Sales Up 91% Earnings +230%!CRDN blows em away.;
Ceradyne, Inc. Reports First-Quarter 2004 Results; Sales, Net Income Hit Record Levels
COSTA MESA, Calif., Apr 22, 2004 (BUSINESS WIRE) -- Ceradyne, Inc.
(Nasdaq: CRDN) reported financial results for the first quarter ended March 31,
2004.
Sales for the first quarter of 2004 increased 91.3% to a record $36.7 million
from $19.2 million in the first quarter of 2003. Net income increased 231.5% to
a record $5.0 million, or 31 cents per diluted share, from $1.5 million, or 11
cents per diluted share, for the year-ago quarter. Fully diluted average shares
outstanding for the first quarter of 2004 were 16,295,000 compared to 13,383,000
in the same period in 2003. Average shares outstanding were higher in the first
quarter of 2004 compared to the corresponding prior year period due to the
follow-on public offering completed in July 2003.
The number of shares outstanding and earnings per share have been adjusted to
reflect the three-for-two stock split effective on April 7, 2004.
Gross profit margin increased to 31.8% of net sales in the first quarter of 2004
versus 25.6% of net sales in the first quarter of 2003.
The provision for income tax was 38% for 2004, while for 2003 it was 35%.
New bookings for the quarter were $34.0 million compared to $29.1 million in the
first quarter of 2003. Backlog at the end of the quarter was $101.4 million,
including $0.9 million of unexercised options, up from approximately $45.6
million, including $1.4 million of unexercised options, at March 31, 2003.
Joel Moskowitz, Ceradyne president and chief executive officer, commented:
"Management continues to be optimistic regarding the Company's immediate and
longer term opportunities. We believe that the requirements for high-quality
lightweight ceramic body armor will remain strong, at least through the second
quarter of 2006. We also believe that lightweight ceramic armor for a wide
variety of other applications, particularly ground based vehicles, represent
promising areas of growth for Ceradyne.
"In the short run, we will continue to aggressively pursue the expansion of our
military defense business, which will include the development and introduction
of new products and significant expansion of our armor manufacturing capacity,
including all areas of production," Moskowitz added. "In the longer run, we plan
to pursue diversification through the expansion and introduction of new and
improved industrial products, as well as a focused review of potential
acquisition candidates."
Ceradyne will host a conference call today at 8:00 a.m. PDT to discuss its 2004
first quarter results. Investors or other interested parties may listen to the
teleconference live via the Internet at www.ceradyne.com or
www.FullDisclosure.com. These websites will also host an archive of the
teleconference for 30 days. A telephonic playback will also be available for 48
hours beginning at 11:00 a.m. PDT on April 22. The playback can be accessed by
calling 800-642-1687 (or 706-645-9291 for international callers) and providing
Conference ID 6682725.
Ceradyne develops, manufactures and markets advanced technical ceramic products
and components for defense, industrial, automotive/diesel and commercial
applications. Additional information about the Company can be found at
www.ceradyne.com.
Except for the historical information contained herein, certain matters
discussed in this news release constitute forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from those projected. The Company may use words such as
"anticipates," "believes," "plans," "expects," "intends," "future," and similar
expressions to identify forward-looking statements. These risks and
uncertainties are described in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2003, as filed with the Securities and Exchange
Commission.
Below is a summary of unaudited comparative results. Amounts in
thousands except per share data.
Three Months Ended
March 31,
2004 2003
-----------------------------
NET SALES 36,687 19,182
Cost of product sales 25,034 14,265
-----------------------------
GROSS PROFIT 11,653 4,917
-----------------------------
Operating expenses:
Selling 711 506
General and administrative 2,607 1,636
Research and development 441 471
-----------------------------
3,759 2,613
-----------------------------
INCOME FROM OPERATIONS 7,894 2,304
Other income (expense):
Other income 229 32
Interest (expense) - (10)
-----------------------------
229 22
INCOME BEFORE PROVISION
FOR INCOME TAXES 8,123 2,326
Provision for income taxes 3,111 814
-----------------------------
NET INCOME $5,012 $1,512
=============================
Earnings per share, basic $0.31 $0.12
Earnings per share, diluted $0.31 $0.11
Avg. shares outstanding, basic 15,940 12,830
Avg. shares outstanding, diluted 16,295 13,383 |
