BEI Technologies, Inc. Reports Record Revenues and Earnings Per Share For Fiscal 2000 Fourth Quarter and Year; With EPS Up 76% Over Prior Year
31 October 2000
BEI Technologies, Inc. Reports Record Revenues and Earnings Per Share For Fiscal 2000 Fourth Quarter and Year; With EPS Up 76% Over Prior Year
SAN FRANCISCO, Calif., Oct. 31 BEI Technologies, Inc.
reported that consolidated after-tax net income from continuing
operations for the fiscal year ended September 30, 2000 was $9,607,000 or
$1.30 per share compared to earnings before extraordinary item of $5,339,000
or $0.74 per share reported for fiscal 1999, a 76% gain in EPS. Net sales for
fiscal 2000 increased 37.5% to $219.2 million compared to $159.4 million
reported last year, according to Charles Crocker, Chairman and Chief Executive
Officer.
Crocker stated, "Our continued revenue growth was a result of gains in
commercial products sold to both the automotive and industrial sectors.
Automotive sales increased 97.3% to $107.5 million for fiscal 2000 compared to
$54.5 million in fiscal 1999 reflecting continued worldwide demand for
stability control systems utilizing our GyroChip(R) yaw rate sensor. Sales to
industrial customers also increased during the year to $93.0 million from
$85.8 million in fiscal year 1999, primarily due to actuator sales to the
semiconductor capital equipment industry. Government sales decreased
$0.5 million to $18.7 million from $19.2 million during fiscal 1999."
FOURTH QUARTER RESULTS
For the fiscal 2000 fourth quarter ended September 30, 2000, consolidated
after-tax net income from continuing operations was $3,067,000 or $0.42 per
share, compared with $1,956,000 or $0.27 per share in fiscal 1999. Net sales
increased to $61.0 million from $42.4 million in the comparable quarter last
year.
Crocker continued, "Sales of BEI's GyroChip sensors for the quarter rose
to 434,000 units compared to 175,000 units in the fourth quarter last year.
Gross margin decreased to 26.9% in the current quarter compared to 28.9% in
fiscal 1999 quarter four. Automotive margins improved due to volume and
production efficiencies, while government margins decreased due to lower
volume and program cost overruns booked in the current quarter. Also
affecting current quarter margin was inventory obsolescence recognized on some
industrial product lines."
Selling, general and administrative (SG&A) expenses as a percentage of net
sales improved in the fourth quarter of fiscal 2000 to 13.4% from 16.3% in the
comparable quarter of fiscal 1999. Research and development expense increased
to 4.5% of net sales versus 3.3% in the fourth quarter of fiscal 1999
primarily due to spending incurred for technical advances in silicon
microelectromechanical systems (MEMS) and transferring engineering effort from
manufacturing support in automotive GyroChip production to further product
enhancement.
The Company's financial condition continued to improve during fiscal 2000.
The Company increased its cash position to $12.3 million even while spending
$7.6 million to buy back shares of its stock in the open market. Earnings
before interest, taxes, depreciation and amortization (EBITDA) increased to
$28.6 million. Inventory turnover increased and accounts receivable days
sales outstanding improved compared to the prior year as the Company made more
progress in efficient utilization of assets.
Crocker concluded, "Our fiscal year 2000 was one of exceptional
accomplishments. We shipped in excess of 1.3 million GyroChip units and
upgraded capacity to ship up to 185,000 per month if demanded. Our industrial
business continued to grow by adding customers and new applications for our
products. We developed and demonstrated our new NCAPS (non-contact angular
position sensor) technology. OpticNet was created to develop and market
products based on promising research unrelated to our main business, and we
made plans to dividend a substantial portion of the OpticNet stock to our
shareholders. We successfully repurchased shares in the open market at
favorable prices and we began implementing plans to improve market liquidity
via a one-for-one stock dividend."
BEI Technologies, Inc. is an established manufacturer of electronic
sensors, motors, actuators and motion control products used for factory and
office automation, medical equipment, military, aviation and space systems.
In addition, sales to manufacturers of transportation equipment including
automobiles, trucks and off-road equipment have become a significant addition
to the Company's business in recent years. The Company's micromachined quartz
yaw rate sensors are being used in advanced vehicle stability control systems
and a significant increase in the production of those sensors has been in
progress since the middle of 1998. BEI also manufactures electronic steering
wheel position sensors, seat-memory modules, throttle position and pressure
sensors and other devices used in automotive systems. GyroChip is a
registered trademark of BEI Sensors & Systems Company, Inc.
Except for historical information, this news release may be deemed to
contain forward-looking statements that involve risks and uncertainties,
including statements with respect to timely development, acceptance and
pricing of new products; impact of competitive products and price; the ability
to manufacture products in sufficient volume on an efficient and timely basis;
general economic conditions as they affect the Company's customers, as well as
other risks detailed from time to time in the Company's reports to the
Securities and Exchange Commission, including the Company's Form 10-K Annual
Report for fiscal 1999.
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
September 30, October 2,
2000 1999
(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $12,296 $3,181
Investments 7,252 6,467
Trade receivables, net 33,067 29,555
Inventories, net 31,084 31,036
Other current assets 7,863 7,193
Total current assets 91,562 77,432
Property, plant and equipment, net 36,010 35,122
Acquired technology 3,093 4,054
Goodwill 2,085 2,436
Other assets, net 5,538 4,316
$138,288 $123,360
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $18,926 $15,484
Accrued expenses and other liabilities 30,694 23,891
Current portion of long-term debt 120 120
Total current liabilities 49,740 39,495
Long-term debt, less current portion 36,628 36,705
Other liabilities 2,824 1,317
Stockholders' equity 49,096 45,843
$138,288 $123,360
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share amounts)
Unaudited
Quarter Ended Twelve Months Ended
Sept 30, Oct 2, Sept 30, Oct 2,
2000 1999 2000 1999
Net sales $61,025 $42,438 $219,216 $159,403
Cost of sales 44,595 30,188 158,526 111,180
16,430 12,250 60,690 48,223
Selling, general and
administrative expenses 8,153 6,901 34,300 30,044
Research, development
and related expenses 2,767 1,417 8,897 6,605
Income from operations 5,510 3,932 17,493 11,574
Interest expense 638 708 2,644 2,974
Other income 171 33 968 360
Income before income taxes 5,043 3,257 15,817 8,960
Provision for income taxes 1,976 1,301 6,210 3,621
Income before
extraordinary item 3,067 1,956 9,607 5,339
Extraordinary item, net
of income taxes -- -- -- (326)
Net income $3,067 $1,956 $9,607 $5,013
Earnings per Common Share
Basic Earnings per Common Share
Income before
extraordinary item $0.45 $0.27 $1.36 $0.75
Loss from extraordinary
item, net of income taxes -- -- -- (0.05)
Net income per common share $0.45 $0.27 $1.36 $0.70
Weighted average
shares outstanding 6,877 7,180 7,057 7,158
Diluted Earnings per Common
and Common Equivalent Share
Income before
extraordinary item $0.42 $0.27 $1.30 $0.74
Loss from extraordinary
item, net of income taxes -- -- -- (0.05)
Net income per common and common
equivalent share $0.42 $0.27 $1.30 $0.69
Weighted average
shares outstanding 7,258 7,334 7,403 7,254
BEI TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
Unaudited
Quarter Ended Twelve Months Ended
Sept 30, Oct 2, Sept 30, Oct 2,
2000 1999 2000 1999
Net income $3,067 $1,956 $9,607 $5,013
Adjustments to reconcile
net income to net cash
provided (used) by
operating activities:
Depreciation and Amortization 2,713 2,315 8,894 8,233
Other 46 819 5,099 (3,051)
Net cash provided by
operating activities 5,826 5,090 23,600 10,195
Net cash used in
investing activities (2,908) (3,691) (6,566) (10,587)
Net cash provided (used)
by financing activities (285) (2,154) (7,919) 16
Net increase (decrease) in
cash and cash equivalents 2,633 (755) 9,115 (376)
Cash and cash equivalents
at beginning of period 9,663 3,936 3,181 3,557
Cash and cash equivalents
at end of period $12,296 $3,181 $12,296 $3,181
For more information, contact: John LaBoskey, Senior Vice President-CFO of
BEI Technologies, Inc., 415-956-4477.