Ceradyne, Inc. Reports First Quarter 2006 Financial Results; Sales, Earnings, New Orders and Backlog Reach Record Levels; Margi
April 27 2006 - 7:30AM
Business Wire
Ceradyne, Inc. (Company) (Nasdaq:CRDN) reported record financial
results for the first quarter ended March 31, 2006. Net sales
increased 95.4% to a record $136.3 million from $69.8 million in
first-quarter 2005. Net income, which increased 311.2%, was a
record $24.6 million, or 90 cents per fully diluted share, compared
to $6.0 million, or 24 cents per fully diluted share, for
first-quarter 2005. Fully diluted average shares outstanding for
the quarter were 27.4 million, compared to 24.9 million for the
same period in 2005. The average number of shares increased due
primarily to the offering of 2,070,000 shares in December 2005.
Gross profit margin was 39.6% of net sales, compared to 31.4% of
net sales in first-quarter 2005. Provision for income taxes was
36.5%, compared to 38.2% in the first quarter of 2005. New bookings
were $154.7 million, compared to $56.6 million in first-quarter
2005. Backlog at the end of the quarter was $294.8 million,
compared to approximately $186.7 million in first-quarter 2005.
Joel Moskowitz, Ceradyne chief executive officer, commented: "The
strong results for first-quarter were due in good part to the
Company's new production capacity, particularly in Lexington,
Kentucky. This added capacity reflects continuing demand for E-SAPI
and related lightweight ceramic body armor components, including
initial shipments of enhanced side ballistic inserts (ESBI), or
side plates, against the $70 million contract announced in January.
The record backlog and positive first quarter book to bill ratio of
1.13:1 indicate continuing strength in 2006 operations. Good
production yields and higher absorption of overhead on an increased
sales base resulted in higher gross and operating margins."
Moskowitz added: "Ceradyne management will continue to implement
its strategy of maximizing opportunities from ongoing demand for
body and other armor, and generating additional growth from
opportunities for advanced technical ceramic products in industrial
markets. We are also evaluating strategic acquisitions that would
support future growth." Ceradyne will host a conference call today
at 8:00 a.m. PDT to discuss 2006 first-quarter results, guidance
for 2006, and outlook for armor in 2007. Investors or other
interested parties may listen to the teleconference live via the
Internet at www.ceradyne.com or www.earnings.com. These web sites
will also host an archive of the teleconference. A telephonic
playback will also be available for 48 hours beginning today at
11:30 a.m. PDT. The playback can be accessed by calling
800-642-1687 (or 706-645-9291 for international callers) and
providing Conference ID 7650243. Ceradyne develops, manufactures
and markets advanced technical ceramic products and components for
defense, industrial, automotive/diesel and commercial applications.
Additional information can be found at the Company's web site:
www.ceradyne.com. Except for the historical information contained
herein, this news release contains forward-looking statements
regarding future events and the future performance of Ceradyne that
involve risks and uncertainties that could cause actual results to
differ materially from those projected. Words such as
"anticipates," "believes," "plans," "expects," "intends," "future,"
and similar expressions are intended to identify forward-looking
statements. These risks and uncertainties are described in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2005, as filed with the U.S. Securities and Exchange
Commission. -0- *T Below is a summary of unaudited comparative
results. Amounts in thousands except per share data. Three Months
Ended March 31, 2006 2005 ----------- ----------- NET SALES $
136,347 $ 69,791 Cost of product sales 82,362 47,894 -----------
----------- GROSS PROFIT 53,985 21,897 ----------- -----------
Operating expenses: Selling 5,774 4,799 General and administrative
6,996 4,545 Research and development 2,522 1,861 -----------
----------- 15,292 11,205 ----------- ----------- INCOME FROM
OPERATIONS 38,693 10,692 Other income (expense): Other income 1,078
364 Interest (expense) (1,028) (1,371) ----------- ----------- 50
(1,007) INCOME BEFORE PROVISION FOR INCOME TAXES 38,743 9,685
Provision for income taxes 14,130 3,700 ----------- ----------- NET
INCOME $ 24,613 $ 5,985 =========== =========== Earnings per share,
basic $ 0.92 $ 0.24 Earnings per share, diluted $ 0.90 $ 0.24
Average shares outstanding, basic 26,801 24,494 Average shares
outstanding, diluted 27,385 24,930 Condensed Consolidated Balance
Sheets (in thousands): March 31, December 31, 2006 2005
------------- ------------ Cash, cash equivalents and investments $
125,499 $ 99,381 Other current assets 183,592 155,836 Net property,
plant and equipment 158,605 153,259 Other assets 21,745 21,717
------------ ------------ Total assets $ 489,441 $ 430,193
============ ============ Current liabilities $ 72,702 $ 42,908
Long term debt 121,000 121,000 Non current liabilities 11,834
11,229 Deferred tax liability 4,492 4,536 Stockholders' equity
279,413 250,520 ------------ ------------ Total liabilities and
stockholders' equity $ 489,441 $ 430,193 ============ ============
*T
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