Company Press Release
Tivoli Industries Reports Strong Fourth Quarter
Record Revenue & Earnings for Fiscal Year
48 Percent Increase in Revenues for Year
Net Income up More Than 200 Percent
SANTA ANA, Calif.--(BUSINESS WIRE)--Dec. 8, 1997--Tivoli Industries Inc. (Nasdaq:TVLI - news) Monday
announced record revenue and profits for the fiscal fourth quarter and year ended Sept. 30, 1997.
In comparison with the previous fiscal year, the company's revenues increased 48 percent, while profits increased
more than 200 percent. Gross margins remained constant in spite of considerable competitive-bid pressure, and
international revenue grew by 40 percent. Sales to all core markets -- theaters, casinos, entertainment venues and
high-end retail -- grew during the year, and market shares increased.
For the fiscal fourth quarter, revenue was up 24 percent to $2.6 million, with net income of $138,622, or 4 cents per
share, vs. revenue of $2.1 million, with net income of $73,315, or 2 cents per share for the same period last year.
For the year, revenue was $9.8 million, with net income of $511,762, or 13 cents per share, compared with
previous-year revenue of $6.6 million and net income of $166,200, or 4 cents per share.
Tivoli Chairman and Chief Executive Officer Terrence C. Walsh commented: ''This is the third year in a row of
strong growth in both revenue and earnings, achieving an overall revenue growth rate of more than 40 percent
annually. We believe this performance is a result of a persistent and aggressive growth oriented focus on the part of
the entire company.
''During the year,'' he said, ''we were successful in strengthening our core market presence while concurrently
serving the needs of a wider specialty commercial market. In addition to continuing this focus, we are building on
the foundation created though our relationship with Targetti Sankey and our joint venture -- Targetti USA. The
combination of these efforts, along with our previously announced acquisition programs, should contribute
significantly to the future growth of Tivoli.
''Our earnings grew even faster than our revenues for fiscal 1997,'' Walsh added, ''because we were able to hold
SG&A expense to a lower percentage of sales as sales continued to grow. Additionally, our export sales have grown
as a result of our joint venture with Targetti and their network of sales offices becoming more familiar with our
products. In addition, the establishment of Tivoli de Mexico, S.A. has been an instrumental factor in expanding
Tivoli's sales in Mexico and South America.''
Tivoli President and Chief Operating Officer Charles Kimmel said: ''We maintained gross margins of more than 42
percent during fiscal 1997, despite the fact that we were successful in capturing several large projects where
competitive pricing was important. Our balance sheet remains strong with $1.4 million in cash and equivalents,
working capital of $3.7 million, a current ratio of 3.6:1 and long term debt of $841,615.''
Tivoli Industries is an innovation-driven designer, developer and manufacturer of specialty lighting and related
products. The company's global export markets are served by Florence-based Targetti Sankey's sales networks in
Europe, Eastern Europe, the Middle East, Asia and the Pacific Rim, while Tivoli's Mexico subsidiary serves
Mexico, Central and South America.
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
(Audited)
Three Months Ended Year Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Net sales $2,585,478 $2,084,785 $9,846,174 $6,638,063
Cost of sales 1,449,901 1,173,016 5,686,135 3,779,870
Gross profit 1,135,577 911,769 4,160,039 2,858,193
Selling, general &
administrative
expenses 961,655 845,261 3,581,456 2,713,264
Income from operations before
interest and benefit
for income taxes 173,922 66,508 578,583 144,929
Interest income
(expense) (3,993) 6,807 (10,228) 19,071
Income before (provision)
for income taxes 169,929 73,315 568,355 164,000
Income tax
(provision)(1) (31,307) -- (56,593) 2,200
Net income 138,622 73,315 511,762 166,200
Net income per share $ 0.04 $ 0.02 $ 0.13 $ 0.04
Weighted average shares
outstanding 3,937,871 3,920,721 3,933,400 3,920,721
(1) Income tax provision for the three months and years ended Sept.
30, 1996 and 1997 includes utilization of net operating loss carry
forwards.
Contact:
Allen & Caron Inc
Kent Broussard (investor relations)
Owen Daley (media)
714/252-8440 |
