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 fourth quarter and fiscal year ended March 31, 2006.
Net sales for the fourth quarter totaled $13.9 million, compared
to $13.0 million a year ago, an increase of 7 percent. Net income was
$1.4 million, versus a net loss of $537,000 for the comparable period
a year ago. Basic and diluted earnings per share for the recent
quarter were $0.34 and $0.33, compared to the previous year's fourth
quarter basic and diluted loss per share of $0.12.
Net sales for the fiscal year ended March 31, 2006, totaled $55.7
million, compared to $50.3 million a year ago, an increase of 11
percent. Net income was up 124 percent to $5.5 million, versus $2.5
million for the comparable period a year ago. Basic and diluted
earnings per share for the twelve-month period were $1.34 and $1.30,
an increase of 135 and 136 percent over the previous year's
twelve-month basic and diluted earnings per share of $0.57 and $0.55,
respectively.
As compared to the fourth quarter of fiscal 2005, the increase in
net sales reflected an 8 percent growth in multipurpose room sales
that was primarily attributable to growth in the office, hospitality
and education markets. Multipurpose room chair sales were up by 15
percent primarily due to new product lines as well as growth of
existing chair lines. For both the quarter and the twelve-month
period, international sales were 15 percent of net sales. Gross profit
margins for the quarter were 34 percent, an increase of 3 percentage
points as compared to the prior-year period.
"We are excited to be able to report a strong quarter to cap off a
very strong year," said Nielson. "We saw an increase in sales, net
income, gross profit margins, and earnings per share for the quarter
and the fiscal year. Our annual results were at record levels. Much of
our recent growth is attributable to the strong market acceptance of
our multipurpose chair lines. Our new Steelcore(TM) Chiavari ballroom
chair line and our DuraMax(TM) folding chair line contributed more
than $1 million in sales last year."
"To enhance our innovative chair offering, this quarter we
introduced two new chair lines -- the SwiftSet Courtside(TM) folding
chair and the SwiftSet HD(TM) high-density stacking chair. Both chair
lines were in response to customer requests and expand our offering
into previously untapped opportunities. In addition, we continue to
focus on improving our operational excellence by implementing lean and
six sigma manufacturing techniques. We are just starting to see some
results from our efforts and, recently, had our first series of Kaizen
events."
"We also officially launched and began selling our new, innovative
Oasis(TM) simulated rock fencing. We are marketing the product under
the Mity Fence Systems tradename. Although the results are still in
the early stages, the product has been well received and we are in the
process of increasing our production capacity and expanding our
distribution network. We are quite optimistic about the feedback we
are receiving regarding the fence product line."
"In addition to the terrific financial performance, we were able
to repurchase 84,000 shares of the company's stock during the
quarter," noted Paul R. Killpack, chief financial officer. "Earlier
this month, we were able to repurchase an additional 144,000 shares.
During the last twelve months, we have reduced our outstanding shares
by 626,000 shares, which represents over 13 percent of the outstanding
shares. Last week, at our board of directors meeting, the board
increased the repurchase authorization by an additional 200,000
shares, bringing the total shares available for repurchase to
224,000."
"We are pleased to see continued momentum for our products," added
Killpack. "We believe that our strong sales growth will continue,
particularly as we expand into fencing systems and increase the number
of product lines offered in our multipurpose room business. We
anticipate sales will be up again during the first quarter by as much
as 10 percent as compared to last year's first 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 StreetEvents' 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 Annual Report on Form 10-K for the year
ended March 31, 2006, will be available in the future online at
www.mityinc.com. The annual meeting of shareholders will be held on
August 3, 2006.
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 June 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 its strong sales growth
will continue, and that it will receive market acceptance for its two
additional chair lines and fencing systems 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
March 31,
2006 2005
Net sales $13,856,000 $12,976,000
Income from operations 1,928,000 (940,000)
Pre-tax income 2,064,000 (840,000)
Net income 1,379,000 (537,000)
Basic earnings per share $ 0.34 ($0.12)
Weighted average number of common
shares -- basic 4,024,980 4,319,194
Diluted earnings per share $ 0.33 ($0.12)
Weighted average common and common
equivalent shares -- diluted 4,153,376 4,469,498
Twelve Months Ended
March 31,
2006 2005
Net sales $55,701,000 $50,272,000
Income from operations 8,105,000 3,837,000
Pre-tax income 8,352,000 3,895,000
Net income 5,541,000 2,469,000
Basic earnings per share $ 1.34 $ 0.57
Weighted average number of common
shares -- basic 4,124,189 4,296,525
Diluted earnings per share $ 1.30 $ 0.55
Weighted average common and common
equivalent shares -- diluted 4,270,962 4,474,111
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