Penn Engineering Announces Record Results for First Quarter of 2000
25 April 2000
Penn Engineering Announces Record Results for First Quarter of 2000
DANBORO, Pa.--April 24, 2000--Share Increases 40%; Quarterly Cash Dividend Declared
Penn Engineering & Manufacturing Corp. (NYSE: PNN, NYSE: PNNA) today announced record results for the first quarter of 2000.
Consolidated sales increased 42% to $65,136,878 in the first quarter of 2000, from $45,999,558 in the comparable 1999 quarter. Consolidated net income increased 39% to $5,645,360 in the first quarter of 2000, from $4,055,998 in the comparable 1999 quarter. And earnings per share increased 40% to $0.66, from $0.47 in the comparable 1999 quarter.
For the Fastener operation, (including the Arconix Group) sales and operating income for the quarter ended March 31, 2000 were $54,931,337 and $7,838,459, respectively, versus $38,054,510 and $5,190,744, respectively, for the quarter ended March 31, 1999. Arconix/USA (formerly R.C. Dudek &Company, Inc.) represented $4.0 million of sales during the quarter.
For the Motor operation, sales and operating income for the quarter ended March 31, 2000 were $10,205,541 and $973,077, respectively, versus $7,945,048 and $593,981, respectively, for the quarter ended March 31, 1999.
Going forward, the Company will present its business as three segments: fasteners, motors, and distribution.
Management Comments:
Kenneth A. Swanstrom, Chairman and CEO, commented, "we are extremely pleased with the results for the first quarter. Our major operations, fasteners and motors, exceeded our performance expectations. In the fastener operation, we saw excellent sales and volume growth resulting from our efforts to develop new applications for our fasteners over the past few years, particularly in the telecommunications arena. The motor business saw an increase in demand from existing customers in the data storage and semiconductor equipment businesses, which we attribute to pent-up demand after consumers of these types of products postponed purchases in advance of Y2K. "
Dividend Declared:
On April 24, 2000, the Board of Directors declared a quarterly cash dividend of 12 cents per share on both classes of common stock, payable July 6, 2000 to stockholders of record, June 15, 2000.
Business Summary:
Penn Engineering & Manufacturing Corp. provides value-added solutions to Original Equipment Manufacturers worldwide. The Company's PEM (R) Fastener operation manufactures and sells fasteners used by the computer, electronics, telecommunications, and automotive industries.
The Pittman division manufactures high-performance permanent magnet brush-commutated and brushless DC motors used in electronics, medical, data storage and office automation equipment. Its Arconix Group, Inc. subsidiary distributes fasteners and other related components and provides comprehensive logistical and inventory management services.
Forward Looking Statements:
Statements contained in this press release, other than statements of historical data, are considered forward looking statements under the Private Securities Litigation Reform Act of 1995.
These statements are subject to various risks and uncertainties that could cause actual results to differ from those contemplated in these statements including, but not limited to, the ability of the company to develop new products, fluctuations in the foreign currency markets, and the ability of the company to meet demand.
For additional information, please refer to the Company's Securities and Exchange Commission filings including its most recent 10-K.
PENN ENGINEERING & MANUFACTURING CORP.
Income Statement
Amounts in Thousands, Except Per Share Data
(Unaudited)
3 Months Ended 3 Months Ended
March 31, 2000 March 31, 1999
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Net Sales $ 65,137 $ 46,000
Cost of Goods Sold 44,060 31,512
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Gross Profit 21,077 14,488
Selling, General, and
Administrative Expense 12,266 8,703
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Operating Income 8,811 5,785
Other Income (Expense)
Other Income 231 310
Interest Expense (422) --
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Earnings before Income
Taxes 8,620 6,095
Income Taxes 2,975 2,039
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Net Income $ 5,645 $ 4,056
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Shares Outstanding
Basic: 8,562 8,633
Diluted 8,596 8,644
Share Earnings
Basic: $ 0.66 $ 0.47
Diluted: $ 0.66 $ 0.47