Elamex's Reports 48 Percent Gain in Second Quarter Revenues
26 July 2000
Elamex's Reports 48 Percent Gain in Second Quarter Revenues
EL PASO, Texas - Elamex S.A. de C.V. announced today its results for the
quarter ended June 30, 2000. Sales increased 48% to $47.6 million from $32.2
million in the second quarter of the previous year. Net income for the quarter
increased to $19.9 million, as compared with $801 thousand for the second
quarter of the previous year. Income per share for the quarter was $2.90 as
compared with $0.12 for the same quarter of the previous year. Weighted average
shares outstanding were 6,866,100, for each period.
For the six months ended June 30, 2000, sales increased 55% to $99 million
from $63.7 million in the same period of the prior year. Net income for the
six-month period was $19.6 million, as compared with $1.3 million for the same
period of the previous year. Income per share was $2.85, as compared with
$0.18 for the same period of the prior year. Weighted average shares
outstanding were 6,866,100, for each period.
The increase in sales during the first quarter was primarily attributable
to the Company's Louisville, Ky. metal stamping operation, which was acquired
in the second half of the prior year and to growth in sales in our plastics
and metal stamping joint venture.
The decrease in Operating Results during the second quarter of this year
from the same period last year was: the result of one time severance,
personnel and management costs directly resulting from the Electronics
Manufacturing Services (EMS) sale; peso denominated salary increases with no
offsetting effect in the exchange rate; and the impact of the currently lower
margins in our metal stamping business. The increases in operating expenses
were partially offset by a decrease in R & D Expenses related to the Optimag
operation sold in October of last year.
The increase in net income of $19.1 million from the $801 thousand
recorded in the second quarter of the prior year included a gain of
$20.5 million attributable to the previously announced divestiture of the
Company's EMS, an increase in interest expense resulting primarily from the
financial costs of funding equipment purchases in our Kentucky and joint
venture operations, and a refund of state payroll taxes.
"One of the challenges in the EMS divestiture was to rapidly close the
transaction, in spite of regulatory processes in two countries. This process
was successfully completed and we have now directed our focus on growing our
remaining businesses both through direct investments and acquisitions," said
Hector Raynal, Elamex's president and chief executive officer.
The Company's metal stamping operations continued to experience strong
growth during the quarter. Two new 1100-ton presses have been installed in
the last six months and are now operational. We have also completed the
installation and qualification of a new powder paint line and our Kentucky
operation's future outlook remains very positive. The Company's contract
assembly and shelter services operations added one telecommunications customer
and began production ramps for three customers won in the previous quarter and
we have begun construction on a specialized facility for a new customer that
will begin operations in the first quarter of next year.
Work continues to progress on the expansion of the Company's plastics and
metal stamping joint venture with General Electric. The new Celaya, Mexico
facility is currently being fitted up and equipment is being installed. The
facility is scheduled to begin production late in the third quarter. The seed
customer for this operation is a large appliance manufacturer.
Elamex S.A. de C.V. is a 27-year-old manufacturing services provider,
headquartered in Mexico. Its 2 U.S. based and 15 Mexico-based facilities
provide contract assembly; shelter services and custom metal stamped and
plastics components to a variety of industries including: telecommunications,
medical, appliance, automotive, avionics, defense and consumer.
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Operations
(In Thousands of U. S. Dollars, except per share amounts)
(Unaudited)
13 Weeks ended 26 Weeks ended
June 30, July 02, June 30, July 02,
2000 1999 2000 1999
Net sales $ 47,622 $32,195 $ 99,048 $ 63,696
Cost of sales 44,801 28,735 93,478 57,318
Gross Profit 2,821 3,460 5,570 6,378
Operating expenses:
General and
administrative 4,254 1,954 6,923 3,874
Selling 467 430 992 920
Research and development -- 454 -- 1,003
Total operating
expenses 4,721 2,838 7,915 5,797
Operating (loss)
income (1,900) 622 (2,345) 581
Other income (expense):
Interest income 451 215 563 492
Interest expense (705) (129) (1,663) (210)
Other, net 442 308 981 518
Gain on sale of
assets and liabilities
of EMS Operations 20,536 -- 20,536 --
Total other
income (expense) 20,724 394 20,417 800
Income before income
taxes and
minority interest 18,824 1,016 18,072 1,381
Income tax (benefit)
provision (1,035) 252 (1,255) 526
Income before minority
interest 19,859 764 19,327 855
Minority interest
in loss of subsidiaries 35 37 228 401
Net income $ 19,894 $801 $19,555 $1,256
Basic and diluted
income per common share $2.90 $0.12 $2.85 $0.18
Weighted average
shares outstanding 6,866,100 6,866,100 6,866,100 6,866,100
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(In Thousands of U. S. Dollars)
(Unaudited)
June 30, December 31,
2000 1999
Assets
Current assets $ 84,177 $63,884
Property, plant and equipment, net 44,913 52,875
Other assets, net 10,189 10,465
$139,279 $127,224
Liabilities and Stockholders' Equity
Current liabilities $ 34,428 $35,004
Long-term debt and liabilities 20,418 27,115
Total liabilities 54,846 62,119
Minority interest 1,450 1,677
Stockholders' equity 82,983 63,428
$139,279 $127,224