Penn Engineering Announces Sales and Earnings for Third Quarter 1999
2 November 1999
Penn Engineering Announces Sales and Earnings for Third Quarter 1999 and Declares Quarterly Cash Dividend of Twelve Cents Per Share
DANBORO, Pa.--Nov. 2, 1999--Penn Engineering & Manufacturing Corp. today announced net income of $4,469,367, or $.51 per diluted share, on quarterly net sales of $48,378,137 for the third quarter ended September 30, 1999.This represents a 15.2% increase over 1998 quarterly net income of $3,881,295, a 13.3% increase over 1998 quarterly earnings per diluted share of $0.45, and an 11.6% increase over 1998 quarterly sales of $43,356,966.
For the nine months ended September 30, 1999, net income was $12,790,866 or $1.48 per diluted share on net sales of $141,414,964, as compared to net income of $12,028,857, or $1.39 per diluted share, on net sales of $135,076,501 for the nine months ended September 30, 1998.
For the Fastener Operation, sales and operating income for the quarter ended September 30, 1999 were $38,995,126 and $5,946,194 respectively, versus $35,987,518 and $4,833,605, respectively, for the quarter ended September 30, 1998. For the nine months ended September 30, 1999, sales and operating income were $115,534,883 and $16,552,805 respectively, versus $110,447,428 and $15,791,742 respectively, for the nine months ended September 30, 1998.
For the Motor Operation, sales and operating income for the quarter ended September 30, 1999 were $9,383,011 and $779,280 respectively, versus $7,369,447 and $461,757, respectively, for the quarter ended September 30, 1998. For the nine months ended September 30, 1999, sales and operating income were $25,880,081 and $2,173,460 respectively, versus $24,629,073 and $1,770,309 respectively, for the nine months ended September 30, 1998.
Today the Board of Directors declared a quarterly cash dividend of 12 cents per share on both classes of common stock, payable December 15, 1999 to stockholders of record, December 1, 1999.
Management Comments:
Kenneth A. Swanstrom, Chairman and Chief Executive Officer, stated, "We are very pleased with our financial results this quarter. Strong unit sales growth in both the fastener and motor businesses and a favorable change in the average mix price in the fastener business led to the excellent third quarter results. We expect the R.C. Dudek acquisition, which we completed on the last day of the third quarter, will impact our financial results positively in the year 2000. Now that R.C. Dudek is a subsidiary, we can no longer record a profit on our shipments to them. Profit is now recorded upon their sale of Penn products to the ultimate customer. The net effect of this delay in earnings recognition is projected to be between $0.05 to $0.08 on fourth quarter earnings."
Business Summary:
Penn Engineering & Manufacturing Corp. is the leading manufacturer of self-clinching fasteners used by the computer, datacommunications, telecommunications, general electronics, automotive, and avionics industries. The Company's Pittman division manufactures high performance permanent magnet dc motors used in electronics, medical, and manufacturing applications.
Forward looking statement information:
Statements in this press release, other than statements of historical data, are considered forward looking statements under the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties that could cause actual results to differ from those contemplated in these statements. These factors are discussed in the company's Securities and Exchange Commission Filings.
PENN ENGINEERING & MANUFACTURING CORP.
Income Statement Data
Amounts in Thousands, Except Per Share Data
(Unaudited)
3 Months Ended 9 Months Ended
Sep. 30, Sep. 30, Sep. 30, Sep. 30,
1999 1998 1999 1998
-------- -------- -------- --------
Net Sales $ 48,378 $ 43,357 $141,415 $135,077
Cost of Goods Sold $ 32,822 $ 30,066 $ 96,402 $ 93,254
Gross Profit $ 15,556 $ 13,291 $ 45,013 $ 41,823
Selling, General, and
Administrative Expense $ 8,831 $ 7,996 $ 26,287 $ 24,261
Operating Income $ 6,725 $ 5,295 $ 18,726 $ 17,562
Other Income $ 0 $ 581 $ 523 $ 1,092
Income before Income
Taxes $ 6,725 $ 5,876 $ 19,249 $ 18,654
Income Taxes $ 2,256 $ 1,995 $ 6,458 $ 6,625
Net Income $ 4,469 $ 3,881 $ 12,791 $ 12,029
Weighted Average Shares
Outstanding 8,647 8,628 8,643 8,635
Earnings Per Share
Basic: $ 0.52 $ 0.45 $ 1.48 $ 1.39
Fully Diluted: $ 0.51 $ 0.45 $ 1.48 $ 1.39