Brown & Sharpe Announces First Quarter 2000 Earnings
26 April 2000
Brown & Sharpe Announces First Quarter 2000 Earnings
NORTH KINGSTOWN, R.I.--April 25, 2000--Brown & Sharpe Manufacturing Company (NYSE:BNS) today announced a net loss for the quarter ended March 31, 2000 of $72 thousand ($.01 per share) on sales of $72.5 million compared to a net loss, including a restructuring charge of $15.7 million, of $15.0 million ($1.12 per share) on sales of $82.4 million for the same period in 1999. The 2000 net loss included a $.5 million credit relating to restructuring charges taken in 1999.Operating margins in the Company's core business units improved from 9.0% of sales in 1999 to 10.7% in the current quarter, reflecting the benefits of the restructuring efforts implemented in 1999.
Frank T. Curtin, Chairman, President, and Chief Executive Officer, said, "We are encouraged by the upturn in the commodity MS machine business and in PMI's results. Furthermore, the restructuring cost benefits seen in the first quarter will continue throughout 2000."
The Company has not yet completed the refinancing of its senior debt and continues not to be in compliance with certain loan covenants, including a requirement to complete the refinancing of the senior debt by January 31, 2000. Management and a Special Committee appointed by the Board of Directors has received and evaluated several proposals from providers of permanent capital, and the Company is now in the due diligence process.
This report contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of assumptions, risks, and uncertainties that could cause actual results of the Company to differ materially from those matters expressed in or implied by such forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, which are in some cases beyond the control of the Company and may cause the actual results, performance, or achievements of the Company to differ materially from anticipated future results, performance, or achievements expressed or implied by such forward-looking statements. Additional information regarding this risk factor and uncertainties is detailed from time to time in the Company's SEC filings.
BROWN & SHARPE MANUFACTURING COMPANY
STATEMENT OF INCOME (LOSS)
(Dollars in Thousands Except per Share Data)
For the Quarter Ended
March 31,
2000 1999
Net sales $ 72,473 $ 82,414
Cost of sales 49,321 61,243
Research and
development 2,844 2,762
Selling, general and
administrative expense 19,109 21,550
Restructuring (benefit) charges (472) 10,762
Operating profit (loss) 1,671 (13,903)
Interest expense 2,151 1,411
Other income, net 369 350
Loss before
income taxes (111) (14,964)
Income tax (benefit) provision (39) 83
Net loss ($ 72) ($ 15,047)
Net loss
per common share:
Basic ($ 0.01) ($ 1.12)
Diluted ($ 0.01) ($ 1.12)
CONSOLIDATED BALANCE SHEET
MARCH 31, 2000 AND DECEMBER 31, 1999
(DOLLARS IN THOUSANDS)
ASSETS 2000 1999
Cash and cash equivalents $ 36,685 $ 36,643
Accounts receivable net 81,583 88,300
Inventories 62,623 68,310
Other assets 6,425 5,553
Total current assets 187,316 198,806
Property, plant, and equipment net 46,026 47,319
Other Assets 58,846 56,052
$ 292,188 $ 302,177
LIABILITIES AND SHAREOWNERS' EQUITY
Accounts payable and accrued expenses $ 90,697 $ 94,420
Current portion of short and long-term debt 93,623 98,965
Total current liabilities 184,320 193,385
Long-term debt 14,842 11,175
Other long-term liabilities 26,062 26,083
Shareowners' equity 66,964 71,534
$ 292,188 $ 302,177