Ceradyne Inc. Reports Record Third-Quarter and Nine-Month Results
30 October 2000
Ceradyne Inc. Reports Record Third-Quarter and Nine-Month Results
COSTA MESA, Calif.--Oct. 30, 2000--Ceradyne Inc. today reported record earnings for the third quarter and record sales and earnings for the nine months ended Sept. 30, 2000.Third-quarter sales grew 47 percent to $11.5 million from $7.8 million in the third quarter of 1999. Net income increased 184 percent to $1.4 million, or 17 cents per diluted and basic share, from $496,000, or 6 cents per diluted and basic share, in the year-ago period.
Sales for the nine-month period increased 60 percent to $34.3 million, compared with $21.4 million in 1999. Net income increased almost fourfold to $3.9 million, or 47 cents per share diluted and 48 cents per share basic, compared with $945,000, or 12 cents per share diluted and basic, in the prior year period.
New bookings for the third quarter were $11.8 million compared with $11.0 million in the year-earlier quarter. For the nine months ended Sept. 30, 2000, new bookings were $34.6 million compared with $30.4 million for the same period in 1999.
Looking beyond the strong results for the period, Joel P. Moskowitz, Ceradyne's president and chief executive officer, commented: "Several events occurred during the third quarter which, on a going-forward basis, support a positive outlook for the coming fiscal year:
First, as announced earlier this month, we received $2.3 million in government research grants in the fields of ceramic armor for military vehicles and a ceramic composite for high-power microwave communications.
Secondly, the company received requests for proposals or became aware of several very large potential contracts for military ceramic armor systems and components for diesel engines. These potential orders are competitive and there is no assurance that Ceradyne will be the successful bidder, although we believe that Ceradyne has a strong position in these markets. The awards are expected to be made no later than early 2001.
Thirdly, Ceradyne began expanding its facilities at its Thermo Materials operation in Scottdale, Ga., and its Advanced Ceramic Operations in Costa Mesa, Calif. The expansions include both plant and equipment and will allow Ceradyne to meet expected production volumes in ceramic armor and special ceramics for photovoltaic energy devices and other industrial applications. We have committed a minimum of $2 million to these projects, which we expect to complete by the second quarter of 2001."
Moskowitz continued: "The company's current cash and equivalents position of $4.2 million, up from $1.4 million at year-end 1999, coupled with positive cash flow from operations, is expected to provide the primary financing sources for the above expansions and other corporate activities."
Below is a summary of unaudited comparative results. Amounts in thousands except per share data.
Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 2000 1999 2000 1999 NET SALES $ 11,493 $ 7,810 $ 34,340 $ 21,446 COST OF PRODUCT SALES 8,263 6,034 25,061 16,803 Gross profit 3,230 1,776 9,279 4,643 OPERATING EXPENSES: Research and development 330 113 949 429 Selling 444 395 1,197 1,075 General and administrative 1,142 866 3,371 2,531 1,916 1,374 5,517 4,035 Income from operations 1,314 402 3,762 608 OTHER (INCOME) EXPENSE: Other (income) (132) (110) (247) (279) Interest expense 8 6 26 6 (124) (104) (221) (273) Income before provision (benefit) for income taxes 1,438 506 3,983 881 PROVISION (BENEFIT) FOR INCOME TAXES 29 10 80 (64) NET INCOME $ 1,409 $ 496 $ 3,903 $ 945 Earnings per share, basic $ 0.17 $ 0.06 $ 0.48 $ 0.12 Earnings per share, diluted $ 0.17 $ 0.06 $ 0.47 $ 0.12 Avg. shares outstanding 8,469 8,227 8,376 8,163 Condensed Consolidated Balance Sheet (in thousands): Sept. 30, 2000 Dec. 31, 1999 Unaudited Audited Cash and Cash Equivalents $ 4,238 $ 1,407 Other Current Assets 18,705 16,877 Net Property, Plant and Equipment 11,236 11,002 Other Assets 3,462 3,607 Total Assets $ 37,641 $ 32,893 Current Liabilities 3,496 3,128 Long Term Debt 283 358 Deferred Revenue 67 270 Stockholders' Equity 33,795 29,137 Total Liabilities and Stockholders' Equity $ 37,641 $ 32,893