Applica Incorporated (NYSE:APN) today announced that second-quarter
sales for 2006 were $104.5 million compared to sales of $116.5
million in the same period in 2005. Sales for the first six months
of 2006 were $208.5 million compared to sales of $228.9 million in
the same period in 2005. The decline in consolidated sales during
the first half of 2006 was the result of the product and customer
profitability review, inventory management by key retailers and
certain supply shortages, which primarily impacted the first
quarter. Applica's gross profit in the second quarter of 2006 was
$31.0 million, an increase of 35.0% compared to $23.0 million for
the second quarter of 2005. Gross profit margin was 29.7% in the
three-month period ended June 30, 2006 as compared to 19.7% for the
same period in 2005. Gross profit for the second quarter of 2006
included the sale of products produced in Mexico that included $0.9
million of capitalized losses related to the closure of Applica's
Mexican manufacturing facility. Applica's gross profit in the first
half of 2006 was $55.6 million, an increase of 33.4% compared to
$41.7 million for the first half of 2005. Gross profit margin was
26.7% in the six-month period ended June 30, 2006 as compared to
18.2% for the same period in 2005. Gross profit for the first half
of 2006 included the following: -- $3.7 million related to a
product recall; and -- the sale of products produced in Mexico that
included $2.7 million of capitalized losses related to the closure
of Applica's Mexican manufacturing facility. Gross profits in the
second quarter and the first half of 2005 were negatively impacted
by: -- inventory write-downs related to an adjustment to the net
realizable value of two products ($3.4 million for the second
quarter and $12.8 million for the first half of 2005); -- higher
product warranty returns and related expenses primarily related to
manufacturing transition issues in Mexico and China ($1.2 million
for the second quarter and $4.5 million for the first half of
2005); and -- losses in the Mexico manufacturing operations related
to our transition from manufacturing to sourcing ($5.0 million for
the second quarter and $7.9 million in the first half of 2005).
Operating expenses in the second quarter of 2006 were $33.6
million, or 32.2% of sales, as compared to $38.3 million, or 32.9%
of sales in the second quarter of 2005. Operating expenses in the
first half of 2006 were $67.8 million, or 32.5% of sales, and
included $1.8 million in consulting fees related to the engagement
of Alvarez & Marsal, LLP and $500,000 in administrative
expenses related to the closure of the Mexican manufacturing
facility. Operating expenses for the first half of 2005 were $77.6
million, or 33.9% of sales. Depreciation and amortization expenses
were $1.9 million in the second quarter of 2006 and $3.8 million
for the first half of 2006. Depreciation and amortization expenses
were $4.3 million in the second quarter of 2005 and $7.8 million
for the first half of 2005. Applica reported a net loss for the
second quarter of 2006 of $6.0 million, or $0.25 per diluted share,
compared to a net loss of $18.5 million, or $0.77 per diluted
share, for the 2005 second quarter. Applica reported a net loss for
the first half of 2006 of $18.9 million, or $0.78 per diluted
share, compared to a net loss of $41.5 million, or $1.72 per
diluted share, for the first six months of 2005. As of June 30,
2006, Applica had approximately $117.4 million in total debt
outstanding and approximately $38.9 million of availability under
its senior credit facility. As of August 1, 2006, Applica had
approximately $128.9 million in total debt outstanding and
approximately $42.1 million of availability under its senior credit
facility. Applica must maintain a minimum average monthly
availability of $13 million and a minimum daily availability of $10
million pursuant to the terms of its senior credit facility. On
July 23, 2006, Applica, NACCO Industries, Inc. ("NACCO"), and HB-PS
Holding Company, Inc., a wholly owned subsidiary of NACCO
("Hamilton Beach/Proctor-Silex"), entered into definitive
agreements whereby NACCO will spin off its Hamilton
Beach/Proctor-Silex business to NACCO's stockholders and,
immediately after the spin-off, Applica will merge with and into
Hamilton Beach/Proctor-Silex. The combined public company will be
named Hamilton Beach, Inc. Pursuant to the Agreement and Plan of
Merger, the outstanding shares of Applica common stock will be
converted into the right to receive a number of shares of Hamilton
Beach, Inc. Class A common stock equal to 25 percent of the
aggregate number of shares of Hamilton Beach, Inc. common stock
outstanding immediately following the merger. Harry D. Schulman,
Applica's Chairman, President and Chief Executive Officer, stated,
"Earlier this year, we launched a review of strategic alternatives
to deliver enhanced shareholder value, and we are pleased about
this exciting combination that clearly meets this objective. We
have made solid progress in our restructuring initiatives over the
past year and our efforts are beginning to yield positive results.
I'm encouraged that our financial performance has been improving
steadily due to what we believe are some very proper and
responsible actions to control costs and enhance performance. We
have solidly restructured the organization and the results are
becoming evident." "However, in addition to performance improvement
programs, we believe that enhanced scale is critical to succeed in
today's environment," Mr. Schulman stated. "The proposed merger
will enable us to become part of a larger organization with a
greater breadth of products, a strengthened international presence
and an expanded retailer network. We believe this combination will
allow us to better realize the value of our existing assets and
take advantage of our strong brand equity, while offering our
shareholders the opportunity to participate in substantial value
creation through Hamilton Beach, Inc." The transaction, which was
approved by the Board of Directors of Applica, will be tax-free to
shareholders of Applica. The transaction is subject to approval by
Applica's stockholders and to regulatory approvals and other
customary closing conditions. Applica Incorporated and its
subsidiaries are marketers and distributors of a broad range of
branded and private-label small household appliances. Applica
markets and distributes kitchen products, home products, pest
control products, pet care products and personal care products.
Applica markets products under licensed brand names, such as Black
& Decker(R), its own brand names, such as Windmere(R),
LitterMaid(R), Belson(R) and Applica(R), and other private-label
brand names. Applica's customers include mass merchandisers,
specialty retailers and appliance distributors primarily in North
America, Latin America and the Caribbean. Additional information
regarding the company is available at http://www.applicainc.com.
Certain matters discussed in this news release are forward-looking
statements. Such statements are indicated by words or phrases such
as "anticipates," "projects," "management believes," "Applica
believes," "intends," "expects," and similar words or phrases. The
forward-looking statements are subject to certain risks,
uncertainties or assumptions and may be affected by certain other
factors, including the follow factors: -- We may not be able to
obtain governmental approvals of the proposed spin-off and merger
on the proposed terms and schedule. -- We may not be able to obtain
approval of the merger from our shareholders. -- The new company
may not be able to integrate the two businesses successfully. --
The new company may not be able to fully realize the anticipated
cost savings and synergies from the proposed transaction within the
proposed time frame. -- There may be significant disruption from
the spin-off and merger making it more difficult to maintain
relationships with customers, employees or suppliers. -- The new
company may not be able to obtain New York Stock Exchange or NASDAQ
approval for the listing of its common stock. -- The new company
may not be able to effect a registration statement concerning the
shares of the new company to be distributed to Applica
shareholders. -- Customers may not accept the new combined entity.
-- We purchase a large number of products from one supplier.
Production-related risks, interruption of product shipments or
demand for shorter credit terms from this supplier could jeopardize
our ability to realize anticipated sales and profits. -- We are
dependent on key personnel and the loss of these key personnel
could have a material adverse effect on our success. -- The New
York Stock Exchange has notified us that we are not in compliance
with its continued listing criteria. If we are delisted by the
NYSE, the price and liquidity of our common stock will be
negatively affected. -- We depend on third party suppliers for the
manufacturing of all of our products which subjects us to
additional risks. -- Our business involves the potential for
product recalls and product liability claims against us. -- The
failure of our business strategy could have a material adverse
effect on our business. -- Our business could be adversely affected
by fluctuation of the Chinese currency. -- We depend on purchases
from several large customers and any significant decline in these
purchases or pressure from these customers to reduce prices could
have a negative effect on our business. -- Increases in costs of
products will reduce our profitability. Other risks and
uncertainties are detailed in Applica's Securities and Exchange
Commission filings, including the Annual Report on Form 10-K for
the year ended December 31, 2005. Should one or more of these
risks, uncertainties or other factors materialize, or should
underlying assumptions prove incorrect, actual results,
performance, or achievements of Applica may vary materially from
any future results, performance or achievements expressed or
implied by the forward-looking statements. Readers are cautioned
not to place undue reliance on forward-looking statements. Applica
undertakes no obligation to publicly revise any forward-looking
statements to reflect events or circumstances that arise after the
date hereof. Investors and security holders are urged to read the
registration statement on Form S-4 and the proxy
statement/prospectus/information statement included within the
registration statement on Form S-4 when it becomes available and
any other relevant documents to be filed with the SEC in connection
with the proposed transaction because they will contain important
information about Hamilton Beach/Proctor-Silex, Applica and NACCO
and the proposed transaction. Investors and security holders may
obtain free copies of these documents when they become available
through the website maintained by the SEC at www.sec.gov. In
addition, the documents filed with the SEC by Applica may be
obtained free of charge by directing such requests to Applica
Incorporated, 3633 Flamingo Road, Miramar, Florida 33027,
Attention: Investor Relations ((954) 883-1000), or from Applica's
website at http://www.applicainc.com. The documents filed with the
SEC by Hamilton Beach/Proctor-Silex may be obtained free of charge
by directing such requests to HB-PS Holding Company, Inc., 4421
Waterfront Drive, Glen Allen, Virginia 23060, Attention: Investor
Relations ((804) 527-7166), or from Hamilton Beach/Proctor-Silex's
website at http://www.hamiltonbeach.com. The documents filed with
the SEC by NACCO may be obtained free of charge by directing such
requests to NACCO Industries, Inc., 5875 Landerbrook Drive,
Cleveland, Ohio 44124, Attention: Investor Relations ((440)
449-9669), or from NACCO Industries, Inc.'s website at
http://www.nacco.com. Applica, Hamilton Beach/Proctor-Silex and
their respective directors, executive officers and certain other
members of management may be deemed to be participants in the
solicitation of proxies from Applica shareholders with respect to
the proposed transaction. Information regarding the interests of
these officers and directors in the proposed transaction will be
included in the registration statement on Form S-4 and proxy
statement/prospectus/information statement included within the
registration statement on Form S-4. In addition, information about
Applica's directors, executive officers and members of management
is contained in Applica Incorporated's most recent proxy statement,
which is available on Applica's website and at www.sec.gov.
Additional information regarding the interests of such potential
participants will be included in the registration statement on Form
S-4, the proxy statement/prospectus/ information statement
contained therein and other relevant documents filed with the SEC.
-0- *T Applica Incorporated and Subsidiaries CONSOLIDATED BALANCE
SHEETS (In thousands, except par value data) Assets June 30, 2006
December 31, (Unaudited) 2005 -------------- ------------ Current
Assets: Cash and cash equivalents $ 6,721 $ 4,464 Accounts and
other receivables, less allowances of $7,004 in 2006 and $8,773 in
2005 87,203 140,479 Inventories 99,947 101,638 Prepaid expenses and
other 10,392 11,137 Refundable income taxes 3,645 3,661 Future
income tax benefits 1,269 1,249 -------------- ------------ Total
current assets 209,177 262,628 Property, Plant and Equipment - at
cost, less accumulated depreciation of $49,652 in 2006 and $46,755
in 2005 17,722 19,715 Future Income Tax Benefits, Non-Current 9,035
9,185 Intangibles, Net 1,374 1,765 Other Assets 3,184 3,989
-------------- ------------ Total Assets $240,492 $297,282
============== ============ *T -0- *T Liabilities and Shareholders'
Equity Current Liabilities: Accounts payable $ 38,196 $ 33,682
Accrued expenses 36,862 50,034 Short-term debt 41,665 69,524
Current taxes payable 3,663 3,747 Deferred rent 884 919
-------------- ------------ Total current liabilities 121,270
157,906 Other Long-Term Liabilities 383 475 Long-Term Debt 75,750
75,750 Shareholders' Equity: Common stock - authorized: 75,000
shares of $0.10 par value; issued and outstanding: 24,487 shares in
2006 and 24,179 in 2005 2,449 2,418 Paid-in capital 160,064 159,226
Accumulated deficit (114,683) (95,749) Accumulated other
comprehensive loss (4,741) (2,744) -------------- ------------
Total shareholders' equity 43,089 63,151 --------------
------------ Total Liabilities and Shareholders' Equity $240,492
$297,282 ============== ============ *T -0- *T Applica Incorporated
and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended June 30, ------------------------------------
2006 2005 ------------------ ----------------- (In thousands,
except per share data) Net sales $104,491 100.0% $116,458 100.0%
Cost of sales: Cost of goods sold 73,496 70.3 89,256 76.6
Restructuring charges -- -- 4,243 3.6 --------- -------- ---------
------- 73,496 70.3 93,499 80.3 --------- -------- ---------
------- Gross profit 30,995 29.7 22,959 19.7 Operating expenses
33,648 32.2 38,310 32.9 --------- -------- --------- -------
Operating loss (2,653) (2.5) (15,351) (13.2) Other expense
(income): Interest expense 2,681 2.6 2,641 2.3 Interest and other
income (213) (0.2) (515) (0.4) --------- -------- --------- -------
2,468 2.4 2,126 1.8 --------- -------- --------- ------- Loss
before income taxes (5,121) (4.9) (17,477) (15.0) Income tax
provision 854 0.8 1,024 0.9 --------- -------- --------- -------
Net loss $ (5,975) (5.7)% $(18,501) (15.9)% ========= ========
========= ======= Loss per common share: Loss per common share -
basic and diluted $(0.25) $(0.77) ========= ========= *T -0- *T
Applica Incorporated and Subsidiaries CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) Six Months Ended June 30,
------------------------------------ 2006 2005 ------------------
----------------- (In thousands, except per share data) Net sales
$208,500 100.0% $228,907 100.0% Cost of sales: Cost of goods sold
152,880 73.3 182,077 79.5 Restructuring charges -- -- 5,143 2.2
--------- -------- --------- ------- 152,880 73.3 187,220 81.8
--------- -------- --------- ------- Gross profit 55,620 26.7
41,687 18.2 Operating expenses 67,828 32.5 77,553 33.9 ---------
-------- --------- ------- Operating loss (12,208) (5.9) (35,866)
(15.7) Other expense (income): Interest expense 5,459 2.6 5,083 2.2
Interest and other income (249) (0.1) (790) (0.3) ---------
-------- --------- ------- 5,210 2.5 4,293 1.9 --------- --------
--------- ------- Loss before income taxes (17,418) (8.4) (40,159)
(17.5) Income tax provision 1,516 0.7 1,298 0.6 --------- --------
--------- ------- Net loss $(18,934) (9.1)% $(41,457) (18.1)%
========= ======== ========= ======= Loss per common share: Loss
per common share - basic and diluted $(0.78) $(1.72) =========
========= *T
Grafico Azioni Apeiron Capital Investment (NYSE:APN)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Apeiron Capital Investment (NYSE:APN)
Storico
Da Lug 2023 a Lug 2024