Applica Incorporated Reports 2004 Third-Quarter and Year-to-Date
Financial Results MIRAMAR, Fla., Nov. 4 /PRNewswire-FirstCall/ --
Applica Incorporated (NYSE:APN) today announced that third-quarter
sales for 2004 were $187.8 million, an increase of 8.2% from the
same period in 2003. For the first nine months of 2004, sales were
$479.2 million, an increase of 11.0% over the first nine months of
2003. The increases in sales in the third quarter and nine-month
period resulted primarily from sales of new products and increased
sales of core Black & Decker(R) branded products, offset by a
decline in contract manufacturing sales. Applica reported a net
loss for the 2004 third quarter of $9.9 million, or $0.41 per
share, compared with earnings of $4.9 million, or $0.20 per diluted
share, for the 2003 third quarter. The third quarter of 2004
included expenses of $9.2 million related to termination benefits
and a loss of $0.8 million on the sale of Applica's Chinese
manufacturing operations. The third-quarter 2003 earnings included
$16.2 million of equity in the net earnings of a joint venture in
which Applica owned a 50% interest. For the first nine months of
2004, Applica reported a net loss of $138.2 million, or $5.78 per
share, as compared to net income of $21.7 million, or $0.91 per
diluted share, for the same period last year. As previously
announced, Applica incurred a non-cash tax expense in the second
quarter of 2004 of approximately $24.0 million related to the U.S.
taxes on previously undistributed foreign earnings. Additionally,
as previously announced, in the second quarter of 2004, the Company
recognized a non-cash adjustment to goodwill of $62.8 million (or
$46.4 million after tax) as the result of its annual test of its
existing goodwill for impairment in accordance with Statement of
Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other
Intangible Assets." Finally, Applica increased its allowance
related to deferred tax assets by $51.4 million, resulting in a
non-cash tax expense in the second quarter. The 2003 year-to-date
earnings included $55.2 million ($33.1 million after tax) of equity
in the net earnings of a joint venture. Applica's gross profit
margin increased to 29.8% in the three-month period ended September
30, 2004 as compared to 29.1% for the same period in 2003. The
increase in the gross profit margin was primarily attributed to
sales of new products with higher margins and the movement of
production of core products from our manufacturing facility in
Mexico to third parties in China. For the first nine months of the
year, the gross profit margin increased to 29.6% as compared to
29.1% for the same period in 2003. Harry D. Schulman, President and
Chief Executive Officer stated, "We have gone through significant
changes over the last few months, including the sale of our Chinese
manufacturing operations, the renewal of the Black & Decker(R)
license, the move of our executive offices and other matters.
Additionally, this past week, we sold our Jerdon division. We
believe that these are profound changes that will have a lasting
positive effect on the company, and we intend to continue to
transform Applica to create long-term shareholder value." Applica
will hold a conference call today at 11:00 a.m., Eastern Standard
Time, to discuss its third-quarter and year-to-date results and to
give guidance on future results and trends in operations. Live
audio of the conference call will be simultaneously broadcast over
the Internet and will be available to members of the news media,
investors and the general public. The conference call is expected
to last approximately one hour. Broadcast of the event can be
accessed on the Company's website, http://www.applicainc.com/ by
clicking on the Investor Relations page. You may also access the
call via CCBN at http://www.streetevents.com/ . The event will be
archived and available for replay through Thursday, November 11,
2004, at midnight. Applica Incorporated and its subsidiaries are
marketers and distributors of a broad range of branded and
private-label small electric consumer goods. 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) 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. The Company operates manufacturing facilities in
Mexico. Additional information regarding the Company is available
at http://www.applicainc.com/ . Certain matters discussed in this
news release are forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking
statements. These factors include uncertainties regarding our
transition from manufacturers to a company that purchases all of
its products from third party sources; complications resulting from
our implementation of the new ERP system; success or failure of our
growth strategy; increases in cost and availability of raw
materials and components; our dependence on purchases from large
customers; the strength of the U.S. retail market; currency
fluctuations in our international operations; the potential for
product recalls and product liability claims against us; the
bankruptcy or loss of a major retail customer, distributor or
supplier; the risks of our international operations; changes in
trade relations with China; our dependence on the timely
development, introduction and customer acceptance of products;
competitive products and pricing; dependence on foreign suppliers
and supply and manufacturing constraints; cancellation or reduction
of orders; and other risks and uncertainties detailed from time to
time in the Company's Securities and Exchange Commission filings,
including the Annual Report on Form 10-K for the year ended
December 31, 2003. 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.
Applica Incorporated and Subsidiaries CONSOLIDATED BALANCE SHEETS
Assets September 30, 2004 December 31, (Unaudited) 2003 (In
thousands) Current Assets: Cash and cash equivalents $5,107 $12,735
Accounts and other receivables, less allowances of $11,652 in 2004
and $12,543 in 2003 136,177 131,021 Notes receivable - current and
former officers 1,554 1,615 Inventories 173,849 106,326 Prepaid
expenses and other 18,980 21,828 Refundable income taxes 2,686
4,823 Future income tax benefits 2,442 11,616 Total current assets
340,795 289,964 Investment in Joint Venture -- 5,389 Property,
Plant and Equipment - at cost, less accumulated depreciation of
$76,680 in 2004 and $100,445 in 2003 43,252 62,154 Future Income
Tax Benefits, Non-Current 8,304 49,695 Goodwill -- 62,812 Other
Intangibles, Net 4,998 6,146 Other Assets 2,005 2,676 Total Assets
$399,354 $478,836 Liabilities and Shareholders' Equity Current
Liabilities: Accounts payable $49,925 $39,273 Accrued expenses
60,703 61,362 Current maturities of long-term debt 8,955 5,919
Current taxes payable 2,462 2,172 Deferred rent 665 301 Total
current liabilities 122,710 109,027 Other Long-Term Liabilities
1,313 1,327 Long-Term Debt, Less Current Maturities 173,022 130,869
Shareholders' Equity: Common stock - authorized: 75,000 shares of
$0.10 par value; issued and outstanding: 24,069 shares in 2004 and
23,687 shares in 2003 2,407 2,369 Paid-in capital 158,865 156,604
(Accumulated deficit) retained earnings (51,766) 86,474 Note
receivable - former officer (1,496) (1,496) Accumulated other
comprehensive earnings (loss) (5,701) (6,338) Total shareholders'
equity 102,309 237,613 Total Liabilities and Shareholders' Equity
$399,354 $478,836 Applica Incorporated and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months
Ended September 30, 2004 2003 (In thousands, except per share data)
Net sales $187,750 100.0% $173,512 100.0% Cost of goods sold
131,850 70.2 123,004 70.9 Gross profit 55,900 29.8 50,508 29.1
Selling, general and administrative expenses: Operating expenses
52,846 28.1 53,358 30.8 Termination benefits 9,153 4.9 -- -- Loss
on sale of subsidiary 784 0.4 -- -- Operating loss (6,883) (3.7)
(2,850) (1.7) Other expense (income): Interest expense 2,360 1.3
3,597 2.1 Interest and other income (80) -- (245) (0.1) Loss on
early extinguishment of debt -- -- 1,906 1.1 2,280 1.2 5,258 3.0
Loss before equity in net earnings of joint venture and income
taxes (9,163) (4.9) (8,108) (4.7) Equity in net earnings of joint
venture -- -- 16,199 9.3 Loss before income taxes (9,163) (4.9)
8,091 4.7 Income tax provision 780 0.4 3,236 1.9 Net (loss)
earnings $(9,943) (5.3)% $4,855 2.8% Earnings (loss) per common
share: (Loss) earnings per common share - basic $(0.41) $0.21
(Loss) earnings per common share - diluted $(0.41) $0.20 Applica
Incorporated and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) Nine Months Ended September 30, 2004 2003 (In
thousands, except per share data) Net sales $479,236 100.0%
$431,598 100.0% Cost of goods sold 337,377 70.4 305,962 70.9 Gross
profit 141,859 29.6 125,636 29.1 Selling, general and
administrative expenses: Operating expenses 146,729 30.6 132,240
30.6 Termination benefits 9,153 1.9 -- -- Loss on sale of
subsidiary 784 0.2 -- -- Repositioning charge (563) (0.1) -- --
Impairment of goodwill 62,812 13.1 -- -- Operating loss (77,056)
(16.1) (6,604) (1.5) Other expense (income): Interest expense 6,718
1.4 11,431 2.6 Interest and other income (1,069) (0.2) (893) (0.2)
Loss on early extinguishment of debt 187 -- 1,906 0.4 5,836 1.2
12,444 2.9 Loss before equity in net earnings of joint venture and
income taxes (82,892) (17.3) (19,048) (4.4) Equity in net earnings
of joint venture -- -- 55,199 12.8 (Loss) earnings before income
taxes (82,892) (17.3) 36,151 8.4 Income tax provision 55,348 11.5
14,460 3.4 Net (loss) earnings $(138,240) (28.8)% $21,691 5.0%
Earnings (loss) per common share: (Loss) earnings per common share
- basic $(5.78) $0.92 (Loss) earnings per common share - diluted
$(5.78) $0.91 DATASOURCE: Applica Incorporated CONTACT: Investor
Relations Department of Applica Incorporated, +1-954-883-1000, or
Web site: http://www.applicainc.com/
Copyright
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