Substantial Performance Improvements Compared to Break-Even a Year Ago
LATHAM, N.Y., March 12 /PRNewswire/ -- Intermagnetics General Corporation
(Amex: IMG), citing a 46 percent increase in sales, today reported third-
quarter net income of $815,000, or 7 cents per share, compared with $24,000,
or approximately break-even per share, a year earlier. Net sales for the
quarter ended February 22, 1998, were $25.2 million compared with
$17.3 million for the prior-year quarter. Total revenues were $25.7 million
compared with $18.2 million in last year's comparable quarter.
For the nine months ended February 22, 1998, net income was $1.9 million,
or 15 cents per share, compared with $1.9 million, or 16 cents per share, a
year earlier on fewer shares outstanding. Net sales for the nine months were
$68.5 million compared with $62.0 million, and total revenues were
$69.9 million compared with $64.4 million for the comparable period last year.
"Following two quarters of results that fell short of our expectations, we
have begun to show measurable improvements during the second half of fiscal
1998," said Carl H. Rosner, chairman and chief executive officer. "These
improvements are the result of a combination of increasing revenues, ongoing
cost-containment efforts that have led to margin gains and the inclusion of
operations from Medical Advances Inc. and Polycold Systems Inc., which we
acquired over the past several months. We expect the trend to continue into
the fourth quarter, assuming the Company can achieve a meaningful increase in
the level of refrigeration products sales in that period."
Gross Margin Continues Year-Over-Year Improvement
"Gross margins continued to increase in the third quarter, reaching
$8.7 million, or a 34.6 percent level, compared with $4.6 million, or 26.5
percent, last year," Rosner added. "For the first nine months of the current
fiscal year, gross margins grew to $24.2 million, or 35.4 percent of sales,
from $18.1 million, or 29.2 percent, last year. Our acquisitions also
contributed to the margin increases, as did the results of continuing
cost-reduction efforts, mainly in our magnet business."
Operating Income Improves Substantially
Operating income expanded to $1.7 million for the current year quarter,
versus an operating loss of $174,000 recorded last year. For the nine months,
operating income climbed 64 percent to $3.6 million from $2.2 million last
year.
Operating expenses for the third quarter grew to $7.0 million from
$4.8 million last year, with nearly all of the increase due to the addition of
Medical Advances and Polycold. Intermagnetics' tax rate increased to 39
percent from 37 percent in the prior year, largely due to the effects of
non-deductible amortization of the excess of the purchase price over the fair
market value of net assets acquired in the Medical Advances and Polycold
acquisitions.
Intermagnetics is a leading developer and manufacturer of superconducting
LTS and HTS magnets, wire and cable as well as associated low-temperature
refrigeration equipment, the combination of which is essential to successful
application of superconductivity such as Magnetic Resonance Imaging (MRI).
The Company is dedicated to the development and commercialization of applied
superconductivity and refrigeration systems. The Company also supplies
permanent magnet systems, materials separation equipment and FRIGC(R)
refrigerants as replacements for ozone-depleting refrigerants.
SAFE HARBOR STATEMENT:
The statements contained in this press release which are not historical
fact are "forward-looking statements" that involve various important
assumptions, risks, uncertainties and other factors. These include, without
limitation, the assumptions, risks, and uncertainties set forth in the
Company's Annual Report on Form 10-K for the fiscal year ended May 25, 1997,
including the Company's ability to win greater market acceptance for FRIGC and
expanded product sales from APD as well as continued strength and expansion in
its core wire and MRI magnet markets.
INTERMAGNETICS GENERAL CORPORATION
Consolidated Statements of Income
(Dollars in Thousands, Except Share and Per Share Amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Feb. 22, Feb. 23, Feb. 22, Feb. 23,
1998 1997 1998 1997
Net sales $25,235 $17,325 $68,470 $61,955
Other revenue 507 838 1,472 2,411
Total revenue 25,742 18,163 69,942 64,366
Costs and expenses:
Cost of products sold 16,511 12,730 44,254 43,839
Product research and
development 1,665 1,304 5,731 4,500
Marketing, general and
administrative 5,357 3,465 14,894 11,433
Interest and other expense 555 515 1,600 1,585
Equity in net loss of
unconsolidated
affiliate 317 111 400 34
24,405 18,125 66,879 61,391
Income before income taxes 1,337 38 3,063 2,975
Provision for income taxes 522 14 1,195 1,071
NET INCOME $815 $24 $1,868 $1,904
Earnings per Common Share $0.07 $0.00 $0.15 $0.16
Weighted average shares
outstanding 12,503,724 11,940,206 12,500,206 11,958,694
NOTE: Primary shares and earnings per share have been adjusted to reflect
a 2% stock dividend distributed September 16, 1997.
INTERMAGNETICS GENERAL CORPORATION
Condensed Consolidated Balance Sheets
(Dollars in thousands)
Feb. 22, 1998 May 25, 1997
ASSETS
CURRENT ASSETS
Cash and short-term investments $11,989 $12,667
Trade accounts receivable 18,673 16,899
Costs and estimated earnings in excess of
billings on uncompleted contracts 4,691 3,543
Inventories 30,413 26,417
Prepaid expenses and other 4,006 3,272
TOTAL CURRENT ASSETS 69,772 62,798
PROPERTY, PLANT AND EQUIPMENT, net 28,102 28,552
INVESTMENTS AND INTANGIBLE AND OTHER ASSETS 36,841 24,639
$134,715 $115,989
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $269 $259
Note payable 6,821 --
Accounts payable 5,398 6,441
Salaries, wages and related items 3,225 2,660
Customer advances and deposits 1,195 811
Product warranty reserve 1,143 911
Accrued income taxes 1,255 1,453
Other liabilities and accrued expenses 2,004 917
TOTAL CURRENT LIABILITIES 21,310 13,452
LONG-TERM DEBT, less current portion 28,882 29,105
DEFERRED INCOME TAXES 864 345
SHAREHOLDERS' EQUITY 83,659 73,087
$134,715 $115,989
SOURCE Intermagnetics General Corporation
-0- 03/12/98
/NOTE TO EDITORS: For more information about Intermagnetics General
Corporation, free of charge via fax, dial 1-800-PRO-INFO and use ticker symbol
"IMG."/
/CONTACT: Carl H. Rosner, Chairman & CEO, or Cathy Yudzevich, Investor
Relations, both of Intermagnetics General Corporation, 518-782-1122; or Karl
Plath, General Inquiries, 312-640-6738, or Margaret Huebner, Analyst
Inquiries, 312-640-6725, both of The Financial Relations Board/
/Web site: igc.com
(IMG)
CO: Intermagnetics General Corporation
ST: New York
IN:
SU: ERN
MR-CM
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