SLI, Inc. Reports Third Quarter Results; CEO Says Strategic Vision Remains Intact
CANTON, Mass., Nov. 10 /PRNewswire/ -- SLI, Inc. (NYSE: SLI - news), one of the world's largest vertically integrated lighting manufacturers today announced third quarter sales of $216.7 million and net income per diluted share of $0.19. On a proforma basis, excluding non-recurring charges, the 1999 third quarter diluted net income per share was $0.20. Chairman and CEO, Frank Ward, commented that, ''the strategic vision of the Company remains intact as we build our stature as a global full-line lighting company.''
Sales for the 1999 third quarter of $216.7 million were up 19% over third quarter 1998 sales of $182.0 million. The third quarter sales growth was impacted by the adverse currency translation effect of the strong dollar and pricing pressure within the European lamp market. Year to date sales for the nine months ended October 3, 1999 were up 14.6% to $641.6 million compared to $560.0 million for the prior year.
Operating income for the 1999 third quarter was $11.4 million vs. $13.3 million in 1998 and was $48.7 million for the nine months ended October 3, 1999 (prior to $2.3 million of restructuring costs) compared to $41.4 million in 1998. The results of operations for the 1999 third quarter were primarily impacted by lower margin sales in Europe due to pricing pressure within the European lamp market and to a lesser extent, the delayed integration of recent acquisitions. Included in the 1999 third quarter was a total of $432,000 of non-recurring charges, and for the nine months ended October 3, 1999 non-recurring charges totaled $829,000 compared to $525,000 in 1998. In 1999, non-recurring charges are primarily related to the integration of acquisitions and reorganization activities.
Net income for the 1999 third quarter was up 4.5% to $7.0 million vs. $6.7 million in 1998, and net income was up 25% to $29.1 million for the nine months ended October 3, 1999 vs. $23.3 million in 1998. Third quarter diluted net income per share was $0.19 in 1999 vs. $0.23 in the 1998 quarter as the weighted average shares increased by 26% in the 1999 third quarter and 9% for the nine months ended October 3, 1999. On a proforma basis, excluding non-recurring charges, the 1999 third quarter diluted net income per share was $0.20.
Based on the current operating results and the most recent outlook for the remainder of 1999, the Company expects diluted net income per share for the year to be between $1.20 and $1.30, before restructuring and non-recurring charges, with an estimated increase in diluted weighted average shares outstanding of approximately 12% over the prior year.
Frank M. Ward, Chairman and CEO, commented; ''As we look forward to the rest of this year and into the year 2000, the Company is postured to address the setbacks experienced in the third quarter. Pricing pressure in Europe is being closely monitored and plans are being put in place to seize opportunities to offset price deterioration. Although it is taking longer to integrate acquisitions then originally anticipated, the synergies of the Company's integrating efforts are quite apparent. We are continuing to target synergistic acquisitions and maintain aggressive cost reduction programs that should enable us to pursue our goal of double-digit growth per year. The strategic vision of the Company remains intact as we build our stature as a global full-line lighting company.''
''The strength of the Company's balance sheet continues to provide financial flexibility as is evident by the recent $200 million increase in the Company's credit facility, providing an aggregate $500 million multi-currency revolving credit facility. This financial strength positions the Company for growth, enabling the Company to continue to vigorously pursue its business strategy.''
SLI, Inc., based in Canton, Massachusetts, is a vertically integrated designer, manufacturer and seller of lighting systems, which are comprised of lamps, fixtures, and ballasts. The Company offers a complete range of lamps (incandescent, fluorescent, compact fluorescent, high intensity discharge, halogen, miniature incandescent, neon, LED, and special lamps), a comprehensive range of fixtures, ballasts, lighting maintenance services and fiber optic lighting systems. The Company serves a diverse international customer base and markets, has major plants in 13 countries and operates throughout the world.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties that may affect business and prospects and cause actual results to differ materially from these forward-looking statements.
A CONFERENCE CALL WILL TAKE PLACE ON WEDNESDAY NOVEMBER 10, 1999 @ 10:00AM E.S.T. CALL 888-769-9727; INTERNATIONAL PARTICIPANTS CALL 712-271-0043 ASK OPERATOR FOR ''SLI FRANK WARD QUARTERLY EARNINGS CALL'' |
