They always say buy on the rumor sell on the news, that is happening
the news is not bad
income $0.24 a share in three months If they keep it up that means
$0.96 in a year or a stock price of minimum x20 = $19.2
News article received, Tuesday, May 04, 1999 11:36:54 AM EST
U.S. Home & Garden Reports Third Quarter 1999 Results in Line With Previously Announced Expectations
SAN FRANCISCO, CALIF. (May 4) BUSINESS WIRE -May 4, 1999-- - Third quarter net sales of $34.7 million, up 47.8% - Third quarter Cash EPS (net income plus goodwill amortization) of
$0.24 per share, up 41% - EBITDA up 42%; income from operations up 37%
U.S. Home & Garden Inc. (Nasdaq: USHG) today announced revenues, net income and earnings per share for its third fiscal quarter ended March 31, 1999. The Company recorded revenues of $34.7 million as compared with revenues of $23.5 million for the comparable fiscal period in 1998. Net income increased to $4.4 million, or $0.19 per diluted share, in the third quarter compared with $3.7 million, or $0.15 per diluted share for third fiscal quarter of 1998. Cash earnings per share, defined by the Company as net income, before extraordinary items, plus depreciation and amortization, were $0.24 for the third quarter of 1999.
For the nine months ended March 31, 1999, the Company reported revenues of $61.5 million, up 57.5% from $39.0 million in the prior year. Net income was $2.5 million, or $0.11 per diluted share, as compared with $2.6 million, or $$0.12 per diluted share for the comparable period in 1998.
Robert Kassel, Chairman and CEO of U.S. Home & Garden, commented, "The results for the quarter were in line with our previously announced expectations for the third quarter; however, the previously announced issues that impacted the third quarter, which included (i) higher than anticipated operating expenses and lower than expected revenues related to the integration of the Company's recent acquisitions; (ii) product mix that did not track historical trends with the Company shipping a higher proportion of lower margin products; and (iii) a decision by the Company not to extend credit to a historically significant retailer, may also affect expected fourth quarter results. At this early date, we are unable to quantify the impact on the fourth quarter due to the amount of a non-recurring restructuring charge anticipated from the previously announced realignment initiatives begun in the third quarter. Based on our preliminary analysis, we anticipate recognizing significant cost savings for fiscal year 1999-2000."
Mr. Kassel further commented, "U.S. Home & Garden continues to have great growth potential with its leading brand names and with those it has recently acquired. We are now in a position, in part due to our size, to reap substantial acquisition benefits by increasing our brand leveraging and lowering our cost structure. These benefits further enhance the opportunities to acquire other synergistic lawn and garden businesses and expand our recently announced e- commerce Internet initiative."
U.S. Home & Garden Inc., is a leading manufacturer and marketer of a broad range of consumer lawn and garden products including weed preventative landscape fabrics, weed trimmer replacement heads, fertilizer spikes, decorative landscape edging, shade cloth and root feeders which are sold under various recognized brand names including Weedblock(R), Jobe's(R), Weed Wizard(tm), Emerald Edge(R), Shade Fabric(tm), Ross(R), and Tensar(R). The Company markets its products through most large national home improvement and mass merchant retailers including Home Depot, Lowe's, Kmart, Wal-Mart and Home Base. To learn more about U.S. Home & Garden Inc.'s business, visit its website at www.easygardener.com/ushg. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this press release that are not historical facts are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, statements involving the likely range of earnings and revenues for the fiscal year ending June 30, 1999, the ability of the Company to negotiate a definitive agreement and consummate the transactions contemplated by the letter of intent with its proposed joint venture partner, successfully integrate any future businesses or product lines acquired into existing operations, the Company's growth strategy, customer concentration, outstanding indebtedness, dependence on weather conditions, seasonality, expansion, and other activities of competitors, changes in federal or state environmental laws and the administration of such laws, protection of trademarks and other proprietary rights, the general condition of the economy, uncertainty relating to the Company's Year 2000 compliance efforts and the possible failure of key suppliers and customers to be Year 2000 compliant, and other risks detailed in the Company's Securities and Exchange Commission filings. The words "anticipate" and "intend" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward- looking statements which speak only as of the date the statement was made.
U.S. Home & Garden Inc. Consolidated Operating Results (Unaudited) Three Months Ended Nine Months Ended March 31 March 31 1998 1999 1998 1999 Net Sales 23,520,000 34,769,000 39,058,000 61,522,000Gross profit 13,038,000 18,204,000 21,197,000 31,894,000Operating expenses Selling & shipping 3,797,000 5,862,000 8,458,000 12,807,000 General and administrative, excluding depreciation and amortization 1,518,000 1,410,000 4,242,000 6,639,000EBITDA 7,723,000 10,932,000 8,497,000 12,448,000 Depreciation 184,000 411,000 509,000 1,002,000 Goodwill amortization 428,000 698,000 1,226,000 1,919,000 Other amortization 40,000 120,000 84,000 303,000Income from operations 7,071,000 9,703,000 6,678,000 9,224,000 Interest expense, net 677,000 2,072,000 2,170,000 4,914,000Income before income taxes 6,394,000 7,631,000 4,508,000 4,310,000 Income taxes 2,700,000 3,200,000 1,900,000 1,770,000Net income 3,694,000 4,431,000 2,608,000 2,540,000Dilutive income per share 0.15 0.19 0.12 0.11Cash earnings per share(a) 0.17 0.24 0.20 0.24Weighted average common and common equivalent shares outstanding 25,038,000 23,509,000 21,887,000 23,826,000
(a) Cash earnings per share is defined by the company as net income,
plus depreciation and amortization.
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