Dixon Ticonderoga (AMEX:DXT)
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Dixon Ticonderoga Company Reports Best Annual Results Since 1999
HEATHROW, Fla., Dec. 22 /PRNewswire-FirstCall/ -- Dixon Ticonderoga Company
(AMEX:DXT) today announced its highest annual profit in five years. Net income
for the fiscal year ended September 30, 2004 was $1,731,906 or $0.54 per basic
and diluted share, compared with a net loss of ($1,427,980) or ($0.45) per
share in the prior fiscal year. Pro forma net income from continuing
operations (excluding the effects of debt refinancing; restructuring costs;
investment banking costs; other income and expense; and valuation allowances
for deferred tax assets, collectively "special items") for fiscal 2004 was
$2,300,973 or $0.72, compared with $1,751,030 or $0.55 in the prior fiscal
year. Fiscal 2004 revenues from continuing operations were $88,168,759
compared with $88,837,615 last year. Basic and diluted weighted average shares
outstanding were approximately 3,205,000 and 3,197,000 in fiscal 2004 and 2003,
respectively.
Net income in the fourth fiscal quarter of 2004 was $913,031 or $0.28 per
share, compared with a net loss of ($2,179,692) or ($0.68) in the prior year
quarter. Pro forma net income from continuing operations (excluding special
items) in the fourth quarter of fiscal 2004 was $1,172,827 or $0.36 per share,
compared with $648,018 or $0.20 per share in the 2003 quarter. Fourth quarter
2004 revenues from continuing operations were $26,372,023, as compared with
$27,134,761 in the prior year quarter. Basic and diluted average shares
outstanding during the 2004 period were approximately 3,208,000 and 3,220,000,
respectively. Basic and diluted average shares outstanding approximated
3,202,000 in the 2003 period.
Commenting on the improved year-end results, Chairman and Co-Chief Executive
Officer Gino N. Pala said, "Despite lower U.S. sales due to management's
decision to discontinue certain year-end promotional activities, we experienced
continued profit improvement in the U.S. consumer products business. As we
begin to fully realize the benefits of our consolidation and cost reduction
efforts over the past several years, our company's pro forma net income from
continuing operations grew from $350,000 in 2002 to $2.3 million. We believe
that we are well-positioned for enhanced profitability in the future as we can
now fully focus on growing our top-line revenues."
On December 17, 2004, Dixon announced that on December 16, 2004 it had reached
a definitive agreement with Fila-Fabbrica Italiana Lapis ed Affini S.p.A for
the acquisition by Fila of all the outstanding shares of Dixon common stock for
$7.00 per share in cash.
Dixon Ticonderoga Company, with operations dating back to 1795, is one of the
oldest publicly held companies in the U.S. Its consumer group manufactures and
markets a wide range of writing instruments, art materials and office supplies,
including the well known Ticonderoga(R), Prang(R) and Dixon(R) brands.
Headquartered in Heathrow, Florida, Dixon Ticonderoga employs approximately
1,600 people at 8 facilities in the U.S., Canada, Mexico and the U.K. The
company has been listed on the American Stock Exchange since 1988 under the
symbol DXT.
Forward-Looking Statements
Any "forward-looking" statements in this press release (including, among
others, management's belief that it is positioned for enhanced profitability
and future growth) involve known and unknown risks, uncertainties and other
factors that could cause the actual results to differ materially from those
expressed or implied by such forward-looking statements. Such risks include
(but are not limited to) difficulties encountered with the company's
consolidation and cost reduction programs; manufacturing inefficiencies;
increased competition; reduced revenues; U.S. and foreign economic factors;
interest rate fluctuation risk; and foreign currency exchange risk, among
others.
Three Months Ended Fiscal Year Ended
September 30, September 30,
2004 2003 2004 2003
Revenues $26,372,023 $27,134,761 $88,168,759 $88,837,615
Operating Income $1,648,623 $1,399,103 $5,807,149 $4,470,382
Other Income
(Expense)(1) (93,963) -- (93,963) 1,052,500
Interest Expense (942,252) (932,849) (3,461,733) (3,585,729)
Income Taxes (2) 314,082 (2,365,223) (472,889) (2,744,420)
Minority Interest (13,459) (13,392) (46,658) (42,221)
Income (Loss) From
Continuing Operations 913,031 (1,912,361) 1,731,906 (849,488)
Loss From Discontinued
Operations -- (267,331) -- (578,492)
Net Income (Loss) $913,031 $(2,179,692) $1,731,906 $(1,427,980)
Earnings (Loss) Per
Share (Basic and
Diluted):
Continuing Operations $0.28 $(0.60) $0.54 $(0.27)
Discontinued
Operations -- (0.08) -- (0.18)
Net Income (Loss) $0.28 $(0.68) $0.54 $(0.45)
Weighted Average
Shares - Basic 3,207,894 3,202,149 3,204,543 3,196,714
Weighted Average
Shares - Diluted 3,219,669 3,202,149 3,204,613 3,196,714
Reconciliation of Income (Loss) From Continuing Operations
To Pro Forma Net Income From Continuing Operations
Three Months Ended Fiscal Year Ended
September 30, September 30,
2004 2003 2004 2003
Income (Loss) From
Continuing Operations $913,031 $(1,912,361) $1,731,906 $(849,488)
Debt Refinancing, Net
of Income Taxes -- -- -- 424,770
Restructuring and
Related Costs, Net of
Income Taxes -- -- -- 331,069
Investment Banking and
Related Costs, Net of
Income Taxes 197,780 328,775 507,051 328,775
Other Income
(Expense), Net of
Income Taxes (1) 62,016 -- 62,016 (715,700)
Valuation Allowances
for Deferred Tax
Assets (2) -- 2,231,604 -- 2,231,604
Pro Forma Net Income $1,172,827 $648,018 $2,300,973 $1,751,030
Pro Forma Net Income
Per Share $0.36 $0.20 $0.72 $0.55
(1) Other income (expense) represents gains on receipt of securities from
insurance company demutualizations and income (expense) related to certain
import duty rebates.
(2) In the fourth fiscal quarter of 2003, the Company provided full valuation
allowances for any tax benefits generated in the U.S. given the previous
history of U.S. tax losses. Tax benefits were not recognized for such U.S.
losses in fiscal 2004.
DATASOURCE: Dixon Ticonderoga Company
CONTACT: Gino N. Pala of Dixon Ticonderoga Company, +1-407-829-9000
Web site: http://www.dixonticonderoga.com/