BEI Technologies Announces Results for Fiscal 1999 Q4 and Year
10 November 1999
BEI Technologies Announces Results for Fiscal 1999 Fourth Quarter and Year; Earnings Improve
SAN FRANCISCO, Nov. 10 -- BEI Technologies, Inc.
reported that consolidated after-tax income from continuing
operations for the fiscal year ended October 2, 1999 was $5,339,000, or
$0.74 per share, more than double the $2,515,000, or $0.35 per share, reported
for fiscal 1998. Net sales from continuing operations for fiscal 1999
increased 28% to $159.4 million compared to $124.3 million reported last year,
according to Charles Crocker, chairman, president and chief executive officer.
Crocker stated, "Commercial sales in fiscal 1999 were $140.2 million
compared to $102.8 million last year. This revenue included sales to the
automotive industry that more than doubled to $54.5 million from $20.2 million
in fiscal 1998. Sales to non-automotive commercial customers also increased
during the year, growing most strongly in the third and fourth quarters after
having declined in the second quarter compared to the prior year. Sales from
continuing operations for government programs declined approximately 10% from
the prior year to approximately $19.2 million."
FOURTH-QUARTER RESULTS
For the fiscal 1999 fourth quarter ended October 2, 1999, consolidated
after-tax income from continuing operations was $1,956,000, or $0.27 per
share, compared with $154,000, or $0.02 per share, in fiscal 1998. Net sales
increased to $42.4 million from $35.3 million in the comparable quarter last
year.
Crocker continued, "Sales of BEI's GyroChip(R) sensors for automotive
applications led the sales increase. Margins on these products improved
during the fourth quarter, and our goal is to maintain this improvement
despite the intense pricing pressure on automotive suppliers."
Selling, general and administrative (SG&A) expenses as a percentage of
net sales improved in the fourth quarter of fiscal 1999 to 16.3% from 20.1% in
the comparable period of fiscal 1998. Research and development expense was
3.3% of net sales in fiscal 1999's fourth quarter versus 4.9% a year earlier.
The Company's financial condition also improved during fiscal 1999.
Stockholder equity increased to $6.32 per share from $5.54 per share at the
end of fiscal 1998, and the Company's working capital position and borrowing
capacity also strengthened. Earnings before interest, taxes, depreciation and
amortization (EBITDA) rose to $20.1 million.
Crocker concluded, "Automotive applications have clearly become a
significant part of BEI's total business. Shipments of our micromachined
quartz GyroChip sensors surpassed half a million units in fiscal 1999 and we
now have production capacity in place that would enable us to ship more than a
million units in fiscal 2000 if our customers' requirements continue to grow
as they anticipate. We remain committed to our traditional core businesses
which have been vital contributors to our earnings and technology. In this
regard we have developed and are introducing a number of new sensors,
including two new motion sensors using proprietary non-contacting
technologies, and new pressure sensors based on MEMS technology."
BEI Technologies, Inc., through its principal subsidiary, BEI Sensors &
Systems Company, Inc. is an established manufacturer of electronic sensors,
motors, actuators and motion control products used for factory and office
automation, medical equipment, military, aviation and space systems. In
addition, sales to manufacturers of transportation equipment including
automobiles, trucks and off-road equipment have become a major component of
the Company's business in recent years. The Company's micromachined quartz
yaw rate sensors are being used in advanced vehicle stability control systems
and a significant increase in the production of those sensors has been in
progress since the middle of 1998. BEI also manufactures steering wheel
position sensors, seat-memory modules, throttle position and pressure sensors
and other devices used in automotive systems. GyroChip is a registered
trademark of BEI Sensors & Systems Company, Inc.
Except for historical information, this news release may be deemed to
contain forward-looking statements that involve risks and uncertainties,
including statements with respect to timely development, acceptance and
pricing of new products; impact of competitive products and price; the ability
to manufacture products in sufficient volume on an efficient and timely basis;
general economic conditions as they affect the Company's customers, as well as
other risks detailed from time to time in the Company's reports to the
Securities and Exchange Commission, including the Company's Form 10-K Annual
Report for fiscal 1998.
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
Unaudited
Oct. 2, Oct. 3,
1999 1998
ASSETS
Cash and cash equivalents $3,182 $3,557
Investments 6,467 5,419
Trade receivables -- net 29,555 23,475
Inventories -- net 31,036 29,623
Other current assets 7,193 5,835
Total current assets 77,433 67,909
Property, plant, and equipment, net 35,122 30,619
Acquired technology 4,054 5,015
Goodwill 2,436 1,876
Other assets, net 4,316 4,096
Total assets $123,361 $109,515
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $15,484 $13,014
Accrued expenses and other liabilities 23,892 18,544
Current portion of long-term debt 41 227
Total current liabilities 39,417 31,785
Long-term debt, less current portion 36,784 37,157
Other liabilities 1,317 379
Stockholders' equity 45,843 40,194
$123,361 $109,515
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Unaudited
Quarter Ended Twelve Months Ended
Oct. 2, Oct. 3, Oct. 2, Oct. 3,
1999 1998 1999 1998
Net sales $42,438 $35,263 $159,403 $124,264
Cost of sales 30,188 25,504 111,180 85,562
12,250 9,759 48,223 38,702
Selling, general and
administrative expense 6,901 7,095 30,044 25,491
Research, development
and related expense 1,417 1,709 6,605 6,410
Income from operations 3,932 955 11,574 6,801
Other income 33 126 360 445
Interest expense (708) (822) (2,974) (2,924)
Income from continuing
operations before
income taxes 3,257 259 8,960 4,322
Provision for income taxes 1,301 105 3,621 1,807
Income from continuing
operations 1,956 154 5,339 2,515
Income from discontinued
operations,
net of income taxes -- -- -- 142
Extraordinary item --
net of income taxes -- -- (326) --
Net income after
extraordinary item $1,956 $154 $5,013 $2,657
BASIC EARNINGS PER COMMON SHARE
Earnings from
continuing operations $0.27 $0.02 $0.75 $0.36
Earnings from
discontinued operations -- -- -- 0.02
Loss from extraordinary item -- -- (0.05) --
Earnings per share
after extraordinary item $0.27 $0.02 $0.70 $0.38
Weighted average
shares outstanding 7,180 7,115 7,158 7,012
DILUTED EARNINGS PER COMMON AND
COMMON EQUIVALENT SHARE
Earnings from
continuing operations $0.27 $0.02 $0.74 $0.35
Earnings from
discontinued operations -- -- -- 0.02
Loss from extraordinary item -- -- (0.05) --
Earnings per share
after extraordinary item $0.27 $0.02 $0.69 $0.37
Weighted average
shares outstanding 7,334 7,265 7,254 7,274
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Twelve Twelve
Months Months
Ending Ending
Oct. 2, Oct. 3,
1999 1998
Net income $5,013 $2,657
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,233 6,326
Other (2,323) (6,191)
Net cash provided by operating activities 10,923 2,792
Net cash used in investing activities
Purchases of Plant, Equipment & Other (10,587) (8,645)
Net cash provided by financing activities (711) 4,376
Net increase (decrease) in cash and cash equivalents (376) (1,477)
Cash and cash equivalents at beginning of period 3,557 5,034
Cash and cash equivalents at end of period $3,182 $3,557