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Cannondale Corporation Announces Increased Earnings and Revenue
PR Newswire, Monday, January 27, 1997 at 19:59
GEORGETOWN, Conn., Jan. 27 /PRNewswire/ -- Cannondale Corporation
(Nasdaq: BIKE) today announced results for the second quarter and first six
months of fiscal 1997, the period ended December 28, 1996.
For the three months ended December 28, 1996, net sales were $41,294,000,
an 18% increase over the $35,069,000 recorded for the same period last year.
Net income for the second quarter of fiscal 1997 was $3,153,000, a $929,000,
or 42% improvement over net income of $2,224,000 recorded for the same period
last year.
Earnings per share were 35 cents for the second quarter, an improvement of
40% compared to 25 cents recorded for the same period last year.
For the six months ended December 28, 1996, net sales were $72,174,000, a
17% increase over the $61,918,000 recorded for the same period last year. Net
income for the first half of fiscal 1997 was $3,642,000, a $1,224,000, or 51%
improvement over net income of $2,418,000 recorded for the same period last
year.
Earnings per share were 40 cents for the first half of fiscal 1997, an
improvement of 38% compared to 29 cents recorded for the same period last
year. These calculations reflect a 10% increase in the weighted average
number of shares outstanding for fiscal 1997 primarily as a result of the
Company's public offering in September 1995.
The increased sales in both quarters were a result of the continued
worldwide demand for Cannondale products, a sales mix that favored
international markets and growth in the Company's non-bike categories. The
gross-profit rate in both quarters improved, and reflects the Company's
continued application of proprietary technology and innovation through its
Cannondale bicycle frames, CODA components, and HeadShok suspension systems.
Gross profit also benefited from growth in the Company's international markets
and the further implementation of cost-reduction programs. For the six months
ended December 28, 1996, the gross-profit percentage was 36.2%, a 185 basis-
point improvement over the same period last year.
The second quarter was highlighted by the announcement in December that
the Company's F1000 model was named "Bike of the Year" by Mountain Biking
magazine, a leading consumer cycling publication. Mountain Biking editors
cited the model's lightweight Cannondale CAAD3 aluminum frame, CODA pedals and
crankset, and proprietary HeadShok front suspension fork as factors in
selecting the F1000 as their top bicycle for 1997.
In other recent news, Cannondale announced on January 24 that it will
introduce a line of high-performance sport wheelchairs. The Company's SST
(Seated-Sports Technology) line will incorporate much of the same technology,
and be manufactured in the same factories, as the Company's bicycles.
Distribution outlets for the SST line will include Cannondale's global network
of bicycle retailers. The Company believes its retailers possess the
expertise required to sell and service the SST line, and that disabled
athletes would rather buy sport wheelchairs in a bike shop atmosphere than at
medical supply houses. Cannondale estimates the worldwide lightweight
wheelchair market to be approximately $400 million annually.
Cannondale Corporation is the world's leading manufacturer of high-
performance aluminum bicycles. The Company's bicycles and bicycle
accessories, which include clothing, packs and bags, bike trailers and
components, are marketed under the Cannondale brand name and "Handmade in USA"
logo, and are sold in the U.S. and in more than 60 foreign countries.
CANNONDALE CORPORATION
Condensed Consolidated Statements of Earnings
(in thousands, except for per-share data)
(Unaudited)
Second Quarter Six Months Ended
Fiscal Fiscal
1997 1996 1997 1996
Net sales $41,294 $35,069 $72,174 $61,918
Cost of sales 25,396 21,889 46,048 40,648
Gross profit 15,898 13,180 26,126 21,270
Expenses:
Selling, general and
administrative 9,451 8,020 17,790 14,651
Research and development 905 828 1,662 1,484
10,356 8,848 19,452 16,135
Operating income 5,542 4,332 6,674 5,135
Other income (expense):
Interest expense (339) (413) (688) (1,131)
Other income (expense) 17 (224) (9) (5)
Pretax income 5,220 3,695 5,977 3,999
Income tax expense (2,067) (1,471) (2,335) (1,581)
Net income $3,153 $2,224 $3,642 $2,418
Net income per share $.35 $.25 $.40 $.29
Weighted average common and
common equivalent
shares outstanding 9,062 8,860 9,057 8,221
CANNONDALE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share data)
December 28, June 29, December 30
,
1996 1996 1995
(Unaudited) (Unaudited
)
Assets
Current assets
Cash $2,019 $4,305 $3,099
Trade accounts receivable,
less allowances of $7,176, $5,238
and $4,601 59,417 52,027 48,821
Inventory 37,309 30,526 35,478
Deferred income taxes 2,805 2,041 1,874
Prepaid expenses and other current assets1,690 1,154 1,708
Total current assets 103,240 90,053 90,980
Property, plant and equipment, net 18,675 18,527 17,982
Other assets 1,358 1,365 1,359
Total assets $123,273 $109,945 $110,321
Liabilities and stockholders' equity
Current liabilities
Accounts payable $12,928 $12,431 $13,797
Revolving credit advances 2,995 4,756 7,755
Income taxes payable 1,425 1,845 980
Warranty and other accrued expenses 7,033 7,309 7,153
Current installments of long-term debt 1,425 1,680 1,717
Total current liabilities 25,806 28,021 31,402
Long-term debt, less current installments25,199 13,114 17,713
Deferred income taxes 96 235 347
Other noncurrent liabilities 294 281 261
Total liabilities 51,395 41,651 49,723
Stockholders' equity:
Common stock, $.01 par value
Authorized shares - 18,000,000
Issued and outstanding shares
8,616,241, 8,611,715 and 8,555,735 86 86 86
Additional paid-in capital 56,029 55,965 55,597
Retained earnings 16,189 12,547 4,819
Cumulative translation adjustment (426) (304) 96
Total stockholders' equity 71,878 68,294 60,598
Total liabilities and
stockholders' equity $123,273 $109,945 $110,321
SOURCE Cannondale Corporation
-0- 1/27/97
/CONTACT: William A. Luca, Chief Financial Officer of Cannondale,
203-544-9800/
Companies or Securities discussed in this article:
Symbol
Name
NASDAQ:BIKE
Cannondale Corp
ÿ
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