SI Technologies Reports FY2002 Diluted EPS of $0.32 Vs. Prior-Year Loss of ($2.00) Per Share
Monday November 4, 8:31 am ET
Company Earns $0.12 Per Diluted Share in Fourth Quarter (Excluding Income Tax Benefit)
TUSTIN, Calif., Nov. 4 /PRNewswire-FirstCall/ -- SI Technologies, Inc. (Nasdaq: SISI - News), which designs, manufactures and markets high-performance industrial sensors, weighing and factory automation equipment and systems, today announced an impressive earnings turnaround for the fiscal year ended July 31, 2002.
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For the three months ended July 31, 2002, the Company reported net income of $365,000, or $0.10 per diluted share (excluding an income tax benefit of $592,000), on net sales of $8.3 million. These results compared with a net loss of ($1,598,000), or ($0.44) per share, on net sales of $8.4 million, in the fourth quarter of FY2001. If an income tax benefit of $592,000, or $0.15 per diluted share, is included, earnings totaled $957,000, or $0.27 per diluted share, in the quarter ended July 31, 2002.
For the fiscal year ended July 31, 2002, the Company reported record net income of $1,133,000, or $0.32 per diluted share (excluding an income tax benefit of $540,000), on net sales of $32.6 million. These results compared with a net loss of ($7,128,000), or ($2.00) per share, on net sales of $36.3 million, in the corresponding period of the previous fiscal year. If an income tax benefit of $540,000, or $0.15 per diluted share, is included, earnings totaled $1,673,000, or $0.47 per diluted share, in the fiscal year ended July 31, 2002.
Operating results for the year ended July 31, 2001 included a restructuring charge of approximately $3.8 million involving the consolidation of two of SI Technologies' subsidiaries, Allegany Technology and Revere Transducers, as well as a goodwill impairment loss of $2.0 million.
"We are very pleased to report an impressive earnings turnaround for Fiscal 2002," stated Rick Beets, President and Chief Executive Officer of SI Technologies, Inc. "We are finally beginning to realize significant benefits from the corporate restructuring that was announced over a year ago. The restructuring program involved (1) a consolidation of our operating facilities in the United States, (2) a strategic outsourcing program designed to significantly lower manufacturing costs on high-volume products, and (3) the downsizing and relocation of our Revere Transducers facility in California. The first two steps in this program have been successfully implemented, while we are awaiting an improvement in the Southern California real estate markets before taking action on the third component of our restructuring strategy."
"Improved profits during Fiscal 2002 resulted solely from our ability to eliminate redundant facilities, reduce costs, improve productivity and outsource the production of high-volume products to offshore suppliers," continued Beets. "As clearly illustrated by the 10% decline in our sales last year, we received no help from the economy and our primary markets suffered for a third consecutive year due to soft capital spending trends throughout the world. However, we believe that our Company has maintained market share in its principal markets and that sales should improve when global economies recover."
"Our outlook for Fiscal 2003 is 'guardedly optimistic,' in that we should realize additional efficiencies from our production outsourcing program, and we hope that an opportunity may arise to downsize our manufacturing operations in Southern California into a more cost-effective location. If the global economy does not weaken further, we are optimistic that a new earnings record can be achieved in the fiscal year ending July 31, 2003. However, the long- term benefits of our restructuring program cannot be fully realized until global capital spending trends improve in such primary markets as forestry, waste management, steel, aerospace, freight and general manufacturing," concluded Beets.
In June 2002, the Company amended its principal credit agreement with its bank. The terms provide for a revolving line of credit up to a maximum of $6,500,000 with interest at prime plus 2.75%. Monthly payments on the line are interest only with principal due November 30, 2002. The new credit agreement provides a new term note for $1,500,000 with interest at prime plus 3.25%. Monthly payments on the new term note are $25,000 plus interest with principal due November 30, 2002. Monthly payments on the existing note payable are reduced to $56,058 plus interest at prime plus 1.75%, with the remaining terms of the existing note unchanged. The line and both notes are secured by substantially all of the Company's assets and are cross- collateralized and cross-defaulted. The Company is required to maintain certain levels of earnings before interest, taxes, depreciation and amortization, tangible net worth and fixed charge coverage and may not pay any cash dividends under terms of the agreement.
SI Technologies, Inc. is a leading designer, manufacturer and marketer of high-performance industrial sensors/controls, weighing and factory automation systems and related products. Its proprietary products enjoy leading positions in their respective markets, while sharing common technologies, manufacturing processes, and customers. The Company is positioned as an integrator of technologies, products and companies that are involved in the handling, measurement and inspection of goods and materials. SI Technologies' products are used throughout the world in a variety of industries, including aerospace, aviation, food processing and packaging, forestry, manufacturing, mining, transportation, warehousing/distribution, and waste management. The Company is headquartered in Tustin, California, and its common stock is traded on Nasdaq under the symbol "SISI".
This press release includes statements which may constitute "forward- looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward- looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. |
