Monday July 26, 6:34 pm Eastern Time
Company Press Release
SOURCE: ACT Manufacturing, Inc.
ACT Manufacturing, Inc. Reports 1999 Second Quarter Results
HUDSON, Mass., July 26 /PRNewswire/ -- ACT Manufacturing, Inc.
(Nasdaq: ACTM) today reported results for the second quarter of 1999.
For the three months ended June 30, 1999, revenue increased 9.6
percent to $81,333,000 compared with $74,173,000 for the same period
in 1998. Net income for the quarter was $2,177,000 compared with a net
income of $86,000 for the second quarter of 1998. The Company had net
earnings of $0.23 per share for the second quarter of 1999 compared
with $0.01 per share for the same period in 1998.
For the six months ended June 30, 1999, revenue increased 20.3 percent
to $162,523,000 compared with $135,116,000 for the same period in
1998. Net income for the six months ended June 30, 1999 was $4,043,000
compared with a net loss of $1,040,000 for the first six months of
1998. The Company had net earnings of $0.43 per share for the first
six months of 1999 compared with a net loss of ($0.11) per share for
the same period in 1998.
Gross margin for the second quarter of 1999 improved to 9.9 percent
from 5.4 percent for the same period in 1998, primarily as a result of
higher revenues and cost management.
Mr. John A. Pino, Chairman and Chief Executive Officer, commented,
''The company achieved record revenues in the quarter while improving
its gross margin to 9.9 percent, an improvement of .7 percent over the
previous quarter. These improved margins resulted in a 17 percent
earnings growth over the first quarter.
''As we continue to expand our offerings and look forward to
consummating the CMC acquisition, expected to occur later this month,
we believe we are well-positioned to meet the global requirements of
our customer base.''
ACT Manufacturing, Inc., headquartered in Hudson, Mass., provides
value-added electronics manufacturing services for original equipment
manufacturers (''OEMs'') in the networking and telecommunications,
computer, industrial and medical equipment markets. The Company
provides OEMs with complex printed circuit board assembly primarily
utilizing advanced surface mount technology, mechanical and molded
cable and harness assembly, electro-mechanical subassembly, and total
system assembly and integration. For further information, visit ACT's
home page at actmfg.com .
This press release contains forward-looking statements subject to
risks and uncertainties that could cause actual results to differ
materially from those anticipated, including statements concerning
expected earnings, revenues and gross margins, and the plans,
objectives and expectations of management, and future customer
shipments. Those risks and uncertainties include, among others: the
inability to close the merger with CMC Industries in a timely fashion,
the risk of not integrating the CMC business successfully, the
inability to achieve expected synergies after the merger with CMC, the
Company's ability to expand its customer base and grow its operations
through acquisition or otherwise; the effectiveness of managing
manufacturing processes; increased competition and its effects on
pricing, revenues and gross margins, and its customer base; future
customer demand; the Company's ability to timely complete, configure
and ship products; and changes, reductions, delays or cancellations of
customer orders. In addition, the Company's business and results of
operations are subject to numerous additional risks and uncertainties,
including the short-term nature of customer orders, customers'
announcements and introduction of new products or new generations of
products, evolutions in the life cycles of customers' products,
inventory obsolescence, Year 2000 compliance, currency exchange rate
movements, trends in the electronics industry and changes or
anticipated changes in economic conditions. For a more detailed
discussion of the risks and uncertainties of the Company's business,
please refer to the Company's periodic reports and registration
statements filed with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the period
ended December 31, 1998 and the Company's Registration Statement on
Form S-4 filed on June 23, 1999.
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 30, 1999 Dec. 31, 1998
ASSETS
CURRENT ASSETS
Cash and cash equivalents $4,640 $5,389
Accounts receivable, net 69,637 70,547
Inventory 45,406 45,337
Deferred taxes 1,360 1,360
Prepaid expenses and other assets 2,350 2,204
Total current assets 123,393 124,837
PROPERTY AND EQUIPMENT -- net 16,074 13,489
GOODWILL -- net 5,285 5,506
OTHER ASSETS 1,792 1,538
TOTAL $146,544 $145,370
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $48,220 $50,592
Accrued compensation and related taxes 1,080 1,464
Income tax payable 2,059 505
Accrued expenses and other 1,596 2,100
Total current liabilities 52,955 54,661
LONG-TERM DEBT - Less current portion 2,044 977
NOTE PAYABLE BANK 36,719 39,498
STOCKHOLDERS' EQUITY
Common stock 91 91
Additional paid-in capital 39,673 39,205
Accumulated other comprehensive income (99) (180)
Retained earnings 15,161 11,118
Total stockholders' equity 54,826 50,234
TOTAL $146,544 $145,370
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share data)
(Unaudited)
Three Months Ended June 30:
1999 1998
Net sales $81,333 $74,173
Cost of goods sold 73,252 70,187
Gross profit 8,081 3,986
Selling, general and administrative expenses 3,774 3,440
Operating income 4,307 546
Interest and other expense, net 680 403
Income before provision for income taxes 3,627 143
Provision for income taxes 1,450 57
Net income $2,177 $86
Basic net income per common share $0.24 $0.01
Diluted net income per common share $0.23 $0.01
Weighted average shares
outstanding -- basic 9,090 9,063
Weighted average shares
outstanding -- diluted 9,580 9,182
Six Months Ended June 30:
1999 1998
Net sales $162,523 $135,116
Cost of goods sold 146,933 129,158
Gross profit 15,590 5,958
Selling, general and administrative expenses 7,455 6,457
Operating income (loss) 8,135 (499)
Interest and other expense, net 1,397 1,235
Income (loss) before provision for
income taxes 6,738 (1,734)
Provision (benefit) for income taxes 2,695 (694)
Net income (loss) $4,043 $(1,040)
Basic net income (loss) per common share $0.45 $(0.11)
Diluted net income (loss) per common share $0.43 $(0.11)
Weighted average shares outstanding -- basic 9,079 9,063
Weighted average shares outstanding -- diluted 9,502 9,063
SOURCE: ACT Manufacturing, Inc. |
