Wednesday February 5 6:46 PM EDT
Aldila reports results for the fourth quarter and full year
of 1996
SAN DIEGO, Calif.--(BUSINESS WIRE)--Feb. 5, 1997-- Aldila Inc , the world's foremost
graphite golf shaft manufacturer, today reported a 36% increase in net sales for the quarter ended
December 31, 1996 to $14.5 million, compared to net sales of $10.7 million in the same quarter
of 1995. Net income and earnings per share for the quarter more than doubled to $1.6 million and
$0.10 a share, respectively, compared to net income of $0.7 million and EPS of $0.04 in the same
quarter of 1995.
For the year ended December 31, 1996, net sales were $58.4 million, net income was $5.7 million
and earnings per share, $0.35, compared to 1995 net sales of $56.5 million, net income of $6.3
million and earnings per share, $0.37.
"Our broadened customer base of premium club manufacturers has contributed to improvements in
our sales and income levels over the last five consecutive quarters," said Peter R. Mathewson,
President and Chief Operating Officer of Aldila Golf. "Consistent with past quarters, however,
while unit sales in the fourth quarter and full year increased significantly, the impact of these
increases on our net sales and net income is offset by lower unit selling prices."
The company said its balance sheet remains strong, with cash and cash equivalents of $19.7 million
at the end of 1996.
During 1996, the company repurchased 563,000 shares of its common stock in the market at an
average price of $4.15 per share.
Mr. Mathewson added: "We are continuing to reinvest in our core golf shaft business in order to
retain our position as the quality and competitive price leader. We believe the design flexibility of
graphite material ensures its continuing preference as the material of choice by top golf club
manufacturers and among golfers from entry through professional level."
"As we move forward in 1997, we continue to implement our strategy to stabilize our position in
golf through the expansion of our materials processing expertise to include the manufacture of
carbon fiber," said Gary T. Barbera, Chairman and Chief Executive Officer. "The addition of
carbon fiber manufacturing will not only increase our strong position in the golf market but also
positions us to pursue other existing and developing markets that consume carbon fiber and/or
carbon fiber products."
Aldila designs, manufactures and markets graphite golf shafts used in clubs assembled and
manufactured throughout the world by leading golf club companies, pro shops, club shops and
repair shops. The company embarked on a program of vertical integration in 1994 to manufacture
the graphite prepreg material for its golf shaft production and now internally supplies virtually all of
its material requirements. In November 1996, the company announced plans to construct a
50,000 square foot facility for the manufacture of carbon fiber, a key component in the
manufacture of its golf shafts. Startup is scheduled to begin in the first half of 1998.
NOTE: This report contains forward-looking statements based on management's expectations as
of the date hereof that necessarily contain assumptions and are subject to certain risks and
uncertainties. The Company does not undertake any responsibility to update these statements in
the future. The Company's actual future performance and results could differ from that contained in
or suggested by these forward-looking statements as a result of the factors set forth in this report,
and in the Company's Report on Form 10-K and related filings with the Securities and Exchange
Commission.
ALDILA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three months ended Year ended
December 31 December 31
1996 1995 1996 1995
NET SALES $14,481 $10,685 $58,394 $56,545
COST OF SALES 9,227 6,838 37,245 32,823
Gross profit 5,254 3,847 21,149 23,722
SELLING,GENERAL
AND ADMINISTRATIVE 1,921 2,116 9,112 10,850
AMORTIZATION OF
GOODWILL 357 350 1,416 1,398
Operating income 2,976 1,381 10,621 11,474
OTHER:
Interest expense 317 317 1,266 1,291
Other (income), net (205) (204) (727) (857)
INCOME BEFORE INCOME
TAXES 2,864 1,268 10,082 11,040
PROVISION FOR INCOME
TAXES 1,224 568 4,400 4,770
NET INCOME $1,640 $ 700 $5,682 $6,270
EARNINGS PER COMMON SHARE:
Net income $0.10 $0.04 $0.35 $0.37
Weighted average
shares outstanding 16,106 16,686 16,434 16,765
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
Dec. 31, Dec. 31,
1996 1995
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $19,676 $19,345
Accounts receivable 2,460 3,168
Income taxes receivable 88
Inventories 7,809 6,074
Deferred tax assets 2,301 2,808
Prepaid expenses and other current
assets 468 742
Total current assets 32,714 32,225
PROPERTY AND EQUIPMENT 14,883 13,545
TRADEMARKS AND PATENTS, less accumulated
amortization of $2,199 and $1,759 15,139 15,579
GOODWILL, less accumulated amortization
of $7,007 and $5,592 49,053 50,319
DEFERRED FINANCING FEES, less
accumulated amortization of $120
and $81 146 185
TOTAL ASSETS $111,935 $111,853
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $2,062 $4,230
Accrued expenses 2,277 3,225
Income taxes payable 101 --
Total current liabilities 4,440 7,455
LONG-TERM LIABILITIES
Long-Term debt 20,000 20,000
Deferred tax liabilities 7,906 8,040
Deferred rent liabilities 763 877
Total liabilities 33,109 36,372
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value;
authorized 5,000,000 shares; no
shares issued
Common stock, $.01 par value; authorized
30,000,000 shares; issued and outstanding
16,011,152 and 16,573,952 shares 160 166
Additional paid-in capital 45,532 47,863
Retained earnings 33,134 27,452
Total stockholders' equity 78,826 75,481
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $111,935 $111,853
ALDILA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year ended
December 31,
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $5,682 $6,270
Depreciation and amortization 4,931 3,972
Changes in working capital items, net (3,421) (485)
Net cash provided by operating activities 7,192 9,757
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment, net (4,407) (3,933)
Other (117) --
Net cash used for investing activities (4,524) (3,933)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 227
Repurchases of common stock (2,337) (957)
Other, net 164
Net cash used for financing activities (2,337) (566)
NET INCREASE IN CASH AND CASH EQUIVALENTS 331 5,258
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 19,345 14,087
CASH AND CASH EQUIVALENTS, END OF YEAR $19,676 $19,345
CONTACT: Sard Verbinnen & Co
Media Contact:
George Sard/Anna Cordasco
212/687-8080
or
Aldila, Inc.
Investor Contact:
Robert J. Cierzan
Mary Lou Coburn
619/592-0404
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