Bairnco Announces Improved Second Quarter 2005 Results LAKE MARY,
Fla., July 21 /PRNewswire-FirstCall/ -- Bairnco Corporation
(NYSE:BZ) today reported improved operating results for the second
quarter 2005 as compared to the same period last year. Sales were
up 5.7% to $44,088,000, net income increased 33.5% to $1,509,000
and diluted earnings per share increased 33.3% to $.20. Performance
Sales in the second quarter 2005 increased 5.7% to $44,088,000 from
$41,700,000 in 2004. Arlon's Electronic Materials sales increased
6.7% due primarily to increased activity in the wireless
telecommunications markets. Arlon's Coated Materials sales
increased 3.7% as domestic graphics markets have strengthened
although foreign sales and certain automotive and industrial
markets have remained weak. Kasco's sales increased 8.5% from the
second quarter 2004 due to continued growth in North American
service and repair revenue as well as improved U.S. export markets.
Kasco's European sales improved slightly both in local currency and
U.S. dollars due to the change in exchange rates. Gross profit
increased 9.6% to $13,199,000 from $12,044,000 due to increased
sales, higher production volumes and reduced relocation and closing
costs in the second quarter of 2005 versus 2004. The gross profit
margin as a percent of sales increased to 29.9% from 28.9%. The
second quarter 2005 gross profit was reduced by $248,000 due
primarily to the program to relocate Kasco's manufacturing
operations to Mexico including the curtailment costs of Kasco's
hourly employees' (union) pension plan and some China related
expenses. The second quarter 2004 gross profit was reduced by
$632,000 from relocation and closing expenses related to the
consolidation of Arlon's industrial engineered coated product's
businesses. Selling and administrative expenses increased 7.3% to
$10,845,000 in 2005 as compared to $10,109,000 in 2004. $100,000 of
the increase was due to increased expenses related to the
development of the new China plant. Net interest expense was
$33,000 in 2005 as compared to $197,000 in 2004 due to the reduced
outstanding borrowings. The effective tax rate for the second
quarter 2005 and 2004 was 35.0%. Net income increased 33.5% to
$1,509,000 as compared to $1,130,000 in the second quarter of 2004.
Diluted earnings per common share increased 33.3% to $.20 from $.15
in 2004. Sales for the first six months of 2005 were down slightly
to $84,210,000 from $84,277,000 in 2004 as the improved second
quarter results of the Arlon businesses offset the weak results
during January and February. Gross profit improved 2.2% to
$25,282,000 from $24,741,000 due to improved results in the second
quarter and reduced relocation and plant development costs. Selling
and administrative expenses increased 3.3% to $21,360,000 from
$20,673,000. Net income increased 5.3% to $2,511,000 from
$2,385,000 and diluted earnings per share increased 3.1% to $.33
from $.32 in 2004. "Safe Harbor" Statement under the Private
Securities Litigation 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,
changes in U.S. or international economic or political conditions,
such as inflation or fluctuations in interest or foreign exchange
rates; the impact on production output and costs from the
availability of energy sources and related pricing; 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 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 Six Months Ended Condensed Income July 2,
July 3, July 2, July 3, Statements 2005 2004 2005 2004 Net sales
$44,088,000 $41,700,000 $84,210,000 $84,277,000 Cost of sales
30,889,000 29,656,000 58,928,000 59,536,000 Gross profit 13,199,000
12,044,000 25,282,000 24,741,000 Selling and administrative
expenses 10,845,000 10,109,000 21,360,000 20,673,000 Operating
profit 2,354,000 1,935,000 3,922,000 4,068,000 Interest expense,
net 33,000 197,000 59,000 399,000 Income before income taxes
2,321,000 1,738,000 3,863,000 3,669,000 Provision for income taxes
812,000 608,000 1,352,000 1,284,000 Net income $1,509,000
$1,130,000 $2,511,000 $2,385,000 Basic Earnings per Share of Common
Stock $0.20 $0.15 $0.34 $0.32 Diluted Earnings per Share of Common
Stock $0.20 $0.15 $0.33 $0.32 Basic Average Common Shares 7,398,000
7,352,000 7,397,000 7,348,000 Diluted Average Common Shares
7,654,000 7,515,000 7,666,000 7,483,000 Condensed Balance Sheets
July 2, Dec 31, 2005 2004 ASSETS Cash $1,830,000 $3,451,000
Accounts receivable, net 27,049,000 24,912,000 Inventories
26,636,000 24,964,000 Other current assets 7,481,000 7,702,000
Total current assets 62,996,000 61,029,000 Plant and equipment, net
35,628,000 34,429,000 Cost in excess of net assets of purchased
businesses, net 14,411,000 14,542,000 Other assets 7,969,000
8,781,000 Total Assets $121,004,000 $118,781,000 LIABILITIES AND
STOCKHOLDERS' INVESTMENT Short-term debt $2,520,000 $1,030,000
Current maturities of long-term debt 100,000 663,000 Accounts
payable 12,157,000 10,601,000 Accrued expenses 9,465,000 10,515,000
Total current liabilities 24,242,000 22,809,000 Long-term debt
340,000 231,000 Other liabilities 11,246,000 10,974,000
Stockholders' investment 85,176,000 84,767,000 Total Liabilities
and Stockholders' Investment $121,004,000 $118,781,000 DATASOURCE:
Bairnco Corporation CONTACT: Larry C. Maingot of Bairnco
Corporation, +1-407-875-2222, ext. 230 Web site:
http://www.bairnco.com/
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