Jore Corporation Reports Record Third Quarter Revenues
Business Wire - October 28, 1999 16:44
RONAN, Mont.--(BUSINESS WIRE)--Oct. 28, 1999--Jore Corporation (Nasdaq:JORE) today reported its net revenues grew 36% to $14.4 million for the quarter ended Sept. 30, 1999, up from $10.5 million in the third quarter of 1998.
Net income for the quarter, on a pro forma basis, was $810,000, or $0.08 per share, excluding a one-time extraordinary charge relating to early repayment and termination of its former credit facility, compared to net income of $888,000, or $0.09 per share, in the same period last year. On an as reported basis, net income for the quarter, after taking into account a pro forma tax provision, including the extraordinary charge, was $182,000, or $0.02 per share.
Weighted average shares outstanding totaled 10,130,204 compared with 9,398,087 for the third quarter last year as a result of the Company's initial public offering of four million shares on September 23, 1999.
"We achieved our principal objectives during the third quarter, including completion of our initial public offering, which allowed us to significantly pay down debt, achieving record sales, and positioning the Company for the best fourth quarter in its history," said Matt Jore, President and Chief Executive Officer. "Our gross margin is continuing to improve as a result of further development of our highly automated manufacturing processes and through increased direct-to-retail sales of our drilling and driving accessories under the Stanley(R) JoreTech(TM) brand. As expected, our higher gross margin was offset in the third quarter by a significant increase in operating expenses related to system improvements, additions to senior management and an increase in sales and marketing efforts in anticipation of increasing growth."
Gross margin for the quarter increased to 35.4% from 30.0% in the corresponding quarter last year, primarily as a result of volume-related manufacturing efficiencies, vertical integration and a greater mix of direct-to-retail sales. Selling, general and administrative expenses for the quarter increased to 18.8% of net sales, compared with 13.0% a year ago. The increase in total operating expense was attributable primarily to preparation for the Company's initial public offering, including hiring key senior management, implementation of a comprehensive enterprise resource planning information system, and increased sales and marketing costs related to trade show participation and roll-out of new products. The Company expects operating expenses to decrease as a percentage of revenues in the fourth quarter and in 2000.
"Under our licensing agreement with The Stanley Works, we introduced and began shipping accessories under the Stanley(R) JoreTech(TM) brand during the quarter. This brand is being well received by retailers, including one of the largest big box retailers in the industry, which has agreed to a nation-wide rollout of our products in its stores."
"We are dedicated to being a leader in both product innovation and low cost manufacturing. We are focused on continued innovation and introduction of new products in the power tool accessory and hand tool markets, increasing sales to existing customers, establishing new customers, and continued vertical integration and automation to bring down costs while improving quality. We are on track to meet our goals for the fourth quarter and in the coming year."
For the nine months ended September 30, 1999, net revenues increased 27.5% to $32.4 million from $25.4 million for the first nine months of 1998. Net income for the period decreased 68% to $772,000 from $2.4 million for the first nine months of 1998. Earnings per share decreased 69% to $0.08 from $0.26 on fewer shares for the same period last year.
That decrease in EPS has me disappointed. Sign of the times for the industry. Probably knock JORE into single digits.
Jack |
