Monday October 21 6:00 AM EDT
Sheldahl Posts Record Revenues And Earnings For Fiscal 1996
NORTHFIELD, Minn., Oct. 21 /PRNewswire/ -- Sheldahl Inc today reported record sales and earnings for its fiscal year ended August 30, 1996, fueled by major growth in the company's core materials and flexible interconnect businesses. In the most recent fiscal year, net income rose 52 percent to $4.8 million as compared to net income of $3.1 million last year. Earnings per share increased from $0.45 to $0.55 due to the number of shares outstanding. Fiscal 1996 revenues rose 20 percent to $114.1 million. Fiscal 1996 marked the ninth consecutive growth year in the company's automotive business. Sales to that market increased $27.1 million, or 52 percent, to $79.0 million, up from $52.0 million a year ago.
For its fiscal 1996 fourth quarter, Sheldahl said that revenues rose 9 percent to $29.4 million, as compared to $27.0 million for the same quarter one year ago. Net income for the most recent period at $819,000, or $0.09 per share, was down from the $1.7 million, or $0.24 per share, reported for the fiscal 1995 fourth quarter. Sheldahl attributed the earnings decline to a rise in costs and expenses associated with the production ramp up of its Longmont, Colo., Micro Products facility, as well as an increase in income tax due to the elimination of R&D tax credits in fiscal 1996.
Commenting on the year, James E. Donaghy, Sheldahl's President and Chief Executive Officer, said, "We're pleased with our fiscal 1996 results and with the progress made across all businesses. Automotive sales in particular, were nearly double their nine-year average annualized growth rate of 27 percent."
Looking ahead to fiscal 1997, Donaghy commented, "We do not expect the level of growth in the automotive market that we experienced in 1996. New designs are scheduled for production late in the fiscal year. This, along with the current slow-down in auto industry component demand due to inventory balancing, will have the effect of pushing our automotive growth for the year into the four-to-five percent range." Continued Donaghy, "Our new Micro Products facility -- the first of its kind in the world -- is now shipping commercial volumes of Novaclad(R) and is producing chip-carrier substrates made from Novaclad for engineering qualification with customers in the United States, Japan, Korea, the Philippines, and Taiwan. We expect these initial engineering qualifications to extend through our fiscal 1997 second quarter, with both sales and production to accelerate during the second half of the year." Donaghy concluded, "In summary, we expect first quarter earnings to be below break-even, with improving results thereafter. The second half of fiscal 1997 should be especially strong as micro products sales build."
Sheldahl is a leading producer of high quality flexible laminates, flexible printed circuitry, and high-density substrates, primarily for sale to the automotive electronics and datacommunications markets. The Company, which is headquartered in Northfield, Minn., has operations in Northfield; Longmont, Colo.; Britton and Aberdeen, S.D.; and Detroit, Mich.
Statements contained here, other than historical data, may be forward-looking and subject to risks and uncertainties including, but not limited to: the ability of the Company to meet production and shipment projections, lower-than-anticipated market demand, as well as those conditions set forth in the company's 10K, 10Q, and other SEC filings.
CHART:
Sheldahl, Inc. and Subsidiary
Consolidated Statements of Operations
For the Year-Ended
August 30, September 1,
(in thousands, except per share data) 1996 1995
Net sales $114,120 $95,216
Cost of sales 89,171 74,752
Gross profit 24,949 20,464
Expenses:
Sales and marketing 9,254 9,090
General and administrative 5,129 3,895
Research and development 2,755 2,270
Interest 539 875
Total expenses 17,677 16,130
Income before provision for income taxes 7,272 4,334
Provision for income taxes 2,500 1,200
Net income $4,772 $3,134
Net income per share $0.55 $0.45
Weighted average common shares outstanding 8,686 6,925
Sheldahl, Inc. and Subsidiary
Consolidated Statements of Operation
(unaudited)
For the Three Months Ended
August 30, September 1,
1996 1995
Net sales $29,379 $26,965
Cost of sales 23,022 20,474
Gross profit 6,357 6,491
Expenses:
Sales and marketing 2,360 2,213
General and administrative 1,380 1,086
Research and development 902 449
Interest 91 378
Total expenses 4,733 4,126
Income before provision for income taxes 1,624 2,365
Provision for income taxes 805 665
Net income $819 $1,700
Net income per share $0.09 $0.24
Weighted average common shares outstanding 9,170 7,006
Sheldahl, Inc. and Subsidiary
Consolidated Balance Sheets
Assets
(in thousands except per share data) August 30, September 1,
1996 1995
Current assets:
Cash and cash equivalents $ 904 $ 1,045
Accounts receivable 21,091 17,637
Inventories 11,525 12,509
Prepaid expenses and other current assets 390 732
Deferred tax assets 1,660 849
Total current assets 35,570 32,772
Plant and equipment:
Land and buildings 24,718 15,924
Machinery and equipment 64,754 52,748
Construction in progress 37,650 32,654
Accumulated depreciation (47,630) (41,471)
Net plant and equipment 79,492 59,855
Other assets 825 1,559
-- $115,887 $94,l86
Liabilities and Shareholders' Investment
Current liabilities:
Current maturities of long-term debt $466 $4,179
Accounts payable 9,522 9,113
Accrued salaries and commissions 1,390 1,262
Other accrued liabilities 1,839 1,886
Income taxes payable 302 --
Total current liabilities 13,519 16,440
Long-term debt 21,858 33,864
Other non-current liabilities 2,269 2,683
Deferred taxes 2,904 247
Shareholders' investment:
Common stock 2,228 1,708
Additional paid-in capital 51,404 22,311
Retained earnings 21,705 16,933
Total shareholders' investment 75,337 40,952
-- $115,887 $94,186
SOURCE Sheldahl, Inc. |
