 7,358,895 5,334,608
Interest (income)
expense - net 341,690 294,389 927,858 948,518
Income Before Income
Taxes 2,532,545 1,547,966 6,431,037 4,386,090
Income tax expense 1,034,000 435,000 2,229,000 1,275,000
Net Income $1,498,545 $1,112,966 $4,202,037 $3,111,090
Net Income Per Share:
Basic $0.07 $0.05 $0.19 $0.14
Diluted $0.07 $0.05 $0.19 $0.14
BALANCE SHEETS SEPT. 30 DEC. 31
1999 1998
ASSETS
Cash and cash equivalents $975,551 $580,489
Trade accounts receivable 14,829,171 13,172,191
Costs and estimated earnings in excess of
billings on uncompleted contracts 3,535,436 3,923,693
Inventories 17,912,743 17,087,921
Other current assets 3,139,453 2,964,685
Total Current Assets 40,392,354 37,728,979
Property, plant and equipment - net 20,873,735 19,196,668
Other assets - net 5,123,096 5,349,184
Total Assets $66,389,185 $62,274,831
LIABILITIES AND SHAREHOLDERS' EQUITY
Note payable to bank $7,767,606 $150,000
Current portion of long-term debt 3,457,370 3,467,066
Trade accounts payable 5,351,700 7,034,214
Other current liabilities 4,742,369 5,989,906
Billings in excess of costs and estimated
earnings on uncompleted contracts 4,823,954 9,600,327
Total Current Liabilities 26,142,999 26,241,513
Long-term debt 8,723,676 8,313,322
Deferred income taxes 666,000 666,000
Shareholders' equity 30,856,510 27,053,996
Total Liabilities and Shareholders'
Equity $66,389,185 $62,274,831
Stock for CADE Industries, Inc. is traded in the Over-The-Counter Market
(National Market System). The symbol is CADE.