Selas Reports $1.2 Million First Quarter Net
18 April 2000
Selas Reports $1.2 Million First Quarter Net; Revenues Jump 27% Over 1999 Quarter
CEO Ryan Says All Business Segments Showed Improved Profitability
DRESHER, Pa., April 18 Selas Corporation of America
(Amex: SLS) today reported first quarter 2000 net income of $1,201,000 or
$0.23 per diluted share on revenues of $30,523,000 compared to a net loss of
$354,000 or $0.07 per diluted share on revenues of $24,053,000 for the first
quarter of 1999.
Stephen F. Ryan, Chairman and Chief Executive Officer, said that the
company's three business segments continued to show improved profitability and
that he was optimistic that this positive performance would continue through
the year.
Later today, Ryan will tell shareholders at the company's annual meeting
that for the last three quarters, Selas has had total net income of $3,253,000
or $0.63 per share and should continue to post strong quarterly results for
the remainder of 2000.
Ryan said that the Resistance Technology, Inc. (RTI) business segment is
beginning to see results from recent investments in research and development
that were necessary to strengthen its position in new medical markets. He
also cited a planned acquisition by Resistance Technology, Inc. in the
professional microphone field that will be completed later this year and RTI's
formation of a strategic alliance with Medtronic, Inc. as reasons why he
expects increased performance from this segment in 2000.
He said that other positive developments include a $40 million backlog
through the end of March in Selas' Heat Technology segment, improved
performance from the Heat Technology European operations and receipt by Deuer
Manufacturing of an additional contract from General Motors for its new
minivan scheduled to go into production for the year 2001.
Selas is a diversified firm with international operations and sales that
engages in the design, development, engineering and manufacturing of a range
of products including precision medical and electronic products, heat
technology equipment and systems, and cable winch products.
Certain statements herein that include forward-looking terminology such as
"may", "will", "believe", "expect", "optimistic" or "continue" or the negative
thereof or other variations thereon are, or could be deemed to be, "forward-
looking statements" within the meaning of the Securities Exchange Act of 1934,
as amended. These forward-looking statements are affected by known and
unknown risks, uncertainties and other factors that may cause Selas' actual
results, performance or achievements to differ materially from the results,
performance and achievements expressed or implied in Selas' forward-looking
statements. These risks, uncertainties and factors include competition by
competitors with more resources than Selas, foreign currency risks arising
from Selas' foreign operations, and the cyclical nature of the market for
large heat engineering contracts. Reference is made to Selas' Annual Report
on Form 10-K regarding other important factors that could cause the actual
results, performance or achievement of Selas to differ materially from those
contained in or implied by any forward-looking statement made by or on behalf
of Selas, including forward-looking statements contained herein.
FIRST QUARTER REPORT - 2000
Selas Corporation of America
Comparative Operating Results
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 2000 March 31, 1999
Net Sales $30,523,000 $24,053,000
Income (loss) before income
taxes (benefit) $2,001,000 $(384,000)
Provision for income taxes (benefit) 800,000 (30,000)
Net Income (loss) $1,201,000 $(354,000)
Earnings (loss) per share
Basic $0.23 $(0.07)
Diluted $0.23 $(0.07)
Average shares outstanding
Basic 5,125,000 5,252,000
Diluted 5,137,000 5,279,000