Cade Industries Reports Record Results on Diversified Sales Base; Net Income Rises 80% for Year, 58% for Quarter
PR Newswire, Tuesday, February 09, 1999 at 08:38
Company Forecasts 25% Earnings Growth for 1999
OKEMOS, Mich., Feb. 9 /PRNewswire/ -- Cade Industries, Inc.
(NASDAQ:CADE), a leading supplier of products and services to the aerospace
and air transport industries, today reported results for the fourth quarter
and year ended Dec. 31, 1998.
Fourth quarter net income rose 58 percent, to $1.1 million, or earnings
per share of five cents, from net earnings of $717,000, or earnings per share
of three cents for the comparable period of 1997. Net income for the year
rose 80 percent, to $4.2 million, or 19 cents per share, from $2.4 million, or
11 cents per share for the prior year.
Revenues for the fourth quarter were up 43 percent, to $24.3 million, from
revenues of $17.0 million in 1997. Year-end revenues increased 72 percent, to
$95.8 million from $55.8 million last year.
Cade's president, Richard Lund, commented, "These results reflect strong
performance throughout the company, highlighted by improving margins,
significant gains in revenue from our overhaul and repair services, increased
revenues from test facilities and equipment and sustained growth in OEM
products. Cade ended 1998 with a backlog of $75 million, including
$6.5 million of previously announced contracts awarded to Cade in the third
and fourth quarters.
Lund credited the company's successful implementation of its strategic
plan to diversify products and customers for its 72% growth in revenues. "Our
present and future success is dependent upon this diversified business base
and I plan to aggressively work to expand our aftermarket services to achieve
a minimum of 50% of our total revenue. Our investment in new facilities and
equipment as well as acquisitions should enable us to meet this objective."
Lund also reported that the company had repurchased 250,000 shares of its
common stock in 1998 and plans to substantially increase its share repurchase
program in 1999. The company's board of directors recently authorized a stock
repurchase program of one million shares of Cade Industries' stock in 1999.
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; and Minneapolis, Minnesota.
For more information or to receive a copy of this press release, please
call our Company News On Call at 800-758-5804 -- extension 075675 -- or you
can access the information via the Internet at prnewswire.com.
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 Months Ended For the Year Ended
12/31/98 12/31/97 12/31/98 12/31/97
Sales $24,279,000 $17,018,000 $95,792,000 $55,804,000
Net income $1,131,000 $717,000 $4,242,000 $2,353,000
Net income per share:
Basic $0.05 $0.03 $0.19 $0.11
Diluted $0.05 $0.03 $0.19 $0.11
Weighted average common shares outstanding:
Basic 21,835,000 21,829,000 21,957,000 21,720,000
Diluted 22,328,000 22,463,000 22,545,000 22,166,000
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 competition 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 YEAR ENDED
DECEMBER 31 DECEMBER 31
1998 1997 1998 1997
Sales $24,278,728 $17,017,821 $95,792,417 $55,803,761
Operating expenses
Cost of sales 19,031,085 13,675,888 74,478,593 43,480,918
Selling, general and
administrative
expenses 3,487,201 2,063,642 14,218,774 8,099,595
22,518,286 15,739,530 88,697,367 51,580,513
Income From
Operations 1,760,442 1,278,291 7,095,050 4,223,248
Interest (income)
expense - net (1,321) 253,987 947,197 832,973
Income Before
Income Taxes 1,761,763 1,024,304 6,147,853 3,390,275
Income tax expense 631,000 307,000 1,906,000 1,037,000
Net Income $1,130,763 $717,304 $4,241,853 $2,353,275
Basic Net Income
Per Share $0.05 $0.03 $0.19 $0.11
BALANCE SHEETS
DEC. 31 DEC. 31
1998 1997
ASSETS
Cash and cash equivalents $580,489 $1,093,176
Trade accounts receivable 13,172,191 12,687,969
Inventories 17,087,921 13,798,987
Other Current Assets 6,888,378 3,621,054
Total Current Assets 37,728,979 31,201,166
Property, plant and
equipment - net 19,196,668 17,662,161
Other assets - net 5,349,184 5,706,564
Total Assets $62,274,831 $54,569,891
LIABILITIES AND SHAREHOLDERS' EQUITY
Note payable to bank $150,000 $1,460,000
Current Portion Of
Long-term Debt 3,467,066 3,012,998
Trade Accounts Payable 7,034,214 5,190,782
Other Current Liabilities 15,590,233 10,102,725
Total Current Liabilities 26,241,513 19,766,505
Long-term debt 8,313,322 10,682,554
Deferred income taxes 666,000 788,000
Shareholders' equity 27,053,996 23,332,832
Total Liabilities and
Shareholders' Equity $62,274,831 $54,569,891
Stock for CADE Industries, Inc. is traded in the Over-The-Counter Market
(National Market System). The symbol is CADE.
SOURCE Cade Industries, Inc.
-0- 02/09/99
/CONTACT: S.A. Mull, Shareholder Relations, or E.B. Stephens, Chief
Financial Officer, both of Cade Industries, Inc., 517-347-1333/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 075675/
/Web site: cade-industries.com
Companies or Securities discussed in this article:
Symbol Name
NASDAQ:CADE CADE Industries |
