[ACTM Reports Record Q2 Results - Revenue up 61%.]
Thursday July 27, 4:36 pm Eastern Time
Company Press Release
SOURCE: ACT Manufacturing, Inc.
ACT Manufacturing, Inc. Reports Record Second Quarter 2000
Results Revenue Up 61% Over the Second Quarter 1999
HUDSON, Mass., July 27 /PRNewswire/ -- ACT Manufacturing,
Inc. (Nasdaq: ACTM - news) today reported results for the
second quarter of 2000.
For the three months ended June 30, 2000, revenue increased
61 percent to a record $252,970,000 compared with
$157,519,000 for the same period in 1999. Net income for the
three months ended June 30, 2000 increased 584 percent to
$7,028,000, or $0.40 per share, compared with net income of
$1,028,000, or $0.08 per share for the second quarter of 1999.
For the six months ended June 30, 2000, revenue increased 59
percent to a record $482,058,000 compared with $303,466,000
for the same period in 1999. Net income for the six months
ended June 30, 2000 increased 358 percent to $13,178,000, or
$0.74 per share, compared with net income of $2,878,000, or
$0.22 per share for the same period in 1999.
Mr. John A. Pino, Chairman, President and Chief Executive
Officer, commented, ``I am extremely pleased with ACT's Q2
results and am confident that with our scale and global
reach, we will continue to see substantial opportunity to
grow and meet the needs of our diverse and global customer
base. During this past quarter, we have continued to execute
on our strategy to globalize our company. The GSS Thailand
acquisition has progressed on schedule. In addition, on July
13, 2000 we announced a definitive agreement to acquire Bull
Electronics Angers (''BEA``) in France. These acquisitions
will allow us to provide a global solution for our customers.
In order to provide the financing requirements of these
acquisitions and provide working capital to support our
growth, we issued $100,000,000 of 7% convertible subordinated
debt and closed a new $250,000,000 bank agreement.''
ACT Manufacturing, Inc., headquartered in Hudson,
Massachusetts, provides value-added electronics manufacturing
services to original equipment manufacturers in the
networking and telecommunications, computer and industrial
and medical equipment markets. The Company provides OEMs with
complex printed circuit board assembly primarily utilizing
advanced surface mount technology, electro-mechanical
subassembly, total system assembly and integration,
mechanical and molded cable and harness assembly, and other
value-added services. The Company has operations in
California, Georgia, Massachusetts, Mississippi, Mexico,
Ireland and Taiwan.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act
of 1995 that are subject to risks and uncertainties that
could cause actual results to differ materially from those
anticipated, including statements concerning the potential
uses of the new credit facility, the potential acquisitions
of BEA and GSS Thailand, the effects of the acquisitions,
expected financial and operating results, synergies, growth
of the customer base, future customer shipments, and the
plans and objectives of management. Those risks and
uncertainties include, among others: the inability to close
the acquisitions in a timely fashion; the risk of not
integrating the BEA or GSS Thailand businesses successfully;
the inability to achieve expected synergies; costs associated
with the acquisitions; 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 introductions of new products or
new generations of products, evolutions in the life cycles of
customers' products, inventory obsolescence, 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,
1999, Quarterly Report on Form 10-Q for the period ended
March 31, 2000 and the Registration Statement on Form S-3
filed on July 14, 2000.
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 30, 2000 December 31, 1999
ASSETS
CURRENT ASSETS
Cash and cash equivalents $26,236 $4,558
Marketable securities 98,151 0
Accounts receivable, net 207,815 160,830
Inventory 207,973 171,762
Prepaid expenses and other assets 11,210 4,177
Total current assets 551,385 341,327
PROPERTY AND EQUIPMENT -- net 37,588 38,047
GOODWILL -- net 9,861 10,334
OTHER ASSETS 19,261 12,618
TOTAL $618,095 $402,326
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $124,831 $153,764
Advance from customer 50,000 0
Accrued compensation and related taxes 4,796 3,769
Income tax payable 6,695 3,074
Accrued expenses and other 9,781 10,300
Total current liabilities 196,103 170,907
LONG-TERM DEBT - Less current portion 122,532 46,933
CONVERTIBLE SUBORDINATED NOTES 100,000 0
OTHER LONG-TERM LIABILITIES 5,196 6,357
STOCKHOLDERS' EQUITY
Common stock $168 $165
Additional paid-in capital 161,157 157,887
Accumulated other comprehensive income (953) (637)
Retained earnings 33,892 20,714
Total stockholders' equity 194,264 178,129
TOTAL 618,095 402,326
ACT MANUFACTURING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
Three Months Ended June 30:
2000 1999
Net sales $252,970 $157,519
Cost of goods sold 230,279 146,459
Gross profit 22,691 11,060
Selling, general and administrative expenses 8,398 8,288
Operating income 14,293 2,772
Interest and other expense, net 2,772 992
Income before provision for income taxes 11,521 1,780
Provision for income taxes 4,493 752
Net income $7,028 $1,028
Basic net income per common share $0.42 $0.08
Diluted net income per common share $0.40 $0.08
Weighted average shares outstanding -- basic 16,716 12,931
Weighted average shares outstanding -- diluted 17,745 13,319
Six Months Ended June 30:
2000 1999
Net sales $482,058 $303,466
Cost of goods sold 439,368 281,970
Gross profit 42,690 21,496
Selling, general and administrative expenses 17,721 14,602
Operating income 24,969 6,894
Interest and other expense, net 3,365 2,022
Income before provision for income taxes 21,604 4,872
Provision for income taxes 8,426 1,994
Net income $13,178 $2,878
Basic net income per common share $0.79 $0.22
Diluted net income per common share $0.74 $0.22
Weighted average shares outstanding -- basic 16,631 12,898
Weighted average shares outstanding -- diluted 17,755 13,325
SOURCE: ACT Manufacturing, Inc. |
