Quixote Corporation Reports Record Fiscal Third Quarter Sales and Earnings
26 April 2000
Quixote Corporation Reports Record Fiscal Third Quarter Sales and Earnings
CHICAGO--April 26, 2000--Quixote Corporation (Nasdaq:QUIX) today reported record results for the third quarter and first nine months of fiscal 2000, ended March 31, 2000. Net sales increased 9% to $20,053,000, compared with $18,347,000 in the third quarter of fiscal 1999. Operating profit rose 28% to $2,629,000 in the third quarter of the current fiscal year from $2,047,000 in the third quarter of the 1999 fiscal year. Earnings from continuing operations rose 31% to $1,484,000, or $0.18 per diluted share, from $1,133,000, or $0.14 per diluted share, in the prior year third quarter. Net earnings increased to $1,484,000, or $0.18 per diluted share, in the third quarter compared to $1,373,000, or $0.17 per diluted share, in the prior year quarter, which included a gain from discontinued operations of $240,000, or $0.03 per diluted share, due to the reversal of certain accruals resulting from the favorable outcome of some legal proceedings and other contingencies.For the first nine months of fiscal 2000, net sales increased 13% to $55,584,000 from $49,212,000 for the first nine months of fiscal 1999. Operating profit of $7,804,000 for the first nine months of fiscal 2000 rose 24% from $6,299,000 in the prior year period. Earnings from continuing operations rose 21% to $4,468,000, or $0.54 per diluted share, from $3,693,000, or $0.45 per diluted share, in the prior year nine-month period. Net earnings for the first nine months of fiscal 2000 were $4,468,000, or $0.54 per diluted share, compared to net earnings of $3,933,000, or $0.48 per diluted share, in the same period last year, which included a $0.03 gain from discontinued operations as described above.
The Company also noted that net earnings in both the current three and nine-month periods reflect a higher income tax rate of 38% compared to a 35% income tax rate in the fiscal 1999 periods.
Leslie J. Jezuit, Quixote's Chief Executive Officer, said, "This represents our 11th consecutive quarter of record sales and earnings. We continue to achieve solid sales growth with our new cost-effective, reusable crash cushion products, including the Safe-Stop(tm) truck-mounted attenuator ("TMA"), as well as with our advanced sensing and measuring products serving the intelligent transportation systems ("ITS") market. Sales of ITS products grew nearly 59% in the third quarter to approximately 14% of third quarter sales. We believe our ITS products have substantial growth prospects across a growing range of applications and we will continue to take advantage of these opportunities to become a leader in targeted ITS markets. Our long-term goal is for ITS products to be 50% of our total sales.
Mr. Jezuit continued, "Our broad range of products continues to grow in popularity internationally where sales grew 57%. This fiscal year in Sweden alone we have generated sales of almost 100 TMAs representing more than $1 million in sales. International markets still comprise a small portion of our total business, but we have made important progress over the past year and continue to believe these markets will be an important source of future growth. Our goal is for international sales to be 25% of our total sales in the next few years."
Philip E. Rollhaus, Jr., Quixote's Chairman, commented, "We are especially pleased with the strong sales of our ITS products and have introduced two new products which we believe will make strong contributions to this higher technology side of our business. We have developed a new Groundhog(R) wireless traffic sensor designed for non-U.S. applications, which has been receiving significant interest since its recent introduction in Europe. Our new Freeze-Free(tm) anti-icing system, which uses automatic sensors to dispense anti-icing chemicals before icing occurs on bridges and roads, has been well received in U.S. markets. These products, along with other new products, are the key to building our leadership position in the transportation safety industry."
Quixote Corporation, (www.quixotecorp.com), through its wholly-owned subsidiaries, Energy Absorption Systems, Inc. and the TranSafe Corporation, is the world's leading manufacturer of energy-absorbing highway crash cushions, truck-mounted impact attenuators, computerized highway advisory radio transmitting systems, electronic wireless measuring and sensing devices, flexible post delineators and other highway safety products and services.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for its fiscal year ended June 30, 1999, under the caption "Forward-Looking Statements" in Management's Discussion and Analysis of Financial Condition and Results of Operations, which discussion is incorporated herein by this reference.
Quixote Corporation
Earnings Summary
Three Months Ended Nine months ended
March 31, March 31,
2000 1999 2000 1999
Net sales $ 20,053,000 $ 18,347,000 $ 55,584,000 $ 49,212,000
Cost of sales 10,309,000 10,098,000 29,400,000 27,400,000
Gross profit 9,744,000 8,249,000 26,184,000 21,812,000
Operating
expenses:
Selling &
administrative 6,739,000 5,746,000 17,336,000 14,327,000
Research &
development 376,000 456,000 1,044,000 1,186,000
7,115,000 6,202,000 18,380,000 15,513,000
Operating
profit 2,629,000 2,047,000 7,804,000 6,299,000
Other income
(expense)
Interest
income 8,000 10,000 23,000 76,000
Interest
expense (225,000) (343,000) (617,000) (723,000)
Other (19,000) 29,000 (4,000) 29,000
(236,000) (304,000) (598,000) (618,000)
Earnings
before income
taxes 2,393,000 1,743,000 7,206,000 5,681,000
Provision for
income taxes 909,000 610,000 2,738,000 1,988,000
Earnings from
continuing
operations
1,484,000 1,133,000 4,468,000 3,693,000
Earnings from
discontinued
operations,
net of income
taxes 240,000 240,000
Net earnings $ 1,484,000 $ 1,373,000 $ 4,468,000 $ 3,933,000
Per share
data - basic:
Earnings from
continuing
operations $ 0.19 $ 0.14 $ 0.56 $ 0.46
Net earnings $ 0.19 $ 0.17 $ 0.56 $ 0.49
Average common
shares
outstanding
Per share data
- diluted:
Earnings from
continuing
operations $ 0.18 $ 0.14 $ 0.54 $ 0.45
Net earnings $ 0.18 $ 0.17 $ 0.54 $ 0.48
Average common
shares
outstanding 8,068,079 8,238,973 8,270,950 8,216,341
Quixote Corporation
Balance Sheet Data
As of March 31, As of June 30,
2000 1999
Assets
Current assets
Cash and cash equivalents $ 689,000 $ 2,153,000
Accounts receivable, net 16,317,000 17,078,000
Inventories 8,631,000 8,537,000
Other current assets 3,003,000 3,029,000
28,640,000 30,797,000
Net property, plant and equipment 15,173,000 15,599,000
Intangible assets and other 24,526,000 25,378,000
$68,339,000 $71,774,000
Liabilities and Shareholders' Equity
Current liabilities $ 9,177,000 $12,218,000
Long-term debt, net 11,774,000 11,901,000
Other long-term liabilities 1,802,000 1,673,000
Shareholder's equity 45,586,000 45,982,000
$68,339,000 $71,774,000