Brown & Sharpe Announces Third Quarter Results
26 October 2000
Brown & Sharpe Announces Third Quarter Results
NORTH KINGSTOWN, R.I.--Oct. 25, 2000--Brown & Sharpe Manufacturing Company today announced a net loss for the third quarter of 2000 of $9.5 million ($.69 per share) on sales of $64.3 million. This compared to a net loss of $2.5 million ($.19 per share) on sales of $72.7 million for the same period in 1999. The 2000 net loss includes a nonrecurring charge of $5.7 million relating to the write-off of its investment in a joint venture developing noncontact sensor technology. The 1999 loss included a restructuring charge of $1.1 million.Sales in the third quarter of 2000 decreased $8.4 million compared with 1999 levels. $4.5 million of the decrease in sales is due to the effect of foreign currency translation with nearly all of the remaining $3.9 million decrease occurring in the aftermarket segment of the Measuring Systems Division.
Kenneth N. Kermes, Brown & Sharpe's President and Chief Executive Officer said, "The operational results for the third quarter were not satisfying but were somewhat better than we had expected. Indications of a good order flow exist all around the world. We also continue aggressively to pursue with Chase Securities the evaluation of strategic alternatives for the Company, including a sale of all or parts of the business. These discussions with multiple interested bidders continue, and I am encouraged by the ongoing discussions."
BROWN & SHARPE MANUFACTURING COMPANY
STATEMENT OF INCOME (LOSS)
(Dollars in Thousands Except Per Share Data)
For the Quarter For the Nine Months
Ended Ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales $64,266 $72,712 $207,371 $236,778
Cost of sales 44,464 50,878 142,487 169,061
Research and development 3,873 2,582 9,813 7,872
Selling, general and
administrative expense 18,585 20,196 57,296 64,347
Provision for
impaired assets 2 -- 7,637 --
Refinancing fees 241 -- 3,506 --
Restructuring charges 0 824 (472) 18,026
Impairment of
partially-owned
affiliate 4,516 -- 4,516 --
Operating loss (7,415) (1,768) (17,412) (22,528)
Interest expense 2,489 1,911 6,903 4,947
Other income
(expense), net 784 182 1,523 731
Loss before income taxes (9,120) (3,497) (22,792) (26,744)
Income tax
provision (benefit) 411 (986) 2,106 (632)
Net loss ($9,531) ($2,511) ($24,898) ($26,112)
Net loss per
common share:
Basic and Diluted ($0.69) ($0.19) ($1.82) ($1.94)
CONSOLIDATED BALANCE SHEET
(DOLLARS IN THOUSANDS)
SEPT. 30 DEC. 31
ASSETS 2000 1999
Cash and cash equivalents 29,794 36,643
Accounts receivable net 68,993 88,300
Inventories 59,853 68,310
Other assets 5,853 5,553
Total current assets 164,493 198,806
Property, plant, and equipment net 38,659 47,319
Other Assets 42,796 56,052
$ 245,948 $ 302,177
LIABILITIES AND SHAREOWNERS' EQUITY
Accounts payable and accrued expenses 84,349 94,420
Current portion of short and long-term debt 91,678 94,695
Total current liabilities 176,027 189,115
Long-term debt 12,067 15,445
Other long-term liabilities 24,184 26,083
Shareowners' equity 33,670 71,534
$ 245,948 $ 302,177