Quarter beats analyst expectations it seems.
HADCO Corporation Fiscal 1999 Net Sales Exceed $1 Billion,
Earnings Per Share Increase 65%
SALEM, N.H., Nov. 23 /PRNewswire/ -- HADCO Corporation (NYSE: HDC - news) today
reported net sales of $1.0 billion for fiscal 1999, an increase of 22% over fiscal 1998 net
sales. Net sales for the fourth quarter of fiscal 1999 were $262.0 million, an increase of 21% over net sales in the comparable
prior year period.
Fiscal 1999 net income was $22.0 million, compared to fiscal 1998 net income of $13.2 million. Diluted earnings per share
were $1.60 for fiscal 1999, an increase of 65% over the fiscal 1998 diluted earnings per share of $0.97. The 1998 net income
and diluted earnings per share exclude all non- recurring charges.
Net income for the fourth quarter of fiscal 1999 was $8.7 million, compared to net income of $0.4 million in the comparable
prior year period. Diluted earnings per share were $0.63, compared to $0.03 in the comparable prior year period.
Bookings for the quarter were $265.3 million, resulting in a book-to-bill ratio for the quarter of 1.01. Backlog at the end of
the fourth quarter was $148.7 million versus $148.1 million for the previous quarter.
Andrew E. Lietz, President and CEO commented, ``I am very pleased to report that our Company passed the $1 billion mark in
net sales for fiscal 1999. The increased net sales, combined with improved efficiencies in all of our operations, has led to our
fifth consecutive quarter of gross margin improvement. We also generated approximately $74 million in free cash flow in
fiscal 1999. We reduced our debt by $78 million during the year with $36 million of that reduction occurring in the fourth
quarter.'
Hadco is the largest manufacturer of advanced electronic interconnect products in North America. The Company offers a wide
array of sophisticated manufacturing, engineering and systems integration services to meet its customers' electronic
interconnect needs. The Company's principal products are complex multilayer rigid printed circuits and backplane and system
assemblies. Hadco provides customers with a range of products and services that includes development, design, quick-turn
prototype, pre-production, volume products and backplane and system assemblies. Customers are a diverse group of original
equipment manufacturers and contract manufacturers in the computing (mainly workstations, servers, mainframes, storage
and notebooks), data communications / telecommunications and industrial automation industries, including process controls,
automotive, medical and instrumentation. The Company operates ten facilities in the United States and one facility in
Malaysia.
Except for the historical information contained in this press release (including pricing, net sales, net income (loss), and
operating expectations), there may be forward looking statements that involve risks and uncertainties.
Factors that could cause actual results to differ materially from forward looking statements include, but are not limited to,
general economic conditions, business conditions in the electronics industry, demand for the Company's products and other
risks and uncertainties described in reports and other documents filed by the Company from time to time with the Securities
and Exchange Commission.
A conference call will take place at 4:45 p.m. EST on November 23, 1999. Dial in number is 212-896-6050. Replay will be
available until 7:00 p.m. on November 25th by calling 800-633-8284 reservation number 1342 3554.
Hadco Corporation's press releases are available through Company News On- Call by fax at 800-758-5804, PIN# 390325, or
on the Internet at hadco.com. Condensed financial statements are attached.
HADCO CORPORATION
Table A
Consolidated Condensed Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
Oct. 30, Oct. 31, Oct. 30, Oct. 31,
1999 1998 1999 1998(1)
Consolidated Condensed Statements of Operations:
Net Sales $262,044 $217,104 $1,005,970 $826,359
Cost of Sales 217,006 187,792 849,100 702,669
Gross Profit 45,038 29,312 156,870 123,690
Operating Expenses 23,703 20,994 90,904 81,627
Restructuring and Other
Non-Recurring Charges - - - 7,053
Write-off of Acquired In-
Process Research and
Development - - - 63,050
Income (Loss)
from Operations 21,335 8,318 65,966 (28,040)
Interest Expense, net (7,005) (8,139) (30,895) (22,468)
Other Income, net 189 454 1,384 2,295
Income (Loss) Before
Provision for
Income Taxes 14,519 633 36,455 (48,213)
Provision for
Income Taxes 5,777 251 14,491 5,897
Net Income (Loss) $8,742 $382 $21,964 $(54,110)
Earnings (loss) per share
Basic $0.64 $ 0.03 $1.62 $(4.09)
Diluted $0.63 $ 0.03 $1.60 $(4.09)
Weighted Average Shares Outstanding
Basic 13,628 13,353 13,533 13,216
Diluted 13,884 13,560 13,751 13,216
(1) Excluding non-recurring charges for acquired in-process R&D and restructuring for the year ended October 31, 1998, net
income would have been $13.2 million and diluted earnings per share $0.97.
HADCO CORPORATION
Table B
Condensed Consolidated Balance Sheets
($ in thousands)
(unaudited)
October 30, October 31,
1999 1998
ASSETS
Current Assets:
Cash and Cash Equivalents $9,078 $7,169
Accounts Receivable, net 116,580 111,094
Inventories 63,926 67,017
Other Current Assets 19,168 35,822
Total current assets 208,752 221,102
Property, Plant and
Equipment, net 328,181 322,887
Other Assets 187,890 199,836
$724,823 $743,825
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Current Portion of Long-
Term Debt $2,515 $4,377
Accounts Payable 100,100 79,350
Other Accrued Expenses 58,356 45,545
Total current
liabilities 160,971 129,272
Long-Term Debt, net of
current portion 278,309 354,291
Other Long-Term Liabilities 66,534 68,713
Stockholders' Investment 219,009 191,549
$724,823 $743,825
HADCO CORPORATION
Table C
Consolidated Condensed Statements of Cash Flows
($ in thousands)
(unaudited)
Year Ended
October 30, October 31,
1999 1998
Consolidated Condensed Statements of Cash Flows
Cash Flows from Operating Activities:
Net income (loss) $21,964 $(54,110)
Depreciation and
amortization 77,934 67,164
Write off of acquired
in-process R&D - 63,050
Net working
capital changes 49,612 (15,841)
Other net operating
cash flow (3,292) 2,674
Net Cash Provided
by Operations 146,218 62,937
Cash Flows From Investing Activities:
Purchases of property,
plant and equipment (71,791) (83,508)
Acquisition of Continental
Circuits Corp. - (192,532)
Other investing
activities, net 231 -
Net Cash Used in
Investing Activities (71,560) (276,040)
Cash Flows From Financing Activities:
Net (payments) proceeds
from long-term debt (77,844) 200,865
Sale of common stock,
net of issuance costs 3,258 2,593
Other financing
activities, net 1,837 3,081
Net Cash (Used in) Provided
by Financing Activities (72,749) 206,539
Net Decrease in Cash and
Cash Equivalents 1,909 (6,564)
Cash and Cash Equivalents,
Beginning of Period 7,169 13,733
Cash and Cash Equivalents,
End of Period $9,078 $7,169
SOURCE: HADCO Corporation |
