Re-computed Price/Earnings = (21+3/4)/(4*0.40) = 13.59
Price/Sales = ((21+3/4)*23807000)/(4*128998000) = 1.00
**********************************************************************
B/E Aerospace Reports Record 1998 Third Quarter Results -- Record Quarterly Sales, Net Income and
EPS -- Sales Up 20%, Operating Earnings Up 37%, Net Income Up 128%
BusinessWire, Wednesday, December 17, 1997 at 16:22
WELLINGTON, Fla.--(BUSINESS WIRE)--Dec. 17, 1997--B/E Aerospace
Inc. (Nasdaq-NMS: BEAV) today announced record quarterly sales,
operating earnings, net earnings and earning per share for its fiscal
1998 third quarter and nine months ended Nov. 29, 1997.
Fiscal 1998 third quarter net sales were $128,998,000, up 20
percent versus 1997 third quarter sales of $107,823,000. Third quarter
gross profit was $46,650,000, an increase of 28 percent over the
comparable prior-year level of $36,510,000 as a result of both the
higher sales and a significant year-to-year increase in gross margin
(36.2% in 1998 versus 33.9% in 1997). Record operating earnings of
$16,464,000 in the current period were $4,428,000 or 37 percent
greater than $12,036,000 in the fiscal 1997 third quarter. As a
result, the third quarter 1998 operating margin expanded to 12.8%
versus 11.2% in 1997. Similarly, the company reported all-time high
net earnings for any quarter of $9,432,000, up 128 percent versus
$4,131,000 reported in the fiscal 1997 third quarter. Third quarter
1998 earnings per share of 40 cents were 74% higher than the
year-earlier level of 23 cents per share, despite a 30-percent
year-over-year increase in common and common equivalent shares
outstanding to 23,807,000 in 1998 versus 18,295,000 in 1997.
Sales for the nine months of fiscal 1998 through Nov. 29 were
$362,687,000, an increase of 18 percent over the comparable fiscal
1997 period. Gross profit for the first nine months of fiscal 1998 of
$131,862,000 was up 27 percent versus the prior year-to-date level of
$103,496,000, while the gross margin expanded to 36.4 percent of sales
versus 33.6 percent reported last year. For the 1998 nine months, B/E
reported net earnings of $24,452,000, or $1.04 per share, versus
$7,427,000, or 42 cents per share, in fiscal 1997.
Third quarter performance also continued to strengthen the
company's balance sheet. As of Nov. 29, the company's working capital
had risen to $153,282,000 versus $122,174,000 at the end of fiscal
1997. As a result of the strong order activity during the period,
B/E's backlog at the end of the third quarter stood at approximately
$560 million, a 33-percent increase over the prior-year level, as
adjusted on a comparable basis for the debooking of the British
Airways MDDS program announced last quarter. The book-to-bill ratio
was approximately 1.3:1 for the current quarter, while orders booked
during the first nine months of this year of approximately
$463,000,000 were 19 percent greater than orders booked during the
same nine-month period last year.
B/E Vice Chairman and Chief Executive Officer Robert J. Khoury
stated, "As they have been for the past several quarters, our third
quarter results for fiscal 1998 continued to be very solid. This, in
fact, marks the seventh consecutive quarter in which the Company has
reported financial results that exceeded expectations. Our performance
reflects the ongoing worldwide trends for airline industry
refurbishment of existing fleets and increased levels of new aircraft
deliveries. This is clearly reflected in our substantial sales growth
for the quarter and year-to-date. The higher level of revenues and mix
of products and services sold, coupled with manufacturing and overhead
efficiencies arising from our reengineering activities have resulted
in the higher gross and operating margins, which in turn, have been
reflected in record operating earnings, net earnings and earnings per
share."
Khoury continued, "As of today, we have yet to hear officially
from British Airways (BA) as to a final procurement decision for their
in-flight entertainment program. It now appears that their decision
may be further deferred. The testing of our MDDS system, which we
reconfigured to be non-interactive on their aircraft, has proceeded on
schedule, but the system's reliability to date has not performed up to
the 99.5% reliability level of our basic BE2000 system. As a result,
we now believe that BA will select a competitor's system for their IFE
needs."
"We are continuing to focus on completing our Boeing line-fit
certification efforts, and we remain confident that the initial
line-fit deliveries to Japan Airlines (JAL) will occur during the
coming year. We expect a very strong contribution from our In-Flight
Entertainment Group next year, driven by our current orders from
United Airlines (BE2000M), JAL (MDDS) and Asiana (MDDS), and an
increasing contribution further out, driven by the expansion of those
programs as well as anticipated new programs now contemplated by
various airlines. Our confidence in the future IFE marketplace is also
buoyed by the substantial prospects of our LiveTV(TM) joint venture."
Khoury concluded, "The Company's near- and longer-term prospects
have continued to strengthen through the end of the third quarter.
B/E's investments in new product offerings are now being translated
into new order bookings. Record operating results by the airlines,
coupled with the high level of requests for quotations for new
programs reinforce our expectations for continued growth in revenues
and earnings as we look out over the next several years."
B/E Aerospace Inc. designs, manufactures, sells and services a
broad line of commercial aircraft cabin interior products, including
seating products, passenger entertainment and service systems, and a
complete line of food and beverage preparation and storage equipment.
B/E Aerospace is the world's leading supplier of cabin interior
products and services, serving virtually all the world's airlines.
This press release contains forward-looking statements. Such
statements are subject to risks and uncertainties that could cause
actual results to vary materially from those anticipated; among these
are the company's dependence upon conditions in the airline industry,
the company's financial leverage, the size and resources of many of
the company's competitors and the need for the company to continue to
effectively integrate acquired businesses and successfully manufacture
and deliver technologically advanced products. Additional information
with respect to these and other factors which could materially affect
the company is included in the company's filings with the Securities
and Exchange Commission, including its most recent Form 10-Q, proxy
statement and Form 10-K and the prospectus dated Dec. 12, 1996,
relating to the company's recent common stock offering.
*T
B/E Aerospace Inc.
Consolidated Statements of Earnings
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Nov. 29, Nov. 30 Nov. 29, Nov. 30,
1997 1996 1997 1996
Net sales $128,998 $107,823 $362,687 $308,151
Cost of sales 82,348 71,313 230,825 204,655
Gross profit 46,650 36,510 131,862 103,496
-- Percent 36.2% 33.9% 36.4% 33.6%
OPERATING EXPENSES:
Selling, general and
administrative 15,082 13,365 43,017 37,619
Research, development
and engineering 12,438 8,602 34,988 27,759
Amortization 2,666 2,507 8,195 8,021
Total operating expenses 30,186 24,474 86,200 73,399
OPERATING EARNINGS 16,464 12,036 45,662 30,097
-- Percent 12.8% 11.2% 12.6% 9.8%
Interest expense, net 5,368 7,446 16,899 21,845
Earnings before
income taxes 11,096 4,590 28,763 8,252
Income taxes 1,664 459 4,311 825
NET EARNINGS $9,432 $ 4,131 $24,452 $ 7,427
NET EARNINGS
PER COMMON SHARE $ .40 $ .23 $ 1.04 $ .42
Common and common
equivalent shares 23,807 18,295 23,414 17,786
*T
CONTACT: Financial Relations
Jay Jacobson, 914/722-2737
KEYWORD: FLORIDA
INDUSTRY KEYWORD: TRAVEL/AIRLINES AEROSPACE/DEFENSE EARNINGS
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