Secom General Reports Fiscal Fourth Quarter Profit of $1.36 Per Share
23 December 1999
Secom General Reports Fiscal Fourth Quarter Profit of $1.36 Per Share: Expects to Report Eight to Thirteen Cents Per Share Operating Profit For Fiscal First Quarter Ending Dec. 31, 1999
NOVI, Mich., Dec. 22 -- Secom General Corporation
today reported net income of $1,432,600, or $1.36 per share, on
sales of $6,802,200 for its fiscal fourth quarter ended Sept. 30, 1999,
compared to a net loss of $163,400, or $0.15 per share, on sales of $6,947,300
in the same quarter last year. For the year ended Sept. 30, 1999, the company
recorded net income of $1,452,600, or $1.37 per share, on sales of
$28,226,000, compared to a net loss of $5,945,400, or $5.57 per share, on
sales of $31,725,500 in the same period of the prior year. Per share amounts
and shares outstanding have been restated to reflect a one-for-five reverse
stock split effective Apr. 14, 1999. Prior year results have been restated to
reflect discontinued operations.
"The substantial operating profit for the fourth quarter was due primarily
to the sale of our Uniflow unit's transmission shaft product line, reduced by
asset writedowns relating primarily to business that Uniflow lost because of
the price increases instituted during October 1998," said Paul d. Clemente,
Secom's vice president. "Excluding the one-time items, Uniflow's results for
the fourth quarter improved dramatically over the prior year comparative
period, due to the price increases instituted during October 1998 and
management's ability to better match production and administrative costs to
its sales level," added Clemente.
Clemente said the company expects to earn between eight to thirteen cents
per share from operations during it first fiscal quarter ending Dec. 31, 1999.
"Excluding the one-time items, the company earned $0.10 per share from
operations for the fourth quarter ended Sept. 30, 1999, compared to a loss of
$1.27 per share in the prior year period," said Scott J. Konieczny, Secom's
chief financial officer. "Apart from the improvement in Uniflow, the tooling
group's results also showed significant improvement for the fourth quarter,
compared to the prior year quarter, due to management's ability to control
production costs and a moderate increase in sales," added Konieczny.
Separately, the company said it is currently negotiating a definitive
purchase agreement with a potential buyer of its Uniflow unit. However, the
company noted no assurances can be made that a definitive purchase agreement
would be signed.
Secom is a leading supplier of various metal parts and tooling for
primarily the automotive and trucking industries. Secom operates in two
business segments: (1) metal parts forming, and (2) tooling for the cold/hot
forming industry. Sales and manufacturing are conducted through four
subsidiaries located in the metropolitan Detroit area.
This management's press release includes a number of forward-looking
statements, which reflect the company's current views with respect to future
events and financial performance. These forward-looking statements are
subject to certain risks and uncertainties that could cause results to differ
materially from historical results or those anticipated. In this release, the
words "expects", "anticipates", "believes" and similar expressions identify
forward-looking statements, which speak only as to the date hereof.
SECOM GENERAL CORPORATION
(Unaudited)
Fourth Quarter Ended Year Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998(b) 1999 1998(b)
Net Sales $6,802,200 $6,947,300 $28,226,000 $31,725,500
Cost of Sales -
Production 5,442,200 6,782,100 22,902,900 28,946,700
Cost of Sales -
Restructuring
Charges -- -- -- 900,000
Gross Profit 1,360,000 165,200 5,323,100 1,878,800
Selling, General &
Administrative
Expenses 1,103,300 1,262,800 4,469,900 5,352,700
Other Restructuring
Charges 549,600 150,000 549,600 2,312,000
Gain on Sale of
Product Line (1,871,500) -- (1,871,500) --
Other 93,900 111,000 646,700 824,100
Income (Loss) from
Continuing Operations
Before Income
Taxes 1,484,700 (1,358,600) 1,528,400 (6,610,000)
Income Tax (Expense)
Benefit (52,100) 2,800 (75,800) 543,900
Income (Loss) from
Continuing
Operations 1,432,600 (1,355,800) 1,452,600 (6,066,100)
Income from
Discontinued
Subsidiary -- 1,192,400 -- 120,700
Net Income (Loss) $1,432,600 ($163,400) $1,452,600 ($5,945,400)
Earnings (Loss)
Per Common Share (a):
Income (Loss)
from Continuing
Operations $1.36 ($1.27) $1.37 ($5.68)
Income from
Discontinued
Subsidiary -- 1.12 -- 0.11
Basic & Diluted
Income (Loss) Per
Common Share $1.36 ($0.15) $1.37 ($5.57)
Weighted Average
Shares
Outstanding (a) 1,057,200 1,067,100 1,064,000 1,067,100
(a) Per share amounts and share outstanding amounts restated to reflect a
one-for-five reverse stock split effective Apr. 14, 1999.
(b) Amounts restated to reflect discontinued operation.