Simpson Reports Record Sales and Earnings For the Fourth Quarter
28 January 2000
Simpson Industries Reports Record Sales and Earnings For the Fourth Quarter and Full Year 1999
PLYMOUTH, Mich., Jan. 27 -- Simpson Industries, Inc.
today announced record sales of $532.7 million and net earnings
of $20.8 million for the year ended December 31, 1999. Diluted earnings per
share for the full year also reached an all time record of $1.15 per share,
4 cents per share above Wall Street analysts' expectations of $1.11.
Fourth quarter net sales were $135,955,000 versus year earlier sales of
$132,143,000. Operating earnings for the fourth quarter of 1999 reached
$8,907,000 versus $7,733,000 last year. The fourth quarter of 1998 benefited
from the post-strike ramp up in General Motors volumes. However,
the quarter was also adversely affected by a $2.5 million restructuring charge
in 1998.
Net earnings in the fourth quarter of 1999 were $5,296,000 or $0.29 per
share diluted versus $3,235,000 or $0.18 per share last year. 1998 net
earnings included a one-time restructuring after-tax charge of $1.9 million or
$0.10 per share diluted.
For the full year, net sales were $532,676,000, an increase of 7.3% over
1998 net sales of $496,419,000. Net earnings were $20,838,000 or $1.15 per
share diluted in 1999 versus $14,755,000 or $0.80 per share diluted in 1998.
1999 net earnings were 25.1% higher than 1998 earnings of $16,655,000 after
adjusting for the $1.9 million after-tax restructuring charge taken in 1998.
Record 1999 net earnings were achieved due to higher sales, lower
administrative and selling expenditures and one-time net after-tax adjustments
of $0.6 million primarily due to an interest income refund associated with a
favorable IRS tax ruling.
"Our outstanding financial performance combined with record new business
awards exceeding $100 million in annual sales at maturity, made 1999 an
extremely rewarding year for Simpson," said Roy E. Parrott, Chairman and CEO
of Simpson Industries. "Our performance is beginning to reflect the strategic
initiatives we took in 1997 and 1998," added Mr. Parrott.
Simpson Industries supplies powertrain and chassis products to original
equipment manufacturers in the worldwide automotive and medium and heavy-duty
diesel engine markets. Simpson's products are focused in three groups:
noise, vibration and harshness, wheel-end and suspension, and modular engine
assemblies. Simpson's manufacturing units are located in the United States,
Canada, Mexico, Brazil, England, France, Spain and South Korea. Information
about Simpson is available on the Internet at http://www.simpsonind.com .
Certain statements in this press release may be "forward-looking
statements" under the Securities Exchange Act of 1934. Statements regarding
future operating performance, new programs expected to be launched and other
future prospects and developments are based on current expectations and
involve certain risks and uncertainties that could cause the actual results
and developments to differ materially from the forward-looking statements.
Potential risks and uncertainties include such factors as demand for the
Company's products, pricing and other actions taken by the Company.
To receive a copy of this and other Simpson press releases by fax, please
call Company News-On-Call at 800-758-5804 -- extension 107165, or you can
access the information via the Internet at http://www.prnewswire.com .
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
1999 1998 1999 1998
NET SALES $135,955 $132,143 $532,676 $496,419
Cost of products sold 122,521 117,401 478,903 446,914
GROSS PROFIT 13,434 14,742 53,773 49,505
Administrative and selling 4,021 4,011 12,746 13,397
Amortization of intangible assets 506 498 2,039 1,962
Restructure charge/Plant closings --- 2,500 --- 2,500
OPERATING EARNINGS 8,907 7,733 38,988 31,646
Interest and other income - net 1,941 (283) 2,009 296
Interest expense (2,785) (2,290) (9,279) (9,588)
EARNINGS BEFORE INCOME TAXES 8,063 5,160 31,718 22,354
Income taxes 2,767 1,925 10,880 7,599
NET EARNINGS $5,296 $3,235 $20,838 $14,755
BASIC EARNINGS PER SHARE $0.29 $0.18 $1.15 $0.81
DILUTED EARNINGS PER SHARE $0.29 $0.18 $1.15 $0.80
Cash dividends per share $0.10 $0.10 $0.40 $0.40
Basic weighted average shares
outstanding 17,982 18,226 18,057 18,285
Diluted weighted average shares
outstanding 18,026 18,265 18,096 18,374
Depreciation expense $6,288 $6,380 $25,555 $24,153
Capital expenditure $12,216 $4,677 $41,820 $19,571
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
December 31 December 31,
1999 1998
ASSETS
Cash & Cash Equivalents $7,362 $6,145
Other Current Assets 121,936 108,394
Total Current Assets 129,298 114,539
Property, Plant & Equipment - net 182,913 169,885
Other Assets & Intangible 49,245 56,130
Total Assets $361,456 $340,554
LIABILITIES & SHAREHOLDER'S EQUITY
Notes Payable 10,908 ---
Current Liabilities 95,405 82,343
Total Current Liabilities $106,313 $82,343
Long-Term Debt 98,955 105,534
Other Liabilities 23,156 28,109
Shareholder's Equity 133,032 124,568
Total Liabilities & Equity $361,456 $340,554