Cfc (NASDAQ:CFCI)
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CFC International, Inc. Reports Increase in 2004 First Quarter
Results
-- First quarter 2004 net income of $1.1 million, an $880,000 increase over the
same period a year ago, which also represents an all-time record first quarter
results.
CHICAGO HEIGHTS, Ill., April 22 /PRNewswire-FirstCall/ -- Worldwide
holographic and specialty coated film manufacturer, CFC International, Inc.
today reported results for the first quarter of 2004. Net income and diluted
earnings per share for the first quarter of 2004 were $1.1 million or $0.25
cents per share on a fully diluted basis, the highest first quarter net income
in the Company's history, and 357.2 percent higher than net income of $246,000
or $0.06 cents per share on a fully diluted basis, for the same period in 2003.
The increase in net income in the first quarter 2004 was due to increased
sales volumes across all of the Company's product groups and gross margin
expansion resulting from a higher utilization of the Company's plants. In
particular, woodgrain product volume sales have increased as previously
projected due to the exit of a competitor from this market earlier this year.
In anticipation of this increased volume the Company invested $230,000 in the
fourth quarter of 2003 hiring and training additional personnel, and is now
realizing the benefit of those actions.
First quarter sales increased 32.6 percent to $20.8 million compared to $15.7
million in the first quarter of 2003. The increase in first quarter sales of
2004 was primarily due to strong sales in its printed products which increased
60.6 percent, and robust holographic sales which increased 30.4 percent over
the same period sales in 2003. In addition, sales were favorably affected by
the continued strength of the Euro by approximately $872,000, or 4.2 percent.
"We are extremely pleased with our first quarter results," said Roger Hruby,
Chairman and Chief Executive Officer. "Our earnings for the first quarter of
2004 are indicative of improving economic conditions, volume growth in all of
our product lines and a strong Euro. In addition, we are beginning to see the
benefits of productivity initiatives and investments that we made in capital
and human resources in 2003 in anticipation of this turnaround and the
projected increase in the volume of orders in our printed products." Mr. Hruby
further stated, "While the American economy is improving, European markets are
still soft, and we expect these trends to continue. We are confident that we
have the resources and strategies in place to capitalize on the opportunities
that we have in front of us on a worldwide basis, including strong order
volumes in our printed products and holographic products. Our results for the
quarter demonstrate a solid performance, and position us to deliver growth in
sales and earnings for the entire year."
Based upon the Company's results and the current economic outlook, the Company
has increased its previously stated net income of $.44 to $.48 earnings per
share on a fully diluted basis for the year, to $.46 to $.50 earnings per share
on a fully diluted basis for the full year of 2004.
Recent Developments
The Company reports the addition of Mr. Rick Shuster as Director of
International Business Development. Shuster has more than 10 years of
international sales experience and will be responsible for the Company's
Asian-Pacific sales. Shuster replaces Mr. Gary Runhaar who retired from the
Company after 16 years of service at the end of March 2004.
The Company will be exhibiting at the upcoming National Restaurant Association
(NRA) 2004 show being held in Chicago, Illinois at the McCormick Place, May
22-25, 2004 in Booth #5880.
The Company invites all interested parties to listen to its first quarter
conference call at 9:00 a.m. EDT (8:00 a.m. CDT) on Friday, April 23, 2004. The
dial-in numbers for the call are 800-884-5695 (U.S.), and 617-786-2960
(International). The participant passcode for this call is 69907198.
Participants are asked to call the assigned number approximately 10 minutes
before the conference call begins. The call, which will last approximately one
hour, will be open to the public, but only investors and financial analysts
will be permitted to ask questions. The media and all other participants will
be in a listen-only mode.
For those unable to listen to the live call, a replay will be available from
approximately 11:00 a.m. EDT on April 23 until April 30, 2004. This replay can
be accessed by dialing 888-286-8010 (U.S.); 617-801-6888 (International). The
passcode is 30481912. The call also will be available as a webcast, both live
and for replay, via the Internet on the CFC International, Inc. website at
http://www.cfcintl.com/ on the Corporate/Investor Relations page.
Headquartered in Chicago Heights, Illinois, CFC International is a market
leader in the design, manufacture and marketing of holography and specialty
functional coatings that add value to a wide variety of industrial and consumer
products. The Company operates facilities in Chicago Heights and Countryside,
Illinois; London, England; and Goppingen, Germany.
A condensed consolidated statement of operations and balance sheet are
attached.
Statements made in this press release, including those relating to expectations
of future sales, net income, operating costs, earnings per share, expectations
of increased sales attributable to various product lines and returns on the
Company's investment in facilities and personnel are forward looking and are
made pursuant to the safe harbor provisions of the Securities Reform Act of
1995. Such statements involve risks and uncertainties which may cause results
to differ materially from those set forth in those statements. Among other
things, continued unfavorable economic conditions, acts of terrorism and armed
conflicts may impact market growth trends in general and the demand for the
company's products and services in particular, and could also impact the
company's ordinary sources of supply; competition from existing and new
competitors and producers of alternative products will impact the company's
ability to penetrate or expand its presence in new or growing markets;
uncertainties relating to the company's ability to develop and distribute new
proprietary products to respond to market needs in a timely manner may impact
the company's ability to exploit new or growing markets; the company's ability
to continue to successfully identify and implement productivity improvements
and cost reductions may impact profitability; and risks inherent in
international operations, including possible economic, political or monetary
instability may impact the level and profitability of the company's foreign
sales. In addition to the factors set forth in this release, the economic,
competitive, governmental, technological and other factors identified in the
company's filings with the Securities and Exchange Commission, could affect the
forward looking statements contained in this press release.
Do not unduly rely on forward-looking statements. They give the company's
expectations about the future and are not guarantees. Forward-looking
statements speak only as of the date they are made, and we do not undertake any
obligation to update them to reflect changes that occur after that date.
You may access additional information, including our SEC filings and previous
press releases by visiting CFC International's Internet homepage at
http://www.cfcintl.com/ .
CFC INTERNATIONAL, INC.
Consolidated Statements of Income
1st 1st
(In Thousands, Except Earnings Per Share and Quarter Quarter
Operating Income Percentage) 2004 2003
Net Sales $20,824 $15,710
Cost of Goods Sold (excluding depreciation
and amortization shown below) 13,024 10,180
Operating Expenses 4,503 3,838
Depreciation and Amortization 1,339 1,078
Operating Income 1,958 614
Operating Income % 9.4% 3.9%
Interest Expense 299 267
Interest Swap Valuation 66 -
Other (Income) (28) (7)
Income Before Income Taxes 1,621 354
Provision for Income Taxes 494 108
Net Income $1,127 $246
Diluted Weighted Average Number
of Shares Outstanding 4,493 4,488
Diluted Earnings Per Share $0.25 $0.06
Earnings Before Interest, Taxes,
Depreciation and Amortization (Note 1) $3,297 $1,692
1st 1st
(In Thousands) Quarter Quarter
2004 2003
International Net Sales $9,969 $8,430
International Net Sales 47.9% 53.7%
NOTE 1: The Company believes earnings before interest expense, income
taxes, depreciation and amortization (EBITDA) is an useful measurement for
its business because management understands that such information is
considered by certain investors as an additional basis on which to
evaluate the Company's ability to pay interest, repay debt and make
capital expenditures. EBITDA should not necessarily be considered as an
alternative to net income or cash flows from operating activities which
are determined in accordance with Generally Accepted Accounting Principles
as an indicator of operating performance or as a measure of liquidity.
The table following reconciles net income to EBITDA as defined:
1st 1st
(In Thousands) Quarter Quarter
2004 2003
Net Income $1,127 $246
Add Back (Subtract):
Income Taxes 494 108
Interest Expense 299 267
Depreciation and Amortization 1,339 1,078
Interest Swap Valuation 66 -
Other Income (28) (7)
EBITDA $3,297 $1,692
CFC INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS AT
MARCH 31, 2004 AND DECEMBER 31, 2003
March 31 December 31
2004 2003
ASSETS
Cash and cash equivalents $5,310,597 $5,672,647
Accounts receivable, less allowance for
doubtful accounts 12,808,091 9,821,047
Inventories 12,966,770 13,050,711
Other current assets 1,788,046 1,771,646
Total current assets 32,873,504 30,316,051
Property, plant and equipment, net 28,424,753 28,116,892
Deferred income taxes 3,204,130 3,280,891
Intangible assets, net 3,624,874 3,695,899
Other assets 99,084 105,078
Total assets $68,226,345 $65,514,811
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $11,057,791 $9,716,066
Accounts payable and accrued expenses 10,746,697 10,075,592
Total current liabilities 21,804,488 19,791,658
Deferred income taxes 2,680,247 2,680,247
Fair value of interest swap 114,245 47,783
Long-term debt 14,590,676 15,066,109
Total liabilities 39,189,656 37,585,797
Stockholders' equity 29,036,689 27,929,014
Total liabilities and stockholders'
equity $68,226,345 $65,514,811
DATASOURCE: CFC International, Inc.
CONTACT: Dennis Lakomy, Chief Financial Officer of CFC International,
Inc., +1-708-757-2803
Web site: http://www.cfcintl.com/
Company News On-Call: http://www.prnewswire.com/comp/110663.html