BRYAN, Texas, Jan. 13 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) today reported record results for the three and six month
periods ended December 31, 1998. The Company reported a 39% increase in net
income to $428,211 ($.13 per share - basic and diluted) for the three months
ended December 31, 1998 compared to net income of $307,237 ($.10 per share -
basic and diluted) for the corresponding 1997 period. For the six month
period ended December 31, 1998, the Company reported a 40% increase in net
income to $716,079 ($.22 per share - basic; $.21 per share - diluted) as
compared to $510,688 ($.19 per share - basic; $.18 per share - diluted) for
the six month period ended December 31, 1997. Per share amounts for the
current periods are based on an increase of 8% and 21%, respectively, for the
three and six month periods ended December 31, 1998 in weighted average shares
outstanding related to the Company's initial public offering in October 1997.
Net sales for the three and six month periods ended December 31, 1998
totaled $5.2 million and $9.4 million respectively, as compared to
$3.1 million and $6.0 million respectively for the similar periods in 1997.
This reflects a 69% and 56% increase in sales for the three month and six
month periods. Operating income for the three and six month periods ended
December 31, 1998 totaled $643,136 and $1,077,373, respectively, as compared
to $379,055 and $717,266 for the similar 1997 periods, an increase of 69% and
50% for the three and six month periods. The combination of an increasing
trend toward larger sales transactions, the addition of several large
customers and the positive contribution of our March 1998 purchase of the
Harvard chair lines drove the Company's year-to-date growth in sales and
profits.
"We are very excited to announce that sales and profits for the second
quarter significantly surpassed the first quarter to become the highest in our
history and we are pleased to continue to be able to show increases in net
sales, net income and earnings per share," commented Rebecca Boenigk, Chairman
and Chief Executive Officer. "The second quarter results reflect management's
focus on expanding our marketing and sales efforts, being aggressive in the
marketplace and broadening efforts on project opportunities. We are pleased
to report that we entered the current quarter with a solid order backlog,
which should enable the Company to record favorable operating results relative
to last year's depressed third quarter.
"We remain committed to building on the key initiatives established for
fiscal '99 of improvements and expansion of the product lines as well as
expansion of the sales and marketing efforts. We continue to make progress in
building relationships with new customers and expanding and improving
relationships with existing customers. Although the process of developing new
customers takes time, the efforts of our associates, sales representatives and
dealers can be seen in increased sales."
Neutral Posture Ergonomics, Inc. manufactures, markets and distributes
office, multi-task and ergonomic seating. Neutral Posture Ergonomics, Inc. is
a certified Women Business Enterprise and its common stock is listed on the
Nasdaq National Market under the symbol NTRL.
PRESS CONTACT:
David Campbell, President
409-778-0502
This press release may include certain statements that may be deemed to be
"forward-looking" within the meaning of the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended. There are
certain important factors which could cause actual results to differ
materially from those anticipated by the forward-looking statements. Certain
of the important factors which could cause actual results to differ materially
from those in the forward-looking statements include, among other things,
changes from anticipated levels of sales, the ability to integrate acquired
product lines and related businesses, future national or regional economic and
competitive conditions, changes in relationships with customers, customer
acceptance of existing and new products, pricing pressures due to excess
capacity, raw material cost increases, change of tax rates, change of interest
rates, declining conditions in the industry, validity of patents, availability
of key component parts, casualty to or other disruption of the Company's
production facility and equipment, delays and disruptions in the shipment of
the Company's products and other factors that generally affect business.
Neutral Posture Ergonomics, Inc.
Summarized Statements of Income
(In thousands, except for per share amounts)
(Unaudited)
For the Three Months For the Six Months
Ended December 31, Ended December 31,
1998 1997 1998 1997
Net Sales $5,211 $3,077 $9,423 $6,026
Cost of Sales 3,197 1,818 5,853 3,609
Gross Profit 2,014 1,259 3,570 2,417
Selling general
and administrative 1,371 880 2,493 1,700
Operating Income 643 379 1,077 717
Interest (income) expense
and other, net (42) (69) (68) (53)
Income Before Income
Taxes 685 448 1,145 770
Pro forma Income Taxes (A) 257 141 429 259
Pro forma Net income (A) $428 $307 $716 $511
Pro Forma Net Income
Per Common Share (EPS):
Basic EPS $.13 $.10 $.22 $.19
EPS-assuming dilution $.13 $.10 $.21 $.18
Weighted Average Shares:
Common Shares Outstanding 3,296 3,004 3,248 2,652
Adjusted Shares-assuming
exercise of stock options 3,383 3,141 3,363 2,786
(A) Pro forma prior to October 1997
Summarized Balance Sheets
(In thousands)
December 30, June 30,
1998 1998
Unaudited
Assets
Current Assets:
Cash $2,378 $3,370
Accounts receivable-net 3,815 1,991
Inventory 1,305 1,061
Other 333 373
Total current assets 7,831 6,795
Property and Equipment-Net 2,240 1,850
Other Assets 462 478
Total assets $10,533 $9,123
Liabilities and
Shareholders' Equity
Current Liabilities $2,098 $1,496
Long-term Debt 589 576
Deferred Income Tax
Liability 162 162
Shareholders' Equity 7,684 6,889
Total liabilities and
shareholders' equity $10,533 $9,123
SOURCE Neutral Posture Ergonomics, Inc.
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Related links:
http://www.neutralposture.com
Company News On-Call:
http://www.prnewswire.com/comp/125652.html or fax,
800-758-5804, ext. 125652
CONTACT:
David Campbell, President, Neutral Posture
Ergonomics, Inc., 409-778-0502
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