Wynn's Reports First Quarter Earnings Per Share of $.41
20 April 2000
Wynn's Reports First Quarter Earnings Per Share of $.41; Sales and Profits Reach All Time Quarterly High; EBITDA Jumps 31%
ORANGE, Calif., April 20 Wynn's International, Inc.
(NYSE: WN) reported today net income of $7,788,000 in the first quarter ended
March 31, 2000, a 4% increase over the strong 1999 first quarter net income of
$7,453,000, and 33% above the Company's fourth quarter 1999 net income.
Diluted earnings per share were $.41 in the most recent quarter compared to
$.39 per share in the first quarter of 1999. Net sales for the quarter ended
March 31, 2000 were $143,318,000, 62% above last year's sales for the
comparable quarter of $88,538,000. The most recent quarter includes the
results of operations of Goshen Rubber Companies, Inc. (Goshen), which was
purchased by the Company in late December 1999. Excluding the Goshen
revenues, sales increased 7% over the first quarter of 1999. Consolidated
EBITDA, a meaningful measure of operating profit after a cash acquisition
because it reflects earnings before interest, taxes, depreciation and
amortization, was $17,386,000 in the most recent quarter, a 31% jump over the
prior year's comparable quarter.
The Automotive and Industrial Components Division, now consisting
principally of Wynn's-Precision, Inc. (Precision) and Goshen, reported a 13%
increase in pretax profit in the quarter ended March 31, 2000 compared to the
first quarter of 1999. The increase was led by Precision's Tennessee-based
operations, which continued to benefit from improved productivity, new product
introductions, and higher U.S. automotive production rates. Precision and
Goshen have integrated their sales, technology and purchasing functions to
increase operating efficiencies.
The Specialty Chemicals Division, consisting of Wynn Oil Company, a
worldwide manufacturer and marketer of specialty chemicals, equipment and
related service programs, reported a 9% increase in sales compared to the
first quarter of 1999, mostly occurring in North America. Pretax profit in
the quarter ended March 31, 2000 was 6% ahead of the comparable 1999 quarter,
with improvements in the U.S.-based operations, especially the vehicle service
contract business. During the quarter, the U.S. dollar remained strong
relative to the currencies of the countries in which Wynn Oil Company
operates. Excluding the impact of foreign exchange rate fluctuations,
revenues and pretax profit would have increased 13% and 10%, respectively.
The Company's financial condition remains strong at March 31, 2000 with
the Company's current ratio at 2.01 to 1, total assets of $376.5 million,
long-term debt of $58.5 million and stockholders' equity of $160.6 million.
The Company's return on average equity for the most recent 12 months remains a
very healthy 18.6%.
James Carroll, Chairman of the Board and Chief Executive Officer said,
"Our surge in revenue and jump in EBITDA during the first quarter reflect the
favorable impact of our December 1999 acquisition of Goshen. We virtually
doubled the size of our very successful automotive and industrial sealing
business by leveraging our financial strength and debt capacity. The
integration of certain functions of Precision and Goshen is progressing well,
and the positive economic impact will become more visible in the latter half
of this year. Our other core business, Specialty Chemicals, also had a good
quarter, although its foreign operations' results were hurt by the strong U.S.
dollar. Looking ahead to the remainder of this year, we are optimistic that
2000 will be another year of record consolidated results."
Wynn's International, Inc., founded in 1939, is a worldwide supplier of
high quality O-rings and sealing products; specialty chemical products,
equipment and related service programs; and builders hardware supplies. The
Company has 4,371 employees and is headquartered at 500 North State College
Boulevard, Suite 700, Orange, California, 92868, telephone: (714) 938-3700.
Certain statements contained in this release are forward-looking and may
involve risk and uncertainties. Such statements include, but are not limited
to, the ability to combine effectively certain operations of Goshen with
Precision, Precision's ability to continue to increase revenues and profits
and improve productivity and operating efficiencies, the success of Wynn Oil
Company's new market strategies, products and programs, including those
related to its product warranty and vehicle service contract business, and the
Company's expectation that 2000 will be another year of record consolidated
results. These forward-looking statements should be evaluated together with
the many uncertainties that affect our business, particularly those mentioned
in the Forward-Looking Statements section of Management's Discussion and
Analysis of Financial Condition and Results of Operations in the Company's
periodic filings with the Securities and Exchange Commission.
FINANCIAL HIGHLIGHTS
Income Statement Data:
First Quarter Ended
March 31
2000 1999
Net sales $143,318,000 $88,538,000
Income before taxes 12,461,000 11,646,000
Provision for taxes 4,673,000 4,193,000
Net income $7,788,000 $7,453,000
Earnings per share of common stock:
Basic $.42 $.40
Diluted $.41 $.39
Average shares outstanding:
Basic 18,659,059 18,804,845
Diluted 18,919,120 19,245,077
Balance Sheet Data:
As of
Mar. 31, 2000 Dec. 31, 1999
Working capital $108,749,000 $97,300,000
Total assets 376,488,000 358,972,000
Notes payable 608,000 6,200,000
Long-term debt 58,526,000 48,633,000
Stockholders' equity 160,568,000 155,181,000
Book value per common share $8.61 $8.33