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 third quarter ended December 31, 2005.
Net sales for the third quarter totaled $13.4 million compared to
$11.9 million a year ago, an increase of 13 percent. Net income was
$1.2 million versus $0.8 million for the comparable period a year ago,
an increase of 51 percent. Basic and diluted earnings per share for
the recent quarter were $0.29 and $0.28, compared to the previous
year's third quarter basic and diluted earnings per share of $0.18, an
increase of 61 percent and 56 percent, respectively.
Net sales for the nine months ended December 31, 2005, totaled
$41.8 million compared to $37.3 million a year ago, an increase of 12
percent. Net income was up 38 percent to $4.2 million versus $3.0
million for the comparable period a year ago. Basic and diluted
earnings per share for the nine-month period were $1.01 and $0.97, an
increase of 44 and 45 percent over the previous year's nine-month
basic and diluted earnings per share of $0.70 and $0.67, respectively.
As compared to the third quarter of fiscal 2005, the increase in
net sales reflected a 16 percent growth in multipurpose room sales
that was primarily attributable to growth in the office, public
assembly, hospitality, government, education, business, and recreation
markets. Multipurpose room chair sales were up by 88 percent primarily
due to new product lines as well as growth of existing chair lines.
For the nine-month period, international sales have increased 22
percent compared to the prior year period.
"We are pleased to once again report a 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. The
strong market acceptance of our multipurpose chair lines continues
with help from our new chair lines, the Steelcore(TM) Chiavari
ballroom chair and our DuraMax(TM) folding chair. We also see
continued growth in our existing chair lines. In an effort to further
broaden our product offering and meet the needs of our customers, we
anticipate the introduction of two additional chair lines in the
coming months as well -- the SwiftSet Courtside(TM) folding chair and
the SwiftSet HD(TM) high density stacking chair. Also in an effort to
further enhance our competitive advantages, we are beginning to
formalize lean initiatives in our multipurpose room manufacturing
facility.
"In addition, we are making great progress in building the
production capability of our new polyethelene fencing venture. We are
actively creating the tooling and molds required to bring our
equipment up to full utilization. In the mean time, we have three more
beta sites currently being installed with several other fence
installers patiently waiting for product availability," Nielson
continued.
"During the quarter, we were successful at continuing our share
repurchase program by repurchasing 103,800 shares," noted Paul R.
Killpack, chief financial officer. "This brings our total for the year
to almost 398,000. Yesterday, at our board of directors meeting, the
board increased its authorization by 150,000 shares, bringing the
total authorization to 650,000.
"We are pleased to see continued growth in our core business,
especially our chair lines," added Killpack. "Although we face
continued material cost pressures as well as freight cost increases,
still we believe that our strong sales growth will continue,
particularly as we expand the number of products offered. We
anticipate sales will be up during the coming quarter by as much as 10
percent as compared to last year's March 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 2006 3rd
quarter will be available online at www.mityinc.com after they are
filed.
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 March 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 expectation that it will introduce two
additional chair lines in the coming months. 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; (v) increased material costs; and (vi) 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
December 31,
2005 2004
----------- ------------
Net sales $13,408,000 $11,872,000
Income from operations 1,656,000 1,270,000
Pre-tax income 1,720,000 1,254,000
Net income 1,199,000 795,000
Basic earnings per share $0.29 $0.18
Weighted average number of common shares-basic 4,076,166 4,301,266
Diluted earnings per share $0.28 $0.18
Weighted average common and common equivalent
shares-diluted 4,221,533 4,462,038
Nine Months Ended
December 31,
2005 2004
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Net sales $41,845,000 $37,296,000
Income from operations 6,177,000 4,777,000
Pre-tax income 6,288,000 4,735,000
Net income 4,162,000 3,006,000
Basic earnings per share $1.01 $0.70
Weighted average number of common shares-basic 4,135,492 4,289,106
Diluted earnings per share $0.97 $0.67
Weighted average common and common equivalent
shares-diluted 4,288,388 4,475,784
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