Cade Industries Reports Second Quarter/Six Months Results Net Income Up 101% for Quarter, 98% for Year-to-Date
PR Newswire - July 22, 1998 08:11
OKEMOS, Mich., July 22 /PRNewswire/ -- Cade Industries (Nasdaq: CADE), a leading supplier of products and services to the aerospace and air transport industries, today reported results for the second quarter and six months ended June 30, 1998.
Second quarter net income rose to $1,080,000 or basic earnings per share of five cents, from $538,000 or basic earnings per share of two cents for the comparable period of 1997. Net income increased 98 percent for the first half, to $1,998,000 or basic earnings per share of nine cents, from $1,009,000 or basic earnings per share of five cents for the comparable six month period of the prior year. Revenues were up 87 percent for the second quarter, to $24.1 million from $12.9 million in last year's second quarter. Sales revenue for the first half rose 82 percent, to $46.0 million from $25.3 million in the same period last year.
Cade's president, Richard A. Lund attributed the revenue gain to continued high demand for aircraft products, strong product diversification and higher than expected revenues from jet engine test facilities and associated ground support equipment. Approximately 33 percent of the three-and six-months sales increase was from the company's acquisition of Central Engineering Company (Cenco) in November 1997.
"We are pleased with the strong growth we are experiencing at Cade and the strengthening of the company's backlog to $88 million as of June 30, 1998," Lund said. Cade reported in June 1998 that the company had received an order estimated in excess of $8 million from Rolls Royce, plc. for engine stands and adapters to be used in testing and developing the new Trent 500 large fan engine.
Cade designs, develops, manufactures, overhauls and repairs high technology composite components for the aerospace and air transport industries and is a global leader in the design and manufacture of jet engine test facilities and related ground testing equipment. The company's operating subsidiaries are located in Lansing, Michigan; San Diego, California; Grand Prairie, Texas (Dallas); and Minneapolis, Minnesota.
For more information or to receive a copy of this press release, please call our Company News On Call at 1-800-758-5804 -- extension 075675 or you can access the information via the Internet at prnewswire.com or for further information on Cade Industries you can access the company's web site at cade-industries.com.
CADE INDUSTRIES, INC.
Financial Highlights (Unaudited)
For the Three For the Six
Months Ended Months Ended
06/30/98 06/30/97 06/30/98 06/30/97
Sales $24,098,000 $12,953,000 $46,012,000 $25,308,000
Net income $1,080,000 538,000 1,998,000 1,009,000
Net income
per share:
Basic $.05 $.02 $.09 $.05
Diluted $.05 $.02 $.09 $.05
Weighted average
common shares
outstanding:
Basic 22,035,000 21,683,000 22,007,000 21,697,000
Diluted 22,745,000 22,027,000 22,641,000 22,013,000
The above statements involving industry conditions and company sales and profits are forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those which are anticipated are the following: business conditions generally and conditions specifically in the aircraft and aerospace industries; timing of receipt and delivery of orders; the timing and satisfactory completion of engine test facilities; price fluctuations for raw materials and labor; competitive factors, including price completion from other suppliers of similar products and overhaul and repair services; risk of obsolescence of tooling inventory before full amortization on project costs; and cancellation of orders.
CADE INDUSTRIES, INC. AND SUBSIDIARIES (Unaudited condensed consolidated financial statements)
Statements of Income Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
Sales $24,098,408 $12,952,885 $46,011,756 $25,308,442
Operating expenses
Cost of sales 18,752,711 9,826,307 35,390,047 19,202,420
Selling, general
and administrative
expense 3,542,038 2,149,744 7,129,456 4,253,579
22,294,749 11,976,051 42,519,503 23,455,999
Income From
Operations 1,803,659 976,834 3,492,253 1,652,443
Interest
expense - net 325,972 190,891 654,129 376,057
Income Before
Income Taxes 1,477,687 785,943 2,838,124 1,476,386
Income tax
expense 398,000 248,000 840,000 467,000
Net Income $1,079,687 $537,943 $1,998,124 $1,009,386
Net Income
Per Share:
Basic $0.05 $0.02 $0.09 $0.05
Diluted $0.05 $0.02 $0.09 $0.05
Balance Sheets June 30 Dec. 31
1998 1997
Assets
Cash and cash equivalents $157,870 $1,093,176
Trade accounts receivable 13,178,254 12,687,969
Costs and estimated earnings in
excess of billings on
uncompleted contracts 2,430,187 2,053,922
Inventories 16,039,660 13,798,967
Other current assets 1,939,416 1,567,132
Total Current Assets 33,745,387 31,201,166
Property, plant and
equipment - net 18,033,918 17,662,161
Other assets - net 5,659,218 5,706,564
Total Assets $57,438,523 $54,569,891
Liabilities and Shareholders' Equity
Note payable to bank $850,000 $1,460,000
Current portion of long-term debt 2,968,609 3,012,998
Trade accounts payable 4,455,747 5,190,782
Other current liabilities 5,221,417 4,476,337
Billings in excess of costs and
estimated earnings on uncompleted
contracts 8,168,628 5,626,388
Total Current Liabilities 21,664,401 19,766,505
Long-term debt 9,525,556 10,682,554
Deferred income taxes 788,000 788,000
Shareholders' equity 25,460,566 23,332,832
Total Liabilities and
Shareholders' Equity $57,438,523 $54,569,891
Stock for Cade Industries, Inc. is traded on the Over-The-Counter Market (National Market System). The symbol is CADE.
SOURCE Cade Industries
/CONTACT: S.A. Mull, Shareholder Relations, or E.B. Stephens, Chief
Financial Officer, both of Cade Industries, 517-347-1333; or L. B. Stauffer,
Senior Vice President of Porter, LeVay & Rose, Inc., 212-564-4700, for Cade
Industries/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 075675/
/Web site: cade-industries.com
(CADE)
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