Dixon Ticonderoga (AMEX:DXT)
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Dixon Ticonderoga Reports Strong Third Quarter Earnings
HEATHROW, Fla., Aug. 12 /PRNewswire-FirstCall/ -- Dixon Ticonderoga Company
(AMEX:DXT) today announced pro forma net income from continuing operations for
its third quarter ended June 30, 2004 of $1,666,177 or $.52 per basic and
diluted share, compared with pro forma net income from continuing operations of
$1,558,900 or $0.49 per basic and diluted share in the prior year quarter.
Including the fiscal 2004 effects of investment banking and related costs, as
well as valuation allowances for U.S. deferred tax assets, the company reported
net income of $1,672,064 or $0.52 per share. This compares with net income of
$1,790,558 or $0.56 per share in the prior year after the fiscal 2003 effects
of restructuring and related costs, other income and discontinued operations.
Third quarter revenues rose to $27,367,166 from $26,940,174 last year.
Weighted average shares outstanding during the quarter were 3,205,979 (basic)
and 3,206,190 (diluted) compared with 3,199,043 (basic and diluted) a year ago.
For the first nine months of fiscal 2004, the Company reported that its pro
forma net income from continuing operations rose 36% to $1,504,165, or $0.47
per basic and diluted share from $1,103,012 or $0.35 per basic and diluted
share in the prior year period. Including the fiscal 2004 effects of
investment banking and related costs, and valuation allowances for U.S.
deferred tax assets, net income in the current year was $818,876 or $0.26 per
share. This compares with net income of $751,712 or $0.24 per share in the
2003 period after the effects of debt refinancing costs, restructuring costs,
other income and results of discontinued operations. Revenues in the first
nine months of fiscal 2004 were up slightly to $61,796,736 compared with to
$61,702,854 a year ago. Average shares outstanding during the period were
3,203,107 (basic and diluted) compared with a 3,194,902 (basic and diluted)
last year.
Commenting on the improved year to date results, Chairman and Co-Chief
Executive Officer Gino N. Pala said, "We are extremely pleased with the strong
continued improvement of our consumer products business, particularly in the
U.S., as we begin to enjoy the benefits of our exhaustive consolidation and
cost reduction efforts over the past several years. Our company's pro forma
net income from continuing operations year-to-date has improved from
approximately $300,000 to $1.5 million over the past two years. We now believe
that, with the most difficult restructuring efforts behind us, we are
well-positioned for future growth and the related enhanced profitability it
will bring to our company."
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 future growth and
enhanced profitability) 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.
DIXON TICONDEROGA COMPANY - - - EARNINGS HIGHLIGHTS
Three Months Ended Nine Months Ended
June 30, June 30,
2004 2003 2004 2003
Revenues $27,367,166 $26,940,174 $61,796,736 $61,702,854
Operating Income $3,293,039 $3,233,088 $4,158,527 $3,071,279
Other Income -- 611,680 -- 1,052,500
Interest Expense (912,476) (990,806) (2,519,481) (2,652,880)
Income Taxes (682,231) (971,733) (786,971) (379,197)
Minority Interest (26,268) (21,948) (33,199) (28,829)
Income From
Continuing Operations 1,672,064 1,850,281 818,876 1,062,873
Loss From
Discontinued
Operations -- (59,723) -- (311,161)
Net Income $1,672,064 $1,790,558 $818,876 $751,712
Earnings (Loss) Per
Share
(Basic and Diluted):
Continuing
Operations $0.52 $0.58 $0.26 $0.33
Discontinued
Operations -- (0.02) -- (0.09)
Net Income $0.52 $0.56 $0.26 $0.24
Weighted Average
Shares (Basic) 3,205,979 3,199,043 3,203,107 3,194,902
Weighted Average
Shares (Diluted) 3,206,190 3,199,043 3,203,107 3,194,902
Reconciliation of Income From Continuing Operations
To Pro Forma Net Income From Continuing Operations
Three Months Ended Nine Months Ended
June 30, June 30,
2004 2003 2004 2003
Income From
Continuing Operations $1,672,064 $1,850,281 $818,876 $1,062,873
Debt Refinancing
Costs, Net of Income
Taxes -- -- -- 424,770
Restructuring and
Related Costs, Net of
Income Taxes -- 124,561 -- 331,069
Other Income, Net of
Income Taxes (1) -- (415,942) -- (715,700)
Investment Banking and
Related Costs, Net of
Income Taxes 84,667 -- 309,271 --
Valuation Allowances
for U.S. Deferred Tax
Assets (2) (90,554) -- 376,018 --
Pro Forma Net Income
from Continuing
Operations $1,666,177 $1,558,900 $1,504,165 $1,103,012
Pro Forma Net Income
Per Share from
Continuing Operations $0.52 $0.49 $0.47 $0.35
(1) Other income in the 2003 periods represents gains on receipt of securities
from insurance company demutualizations and certain import duty rebates.
(2) Beginning in the fourth fiscal quarter of 2003, the Company has provided
full valuation allowances for any tax benefits generated in the U.S. given the
recent history of U.S. tax losses. In the comparable quarter, tax benefits were
recognized for such U.S. losses.
DATASOURCE: Dixon Ticonderoga Company
CONTACT: Gino N. Pala, Chairman, Dixon Ticonderoga Company,
+1-407-829-9000
Web site: http://www.dixonticonderoga.com/