[ACTM reports record sales for Q1.]
Wednesday April 26, 4:16 pm Eastern Time
Company Press Release
SOURCE: ACT Manufacturing, Inc.
ACT Manufacturing, Inc. Reports Record 2000 First Quarter Results
HUDSON, Mass., April 26 /PRNewswire/ -- ACT Manufacturing, Inc.
(Nasdaq: ACTM) today reported financial results for the first
quarter ended March 31, 2000.
For the three months ended March 31, 2000, net sales increased
57 percent to a record $229,088,000 compared with $145,947,000
for the same period in 1999. Net income was $6,150,000, or $0.35
per share, for the three months ended March 31, 2000 compared
with net income of $1,850,000, or $0.14 per share, for the first
quarter of 1999.
Mr. John A. Pino, President, Chairman and Chief Executive Officer,
commented, ``The year 2000 has already been an eventful year for
our Company. On March 15, 2000, we entered into a Pre-Tender
Agreement for the acquisition of GSS Array Technology Public
Company Limited (GSS Array), which is based in Thailand. GSS Array
meets our key acquisition criteria including financial and cultural
fit, scale of operations, and diversification of customer base, and
is expected to provide the Far East solution we have been seeking
for our customers. Earlier in April, we completed a $90 million
convertible debt offering to finance the GSS Array acquisition.
``The first quarter reflects continued strong business activity,''
added Mr. Pino.
ACT Manufacturing, Inc., headquartered in Hudson, Massachusetts,
provides value-added electronics manufacturing services for original
equipment manufacturers in the networking and telecommunications,
computer and industrial and medical equipment markets. The Company
provides OEMs with complex printed circuit board assembly primarily
utilizing advanced surface mount technology, mechanical and molded
cable and harness assembly, electro-mechanical subassembly, and
total system assembly and integration. The Company has operations
in Hudson, MA; Mansfield, MA; Marlboro, MA; Lawrenceville, GA;
Corinth, MS; Santa Clara, CA; Huntsville, AL; Dublin, Ireland;
Hermosillo, Mexico; and Taipei, Taiwan.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to risks and uncertainties that could cause actual
results to differ materially from those anticipated, including
statements concerning the effects of the GSS Array acquisition,
expected financial and operating results, synergies, growth of
the customer base, revenue and shareholder value, future customer
shipments, and the plans and objectives of management. Those risks
and uncertainties include, among others: the inability to close
the GSS Array acquisition in a timely fashion; the inability to
obtain approval of GSS Array's stockholders or delist the shares
of GSS Array from the Stock Exchange of Thailand; the inability
to successfully tender for all of the GSS Array shares and options;
the inability to obtain governmental approvals for the GSS Array
acquisition; the risk of not integrating the GSS Array business
successfully; the inability to achieve expected synergies; costs
associated with the GSS Array acquisition; the Company's ability
to expand its customer base and grow its operations through
acquisition or otherwise; the effectiveness of managing manufacturing
and materials procurement processes; the effects of future acquisitions
on the Company's operations, financial results and shareholder value;
the Company's dependence on major customers; increased competition and
its effects on pricing, revenues, gross margins and the customer base;
future customer demand; the Company's ability to timely complete,
configure and ship products; the timely availability of components;
the Company's increased international operations; demand for our
customers' products; and changes, reductions, delays or cancellations
of customer orders. In addition, ACT's business and results of
operations are subject to numerous additional risks and uncertainties,
including the short-term nature of customer orders, customers'
announcements and introduction of new products or new generations
of products, evolutions in the life cycles of customers' products,
inventory obsolescence, interest rate and currency exchange rate
movements, trends in the electronics industry and changes or
anticipated changes in economic conditions. For a more detailed
discussion of the risks and uncertainties of ACT's business, please
refer to the Company's periodic reports and registration statements
filed with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the period ended
December 31, 1999.
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data)
(Unaudited)
Three Months Ended March 31:
2000 1999
Net sales $229,088 $145,947
Cost of goods sold 209,089 135,511
Gross profit 19,999 10,436
Selling, general and administrative expenses 9,323 6,314
Operating income 10,676 4,122
Interest and other (income) expense, net 593 1,030
Income before provision for income taxes 10,083 3,092
Provision for income taxes 3,933 1,242
Net income $6,150 $1,850
Basic net income per common share $0.37 $0.14
Diluted net income per common share $0.35 $0.14
Weighted average shares outstanding -- basic 16,546 12,881
Weighted average shares outstanding -- diluted 17,645 13,384
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
March 31, December 31,
2000 1999
ASSETS
CURRENT ASSETS
Cash and cash equivalents $6,290 $4,558
Accounts receivable, net 189,398 160,830
Inventory 200,154 171,762
Prepaid expenses and other assets 6,851 4,177
Total current assets 402,693 341,327
PROPERTY AND EQUIPMENT -- net 37,139 38,047
GOODWILL -- net 10,098 10,334
OTHER ASSETS 9,069 12,618
TOTAL $458,999 $402,326
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities $5,013 $4,097
Accounts payable 157,593 153,764
Accrued compensation and related taxes 5,256 3,769
Income tax payable 2,202 3,074
Accrued expenses and other 5,417 6,203
Total current liabilities 175,481 170,907
LONG-TERM DEBT - Less current portion 92,292 46,933
OTHER LONG-TERM LIABILITIES 5,551 6,357
STOCKHOLDERS' EQUITY
Common stock 167 165
Additional paid-in capital 159,457 157,887
Accumulated other comprehensive loss (813) (637)
Retained earnings 26,864 20,714
Total stockholders' equity 185,675 178,129
TOTAL $458,999 $402,326
SOURCE: ACT Manufacturing, Inc. |
