U.S.A. Floral Products Reports Second Quarter 1999 and Six Months Results
WASHINGTON--(BUSINESS WIRE)-- Aug. 3, 1999--U.S.A. Floral
Products, Inc. (Nasdaq: ROSI), the largest integrated distributor of
floral products in the world, today announced results for the second
quarter and six months ended June 30, 1999.
-- Diluted earnings per share for the three-month period ended June
30, 1999 were $0.11 vs. Q2 1998 diluted EPS of $0.34.
-- Results for the six-month period ended June 30, 1999 were $0.35
per diluted share vs. diluted EPS of $0.64 in the same period
last year.
-- Revenues increased to $239.0 million in Q2 of 1999 from $133.8
million in Q2 1998.
Second Quarter 1999 Results
Revenues for the second quarter of 1999 were $239.0 million
compared to $133.8 million a year ago. Net income was $1.7 million, or
$0.11 per diluted share, including a non-recurring gain from the final
determination of anti dumping duties (approximately $2.2 million
pre-tax), compared to $5.0 million or $0.34 per diluted share in the
second quarter of 1998.
The results for the North American division for the three months
ended June 30, 1999 were approximately $7.4 million in operating
income on revenues of approximately $155.1 million. On a comparative
basis for the three months ended June 30, 1998, the division's
operating income was approximately $10.0 million on revenues of
approximately $133.8 million, which represents a 26% decrease in
operating income. The International division contributed to overall
operating income, adding $0.9 million in operating income on revenues
of approximately $83.9 million.
Six Month 1999 Results
Revenues for the six months ended June 30, 1999 were $510.4
million compared to $234.3 million a year ago. Net income was $5.7
million, or $0.35 per diluted share for the six months ended June 30,
1999 compared to $8.9 million or $0.64 per diluted share in the same
period in 1998.
The results for the North American division for the six months
ended June 30, 1999 were approximately $15.8 million in operating
income on revenues of approximately $324.2 million. On a comparative
basis for the six months ended June 30, 1998, the division's operating
income was approximately $17.1 million on revenues of approximately
$234.3 million, which represents an 7.6% decrease in operating income.
The International division contributed to overall operating income,
adding $3.4 million in operating income on revenues of approximately
$186.2 million.
Founded in April 1997, U.S.A. Floral is the world's largest
floral supplier. The Company was formed to create a fully integrated
worldwide floral product distribution business. U.S.A. Floral Products
engages primarily in the importation and wholesale distribution of
floral and floral-related products. The Company also provides
pre-packaged floral bouquets and arrangements to retail florists and
mass market retailers, engages in brokerage services for wholesalers
of both international and domestic cut flowers, and provides floral
fulfillment and shipping services to direct shippers.
Except for historical information contained herein, the
statements made in this release, including those with respect to
results for the three and six month periods ended June 30, 1999, and
those with respect to the effects of purchasing synergies, expense
reductions, acquisition explorations and marketing and research and
development efforts, as they apply to possible future such synergies,
reductions, exploration efforts or the Company's results therefore
constitute forward-looking statements that involve certain risks and
uncertainties. Certain factors may cause actual results to differ
materially from those contained in the forward looking statements,
including those risks detailed in the Company's Annual Report on Form
10-K for the year ended December 31, 1998 relating to, among other
things: the absence of a combined operating history; the Company's
acquisition strategy; the concentration of flower sales in traditional
holiday periods; the financing of acquisitions; the Company's internal
growth and operating strategies; seasonality, cyclicality,
fluctuations in quarterly operating results, and weather; competition;
the amortization of intangible assets; dependence upon key personnel;
and imported products matters. The Company may not realize any or all
of the savings from its integration efforts due to market factors,
unforeseen costs and expenses and other risks and uncertainties, many
of which are beyond the Company's control. In addition, results may
vary as a result of factors set forth from time to time in the
Company's reports on file at the Securities and Exchange Commission.
*T
U.S.A. FLORAL PRODUCTS, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Six Six Three Three
Months Months Months Months
Ended Ended Ended Ended
6/30/99 6/30/98 6/30/99 6/30/98
Net revenues $ 510,384 $ 234,294 $ 239,041 $ 133,775
Cost of sales 380,616 170,721 175,847 96,666
Gross margin 129,768 63,573 63,194 37,109
Selling, general and
administrative expenses 107,064 44,557 53,085 26,016
Goodwill amortization 3,507 1,884 1,780 1,138
Integration charge 40 -- 3 --
--------- --------- --------- ---------
Income from operations 19,157 17,132 8,326 9,955
Other income (expense):
Interest expense (7,911) (2,094) (4,048) (1,413)
Interest income 994 743 612 472
Other 322 378 140 62
Income before income taxes
and minority interest 12,562 16,159 5,030 9,076
Provision for income taxes 6,819 7,244 3,307 4,113
Income before minority
interest 5,743 8,915 1,723 4,963
Minority interest 3 -- 11 --
---------
========= ========= ========= =========
Net income 5,746 $ 8,915 $ 1,734 $ 4,963
Net income per share
Basic $ 0.35 $ 0.67 $ 0.11 $ 0.35
Diluted $ 0.35 $ 0.64 $ 0.11 $ 0.34
Weighted average shares
outstanding:
Basic 16,315 13,356 16,315 14,352
Diluted 16,496 13,855 16,429 14,783
*T
CONTACT:
Thomas M. Ryan/Chad Jacobs
Integrated Corporate Relations
(Financial Analyst)
(203) 222-9013
U.S.A. Floral Products, Inc.
Investor Relations
(202) 333-0800 |
