SCI record earnings, $.34 vs. $.24
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SCI Systems Announces Record Fiscal Third Quarter Results
HUNTSVILLE, Ala., April 24 /PRNewswire/ -- SCI Systems, Inc. (NYSE: SCI - news) announced today consolidated operating results for the third quarter and first nine months ended March 26, 2000. Sales and net income for the quarter were at record levels.
Sales for the third quarter were $2.217 billion, 38% higher than the $1.603 billion in the same period a year earlier. Net income was $49.7 million in the quarter, a 54% increase over the $32.4 million in the same quarter of fiscal 1999. Basic and diluted earnings per share for the quarter were $.34 each, compared with $.27 and $.24 per share a year earlier, respectively, an increase of 42% on diluted earnings per share. Diluted earnings per share excluding the after-tax effect of goodwill amortization, referred to as ``Cash EPS,' were $.37 per share compared with $.24 a year earlier.
Sales for the first nine months were $6.036 billion compared with $4.909 billion in last fiscal year's first nine months. Net income was $139.7 million for this period compared with $95.0 million in the fiscal 1999's first nine months, a 47% increase. Basic and diluted earnings per share for the first nine months were $.97 and $.95 per share, respectively, compared with $.79 and $.70 per share a year earlier, an increase of 36% on diluted earnings per share. Diluted earnings per share excluding the after- tax effect of goodwill amortization was $1.03 per share compared with $.71 a year earlier.
Olin B. King, founder and thirty-eight year employee of the Company, confirmed today his intention of retiring at the end of the current fiscal year, June 30, 2000. He said he will also relinquish his Board Chairmanship on that date, while retaining his Board seat. The Board indicated its intent to elect A. Eugene Sapp, Jr., as its successor Chairman. Mr. Sapp will also retain his current titles of President and Chief Executive Officer.
``Diversification of products together with growth in telecommunication products stimulated the revenue and operating margin growth in what has been a historically down sequential quarter for SCI,' said Mr. Sapp. He further stated that, ``our product diversification strategy is not only providing growth, but is also abating some of the seasonal trends the Company has seen in past years, particularly in the Personal Computer business.'
Headquartered in Huntsville, Alabama, SCI Systems, Inc. is a diversified electronics manufacturer whose products and systems are supplied to a variety of aerospace, commercial and industrial customers. SCI is one of the world's largest providers of electronics manufacturing services, with more than 31,000 employees operating 37 facilities in 17 countries.
The information set forth herein is based on historical data. To the extent that this release includes forward-looking statements, such statements involve uncertainty and risk, and actual results could differ materially from those reflected in such forward-looking statements. Factors which could cause actual results to differ materially include component availability and pricing, management of growth, intense competition, plant startup and transition cost, customer and product concentration, technological changes, potential delays in expansion or construction plans and foreign currency fluctuations, as well as other risks contained in the Company's filings with the Securities and Exchange Commission.
SCI Systems, Inc.
Fiscal Third Quarter 00
Preliminary Numbers and Subject to Change*
(in thousands except share data)
3rd Quarter FY00 9 Months FY00
Sales $2,216,718 $6,036,091
Costs and Expenses $2,122,512 $5,790,669
Goodwill Amortization $7,657 $16,443
Operating Income $86,549 $228,979
Operating Margin 3.90% 3.79%
Interest Expense $13,884 $25,405
Other Income $1,542 $4,971
Income Before Taxes $74,207 $208,545
Income Taxes $24,488 $68,820
Net Income $49,719 $139,725
Basic Earnings per Share $0.34 $0.97
Diluted Earnings per Share $0.34 $0.95
Wght.Avg.Shares-Basic 144,144,255 144,053,906
Wght.Avg.Shares-Diluted 148,366,428 146,906,443
Depreciation and Amortization $40,828 $107,208
Capex (Including Acquisitions) $76,613 $534,112
Assets 03/26/00
Cash $158,905
Accounts Receivable $845,566
Inventories $1,242,376
Refundable and Deferred Income Taxes $14,639
Other Current Assets $79,990
Total Current Assets $2,341,476
Property, Plant and Equip. $575,569
Goodwill $311,299
Other Non Current Assets $55,942
Total Assets $3,284,286
Liabilities
Accounts Payable and Accrued Expenses $1,104,000
Accrued Payroll and Related Expenses $54,378
Accrued Income Taxes $30,965
Current Maturities of Long-Term Debt $1,599
Total Current Liabilities $1,190,942
Other Non Current liabilities $82,073
Industrial Revenue Bonds $19,762
Long-Term Notes $119,443
Convertible Notes $562,390
Total Long-Term Debt $701,595
Shareholders' Equity
Common Stock $14,486
Capital in Excess of Par $473,493
Retained Earnings $843,521
Currency Translation Adjustment ($15,906)
Less Shares Held by Rabbi Trusts ($5,577)
Less Treasury Stock ($341)
Total Shareholders' Equity $1,309,676
Total Liability and Shareholder's Equity $3,284,286 |
