Noland Reports First-Quarter Earnings
April 22 2004 - 4:00PM
PR Newswire (US)
Noland Reports First-Quarter Earnings NEWPORT NEWS, Va., April 22
/PRNewswire-FirstCall/ -- Noland Company today reported
first-quarter net income of $2,106,000, or 63 cents per share
(diluted), 38 percent less than the year-earlier period's
$3,420,000, or 97 cents per share. The wholesale distribution firm
attributed the earnings decline to first- quarter 2003's $3,421,000
gain from the sale of property. After-tax gains from the sale of
property totaled $7,000 in the first quarter of 2004 versus
$2,122,000 in the first quarter of 2003. Sales for the first
quarter totaled $122,766,000, 11 percent greater than first-quarter
2003's $110,163,000. "We are very pleased with our sales
performance in the first quarter," said Chairman Lloyd U. Noland
III, "especially since it was so widespread." He said an improving
economy and good weather fueled strong construction activity,
benefiting all three product categories. He said rising prices also
helped boost sales. Plumbing sales rose 12 percent, due to a more
aggressive sales effort, three additional satellite branches and
strong demand by customers buying in advance of price increases.
Air conditioning sales were up 11 percent, despite a drop in
equipment sales in Florida due to unusually mild weather, and
electrical/industrial sales rose 12 percent. Gross profit was
$2,471,000, or 10 percent, higher than the year-earlier period's.
Noland said gross margins declined slightly, reflecting intense
competition -- especially on commodity products. Operating expenses
rose by $1,122,000, or 5 percent, due to higher personnel-related
expenses stemming in part from new operations. Operating profit
declined by $1,936,000, or 36 percent, due to a $3,410,000
year-to-year reduction in gains from the sale of property. Interest
expense rose $81,000, or 27 percent, due to higher average
borrowings to finance higher inventories and capital expenditures.
Noland said he is optimistic about the company's short-term sales
prospects. "We finished the first quarter with a very strong March,
and our customer orders for future delivery are much higher than a
year ago. Assuming the weather cooperates, we expect to continue
our recent sales momentum in the second quarter." Noland operates
102 branches in 13 states, and distributes products in the
plumbing, HVAC, water systems, electrical, and industrial fields.
The company's stock is traded on NASDAQ's SmallCap Market.
UNAUDITED FINANCIAL HIGHLIGHTS For the Three Months Ended March 31
2004 2003 Merchandise Sales $122,765,791 $110,162,607 Net Income
$2,106,087 $3,420,218 Basic Earnings Per Share(1) $.63 $.98 Diluted
Earnings Per Share(2) $.63 $.97 (1) Based on 3,333,358 shares
outstanding in 2004 and 3,485,676 shares outstanding in 2003. (2)
Based on 3,360,230 shares outstanding in 2004 and 3,512,538 shares
outstanding in 2003. Note: Included in this news release are
forward-looking management comments and other statements which
reflect management's current outlook for the future. Such
forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties that could cause actual
results to differ materially from those anticipated in the
statements. Such risks and uncertainties include, but are not
limited to, general business and economic conditions, climatic
conditions, competitive pricing pressures, and product
availability. DATASOURCE: Noland Company CONTACT: John E. Gullett
of Noland Company, +1-757-928-9000 Web site: http://www.noland.com/
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