Penn Engineering Announces Record Results for Third Quarter 2000 and Declares Quarterly Cash Dividend of Fourteen Cents Per Share
25 October 2000
Penn Engineering Announces Record Results for Third Quarter 2000 and Declares Quarterly Cash Dividend of Fourteen Cents Per Share
DANBORO, Pa.--Oct. 25, 2000--Penn Engineering & Manufacturing Corp. today reported a 67 percent increase in net income of $7,478,000 or $0.85 per diluted share, on quarterly net sales of $66,551,000 for the third quarter ended September 30, 2000. For the comparable 1999 quarterly period, net income was $4,469,000 or $0.51 per diluted share, on net sales of $48,378,000.
For the nine months ended September 30, 2000, net income was $19,354,000 or $2.23 per diluted share on net sales of $196,339,000 an increase of 51 percent as compared to net income of $12,791,000 or $1.48 per diluted share, on net sales of $141,415,000 for the nine months ended September 30, 1999.
For the Fastener and Arconix Operations, sales and operating income for the quarter ended September 30, 2000 were $55,782,000 and $9,231,000 respectively, versus $38,995,000 and $5,946,000 respectively, for the quarter ended September 30, 1999. For the nine months ended September 30, 2000, sales and operating income were $164,539,000 and $25,110,000 respectively, versus $115,535,000 and $16,553,000 respectively, for the nine months ended September 30, 1999. Arconix/USA was acquired October 1, 1999 and as a result, the quarter and nine months ended September 30, 1999 do not include sales and operating income of this operation.
For the Motor Operation, sales and operating income for the quarter ended September 30, 2000 were $10,769,000 and $1,499,000 respectively, versus $9,383,000 and $779,000 respectively, for the quarter ended September 30, 1999. For the nine months ended September 30, 2000, sales and operating income were $31,800,000 and $3,802,000 respectively, versus $25,880,000 and $2,173,000 respectively, for the nine months ended September 30, 1999.
Kenneth Swanstrom, Chairman and CEO commenting on the quarter stated, "Our strong third quarter is an indication of the strength of our business, the company's growth-through-acquisition strategy and continued growth in the high-technology sector."
Dividend Declared:
Today the Board of Directors declared a quarterly cash dividend of 14 cents per share on both classes of common stock, payable December 15, 2000 to stockholders of record, December 1, 2000.
A discussion of the Company's third quarter performance by Company executives will be held via telephone conference call, Thursday, October 26, 2000 at 10:30 AM. There will also be a question and answer period. To access the call, dial 1-800-260-0718 and inform the operator that you are joining the Penn Engineering & Manufacturing Corp. conference call chaired by Kenneth A. Swanstrom. A simultaneous Webcast of the conference call will also be available on the Company's Website at www.pemnet.com or at www.streetfusion.com. A replay can also be accessed on the Company's Website until 5:00 PM on Wednesday, November 8th.
Business Summary:
Penn Engineering & Manufacturing Corp. is the leading manufacturer of self-clinching fasteners used by the computer, datacommunications, telecommunications, general electronics, automotive, and avionics industries. The Company's Pittman division manufactures high performance permanent magnet dc motors used in electronics, medical, and manufacturing applications. The Company also serves various high technology industries around the world through its Arconix Group. Founded in 1942, Penn Engineering & Manufacturing Corp. is a global company headquartered in Danboro, Pennsylvania with manufacturing and distribution locations in the United States, Europe and Asia. More information about the Company is available at www.pemnet.com.
Forward Looking Statement Information:
Statements in this news release, other than statements of historical data, are considered forward-looking statements under the Private Securities Litigation Act of 1995. These statements are subject to various risks and uncertainties that could cause actual results to differ from those contemplated in these statements. These factors are discussed in the Company's Securities and Exchange Commission filings.
PENN ENGINEERING & MANUFACTURING CORP.
Income Statement Data
Amounts in Thousands, Except Per Share Data
(Unaudited)
3 Months Ended 9 Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
Net Sales $ 66,551 $ 48,378 $ 196,339 $ 141,415
Cost of Goods Sold 42,432 32,822 128,630 96,402
--------- --------- --------- ---------
Gross Profit 24,119 15,556 67,709 45,013
Selling Expenses 7,460 5,005 21,032 14,786
General and
Administrative
Expenses 5,929 3,826 17,765 11,501
--------- --------- --------- ---------
Operating Profit 10,730 6,725 28,912 18,726
--------- --------- --------- ---------
Other Income
(Expenses):
Interest income 100 335 379 1,061
Interest
expense (56) 0 (686) 0
Other, net (292) (335) 81 (538)
--------- --------- --------- ---------
Total Other
Income (Expense) (248) 0 (226) 523
--------- --------- --------- ---------
Income before
Income Taxes 10,482 6,725 28,686 19,249
Provision for
Income Taxes 3,004 2,256 9,332 6,458
--------- --------- --------- ---------
Net Income $ 7,478 $ 4,469 $ 19,354 $ 12,791
========= ========= ========= =========
Per Share Data:
Basic earnings $ 0.87 $ 0.52 $ 2.26 $ 1.48
========= ========= ========= =========
Diluted
earnings $ 0.85 $ 0.51 $ 2.23 $ 1.48
========= ========= ========= =========
Weighted Avg
Shares
Outstanding 8,578 8,647 8,571 8,643