Reinhold Industries Announces Third Quarter 2006 Financial Results
November 09 2006 - 12:03PM
PR Newswire (US)
SANTA FE SPRINGS, Calif., Nov. 9 /PRNewswire-FirstCall/ -- Reinhold
Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs, California,
today announced financial results for the third quarter 2006. Third
quarter 2006 revenues were $8.8 million, up $0.5 million (6%) from
third quarter 2005. Sales in the Aerospace business unit decreased
by $0.2 million (4%) to $5.9 million due primarily to lower sales
of rocket nozzles related to the Ballistic Missile Defense System.
Sales in the Seating Products business unit increased by $0.6
million (42%) to $1.4 million compared with the third quarter of
2005 due to revenues related to two customers previously serviced
by NP Aerospace. Sales in the Commercial business unit increased by
$0.1 million (17%) due primarily to additional shipments of
in-ground lighting housings. In the first nine months of 2006,
revenues were $27.5 million, up $4.6 million (20%) compared to
2005. Sales in the Aerospace business unit increased by $1.0
million (6%) to $17.2 million due primarily to additional sales of
components related to the Minuteman III Propulsion Replacement
Program. Sales in the Seating Products business unit increased by
$3.4 million (83%) to $7.5 million due to a surge in aircraft
seating demand from our largest customer, production quantity sales
to a new customer, and revenues related to new customers previously
serviced by NP Aerospace. Sales in the Commercial business unit
increased by $0.2 million (8%) to $2.8 million due to additional
shipments of in-ground lighting housings and increased selling
prices. Income from continuing operations for the first nine months
of 2006 was $3.8 million, up $4.3 million compared to 2005. The
effective tax rate for the first nine months of 2006 was 29%.
During the third quarter 2006, the Company recorded an additional
$558,000 ($0.17 per diluted share) income tax benefit related
primarily to the sale of NP Aerospace in November 2005. The
effective tax rate for the first nine months of 2005 was 121% due
primarily to the impact of repatriated foreign income in 2005.
Income from discontinued operations for the first nine months of
2006 was a loss of $0.1 million compared to income of $4.7 million
in 2005. Income from discontinued operations in the first nine
months of 2005 includes financial results from NP Aerospace Ltd.,
which was sold in November 2005. Net income for the first nine
months of 2006 was $3.7 million, or $1.11 per diluted share,
compared to net income of $4.2 million, or $1.26 per diluted share
in 2005. Net income in 2005 includes the operating results for NP
Aerospace. NP Aerospace was sold in November 2005. "We continue to
be pleased with our strong year over year financial performance
across all product lines," said Michael T. Furry, President and CEO
of Reinhold. On November 2, 2006 the Company announced that it and
an affiliate of The Jordan Company, L.P., a leading private equity
investor, had signed a definitive merger agreement pursuant to
which The Jordan Company will acquire Reinhold through a tender
offer for all outstanding shares of common stock of the Company for
$12.50 per share. Pursuant to the terms of the merger agreement,
Reinhold Acquisition Corp., an affiliate of The Jordan Company,
L.P., will commence a tender offer within five business days to
acquire all outstanding shares of Reinhold common stock at a price
of $12.50 per share in cash or an aggregate value of approximately
$41.3 million. Following receipt of at least 51% of Reinhold's
outstanding shares in the tender offer, all remaining shares will
convert into the right to receive $12.50 per share in cash through
a merger. In addition to the tender of at least 51% of the
outstanding shares, the closing of the transaction is subject to
certain other conditions set forth in the Merger Agreement.
Reinhold intends to file a Schedule 14D-9 Recommendation Statement
with the Securities and Exchange Commission relating to the
transaction with a copy of the Merger Agreement as an exhibit. This
news release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve risks and uncertainties, and
Reinhold's actual experience may differ materially from that
anticipated in such statements. Factors that might cause such a
difference include those discussed in Reinhold's filings with the
Securities and Exchange Commission, including but not limited to
its most recent proxy statement, Form 10-K and Form 10-Q. Reinhold
Industries, Inc. is a manufacturer of advanced custom composite
components and sheet molding compounds for a variety of
applications in the United States and Europe. Reinhold Industries,
Inc. (NASDAQ:RNHDA) (Amounts in Thousands, Except Per Share Data)
(Unaudited) Three Months Ended Nine Months Ended 9/30/06 9/30/05
9/30/06 9/30/05 Sales $8,795 $8,297 $27,541 $22,974 Income from
continuing operations before income taxes 1,647 960 5,343 2,684
Income (loss) from continuing operations 1,565 (451) 3,782 (557)
(Loss) income from discontinued operations (124) 1,174 (124) 4,713
Net income $1,441 $723 $3,658 $4,156 Diluted EPS - continuing
operations $0.47 ($0.14) $1.11 ($0.17) Diluted EPS $0.44 $0.22
$1.11 $1.26 DATASOURCE: Reinhold Industries, Inc. CONTACT: Wanda
Morrison of Reinhold Industries, Inc., +1-562-944-3281
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