Elkcorp (NYSE:ELK)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Elkcorp Charts. Click Here for more Elkcorp Charts.](/p.php?pid=staticchart&s=NY%5EELK&p=8&t=15)
ElkCorp (NYSE:ELK) announced today financial results for its first
fiscal quarter, ended September 30, 2006. Earnings from continuing
operations for the first quarter were $9.4 million, or $0.46 per diluted
share.
First Quarter Overview
ElkCorp Consolidated
ElkCorp recorded revenue of $218.1 million, an improvement from the
$215.9 million reported for the first quarter of fiscal 2006.
The Company reported income of $9.4 million, or $0.46 per diluted
share, compared to $10.5 million, or $0.51 per diluted share reported
for the record first quarter of fiscal 2006.
First quarter results include $2.1 million, or $0.10 per diluted share
for expensing of stock-based compensation compared to $1.2 million, or
$0.06 per diluted share in the prior year quarter.
On a non-GAAP basis, income from continuing operations, which excludes
stock-based compensation, was $11.5 million, or $0.56 per diluted
share, compared to $11.7 million, or $0.57 per diluted share, for the
first quarter of fiscal 2006. A reconciliation of GAAP to non-GAAP
income from continuing operations is included with this press release.
Premium Roofing Products
Revenue for Premium Roofing Products was $198.2 million, compared to
the $194.7 million reported in the first quarter of fiscal 2006.
Operating income was $25.2 million, or 12.7% of sales, compared to
$27.6 million, or 14.2% of sales, reported in the first quarter of
fiscal 2006. The decrease in operating income was primarily
attributable to a decline in shingle and accessory volume of 8%. The
lower volumes were a result of a softer than anticipated reroof
market, an unexpected rapid decline in new home starts and the lack of
significant storm activity.
Asphalt costs continued to rise in the quarter. Asphalt increased
approximately 53% over the same quarter in the prior year and
increased 15% over the previous quarter. Increases in raw material,
transportation and other expenses were substantially offset by a 10%
improvement in pricing for the quarter.
Composite Building Products
Sales in the first quarter were $5.4 million, compared to $5.1 million
recorded in the same quarter of fiscal year 2006. The sales increase
for the quarter was due to an improvement in railing sales and deck
board pricing, which was largely offset by a decline in decking sales.
Operating loss for the first quarter was $2.2 million compared to a
loss of $4.1 million in the first quarter of fiscal 2006. The prior
year results included a $2.6 million write-off of returned material
and non-decking material adjustments. Excluding the write-off and
adjustments in the first quarter of 2006, operating results for the
current quarter decreased $0.7 million. This decline was primarily due
to lower decking sales and production volume and increased SG&A
expense associated with expanding distribution. These factors were
partially offset by increased railing volume and lower raw material
costs.
Specialty Fabrics
Revenue declined to $12.2 million in the first quarter from $13.7
million in the same quarter last year.
Operating income, however, improved to $1.7 million, or 13.9% of
sales, in the first quarter from the $1.5 million, or 10.9% of sales,
for the prior year period.
Roofing mat volume decreased but was partially offset by increased
pricing and improved volume in higher margin products for the quarter.
Financial Condition
At September 30, 2006, the contractual principal amount of ElkCorp’s
long-term debt, including the $26 million current portion of long-term
debt, was $201.5 million. Net debt (contractual principal debt minus
cash and short-term investments) was $172.2 million, and the net debt to
capital ratio was 33.9%. Liquidity consisted of $29.3 million of cash,
cash equivalents and short-term investments and $121.1 million of
borrowing availability under a $125 million committed revolving credit
facility expiring November 30, 2008. Long-term debt included $1.1
million for the net fair value of two interest rate swap agreements.
Inventories have grown to higher than normal levels in the current
quarter. The company has taken steps to curtail a more significant
inventory build by slowing production schedules in the near-term.
However, the company believes its inventories are still at a manageable
level because historically when the market returns demand is significant
and ramps quickly.
Business Outlook
“Our first fiscal quarter proved to be
challenging. Consumer confidence issues, an unanticipated rapid decline
in new home starts and the lack of significant storms this season has
caused distributors to adjust inventory to levels reflective of the
current market conditions,” said Thomas Karol,
chairman and chief executive officer of ElkCorp. “As
a result of discussions with our distributors we are anticipating a
period of six months that will be softer than the normal seasonal slow
down.”
Mr. Karol continued, “Although we believe the
slow down in the roofing market to be short-term, we are monitoring our
inventory and have slowed the production speeds of our plants. This is
not an unusual practice in a slower market and does have some beneficial
impact to offset reduced volume such as improving raw material
utilization, allowing scheduled maintenance and capital improvement
projects and running trials of new products. We believe this is a
prudent measure during this time. However we are still keeping our
resources in place because historically when the market turns around
demand ramps up quickly. Sales of new accessory products including
TruSlate, RGM and others are expected to lessen the impact of the slower
shingle market. The reduction in energy, asphalt and transportation
costs should also positively impact results in the near-term.”
“We believe the composites market is reacting
in a similar fashion to roofing. However, unlike the roofing market,
decking is a more discretionary expenditure for the consumer. One
strategy to boost sales in our composites business is the introduction
of a new line of CrossTimbers decking. This board may offer homeowners a
more compelling value proposition for installing a composite deck. The
new line is anticipated to offer all the beauty and benefits of a
composite deck at a price point closer to treated lumber. We believe
this product offers Elk a unique opportunity, especially in the current
environment, to further expand our presence in the market.”
“In our specialty fabric technologies
business we saw a decline in sales for external roofing mat in the
quarter, which is in line with what we have seen in the overall roofing
market. Our strategy for offsetting the decline in sales is to focus on
further penetrating higher growth, higher margin markets; primarily
flooring underlayment. We feel confident in our ability to penetrate the
flooring market and believe that the long-term potential in this market
will make a sizable impact on our specialty fabrics business. Modest
improvements in sales in these markets could largely offset the decline
in external roofing mat net income.”
Mr. Karol concluded, “We believe that over
the next six months the building products market is going to be
challenging for everyone unless a significant weather event occurs. We
also believe we have the strategies in place to navigate through this
near-term correction and will be poised to meet demand as the market
improves.”
Earnings Outlook
The Company expects earnings for the second quarter of fiscal 2007 to be
in the range of $0.24 to $0.27 per diluted share. Factored into the
guidance are improved product pricing, freight costs, expenses and raw
material utilization from the year ago quarter. However, these
improvements are expected to be offset by reduced volume and a 20% to
25% increase in asphalt costs over the second quarter of fiscal 2006. In
addition, the projection for the quarter recognizes pretax period costs
of approximately $2.9 million, or $0.09 per diluted share, not
capitalized into inventory due to reduced production rates. This
negative impact will improve in subsequent quarters where production
returns to more normalized levels.
Elk expects the market to improve by the fourth fiscal quarter. but
anticipates it may be difficult to meet its previous full year guidance
for fiscal year 2007. Elk now anticipates the total year results to be
in the range of $2.05 to $2.25 per diluted share for the fiscal year.
Conference Call
The ElkCorp management team will host a conference call and live audio
webcast on October 27, 2007, at 11:00 a.m. ET to further discuss its
earnings and operations for the first quarter fiscal 2007.
Investors and other interested parties may listen to the live webcast by
visiting the investor relations section of the ElkCorp website at www.elkcorp.com.
A replay of the conference call will be available for 24 hours beginning
at 1:00 p.m. ET. and may be accessed by dialing 1-800-642-1687 and
entering passcode 9436690. The webcast replay also will be available on
the investor relations section of Company's website.
Use of Non-GAAP Financial Metrics
Effective in fiscal 2006, the company adopted Statement of Financial
Accounting standards (SFAS) No. 123R, which requires the company to
begin recognizing compensation expense relating to stock options and
changes the accounting for certain other elements of stock-based
payments. The press release contains income from continuing operations
and earnings per share information that exclude stock-based compensation
and have not been calculated in accordance with GAAP. The company has
provided these metrics in addition to GAAP financial results because it
believes they provide a meaningful comparison between the first quarters
of fiscal years 2006 and 2007. We believe comparing the results on a
non-GAAP basis is important to understanding the Company’s
underlying operational results. However, these metrics should not be
considered an alternative to GAAP and these non-GAAP measures may not be
comparable to information provided by other companies.
Safe Harbor Provisions
In accordance with the safe harbor provisions of the securities law
regarding forward-looking statements, in addition to the historical
information contained herein, the above discussion contains
forward-looking statements that involve risks and uncertainties. The
statements that are not historical facts are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements usually are accompanied by words such as “optimistic,”
”vision,” “outlook,”
“believe,” “estimate,”
“feel confident,” “potential,”
“forecast,” “goal,”
“project,” “expect,”
“anticipate,” “plan,”
“predict,” “could,”
“should,” “may,”
“likely,” or
similar words that convey the uncertainty of future events or outcomes
and include the earnings outlook for the second quarter and fiscal year
2007. These statements are based on judgments the company
believes are reasonable; however, ElkCorp's actual results could differ
materially from those discussed here. Factors that could cause or
contribute to such differences could include, but are not limited to,
changes in demand, prices, raw material costs, transportation costs,
changes in economic conditions of the various markets the company
serves, failure to achieve expected efficiencies in new operations,
changes in the amount and severity of inclement weather, acts of God,
war or terrorism, as well as the other risks detailed herein, and in the
company's reports filed with the Securities and Exchange Commission,
including but not limited to, its Form 10-K for the fiscal year ending
June 30, 2006. ElkCorp undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.
ElkCorp, through its subsidiaries, manufactures Elk brand premium
roofing and building products (90% of consolidated revenue) and provides
technologically advanced products and services to other industries. Its
common stock is listed on the New York Stock Exchange (NYSE:ELK). See www.elkcorp.com
for more information.
Condensed Results of Operations
($ in thousands)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
2006
2005
2006
2005
Sales
$
218,108
$
215,857
$
932,043
$
814,564
Costs and Expenses:
Cost of sales
177,209
176,129
760,331
656,632
Selling, general & administrative
22,817
20,106
90,528
74,871
Operating Income from Continuing Operations
18,082
19,622
81,184
83,061
Interest expense and other, net
3,312
2,857
12,279
11,128
Income from Continuing Operations
Before Income Taxes
14,770
16,765
68,905
71,933
Provision for income taxes
5,370
6,238
24,527
26,370
Income from Continuing Operations
9,400
10,527
44,378
45,563
Income (Loss) from Discontinued Operations, Net
0
0
(92)
5,022
Net Income
$
9,400
$
10,527
$
44,286
$
50,585
Income (Loss) Per Common Share-Basic
Continuing Operations
$
0.46
$
0.52
$
2.17
$
2.29
Discontinued Operations
0.00
0.00
(0.00)
0.25
$
0.46
$
0.52
$
2.18
$
2.54
Income (Loss) Per Common Share-Diluted
Continuing Operations
$
0.46
$
0.51
$
2.16
$
2.23
Discontinued Operations
0.00
0.00
(0.00)
0.25
$
0.46
$
0.51
$
2.15
$
2.48
Average Common Shares Outstanding
Basic
20,402
20,185
20,329
19,917
Diluted
20,495
20,576
20,587
20,420
Financial Information by Company Segments
($ in thousands)
Three Months Ended
Twelve Months Ended
September 30,
September 30,
2006
2005
2006
2005
Sales
Premium Roofing Products
$
198,240
$
194,717
$
839,731
$
740,758
Composite Building Products
5,408
5,080
31,751
21,522
Specialty Fabric Technologies
12,185
13,744
51,757
43,192
Surface Finishes
2,275
2,316
8,804
9,092
$
218,108
$
215,857
$
932,043
$
814,564
Operating Profit (Loss)
Premium Roofing Products
$
25,174
$
27,559
$
104,619
$
114,012
Composite Building Products
(2,234)
(4,120)
(5,930)
(15,225)
Specialty Fabric Technologies
1,688
1,510
6,498
2,895
Surface Finishes
505
273
1,265
90
Corporate & Other
(7,051)
(5,600)
(25,268)
(18,711)
$
18,082
$
19,622
$
81,184
$
83,061
Condensed Balance Sheet
($ in thousands)
September 30,
Assets
2006
2005
Cash and cash equivalents
$
9,343
$
9,934
Short-term investments
19,930
54,887
Receivables, net
156,322
150,241
Inventories
145,228
75,515
Deferred income taxes
9,421
8,281
Prepaid expenses and other
9,964
8,838
Discontinued operations
2,844
2,434
Total Current Assets
353,052
310,130
Property, plant and equipment, net
301,774
296,483
Other assets
36,084
28,297
Discontinued operations - noncurrent
1,770
2,423
Total Assets
$
692,680
$
637,333
September 30,
Liabilities and Shareholders' Equity
2006
2005
Accounts payable and accrued liabilities
$
102,065
$
93,685
Discontinued operations
560
937
Current maturities on long-term debt
25,967
963
Total Current Liabilities
128,592
95,585
Long-term debt, net
176,664
204,853
Deferred income taxes
51,647
53,598
Shareholders' equity
335,777
283,297
Total Liabilities and Shareholders' Equity
$
692,680
$
637,333
Condensed Statement of Cash Flows
($ in thousands)
Three Months Ended
September 30,
2006
2005
Cash Flows From Operating Activities:
Net income
$
9,400
$
10,527
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization
6,779
5,900
Deferred income taxes
(739)
(388)
Stock-based compensation
3,302
1,936
Changes in assets and liabilities, net of acquisition
(14,954)
1,122
Net cash from operating activities
3,788
19,097
Cash Flows from Investing Activities
Additions to property, plant and equipment
(6,155)
(3,941)
Acquisitions, net of cash acquired
(6,000)
(24,285)
Other investing activities, net
13,342
13,378
Net cash from investing activities
1,187
(14,848)
Cash Flows from Financing Activities
312
(3,576)
Net Increase in Cash and Cash Equivalents
5,287
673
Cash and Cash Equivalents at Beginning of Year
4,056
9,261
Cash and Cash Equivalents at End of Period
$
9,343
$
9,934
Reconciliation of GAAP to Non-GAAP Income from Continuing Operations
($ in thousands, except per share data)
Three Months Ended
September 30,
2006
2005
GAAP Income from Continuing Operations
$
9,400
$
10,527
Stock-Based Compensation
2,093
1,216
Non-GAAP Income From Continuing Operations
$
11,493
$
11,743
GAAP Income per Diluted Share
From Continuing Operations
$
$0.46
$
$0.51
Stock-Based Compensation
$0.10
$0.06
Non-GAAP Income per Diluted Share
$
$0.56
$
$0.57
From Continuing Operations
ElkCorp (NYSE:ELK) announced today financial results for its first
fiscal quarter, ended September 30, 2006. Earnings from continuing
operations for the first quarter were $9.4 million, or $0.46 per
diluted share.
First Quarter Overview
ElkCorp Consolidated
-- ElkCorp recorded revenue of $218.1 million, an improvement
from the $215.9 million reported for the first quarter of
fiscal 2006.
-- The Company reported income of $9.4 million, or $0.46 per
diluted share, compared to $10.5 million, or $0.51 per diluted
share reported for the record first quarter of fiscal 2006.
-- First quarter results include $2.1 million, or $0.10 per
diluted share for expensing of stock-based compensation
compared to $1.2 million, or $0.06 per diluted share in the
prior year quarter.
-- On a non-GAAP basis, income from continuing operations, which
excludes stock-based compensation, was $11.5 million, or $0.56
per diluted share, compared to $11.7 million, or $0.57 per
diluted share, for the first quarter of fiscal 2006. A
reconciliation of GAAP to non-GAAP income from continuing
operations is included with this press release.
Premium Roofing Products
-- Revenue for Premium Roofing Products was $198.2 million,
compared to the $194.7 million reported in the first quarter
of fiscal 2006.
-- Operating income was $25.2 million, or 12.7% of sales,
compared to $27.6 million, or 14.2% of sales, reported in the
first quarter of fiscal 2006. The decrease in operating income
was primarily attributable to a decline in shingle and
accessory volume of 8%. The lower volumes were a result of a
softer than anticipated reroof market, an unexpected rapid
decline in new home starts and the lack of significant storm
activity.
-- Asphalt costs continued to rise in the quarter. Asphalt
increased approximately 53% over the same quarter in the prior
year and increased 15% over the previous quarter. Increases in
raw material, transportation and other expenses were
substantially offset by a 10% improvement in pricing for the
quarter.
Composite Building Products
-- Sales in the first quarter were $5.4 million, compared to $5.1
million recorded in the same quarter of fiscal year 2006. The
sales increase for the quarter was due to an improvement in
railing sales and deck board pricing, which was largely offset
by a decline in decking sales.
-- Operating loss for the first quarter was $2.2 million compared
to a loss of $4.1 million in the first quarter of fiscal 2006.
The prior year results included a $2.6 million write-off of
returned material and non-decking material adjustments.
Excluding the write-off and adjustments in the first quarter
of 2006, operating results for the current quarter decreased
$0.7 million. This decline was primarily due to lower decking
sales and production volume and increased SG&A expense
associated with expanding distribution. These factors were
partially offset by increased railing volume and lower raw
material costs.
Specialty Fabrics
-- Revenue declined to $12.2 million in the first quarter from
$13.7 million in the same quarter last year.
-- Operating income, however, improved to $1.7 million, or 13.9%
of sales, in the first quarter from the $1.5 million, or 10.9%
of sales, for the prior year period.
-- Roofing mat volume decreased but was partially offset by
increased pricing and improved volume in higher margin
products for the quarter.
Financial Condition
At September 30, 2006, the contractual principal amount of
ElkCorp's long-term debt, including the $26 million current portion of
long-term debt, was $201.5 million. Net debt (contractual principal
debt minus cash and short-term investments) was $172.2 million, and
the net debt to capital ratio was 33.9%. Liquidity consisted of $29.3
million of cash, cash equivalents and short-term investments and
$121.1 million of borrowing availability under a $125 million
committed revolving credit facility expiring November 30, 2008.
Long-term debt included $1.1 million for the net fair value of two
interest rate swap agreements.
Inventories have grown to higher than normal levels in the current
quarter. The company has taken steps to curtail a more significant
inventory build by slowing production schedules in the near-term.
However, the company believes its inventories are still at a
manageable level because historically when the market
returns demand is significant and ramps quickly.
Business Outlook
"Our first fiscal quarter proved to be challenging. Consumer
confidence issues, an unanticipated rapid decline in new home starts
and the lack of significant storms this season has caused distributors
to adjust inventory to levels reflective of the current market
conditions," said Thomas Karol, chairman and chief executive officer
of ElkCorp. "As a result of discussions with our distributors we are
anticipating a period of six months that will be softer than the
normal seasonal slow down."
Mr. Karol continued, "Although we believe the slow down in the
roofing market to be short-term, we are monitoring our inventory and
have slowed the production speeds of our plants. This is not an
unusual practice in a slower market and does have some beneficial
impact to offset reduced volume such as improving raw material
utilization, allowing scheduled maintenance and capital improvement
projects and running trials of new products. We believe this is a
prudent measure during this time. However we are still keeping our
resources in place because historically when the market turns around
demand ramps up quickly. Sales of new accessory products including
TruSlate, RGM and others are expected to lessen the impact of the
slower shingle market. The reduction in energy, asphalt and
transportation costs should also positively impact results in the
near-term."
"We believe the composites market is reacting in a similar fashion
to roofing. However, unlike the roofing market, decking is a more
discretionary expenditure for the consumer. One strategy to boost
sales in our composites business is the introduction of a new line of
CrossTimbers decking. This board may offer homeowners a more
compelling value proposition for installing a composite deck. The new
line is anticipated to offer all the beauty and benefits of a
composite deck at a price point closer to treated lumber. We believe
this product offers Elk a unique opportunity, especially in the
current environment, to further expand our presence in the market."
"In our specialty fabric technologies business we saw a decline in
sales for external roofing mat in the quarter, which is in line with
what we have seen in the overall roofing market. Our strategy for
offsetting the decline in sales is to focus on further penetrating
higher growth, higher margin markets; primarily flooring underlayment.
We feel confident in our ability to penetrate the flooring market and
believe that the long-term potential in this market will make a
sizable impact on our specialty fabrics business. Modest improvements
in sales in these markets could largely offset the decline in external
roofing mat net income."
Mr. Karol concluded, "We believe that over the next six months the
building products market is going to be challenging for everyone
unless a significant weather event occurs. We also believe we have the
strategies in place to navigate through this near-term correction and
will be poised to meet demand as the market improves."
Earnings Outlook
The Company expects earnings for the second quarter of fiscal 2007
to be in the range of $0.24 to $0.27 per diluted share. Factored into
the guidance are improved product pricing, freight costs, expenses and
raw material utilization from the year ago quarter. However, these
improvements are expected to be offset by reduced volume and a 20% to
25% increase in asphalt costs over the second quarter of fiscal 2006.
In addition, the projection for the quarter recognizes pretax period
costs of approximately $2.9 million, or $0.09 per diluted share, not
capitalized into inventory due to reduced production rates. This
negative impact will improve in subsequent quarters where production
returns to more normalized levels.
Elk expects the market to improve by the fourth fiscal quarter.
but anticipates it may be difficult to meet its previous full year
guidance for fiscal year 2007. Elk now anticipates the total year
results to be in the range of $2.05 to $2.25 per diluted share for the
fiscal year.
Conference Call
The ElkCorp management team will host a conference call and live
audio webcast on October 27, 2007, at 11:00 a.m. ET to further discuss
its earnings and operations for the first quarter fiscal 2007.
Investors and other interested parties may listen to the live
webcast by visiting the investor relations section of the ElkCorp
website at www.elkcorp.com. A replay of the conference call will be
available for 24 hours beginning at 1:00 p.m. ET. and may be accessed
by dialing 1-800-642-1687 and entering passcode 9436690. The webcast
replay also will be available on the investor relations section of
Company's website.
Use of Non-GAAP Financial Metrics
Effective in fiscal 2006, the company adopted Statement of
Financial Accounting standards (SFAS) No. 123R, which requires the
company to begin recognizing compensation expense relating to stock
options and changes the accounting for certain other elements of
stock-based payments. The press release contains income from
continuing operations and earnings per share information that exclude
stock-based compensation and have not been calculated in accordance
with GAAP. The company has provided these metrics in addition to GAAP
financial results because it believes they provide a meaningful
comparison between the first quarters of fiscal years 2006 and 2007.
We believe comparing the results on a non-GAAP basis is important to
understanding the Company's underlying operational results. However,
these metrics should not be considered an alternative to GAAP and
these non-GAAP measures may not be comparable to information provided
by other companies.
Safe Harbor Provisions
In accordance with the safe harbor provisions of the securities
law regarding forward-looking statements, in addition to the
historical information contained herein, the above discussion contains
forward-looking statements that involve risks and uncertainties. The
statements that are not historical facts are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements usually are accompanied by words
such as "optimistic," "vision," "outlook," "believe," "estimate,"
"feel confident," "potential," "forecast," "goal," "project,"
"expect," "anticipate," "plan," "predict," "could," "should," "may,"
"likely," or similar words that convey the uncertainty of future
events or outcomes and include the earnings outlook for the second
quarter and fiscal year 2007. These statements are based on judgments
the company believes are reasonable; however, ElkCorp's actual results
could differ materially from those discussed here. Factors that could
cause or contribute to such differences could include, but are not
limited to, changes in demand, prices, raw material costs,
transportation costs, changes in economic conditions of the various
markets the company serves, failure to achieve expected efficiencies
in new operations, changes in the amount and severity of inclement
weather, acts of God, war or terrorism, as well as the other risks
detailed herein, and in the company's reports filed with the
Securities and Exchange Commission, including but not limited to, its
Form 10-K for the fiscal year ending June 30, 2006. ElkCorp undertakes
no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or
otherwise.
ElkCorp, through its subsidiaries, manufactures Elk brand premium
roofing and building products (90% of consolidated revenue) and
provides technologically advanced products and services to other
industries. Its common stock is listed on the New York Stock Exchange
(NYSE:ELK). See www.elkcorp.com for more information.
-0-
*T
Condensed Results of Operations
($ in thousands)
Three Months Ended Twelve Months Ended
September 30, September 30,
2006 2005 2006 2005
-------- -------- --------- --------
Sales $218,108 $215,857 $ 932,043 $814,564
--------- --------- ---------- ---------
Costs and Expenses:
Cost of sales 177,209 176,129 760,331 656,632
Selling, general &
administrative 22,817 20,106 90,528 74,871
--------- --------- ---------- ---------
Operating Income from
Continuing Operations 18,082 19,622 81,184 83,061
Interest expense and other,
net 3,312 2,857 12,279 11,128
--------- --------- ---------- ---------
Income from Continuing
Operations
Before Income Taxes 14,770 16,765 68,905 71,933
Provision for income taxes 5,370 6,238 24,527 26,370
--------- --------- ---------- ---------
Income from Continuing
Operations 9,400 10,527 44,378 45,563
Income (Loss) from
Discontinued Operations, Net
0 0 (92) 5,022
--------- --------- ---------- ---------
Net Income $ 9,400 $ 10,527 $ 44,286 $ 50,585
========= ========= ========== =========
Income (Loss) Per Common
Share-Basic
Continuing Operations $ 0.46 $ 0.52 $ 2.17 $ 2.29
Discontinued Operations 0.00 0.00 (0.00) 0.25
--------- --------- ---------- ---------
$ 0.46 $ 0.52 $ 2.18 $ 2.54
========= ========= ========== =========
Income (Loss) Per Common
Share-Diluted
Continuing Operations $ 0.46 $ 0.51 $ 2.16 $ 2.23
Discontinued Operations 0.00 0.00 (0.00) 0.25
--------- --------- ---------- ---------
$ 0.46 $ 0.51 $ 2.15 $ 2.48
========= ========= ========== =========
Average Common Shares
Outstanding
Basic 20,402 20,185 20,329 19,917
========= ========= ========== =========
Diluted 20,495 20,576 20,587 20,420
========= ========= ========== =========
*T
-0-
*T
Financial Information by Company Segments
($ in thousands)
Three Months Ended Twelve Months Ended
September 30, September 30,
2006 2005 2006 2005
-------- -------- --------- --------
Sales
Premium Roofing Products $198,240 $194,717 $ 839,731 $740,758
Composite Building
Products 5,408 5,080 31,751 21,522
Specialty Fabric
Technologies 12,185 13,744 51,757 43,192
Surface Finishes 2,275 2,316 8,804 9,092
--------- --------- ---------- ---------
$218,108 $215,857 $ 932,043 $814,564
========= ========= ========== =========
Operating Profit (Loss)
Premium Roofing Products $ 25,174 $ 27,559 $ 104,619 $114,012
Composite Building
Products (2,234) (4,120) (5,930) (15,225)
Specialty Fabric
Technologies 1,688 1,510 6,498 2,895
Surface Finishes 505 273 1,265 90
Corporate & Other (7,051) (5,600) (25,268) (18,711)
--------- --------- ---------- ---------
$ 18,082 $ 19,622 $ 81,184 $ 83,061
========= ========= ========== =========
*T
-0-
*T
Condensed Balance Sheet
($ in thousands)
September 30,
Assets 2006 2005
------------------------------------------------- -------- --------
Cash and cash equivalents $ 9,343 $ 9,934
Short-term investments 19,930 54,887
Receivables, net 156,322 150,241
Inventories 145,228 75,515
Deferred income taxes 9,421 8,281
Prepaid expenses and other 9,964 8,838
Discontinued operations 2,844 2,434
--------- ---------
Total Current Assets 353,052 310,130
Property, plant and equipment, net 301,774 296,483
Other assets 36,084 28,297
Discontinued operations - noncurrent 1,770 2,423
--------- ---------
Total Assets $692,680 $637,333
========= =========
September 30,
Liabilities and Shareholders' Equity 2006 2005
------------------------------------------------- -------- --------
Accounts payable and accrued liabilities $102,065 $ 93,685
Discontinued operations 560 937
Current maturities on long-term debt 25,967 963
--------- ---------
Total Current Liabilities 128,592 95,585
Long-term debt, net 176,664 204,853
Deferred income taxes 51,647 53,598
Shareholders' equity 335,777 283,297
--------- ---------
Total Liabilities and Shareholders' Equity $692,680 $637,333
========= =========
*T
-0-
*T
Condensed Statement of Cash Flows
($ in thousands)
Three Months Ended
September 30,
2006 2005
---------- ----------
Cash Flows From Operating Activities:
Net income $ 9,400 $ 10,527
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 6,779 5,900
Deferred income taxes (739) (388)
Stock-based compensation 3,302 1,936
Changes in assets and liabilities, net of
acquisition (14,954) 1,122
---------- ----------
Net cash from operating activities 3,788 19,097
---------- ----------
Cash Flows from Investing Activities
Additions to property, plant and equipment (6,155) (3,941)
Acquisitions, net of cash acquired (6,000) (24,285)
Other investing activities, net 13,342 13,378
---------- ----------
Net cash from investing activities 1,187 (14,848)
---------- ----------
Cash Flows from Financing Activities 312 (3,576)
---------- ----------
Net Increase in Cash and Cash Equivalents 5,287 673
Cash and Cash Equivalents at Beginning of Year 4,056 9,261
---------- ----------
Cash and Cash Equivalents at End of Period $ 9,343 $ 9,934
========== ==========
*T
-0-
*T
Reconciliation of GAAP to Non-GAAP Income from Continuing Operations
($ in thousands, except per share data)
Three Months Ended
September 30,
2006 2005
-------- --------
GAAP Income from Continuing Operations $ 9,400 $ 10,527
Stock-Based Compensation 2,093 1,216
-------- --------
Non-GAAP Income From Continuing Operations $ 11,493 $ 11,743
GAAP Income per Diluted Share
From Continuing Operations $ $0.46 $ $0.51
Stock-Based Compensation $0.10 $0.06
-------- --------
Non-GAAP Income per Diluted Share $ $0.56 $ $0.57
From Continuing Operations
*T