Jenna strikes again - nice call
Windmere-Durable Holdings, Inc., Reports Earnings of $1.00 Per Share in 1997; Sales Increase 33% to New Company Record
MIAMI LAKES, Fla., Feb. 20 /PRNewswire/ -- Windmere-Durable Holdings, Inc., (NYSE: WND - news) today announced record sales and significantly improved earnings for its 1997 fourth quarter and year that ended December 31, 1997.
For the 1997 fourth quarter, net sales rose 15.7 percent to $70.4 million from $60.9 million for the corresponding quarter last year. During the quarter, the Company completed the planned sale of its electronics factory to its joint venture partner New M-Tech. Sales from the factory, which were previously reported as top-line sales, appear effective October 1, 1997, as part of equity from earnings of the joint ventures. Net earnings for the 1997 fourth quarter were $9.1 million, or $0.45 per share, compared with earnings before extraordinary item of $2.4 million, or $0.14 per share, reported for the year-ago quarter. Including the after-tax charge of $3.5 million, or $0.20 per share, that the Company incurred for the settlement of the Izumi case, the net loss for the 1996 fourth quarter was $1.1 million, or $0.06 per share.
The gross profit margin for the 1997 fourth quarter improved to 32.1 percent from 20.3 percent for the year-ago quarter. Contributing significantly to this increase was LitterMaid(TM), Windmere-Durable's computerized, infrared, automatic self-cleaning cat litter box. The Company noted that this innovative new product has been very well received by the marketplace and continues to demonstrate excellent sales results.
Sales at Windmere-Durable's joint venture partners, Salton-Maxim Housewares and New M-Tech, grew at an accelerated pace in the 1997 fourth quarter and strongly contributed to Windmere-Durable's earnings despite several factors. Two of Salton-Maxim's customers, Home Place, Inc., and Venture, filed for protection under Chapter 11 of the U.S. Bankruptcy Code, owing at the time of the filings an aggregate of approximately $2.4 million. Provisions for the estimated potential losses resulted in an after-tax charge of approximately $600,000 in Salton-Maxim's quarter ended December 27, 1997. New M-Tech incurred air freight costs of $4.0 million during the 1997 fourth quarter to meet the rapid acceleration of sales under the Kmart agreement.
For the full year, net sales grew at a record pace, up 32.9 percent to a new company high of $261.9 million from $197.0 million for 1996. Net earnings for 1997 posted impressive gains, increasing to $19.8 million, or $1.00 per share. For 1996, earnings before extraordinary item were $4.0 million, or $0.22 per share. Including the aforementioned after-tax charge of $3.5 million, or $0.20 per share, for the settlement of the Izumi case, net earnings for 1996 were $451,000, or $0.02 per share. Productivity improvements throughout the Company, particularly at Durable Electric, the Company's China manufacturing subsidiary, and the contribution from the LitterMaid product line led to improvements in the gross, operating and net margins for 1997.
''We are very pleased with our performance in 1997,'' commented David M. Friedson, Windmere-Durable's Chairman, President and Chief Executive Officer. ''Our excellent financial results are strong evidence of the successful implementation and execution of our strategic plan. This is the first real demonstration of the earnings power that we have created in the transformation of our Company.''
Certain matters discussed in this news release are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward- looking statements. These factors include economic conditions and the retail environment; the Company's dependence on the timely development, introduction and customer acceptance of products; competitive products and pricing; reliance on key customers; dependence on foreign suppliers and supply and manufacturing constraints; cancellation or reduction of orders; and other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings.
Windmere-Durable Holdings, Inc., is a diversified manufacturer and distributor of a broad range of consumer products, including personal care products for the home and professional salons, kitchen electric appliances, and consumer electronics. The Company also markets the LitterMaid(TM) computerized, infrared, automatic self-cleaning cat litter box. |
