Varlen Reports Highest Fourth Quarter in History And Record Sales, Earnings for 1998
PR Newswire - March 02, 1999 08:30
NAPERVILLE, Ill., March 2 /PRNewswire/ -- Varlen Corporation (Nasdaq: VRLN), a leader in transportation products and petroleum analyzers, today reported record sales and net earnings for its second-consecutive year ended January 31, 1999. The recently completed fourth quarter represented the sixth consecutive quarter that net earnings exceeded the prior year's comparable quarter.
1998 Highlights
-- Net earnings grew 60.8 percent, to $41.2 million, or $2.38 per diluted
share, on 23.8 percent higher sales, at $646.7 million.
-- Operating profit increased 39.6 percent to a record $88.2 million.
-- Varlen completed a 5-for-4 stock split in the form of a stock dividend.
-- Good market dynamics and company performance give Varlen a positive
outlook for 1999.
Financial Summary
(In thousands, except per share and percentages)
(Unaudited)
Three Months Ended Year Ended
Jan. 31, Jan. 31, Percent Jan. 31, Jan. 31,Percent
1999 1998 Change 1999 1998 Change
Net Sales $165,104 $136,978 20.5% $646,672 $522,254 23.8%
Operating Profit(a) 20,845 17,600 18.4% 88,248 63,193 39.6%
Net Earnings 9,636 7,529 28.0% 41,242 25,651 60.8%
Diluted Earnings
Per Share(b) $.56 $.43 30.2% $2.38 $1.54 54.5%
Diluted Weighted
Average Shares(b) 17,352 17,343 .1% 17,300 17,194 .6%
(a) Excludes Corporate and Net Interest Expense
(b) All Periods Reflect the 5-for-4 Stock Split Effected in the Form of
a Stock Dividend Paid on November 17, 1998
"We outperformed our strong transportation markets -- and rose well above record performance in 1997 -- because of the growth engines in each of our businesses, coupled with aggressive productivity initiatives."
-- Raymond A. Jean, President and CEO
Record 1998 Results
Net sales for the year ended January 31, 1999, rose 23.8 percent to $646.7 million compared with $522.3 million for 1997. Operating profit reached a record $88.2 million, up 39.6 percent from $63.2 million a year ago. Net earnings were $41.2 million versus $25.7 million for the prior year, a 60.8 percent improvement. On a diluted share basis, net earnings increased 54.5 percent to $2.38 for 1998 from $1.54 last year.
The 1998 results included a pretax charge of $2.6 million for domestic facility closure and related costs, partially offset by a $1.1 million pretax accounting gain resulting from changes to subsidiary defined benefit pension plans. These items resulted in a net charge to earnings equivalent to 5 cents per diluted share during the fourth quarter ended January 31, 1999.
Strong Fourth Quarter
Sales, operating profit and net earnings all reached fourth quarter records. Net sales grew 20.5 percent to $165.1 million for the latest three months compared with $137.0 million for last year's fourth quarter. Quarterly operating profit, at $20.8 million, rose 18.4 percent from $17.6 million for the same period last year. Net earnings increased 28.0 percent to $9.6 million, compared with $7.5 million for the prior quarter, while diluted earnings per share improved to 56 cents from 43 cents, growing 30.2 percent. These figures would have been higher if the previously discussed charges, equivalent to 5 cents per diluted share, had not been incurred. |
