Noland (NASDAQ:NOLD)
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Noland Reports Higher 2nd-Quarter Sales and Earnings
NEWPORT NEWS, Va., July 22 /PRNewswire-FirstCall/ -- Noland Company
(NASDAQ:NOLD) today reported second-quarter net income of $7,735,000, or $2.29
cents per share (diluted), up sharply from the year-earlier period's
$2,504,000, or 73 cents per share. Second-quarter sales totaled $145,631,000,
19 percent greater than second-quarter 2003's $122,532,000.
The Newport News-based wholesale distribution firm said the earnings
improvement stemmed from gains on the disposal of surplus real property.
After-tax gains from the disposal of surplus real property totaled $5,859,000
in the second quarter versus $263,000 in the second quarter of 2003.
Chairman Lloyd U. Noland III said the sales increase was fueled by continued
strong construction activity and rising prices. "We also benefited from good
weather," he said, "in sharp contrast to the record rainfall a year ago that
caused construction delays and adversely affected our second-quarter 2003
sales."
Noland said all three product categories achieved double-digit sales gains in
the second quarter, led by plumbing's 21 percent improvement. He said hot
weather in June boosted demand for replacement air conditioning equipment,
contributing to a 16 percent rise in air conditioning sales for the quarter.
Electrical/Industrial sales also increased 16 percent.
Gross profit for the quarter was up $1,795,000, or 7 percent, over the
year-earlier period, as gross margins declined due to intense competition and
costs associated with the LIFO method of accounting. Operating expenses rose by
$2,174,000, or 9 percent, largely due to costs associated with the company's
new central distribution center and five new branches opened since mid-2003.
Operating profit was $8,607,000, or 212 percent, higher than the year- earlier
period, due to a $9,020,000 year-to-year increase in gains from the disposal of
surplus real property.
Through the first six months, Noland's sales totaled $268,397,000, 15 percent
more than first-half 2003's $232,695,000. Net income was $9,841,000, or $2.92
cents per share (diluted), 66 percent more than the $5,924,000, or $l.70 per
share, for the first six months of 2003. After-tax gains from the disposal of
surplus real property totaled $5,866,000 in the first six months of 2004 versus
$2,386,000 in the year-earlier period.
Noland said conditions appear to be favorable for continued sales growth in the
third quarter, but possibly at a slower pace. "Customer orders for future
delivery are only modestly higher than a year ago," he said, "but the current
healthy level of housing construction suggests we will have ample opportunities
in the short term."
Noland operates 101 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 June 30 2004 2003
Merchandise Sales $145,630,713 $122,532,036
Net Income $7,735,047 $2,504,271
Basic Earnings Per Share(1) $2.32 $.73
Diluted Earnings Per Share(2) $2.29 $.73
For the Six Months
Ended June 30 2004 2003
Merchandise Sales $268,396,504 $232,694,643
Net Income $9,841,134 $5,924,489
Basic Earnings Per Share(3) $2.95 $1.71
Diluted Earnings Per Share(4) $2.92 $1.70
(1) Based on 3,338,313 shares outstanding in 2004 and 3,424,986 shares
outstanding in 2003.
(2) Based on 3,370,947 shares outstanding in 2004 and 3,453,625 shares
outstanding in 2003.
(3) Based on 3,335,836 shares outstanding in 2004 and 3,455,175 shares
outstanding in 2003.
(4) Based on 3,368,885 shares outstanding in 2004 and 3,486,283 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 Noland Company, +1-757-928-9000
Web site: http://www.noland.com/