Cade Industries Reports Record Results on Diversified Sales Base; Net Income Rises 80% for Year, 58% for Quarter
Company Forecasts 25% Earnings Growth for 1999
OKEMOS, Mich., Feb. 9 /PRNewswire/ -- Cade Industries, Inc. (Nasdaq: CADE - news), a leading supplier of products and services to the aerospace and air transport industries, today reported results for the fourth quarter and year ended Dec. 31, 1998.
Fourth quarter net income rose 58 percent, to $1.1 million, or earnings per share of five cents, from net earnings of $717,000, or earnings per share of three cents for the comparable period of 1997. Net income for the year rose 80 percent, to $4.2 million, or 19 cents per share, from $2.4 million, or 11 cents per share for the prior year.
Revenues for the fourth quarter were up 43 percent, to $24.3 million, from revenues of $17.0 million in 1997. Year-end revenues increased 72 percent, to $95.8 million from $55.8 million last year.
Cade's president, Richard Lund, commented, ''These results reflect strong performance throughout the company, highlighted by improving margins, significant gains in revenue from our overhaul and repair services, increased revenues from test facilities and equipment and sustained growth in OEM products. Cade ended 1998 with a backlog of $75 million, including $6.5 million of previously announced contracts awarded to Cade in the third and fourth quarters.
Lund credited the company's successful implementation of its strategic plan to diversify products and customers for its 72% growth in revenues. ''Our present and future success is dependent upon this diversified business base and I plan to aggressively work to expand our aftermarket services to achieve a minimum of 50% of our total revenue. Our investment in new facilities and equipment as well as acquisitions should enable us to meet this objective.''
Lund also reported that the company had repurchased 250,000 shares of its common stock in 1998 and plans to substantially increase its share repurchase program in 1999. The company's board of directors recently authorized a stock repurchase program of one million shares of Cade Industries' stock in 1999.
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