Quixote Reports Record Fiscal First Quarter Sales and Earnings
25 October 2000
Quixote Corporation Reports Record Fiscal First Quarter Sales and Earnings
CHICAGO--Oct. 25, 2000----Earnings Per Share increase 26%--
--Selected as one of Forbes 200 Best Small Companies--
Quixote Corporation today reported record first quarter results for the fiscal 2001 quarter ended September 30, 2000.
Net sales for the first quarter increased 10.5% to $21,321,000, compared with $19,303,000 in the first quarter of fiscal 2000. Operating profit rose 15% to $3,922,000 compared with $3,413,000 in the first quarter of fiscal 2000. Net earnings increased 17% to $2,234,000 compared with $1,912,000 in the first quarter of last year. Earnings per share for the quarter increased 26% to $0.29 per diluted share, compared with $0.23 per diluted share last year.
The Company noted that the increased sales reflect continued strong growth in its truck mounted attenuator ("TMA") product line, which increased 77% in the quarter. Highway advisory radio (HAR) systems also made a strong contribution with $1,221,000 in sales for the quarter, which is a 65% increase from the first quarter last year. HARs are wireless portable radio transmitters which are used to warn motorists of accidents, construction delays and weather-related problems. This product played a major role in aiding traffic communication efforts during the fires in the western states this past summer.
Leslie J. Jezuit, Quixote's Chief Executive Officer, said, "We are extremely encouraged by our record operating performance in our first quarter. We are particularly pleased with sales of our Intelligent Transportation Systems' ("ITS") products which increased 29% for the current period. During the quarter, we received our first order from Malaysia for 20 of our Permanent Traffic Count Stations which electronically measure traffic volume and speed. We expect this order to lead to further market penetration of our ITS products in Asia Pacific. For the Company as a whole, we ended the first quarter with a strong backlog totaling $11.6 million, an increase of $2.3 million over last year. This backlog coupled with our sizable incoming orders provide our team with reasons to believe that we should achieve our full year objective of a 15% sales increase over last year during fiscal year 2001."
Mr. Jezuit continued, "On October 6, 2000, the U.S. Senate and House of Representatives passed the 2001 transportation appropriations bill, which sets total highway funding at $33.4 billion for this fiscal year, a 16% increase over last year. The bill also encourages the Federal Highway Authority to provide up to $2 million for states to research the effectiveness of our proprietary FreezeFree(TM) anti-icing system which uses sensors to dispense, automatically, anti-icing chemicals before icing occurs on bridges and on roads on structures. We hope that this specific funding for trial installations of our innovative FreezeFree(TM) system will accelerate market acceptance of this product which addresses a critical safety issue. In addition to the recently introduced FreezeFree(TM), we have several other new products which will be introduced during fiscal 2001. Among these new products will be the CushionWall II(TM), a device for protecting motorists on narrow roadways with severe curves."
Philip E. Rollhaus, Jr., Quixote's Chairman, commented, "This first quarter represents our 13th consecutive quarter of record net sales and earnings. We are extremely pleased with the growing strength in the Intelligent Transportation Systems market. We are also pleased that we assisted in the emergency efforts in the western states during the fires this summer by providing our mobile HAR units to broadcast critical information during the crisis."
Mr. Rollhaus continued, "We are delighted to announce that we were recently selected as one of the 200 best small companies in America by Forbes Magazine. It is especially rewarding for our Company to be recognized by one of the premier financial publications. We believe that our innovative products, international expansion and the ongoing increased government spending will allow Quixote to continue to experience growth and remain a leader in transportation safety both here and abroad."
Quixote Corporation
Earnings Summary
Three Months Ended
September 30,
2000 1999
---- ----
Net sales $ 21,321,000 $ 19,303,000
Cost of sales 11,256,000 10,030,000
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Gross profit 10,065,000 9,273,000
Operating expenses:
Selling & administrative 5,818,000 5,533,000
Research & development 325,000 327,000
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6,143,000 5,860,000
Operating profit 3,922,000 3,413,000
Other income (expense):
Interest income 10,000 8,000
Interest expense (329,000) (208,000)
Other (26,000)
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(319,000) (226,000)
Earnings before income taxes 3,603,000 3,187,000
Provision for income taxes 1,369,000 1,275,000
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Net earnings $ 2,234,000 $ 1,912,000
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Per share data - basic:
Net earnings $ 0.30 $ 0.24
Average common shares
outstanding 7,358,904 8,083,580
Per share data - diluted:
Net earnings $ 0.29 $ 0.23
Average common shares
outstanding 7,677,075 8,341,381
Quixote Corporation
Balance Sheet Data
As of September 30, As of June 30,
2000 2000
---- ----
Assets
Current assets
Cash and cash equivalents $ 1,769,000 $ 1,524,000
Accounts receivable, net 16,700,000 20,210,000
Inventories, net 12,216,000 10,072,000
Other current assets 2,798,000 2,513,000
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33,483,000 34,319,000
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Property, plant and equipment,
net 14,719,000 15,001,000
Intangible assets and other,
net 24,004,000 23,944,000
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$ 72,206,000 $ 73,264,000
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Liabilities and Shareholders' Equity
Current liabilities
Current liabilities $ 12,050,000 $ 12,192,000
Long-term debt, net 13,842,000 15,596,000
Other long-term liabilities 2,357,000 2,360,000
Shareholder's Equity 43,957,000 43,116,000
------------ ------------
$ 72,206,000 $ 73,264,000
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