Dixon Ticonderoga (AMEX:DXT)
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Dixon Ticonderoga Reports Pro Forma Earnings Of $2 Million In Fiscal 2003
HEATHROW, Fla., Dec. 29 /PRNewswire-FirstCall/ -- Dixon Ticonderoga Company
today announced a dramatic improvement in pro forma net income from continuing
operations in fiscal 2003. Pro forma net income from continuing operations for
the fiscal year ended September 30, 2003 was $2,009,572 or $0.63 per basic and
diluted share, compared with $350,403 or $0.11 per share in the prior year.
Including the effects of debt refinancing; restructuring costs; investment
banking costs; gains on the receipt of securities from insurance company
demutualizations; valuation allowances for deferred tax assets (collectively,
"special items"); and discontinued operations, net loss in fiscal 2003 was
(1,427,980) or ($0.45) per basic and diluted share, compared with a net loss of
($559,923) or ($0.18) per share in 2002. Fiscal 2003 revenues from continuing
operations were $88,837,615, as compared with $88,590,730 in the prior year.
Basic and diluted weighted average shares outstanding were 3,196,714 and
3,183,866 during 2003 and 2002, respectively.
Pro forma net income from continuing operations (excluding special items) in the
fourth quarter of fiscal 2003 was $648,018 or $0.20 per basic and diluted share,
compared with $82,920 or $0.03 per share in the prior year quarter. Net loss in
the fourth quarter (including the effects of special items and discontinued
operations) was ($2,179,692) or ($0.68) per basic and diluted share, compared
with a net loss of ($617,981) or ($0.19) per share in 2002. Fourth quarter 2003
revenues from continuing operations increased 8.5% to $27,134,761, as compared
with $25,018,709 in the prior year quarter. Basic and diluted weighted average
shares outstanding during the fourth quarter of 2003 were 3,202,149, as compared
with 3,192,832 in the 2002 quarter.
Commenting on the year-end results, Chairman and Co-Chief Executive Officer Gino
N. Pala, said, "Despite a very challenging year which included, among other
initiatives, a major debt refinancing, the completion of our comprehensive
manufacturing consolidation plan and the sale of our final industrial business,
the Company achieved significantly improved operating results. We are extremely
gratified that these strategies, as well as other cost reduction activities
pursued over the past several years, have begun to substantially enhance
profitability. Our pro forma earnings of $2 million imply that our Company is
indeed headed in the right direction".
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 products,
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, the U.K. and China.
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,
the company's ability to continue to improve cash flow and profitability going
forward and to maintain adequate liquidity) 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 by the
company with its cost reduction activities, plant consolidations and/or
inventory reduction program; the inability to maintain and/or secure new sources
of capital; increased competition; U.S. and foreign economic factors; foreign
currency exchange risk; interest rate fluctuation risk; and the inability to
generate taxable income to utilize certain tax benefits in the future, among
others.
Dixon Ticonderoga Company
Three Months Ended Fiscal Year Ended
September 30, September 30,
2003 2002 2003 2002
Revenues $27,134,761 $25,018,709 $88,837,615 $88,590,730
Operating Income $1,399,103 $426,159 $4,470,382 $2,643,985
Other Income, Net -- -- 1,052,500 252,676
Interest Expense (932,849) (1,247,555) (3,585,729) (4,087,731)
Income Tax Benefit
(Expense) (2,365,223) 217,590 (2,744,420) 559,064
Minority Interest (13,392) (6,666) (42,221) (51,214)
Income (Loss) From
Continuing
Operations (1,912,361) (610,472) (849,488) (683,220)
Income (Loss) From
Discontinued
Operations (267,331) (7,509) (578,492) 123,297
Net Loss $(2,179,692) $(617,981) $(1,427,980) $(559,923)
Earnings (Loss)
Per Share (Basic
and Diluted):
Continuing
Operations $(0.60) $(0.19) $(0.27) $(0.22)
Discontinued
Operations (0.08) 0.00 (0.18) 0.04
Net Income (Loss) $(0.68) $(0.19) $(0.45) $(0.18)
Weighted Average
Shares - Basic 3,202,149 3,192,832 3,196,714 3,183,866
Weighted Average
Shares - Diluted 3,202,149 3,192,832 3,196,714 3,183,866
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,
2003 2002 2003 2002
Income (Loss) From
Continuing
Operations $(1,912,361) $(610,472) $(849,488) $(683,220)
Debt Refinancing,
Net of Income Taxes -- -- 424,770 --
Restructuring and
Related Costs,
Net of Income Taxes -- 693,392 331,069 1,033,673
Investment Banking
and Related Costs,
Net of Income Taxes 328,775 -- 328,775 --
Gains on Receipt of
Securities from
Insurance Company
Demutualizations,
Net of Income Taxes -- -- (457,158) --
Valuation Allowances
for Deferred
Tax Assets 2,231,604 -- 2,231,604 --
Pro Forma Net Income $648,018 $82,920 $2,009,572 $350,453
Pro Forma Net
Income Per Share $0.20 $0.03 $0.63 $0.11
DATASOURCE: Dixon Ticonderoga Company
CONTACT: Gino N. Pala, Dixon Ticonderoga Company, +1-407-829-9000
Web site: http://www.dixonticonderoga.com/