Here they are:
Safeskin Reports Record First Quarter for 1998: Sales Increase 29% Aided by
Increased Production Capacity and Net Income Rises 57%
Thursday, May 7, 1998 07:55 AM
SAN DIEGO, May 7 /PRNewswire/ -- Safeskin Corporation (Nasdaq: SFSK), a leading developer and
manufacturer of high-quality, powder- free, disposable latex and synthetic gloves for the healthcare, high-
technology and scientific industries, today reported record sales and earnings for its first quarter, which ended
March 31, 1998.
Net quarterly sales rose to $53.3 million, an increase of 29 percent above the prior year's corresponding quarterly
sales of $41.2 million.
Net income for the quarter increased 57 percent to $13.3 million, or $.44 per diluted and pre-split share. This
compares to $8.5 million, or $.30 per share in the same period a year earlier. On April 1, 1998 the Company's
common stock split two for one. On a split adjusted basis, Safeskin earned $.22 per diluted share compared to
$.15 per share in the year ago period.
Gross profit margin improved to 52 percent of sales compared to 45 percent a year ago, reflecting the favorable
impact of a greater percentage of production having been generated by Thailand's lower cost manufacturing
facilities and lower manufacturing costs attributable to devalued foreign currencies.
Beginning with the first quarter of 1998, the calculation of gross profit margin includes delivery expenses
(shipping and freight costs), which are now part of the cost of goods sold. Previously, delivery expenses were
included in selling expenses. The year ago period has been recalculated to reflect this change.
Operating expenses rose to 25 percent of sales compared to 21 percent in the prior year period reflecting higher
expenses incurred for research and development, information technology costs, and additional personnel.
"Our excellent first quarter performance is a continuation of the momentum we generated last year," said Richard
Jaffe, Chairman, President and Chief Executive Officer of Safeskin. "During the quarter, all three of our Grand
Master production systems became fully operational contributing needed capacity for the quarter and remainder
of the year. On an annualized basis, our three Grand Masters are now producing over one billion gloves."
"I am also pleased to announce today that the first six of 22 new- generation, high-speed dipping lines were
placed into operation in April in building number five at our existing Thailand facility," Mr. Jaffe continued. "We
anticipate commissioning additional lines on a monthly basis throughout the remainder of this year, bringing our
total glove run rate to over five and one-half billion gloves by the end of the year. Safeskin's fundamentals
continue to be strong."
Safeskin Corporation is the leading manufacturer of high quality, disposable latex medical examination gloves for
the United States market and believes that it is the world's leading manufacturer of high quality disposable
powder-free examination gloves. The Company produces gloves at its manufacturing facilities in Southeast Asia
using proprietary formulations and processes. For more information, please visit the Company's Internet site at
www.safeskin.com.
This press release contains forward-looking statements that involve risks and uncertainties, including references
to the timing and realization of capacity expansion plans and their impact on future financial results. Actual
results may differ materially from those anticipated in the above forward looking statements for various reasons
including those and others that are identified in the Company's readily available and most recent Form 1O-Q and
other filings with the Securities and Exchange Commission.
Safeskin Corporation
SELECTED FINANCIAL DATA
(Dollars in Thousands, Except Per Share Amounts)
For the Quarters Ended
3/31/98 3/31/97
OPERATIONS (unaudited) (unaudited)
Net Sales $53,296 $41,168
Cost of Goods Sold 25,454 22,737
Gross Profit 27,842 18,431
Operating Expenses 13,387 8,594
Income from Operations 14,455 9,837
Other Expense (Income) (339) 226
Income Before Income Tax Provision 14,794 9,611
Income Tax Provision 1,480 1,121
Net Income $13,314 $8,490
Per Share Amounts:
Diluted $0.44 $0.30
Diluted -- Split Adjusted (a) $0.22 $0.15
Weighted Average Common
Shares Outstanding
Diluted 30,317,981 28,708,791
Diluted -- Split Adjusted (a) 60,635,961 57,417,582
(a) Reflects adjustment for two-for-one stock split effective
April 1, 1998
BALANCE SHEET Balance As Of
3/31/98 12/31/97 3/31/97
(unaudited) (unaudited)
Cash $16,002 $23,917 $7,709
Accounts Receivable 25,580 22,196 24,106
Inventory 26,489 21,243 21,099
Other Current Assets 6,121 5,692 4,181
Property, Plant
and Equipment, Net 72,806 52,904 56,744
Other Assets 21,932 12,568 12,148
Total Assets $168,930 $138,520 125,987
Total Debt $--- $--- $---
Other Current Liabilities 27,384 29,847 13,179
Deferred Taxes and Other 3,412 2,095 ---
Shareholders' Equity 138,134 106,578 112,808
Total Liabilities and
Shareholders' Equity $168,930 $138,520 $125,987
SOURCE Safeskin Corporation
CONTACT: Mark Francois, Director, Investor Relations of Safeskin Corporation, 619-350-6840
Quote for referenced ticker symbols: SFSK
c 1998, PR Newswire
Looks great to me!
Ann |
