WENATCHEE, Wash., Oct 7, 1999 /PRNewswire via COMTEX/ -- Pacific
Aerospace & Electronics, Inc. (Nasdaq: PCTH), an international
engineering and manufacturing company specializing in technically
demanding components and assemblies, today announced results for its
first quarter ended August 31, 1999.
For first quarter of fiscal 2000, Pacific Aerospace & Electronics
("PA&E") reported revenue of $28.6 million, an increase of 49% from
$19.2 million for the same quarter in fiscal 1999. The Company's
year-over-year revenue growth was primarily the result of the
acquisition of its European Aerospace Group and expansion of its U.S.
Electronics Group. European Aerospace contributed $14.4 million or 50%
of total revenue in the first quarter of fiscal 2000. U.S. Electronics
revenue was $6.3 million, up 12% from the same period last year. U.S.
Aerospace revenue was $7.9 million, down 12% from the same period last
year.
The U.S. Aerospace Group, particularly its machining operations,
continued to be adversely affected by the slowdown in domestic
commercial aircraft production. In the current period, PA&E plans to
significantly reduce fixed operating costs in its domestic machining
operations. The Company also plans to redeploy machining capacity to
higher growth opportunities, such as electronics, non-commercial
aerospace, transportation, energy, marine and other sectors where the
Company has active markets and opportunities for greater
diversification.
Earnings before interest, taxes, depreciation and amortization
("EBITDA") was $3.4 million for the first quarter, up 65% from $2.0
million for the same quarter in fiscal 1999. Interest expense for the
quarter was $2.5 million, compared to $1.1 million for the same period
last year. The increased interest expense relates to $75 million of 11
1/4% subordinated notes associated with the acquisition of the
Company's European operations (Aeromet) in July 1998.
The net loss for the quarter was $1.5 million or ($0.08) per diluted
share, compared to a net loss of $4.4 million or ($0.29) per diluted
share the first quarter of fiscal 1999. The fiscal 1999 results
included non-recurring charges of $6.7 million. In order to restore and
improve profitability, the Company is significantly reducing corporate
overhead through reductions in staffing and stringent cost controls of
administrative, travel and outside services. The Company expects these
efforts to reduce overhead costs by approximately $1 million over the
next year.
"While the diversification and growth of our business into European
aerospace and specialized electronics has helped offset the softness in
demand and pricing pressure in the U.S. commercial aerospace market, we
are disappointed with our combined bottomline performance," said Don
Wright, President and CEO. "In response, we are taking aggressive
actions to streamline operations and reduce our corporate overhead.
These steps are intended to assure that we achieve better
organizational efficiency, maintain our competitiveness and position
ourselves to seize sales opportunities in new markets."
Pacific Aerospace & Electronics, Inc. is an international engineering
and manufacturing company specializing in technically demanding
components and assemblies for global leaders in the aerospace, defense,
electronics, medical, energy and transportation industries. The Company
is organized into three operational groups -- U.S. Aerospace, U.S.
Electronics and European Aerospace -- with European operation
accounting for approximately half of its revenue. Pacific Aerospace &
Electronics is headquartered in Wenatchee, WA, and has approximately 1,
100 employees worldwide.
Forward-looking statements in this release concerning trends or
anticipated operating results are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties related to the
Company's operations. These risks and uncertainties include, but are
not limited to, competitive factors (including the possibility of
increased competition or technological development, competitors, and
price pressures); legal factors (such as limited protection of the
Company's proprietary technology and changes in government regulation);
and the Company's dependence on key personnel and significant
customers.
Pacific Aerospace & Electronics, Inc.
Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
Quarter Ended August 31,
1999 1998
Net sales $28,571 $19,178
Cost of sales 22,011 14,504
Gross profit 6,560 4,674
Operating expenses 5,104 3,776
Income from operations 1,456 898
Other income and expense, net (2,497) (7,564)
Net income before taxes (1,041) (6,666)
Provision for income tax (465) 2,255
Net income (loss) $(1,506) $(4,411)
Net income (loss) per share
Basic $(0.08) $(0.29)
Diluted (0.08) (0.29)
Shares used in computation of net income
(loss) per share
Basic 19,108 15,421
Diluted 19,108 15,421
EBITDA $3,350 $2,028
EBITDA per share $0.18 $0.13
Pacific Aerospace & Electronics, Inc.
Consolidated Balance Sheets
(In Thousands)
August 31, May 31,
1999 1999
Assets
Cash $2,608 $8,134
Accounts & notes receivable 24,316 24,992
Inventories 26,493 24,616
Other current assets 3,054 3,196
Total current assets 56,471 60,938
Property, plant & equipment, net 46,289 45,279
Patents, intangibles & other 54,080 52,510
Total Assets $156,840 $158,727
Liabilities and stockholder's equity
Accounts payable $9,889 $10,484
Line of credit 2,600 --
Other current liabilities 9,734 12,125
Total current liabilities 22,223 22,609
Long-term debt, net 79,987 80,220
Net capital leases, deferrals & other 2,088 1,879
Total liabilities 104,298 104,708
Common stock 19 19
Additional paid-in capital 69,305 69,276
Accumulated other comprehensive
income (loss) (1,138) (1,140)
Accumulated deficit (15,644) (14,136)
Total stockholders' equity 52,542 54,019
Total liabilities & stockholders' equity $156,840 $158,727
SOURCE Pacific Aerospace & Electronics, Inc.
(C) 1999 PR Newswire. All rights reserved.
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CONTACT: Tom Barrows of Pacific Aerospace & Electronics, Inc.,
509-667-9600; or Jeff Howlett of StreetConnect, 206-320-1231,
for Pacific
Aerospace & Electronics, Inc.
WEB PAGE: pcth.com
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