Tivoli Industries Reports Record Fiscal 1997 Third
Quarter and Nine-Month Results
Nine-Month Revenue up 59 Percent, Net Income Up Over 300 Percent
SANTA ANA, Calif.--(BUSINESS WIRE)--Aug. 5, 1997--Tivoli Industries Inc.
(NASDAQ:TVLI) Tuesday announced record revenue and net income for its fiscal 1997 third
quarter and nine months ended June 30, 1997.
According to the announcement by Tivoli Chairman and Chief Executive Officer Terrance C.
Walsh, revenue for the third quarter rose 70 percent to $2.8 million and net income increased
sharply to $148,949, or 4 cents per share. For the prior year's third quarter, revenue was $1.6
million with net income of $15,035, or zero cents per share.
Revenue for the first nine months of fiscal 1997 increased 59 percent to a new high of $7.3 million
and net income increased 301 percent to a record $373,140, or 10 cents per share. This compares
with revenue of $4.6 million and net income of $92,885, or 2 cents per share, for the first nine
months of fiscal 1996.
``The significant increase in operating performance for this year's first nine months was principally
due to strong demand for both our core and new products throughout the primary market segments
served by Tivoli,'' Walsh said. ``We also shipped during the second and third quarters the
previously announced order from City Lighting Products of Kansas City for a large national retail
customer.
``The employees and management of Tivoli are particularly pleased with the continuation of our
record setting pace as reflected by the achievement of new highs in revenue and net income for this
year's third quarter and first nine months. We believe these results are due to a strong team effort
and confirm the success of the strategic marketing programs and new product introductions
implemented by the company. Our ability to partner products from Targetti with products
introduced by Tivoli confirms the product synergy between the two companies and sets the stage
for continued marketing plan expansion.''
Tivoli took several important steps to strengthen and expand its organization during the first nine
months of this year; with one of the most significant being the previously announced addition of
Charles F. Kimmel as president and chief operating officer during the third quarter.
``Kimmel will strengthen the company's management team and his experience and skills will help
manage our continued growth,'' Walsh said.
SG&A expense as a percentage of sales decreased to 36.3 percent for the first nine months of fiscal
1997 from 41 percent for the same period last year. Walsh said: ``The decline in SG&A expenses
as a percent of sales is attributable to our continued focus on operating improvements, allowing us
to capitalize on economies resulting from the strong revenue growth during the first nine months of
the fiscal year.''
Gross profit margins during the first nine months of this fiscal year decreased to 41.7 percent from
42.7 percent for the same period last year, mostly due to the competitive pricing of a remaining
partial shipment of a previously announced large order.
The company's balance sheet remains strong with total assets of $6.5 million, a current ratio of
3.64:1, long-term bank debt of $667,500, and shareholder equity of $4.3 million.
Tivoli Industries is an innovation-driven designer, developer and manufacturer of specialty lighting
and related products serving global markets through its venture with Florence, Italy-based Targetti.
In addition to its main facility in Santa Ana, the company maintains a sales support and product
demonstration facility in Las Vegas. The company's markets include specialty retail,
casino/gaming, theater, hospitality and restaurants, themed venues and high-end commercial and
residential lighting markets.
Except for the historical information contained herein, this news release contains forward-looking
statements that involve risks and uncertainties, including the impact of competitive products and
pricing and general economic conditions as they affect the company's customers. Actual results and
developments may therefore differ materially from those described in this release. For more
information about Tivoli and risks arising from investing in Tivoli, you are directed to the
company's most recent Form 10-KSB filed with the Securities and Exchange Commission.
Tivoli Industries Inc.
Statement of Operations
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
1997 1996 1997 1996
Net sales $2,800,598 $1,646,232 $7,260,696 $4,553,278
Cost of sales 1,605,261 942,858 4,236,234 2,606,854
Gross profit 1,195,337 703,374 3,024,462 1,946,424
Selling, general
and administrative
expenses 1,008,170 685,276 2,619,801 1,868,003
Income (loss)
from operations
before interest
and income
taxes 187,167 18,098 404,661 78,421
Interest (income)
expense 10,960 3,063 6,235 (12,264)
Income before
(benefit)
provision for
income taxes 176,207 15,035 398,426 90,685
Income tax
(benefit)
provision 27,258 --- 25,286 (2,200)
$ 148,949 $ 15,035 $ 373,140 $ 92,885
Net income per
share $ 0.04 $ 0.00 $ 0.10 $ 0.02
Weighted average
shares
outstanding 3,937,863 3,857,705 3,926,568 3,857,705
Contact:
Allen & Caron
Marty Tullio (investors)
Owen Daley (media)
714/252-8440 |
