Mity Enterprises (NASDAQ:MITY)
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Bradley T Nielson, president and chief executive officer
of MITY Enterprises, Inc. (Nasdaq:MITY), today announced operating
results for the second quarter ended September 30, 2005.
Net sales for the second quarter totaled $14.1 million compared to
$13.4 million a year ago, an increase of 5 percent. Net income was
$1.4 million versus $1.1 million for the comparable period a year ago,
an increase of 27 percent. Basic and diluted earnings per share for
the recent quarter were $0.35 and $0.34, compared to the previous
year's second quarter basic and diluted earnings per share of $0.27
and $0.25, an increase of 30 percent and 36 percent, respectively.
Net sales for the six months ended September 30, 2005 totaled
$28.4 million compared to $25.4 million a year ago, an increase of 12
percent. Net income was up by 34 percent to $3.0 million versus $2.2
million for the comparable period a year ago. Basic and diluted
earnings for the six-month period were $0.71 and $0.68, an increase of
37 and 39 percent over the previous year's six-month basic and diluted
earnings per share of $0.52 and $0.49, respectively.
As compared to the second quarter of fiscal 2005, the increase in
net sales reflected growth of 10 percent in the healthcare seating
unit as well as 4 percent growth in the multipurpose room unit.
International sales accounted for 15 percent of total sales. The
increase in sales in the multipurpose room unit during the quarter was
primarily attributable to growth in the education, church, and
hospitality markets.
"We are pleased to report another strong quarter with increases in
both sales and net income," said Nielson. "We continue to take
advantage of the growth opportunities in many of our markets. In
addition, our gross margins have improved now that we no longer have
the high level of expenses related to our discontinued table project.
We are particularly encouraged by the strong market acceptance of our
multipurpose room chair lines as we experienced growth in these lines
of 29 percent in the quarter. We are also very excited to begin
production of two new chair lines during the December quarter -- our
SwiftSet Courtside(TM) folding chair and our SwiftSet HD(TM) high
density stacking chair. These two new chair lines are evidence of the
rapid progress we are making to broaden our product offering and meet
the needs of more of our customers."
"During the quarter, material costing pressures again appeared on
the horizon," noted Paul R. Killpack, chief financial officer.
"Although these pressures do not currently appear to be as strong as
we saw over a year ago, they still will affect our margins and will
likely require us to implement a price increase on our product lines.
Still, we believe that strong sales growth in the short term will
continue and anticipate that sales will be up during the coming
quarter by as much as 10 percent as compared to last year's December
quarter."
The Company will host a follow-up live broadcast over the Internet
to discuss the financial results at 4:30 PM Eastern Time today. The
live web simulcast of the conference call will be available to the
public online at www.mityinc.com or on StreetEvent's Individual
Investor Center at www.streetevents.com. Listeners are encouraged to
log on five to ten minutes prior to the start time to ensure
participation from the beginning. A replay of the broadcast will be
available within approximately one hour for a week following the call
at the referenced websites.
Copies of the Company's 10-Q and report for the fiscal 2005 second
quarter will be available online at www.mityinc.com.
Founded in 1987, MITY Enterprises, Inc. designs, manufactures and
markets innovative institutional furniture created to meet the
efficiency needs of its customers. MITY Enterprises focuses on
providing premium quality institutional furniture products to niche
markets. The product lines consist of multipurpose room furniture and
healthcare seating. MITY's products are marketed under the Mity-Lite,
Broda and Versipanel tradenames. Headquartered in Utah, MITY
Enterprises serves national and international customers directly and
through distributors. For further information, visit MITY Enterprises
online at www.mityinc.com.
This press release contains forward-looking statements related to
(a) the Company's belief that sales for the December quarter will be
up as much as 10 percent as compared to last year's sales for the same
period, and (b) the Company's views that increased costs for many of
its raw materials will likely negatively affect gross margins. These
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from those contemplated in the forward-looking statements. Factors
that could cause or contribute to such differences include, but are
not limited to (i) continued global economic uncertainty resulting
from terrorism threats, current world tensions and related U.S.
military actions and their potential impact on the Company's
operations; (ii) uncertainty about market acceptance of any new
products introduced by the Company; (iii) increased price and
quality-based competitors particularly in the multipurpose room
furniture segment; (iv) lack of available capital and other resources
to develop or acquire and commercialize new products; and (v) the
risks and uncertainties outlined in the Company's documents filed with
the Securities and Exchange Commission. All forward-looking statements
and other information in this press release are based upon information
available as of the date of this release. Such information may change
or become invalid after the date of this release, and, by making these
forward-looking statements, the Company undertakes no obligation to
update these statements after the date of this release.
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MITY Enterprises, Inc.
Unaudited Financial Highlights
Three Months Ended
September 30,
-------------------------
2005 2004
----------- ------------
Net sales $14,053,000 $13,378,000
Income from operations 2,247,000 1,904,000
Pre-tax income 2,188,000 1,815,000
Net income 1,445,000 1,140,000
Basic earnings per share $ 0.35 $ 0.27
Weighted average number of common shares-
basic 4,072,105 4,296,892
Diluted earnings per share $ 0.34 $ 0.25
Weighted average common and common
equivalent shares-diluted 4,220,247 4,486,206
Six Months Ended
September 30,
-------------------------
2005 2004
----------- ------------
Net sales $28,437,000 $25,424,000
Income from operations 4,521,000 3,507,000
Pre-tax income 4,568,000 3,481,000
Net income 2,963,000 2,211,000
Basic earnings per share $ 0.71 $ 0.52
Weighted average number of common shares-
basic 4,195,470 4,282,993
Diluted earnings per share $ 0.68 $ 0.49
Weighted average common and common
equivalent shares-diluted 4,352,133 4,482,627
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