Bairnco Announces Reduced First Quarter 2005 Results and Election
of Directors at Stockholders' Meeting LAKE MARY, Fla., April 21
/PRNewswire-FirstCall/ -- Bairnco Corporation (NYSE:BZ) today
reported reduced operating results for the first quarter 2005 as
compared to the same period last year. After a weak January and
February, Bairnco's markets, especially telecommunications and
electronics, recovered in March. The improved levels have continued
into the beginning of the second quarter. At the Annual Meeting
held today, the stockholders elected the nominees for director
recommended by the Board of Directors and ratified the Board's
selection of Grant Thornton LLP as Bairnco's auditors for the 2005
fiscal year. Performance Sales in the first quarter 2005 decreased
5.8% to $40,122,000 from $42,577,000 in 2004. Arlon's Electronic
Materials sales were lower by 13.0% due primarily to weak wireless
telecommunications and electronics markets, which conversely were
very strong in the first quarter of 2004. Arlon's Coated Materials
sales were down 6.6% from lower foreign sales and weakness in
certain automotive and industrial markets. Kasco's sales increased
5.6% from the first quarter 2004 due to strong North American
service and repair revenue as well as improved US export markets.
Kasco's European sales were lower in local currency but were up
slightly in US dollars due to the change in exchange rates. Gross
profit decreased 4.8% to $12,083,000 from $12,697,000 due to lower
sales and production volumes. The gross profit margin as a percent
of sales increased to 30.1% from 29.8%. The first quarter 2005
gross profit was reduced by $277,000 due primarily to the program
to relocate Kasco's manufacturing operations to Mexico including
the termination costs of Kasco's union. The first quarter 2004
gross profit was reduced by $193,000 from relocation and closing
expenses related to the consolidation of Arlon's industrial
engineered coated product's businesses. Selling and administrative
expenses were $10,564,000 in 2004 as compared to $10,515,000 in
2005. Selling and administrative expenses were reduced by $285,000
of income related to "key man" life insurance proceeds received
during the first quarter 2005. Net interest expense was $26,000 in
2005 as compared to $202,000 in 2004 due to the reduced outstanding
borrowings. The effective tax rate for the first quarter 2005 and
2004 was 35.0%. Net income decreased 20.2% to $1,002,000 as
compared to $1,255,000 in the first quarter of 2004. Diluted
earnings per common share were $.13 versus $.17 in 2005. Credit
Agreement As noted in the 2004 Annual Report, the Corporation's
credit agreement was extended through the end of April 2005. An
amended credit agreement is currently being reviewed and is
expected to be approved and in place during the second quarter
2005. "Safe Harbor" Statement under the Private Securities Reform
Act of 1995 Statements in this press release referring to the
expected future plans and performance of the Corporation are
forward-looking statements. Actual future results may differ
materially from such statements. Factors that could affect future
performance include, but are not limited to, renegotiation of the
Corporation's Credit Agreement; changes in US or international
economic or political conditions, such as inflation or fluctuations
in interest or foreign exchange rates; changes in the market for
raw or packaging materials which could impact the Corporation's
manufacturing costs; changes in the pricing of the products of the
Corporation or its competitors; the market demand and acceptance of
the Corporation's existing and new products; the impact of
competitive products; changes in the product mix; the loss of a
significant customer or supplier; production delays or
inefficiencies; the impact on production output and costs from the
availability of energy sources and related pricing; the ability to
achieve anticipated revenue growth, synergies and other cost
savings in connection with acquisitions and plant consolidations;
the costs and other effects of legal and administrative cases and
proceedings, settlements and investigations; the costs and other
effects of complying with environmental regulatory requirements;
disruptions in operations due to labor disputes; and losses due to
natural disasters where the Corporation is self-insured. While the
Corporation periodically reassesses material trends and
uncertainties affecting the Corporation's results of operations and
financial condition in connection with its preparation of its press
releases, the Corporation does not intend to review or revise any
particular forward-looking statement referenced herein in light of
future events. Bairnco Corporation is a diversified multinational
company that operates two distinct businesses -- Arlon (Electronic
Materials and Coated Materials segments) and Kasco (Replacement
Products and Services segment). Arlon's principal products include
high technology materials for the printed circuit board industry,
cast and calendered vinyl film systems, custom-engineered laminates
and special silicone rubber compounds and components. Kasco's
principal products include replacement band saw blades for cutting
meat, fish, wood and metal, and on site maintenance primarily in
the meat and deli departments. Kasco also distributes equipment to
the food industry in France. Comparative Results of Operations
(Unaudited) Quarter Ended Condensed Income Statements Apr 2, 2005
Apr 3, 2004 Net sales $40,122,000 $42,577,000 Cost of sales
28,039,000 29,880,000 Gross profit 12,083,000 12,697,000 Selling
and administrative expenses 10,515,000 10,564,000 Operating profit
1,568,000 2,133,000 Interest expense, net 26,000 202,000 Income
before income taxes 1,542,000 1,931,000 Provision for income taxes
540,000 676,000 Net income $ 1,002,000 $ 1,255,000 Basic Earnings
per Share of Common Stock $0.14 $0.17 Diluted Earnings per Share of
Common Stock $0.13 $0.17 Basic Average Common Shares 7,399,000
7,342,000 Diluted Average Common Shares 7,675,000 7,431,000
Condensed Balance Sheets Apr 2, 2005 Dec 31, 2004 ASSETS Cash
$1,495,000 $3,451,000 Accounts receivable, net 25,470,000
24,912,000 Inventories 26,783,000 24,964,000 Other current assets
6,630,000 7,702,000 Total current assets 60,378,000 61,029,000
Plant and equipment, net 34,807,000 34,429,000 Cost in excess of
net assets of purchased businesses, net 14,492,000 14,542,000 Other
assets 8,234,000 8,781,000 Total $117,911,000 $118,781,000
LIABILITIES AND STOCKHOLDERS' INVESTMENT Short-term debt $1,033,000
$1,030,000 Current maturities of long-term debt 518,000 663,000
Accounts payable 10,965,000 10,601,000 Accrued expenses 9,150,000
10,515,000 Total current liabilities 21,666,000 22,809,000
Long-term debt 213,000 231,000 Other liabilities 10,959,000
10,974,000 Stockholders' investment 85,073,000 84,767,000 Total
$117,911,000 $118,781,000 DATASOURCE: Bairnco Corporation CONTACT:
Larry C. Maingot, Bairnco Corporation, +1-407-875-2222, ext. 230
Web site: http://www.bairnco.com/
Copyright
Bairnco (NYSE:BZ)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bairnco (NYSE:BZ)
Historical Stock Chart
From Sep 2023 to Sep 2024