IMPCO Technologies Announces Fiscal 2000 Second Quarter Results
17 November 1999
IMPCO Technologies Announces Fiscal 2000 Second Quarter Results; Reports Record Operating Income
CERRITOS, Calif.--Nov. 17, 1999--IMPCO Technologies Inc. today announced record operating results for its fiscal 2000 second quarter ended Oct. 31, 1999, supported by increased products sales for alternative fueled vehicles in Mexico and growing demand for products and engine systems used in industrial applications.Revenues for the fiscal 2000 second quarter climbed 34.6 percent to $27.4 million, compared with $20.3 million a year ago. Operating income for the same period reached a record $2.7 million, compared with $1.5 million a year earlier. Net income for the quarter climbed 68.3 percent to $1.5 million, or $0.17 per diluted share, compared with $892,791, or $0.11 per diluted share, in the corresponding prior-year period.
For the six-month period ended Oct. 31, 1999, revenues rose 38.8 percent to $55.8 million, from $40.2 million in the comparable period last year. Operating income for the first six months of fiscal 2000 climbed sharply to $5.4 million, from $4.1 million for the same period fiscal 1999. Net income for the same period increased 28.5 percent to $3.0 million, or $0.35 per diluted share, from $2.4 million, or $0.30 per diluted share, in the prior year.
Robert M. Stemmler, president and chief executive officer, said, "Results for the second quarter of fiscal 2000 reflect strong performance of our motor vehicle aftermarket business, as well as the material handling, heavy duty and small engine sectors."
Stemmler noted that motor vehicle aftermarket sales nearly doubled for the second quarter, climbing to $10.7 million from $5.5 million last year. He indicated that sales for the Mexican market were strong, supported by increased governmental regulations and economic incentives to reduce air pollution in the region.
Material handling revenues for the second quarter of fiscal 2000 increased $3.3 million to $12.0 million from $8.7 million a year earlier, supported by significant contributions from IMPCO's Industrial Systems Engine division based in Michigan, as well as contributions from the acquisition of a Japanese subsidiary completed in March 1999.
Stemmler added that small engine sales for the same period increased 67 percent to $3.7 million from $2.2 million in the second quarter of fiscal 1999, aided by demand for small engines and generators to address Y2K concerns.
He noted that IMPCO's automotive OEM division first half General Motors' product sales climbed 7 percent to $5.4 million from $5.1 million last year. Additional volume increases are anticipated with the new vehicle introductions beginning in early 2000. First half research and development contract revenues from General Motors were down from the previous year due to start-up timing of future vehicle platforms.
Stemmler indicated that IMPCO is well positioned to capitalize on the significant future growth opportunities in Mexico and overseas, particularly in India, China and Turkey. He noted that these countries have become particularly proactive in providing significant economic incentives to support the use of clean burning alternative fuels to address air pollution. Stemmler added that over 21 countries worldwide have meaningful air pollution regulations that favor alternative fuels.
Subsequent to the end of the second quarter, the company announced a major breakthrough in hydrogen storage technology for automotive applications with the unveiling of a proprietary, advanced Hydrogen storage cylinder technology that offers more rapid commercialization of hydrogen powered internal combustion engines and fuel cells.
The breakthrough coincides with a separate announcement indicating that IMPC0 is preparing to introduce new, proprietary, advanced fuel system technologies for internal combustion engines and fuel cells.
IMPCO is the global leader to the Original Equipment Manufacturer (OEM) market and aftermarket in supplying fuel management and storage systems and components that allow internal combustion engines and other propulsion systems to operate on alternative fuels such as natural gas, propane, ethanol, methanol and hydrogen used in fuel cells. IMPCO produces systems for motor vehicles, forklifts, and other material handling equipment and small portable to large stationary engines. Headquartered in Cerritos, CA, the company has additional facilities in the United States, Australia, Japan, and Mexico. It operates in the Netherlands, France, Germany and the United Kingdom as IMPCO-BERU Technologies, B.V.
Certain matters discussed in this news release contain forward-looking information that involves risks and uncertainties that could cause actual results to differ materially from current trends. These include growth of the alternative fuels market, OEM automotive product sales, competition, the company's ability to design and market new fuel management products, the company's ability to meet OEM specifications, and other such risks as cited in the company's 1999 annual report on Form 10-K and other documents filed with the Securities and Exchange Commission.
IMPCO Technologies Inc.
Consolidated Financial Summary
In thousands, except for per share amounts
(Unaudited)
Three Months Ended Six Months Ended
October 31, October 31,
1999 1998 1999 1998
Net Revenue $ 27,357 $ 20,321 $ 55,777 $ 40,195
Operating Income 2,748 1,513 5,399 4,100
Net income before
dividends 1,503 1,040 3,056 2,673
Net income applicable to
common stocks 1,503 893 3,056 2,377
Net income per share:
Basic 0.18 0.12 0.36 0.33
Diluted 0.17 0.11 0.35 0.30
Number of shares used in
per share computation:
Basic 8,442,818 7,176,832 8,448,349 7,166,957
Diluted 8,874,640 7,870,564 8,837,840 8,970,566