SALT reports amazing numbers; makes $1.25 in the quarter and the stock sells for $28. Lots of room for higher prices.
Salton, Inc. Reports 114% Increase in Fiscal 1999 Second Quarter
Net Income to a Record $11.7 Million
MT. PROSPECT, Ill.--(BUSINESS WIRE)--Jan. 29, 1999--
- Record Quarterly Sales of $142.7 Million, Up 40% Year-Over-Year -
- Earnings Increase 213% to a Record $1.25 Per Diluted Share -
Salton, Inc. (Nasdaq: SALT), today reported results for its fiscal 1999 second quarter and six months ended December 26, 1998.
For the quarter, net sales increased 39.7% to a record $142.7 million, compared with $102.2 million in the same period last year. Net income increased 114.4% to a record $11.7 million, compared to $5.4 million a year earlier. Earnings increased to a record $1.25 per diluted share, compared to $0.40 per diluted share in the prior year's period.
For the six months, net sales increased 47.1% to a record $247.1 million, compared with $167.9 million in the same period last year. Net income increased 135.1% to a record $22.5 million, compared to $9.6 million a year earlier. Earnings increased to a record $2.24 per diluted share, compared to $0.71 per diluted share in the prior year's period.
Leonhard Dreimann, Chief Executive Officer, said, "We are very pleased with our second quarter performance, which, once again, represents record operating results for Salton across the board. This record performance was achieved without contribution from Toastmaster Inc., which we acquired in early January 1999."
Mr. Dreimann continued, "Our exceptional sales performance during the quarter reflects not only continued overwhelming consumer demand for our George Foreman Grills(R), but continued strength in our more established product lines, as well. The success of our private label partnerships, with White-Westinghouse(R) under the Kmart program, Kenmore under the Sears program, and, most recently, Magic Chef under the Wal-Mart program, also continued in the second quarter."
Mr. Dreimann added, "Since completing our acquisition of Toastmaster and its broad line of kitchen and small household electrical consumer appliances and time products, we have begun working diligently to integrate Toastmaster's operations. Also following the completion of the acquisition, we enhanced our senior management team with the appointment of John Thompson to the positions of Senior Vice President and Chief Financial Officer of Salton. As former Chief Financial Officer of Toastmaster, we are confident that John will be invaluable as we work toward integrating the combined operations."
Mr. Dreimann concluded, "Over the past several quarters, our business has built-up tremendous momentum, which is only further solidified by our record second quarter and first-half performance. Going forward, we will continue to focus on driving Salton's penetration of the housewares and small appliance market through both the development of new products and building upon the proven strategic success of our partnerships."
Salton, Inc. designs and markets an extensive line of kitchen and home appliances, personal and beauty care products and decorative quartz wall and alarm clocks under the brand names Salton(R), Toastmaster(R), Breadman(R), Juiceman(R), Salton Creations(R), Ingraham(R), Salton Time(R), White-Westinghouse(R), and Farberware(R). The Company also designs and markets a broad range of tabletop products, including china, crystal and glassware, under the brand names Block(R) China, Atlantis(R) Crystal, and Gear(R).
Except for historical information contained herein, the matters discussed 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 (the "Cautionary Statements") include, without limitation, the Company's degree of leverage; economic conditions and the retail environment; the Company's dependence on the timely development, introduction and customer acceptance of products; competitive products and pricing; the Company's relationship and contractual arrangements with key customers, suppliers and licensors; dependence on foreign suppliers and supply and manufacturing constraints, cancellation or reduction of orders; the integration of Toastmaster Inc.; risks relating to pending legal proceedings; and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. All subsequent written and oral forward- looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. The Company does not undertake any obligation to release publicly any revisions to such forward- looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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