Noland (NASDAQ:NOLD)
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Higher Sales Help Noland to 48% Rise in '04 Earnings
NEWPORT NEWS, Va., Feb. 25 /PRNewswire-FirstCall/ -- Noland Company
(NASDAQ:NOLD) today reported 2004 net income of $18,358,000, or $5.45 per share
(diluted), 48 percent more than 2003's $12,442,000, or $3.64 per share.
The wholesale distribution firm said the rise in earnings stemmed from a
significant improvement in sales and a $3,450,000 year-to-year increase in
after-tax gains from the disposal of surplus real property.
Sales for 2004 totaled $548,135,000, 16 percent greater than the $471,756,000
total in 2003. "Our strong sales performance last year was widespread," said
Chairman Lloyd U. Noland III, "reflecting our success in capitalizing on the
continued strength in the construction market."
Noland said plumbing sales, which also benefited from rising prices, were 18
percent higher than the year-earlier period's, while air conditioning sales
rose 14 percent. "And our electrical/industrial sales were up 13 percent,
largely due to a sharper focus on the strong commercial construction market,"
said Noland.
Gross profit margins were down slightly, due to costs associated with the LIFO
method of accounting for inventories. But the higher sales led to a
$13,255,000, or 12 percent, rise in gross profit for the year.
Operating expenses rose $7,877,000, or 8 percent, primarily due to costs
associated with the company's new central distribution center and five new
branches opened since mid-2003.
Operating profit totaled $31,397,000, $11,450,000, or 57 percent, greater than
the $19,947,000 total in 2003. Gains from the sale of surplus property produced
$6,058,000 of the increase in operating profit.
In the fourth quarter, sales totaled $139,479,000, or 19 percent higher than
the year-earlier period's $117,290,000. Net income totaled $6,576,000, or $1.95
per share (diluted), versus $3,252,000, or 97 cents per share, for the fourth
quarter of 2003.
Noland said he is optimistic about the company's prospects for continued sales
growth in 2005. "While we have to be alert to a possible cooling of the housing
market," he said, "we think the climate is right for another good housing
construction year. Plus, commercial construction is forecast to do even better
than last year. If these projections hold up, we will have ample opportunities
in 2005 to build on last year's success." Noland operates 100 branches in 13
states, and distributes products in the plumbing, HVAC, water systems,
electrical, and industrial fields. The company's stock is traded on NASDAQ's
SmallCap Market. Its trading symbol is NOLD.
UNAUDITED FINANCIAL HIGHLIGHTS
For the Three Months
Ended December 31 2004 2003
Merchandise Sales $139,478,502 $117,290,391
Net Income $6,575,843 $3,251,785
Basic Earnings Per Share(1) $1.97 $.97
Diluted Earnings Per Share(2) $1.95 $.97
For the Twelve Months
Ended December 31 2004 2003
Merchandise Sales $548,135,450 $471,756,511
Net Income $18,358,412 $12,441,690
Basic Earnings Per Share(3) $5.50 $3.67
Diluted Earnings Per Share(4) $5.45 $3.64
(1) Based on 3,341,043 shares outstanding in 2004 and 3,331,964 shares
outstanding in 2003.
(2) Based on 3,375,772 shares outstanding in 2004 and 3,363,641 shares
outstanding in 2003.
(3) Based on 3,338,360 shares outstanding in 2004 and 3,392,924 shares
outstanding in 2003.
(4) Based on 3,370,163 shares outstanding in 2004 and 3,422,390 shares
outstanding in 2003.
Note: Included in this news release are forward-looking management comments and
other statements which reflect management's current outlook for the future.
Such forward-looking statements are not guarantees of future performance and
are subject to risks and uncertainties that could cause actual results to
differ materially from those anticipated in the statements. Such risks and
uncertainties include, but are not limited to, general business and economic
conditions, climatic conditions, competitive pricing pressures, and product
availability.
DATASOURCE: Noland Company
CONTACT: John E. Gullett of the Noland Company, +1-757-928-9000
Web site: http://www.noland.com/