BRYAN, Texas, Jan. 16 /PRNewswire/ --
Neutral Posture Ergonomics, Inc. (Nasdaq: NTRL) today reported results for the
three and six-month periods ended December 31, 2000. The Company reported net
income of $2,958 ($.00 per share -- basic and diluted) for the three months
ended December 31, 2000 compared to net income of $156,919 ($.05 per share --
basic and diluted) for the corresponding 1999 period. For the six-month
period ended December 31, 2000, the Company reported net income of
$95,922 ($.03 per share -- basic and diluted) as compared to
$443,275 ($.14 per share -- basic and diluted) for the six-month period ended
December 31, 1999. Per share amounts are based on the weighted average shares
outstanding for both periods.
Net sales for the three-month period ended December 31, 2000 totaled
$5.1 million, an increase of approximately 11.7% as compared to $4.6 million
for the same period in 1999. Net sales for the six-month period ended
December 31, 2000 totaled $9.7 million, which represents an increase of
approximately 8.7% as compared to $9.0 million for the same six-month period
in 1999. For the six-month period ended December 31, 1999, sales volumes were
up approximately 8.3% on the Neutral Posture chair line and up approximately
3.2% on the Harvard chair line when compared to the same 1999 period while
prices remained flat for the two comparative periods. Accessory sales
accounted for approximately $200,000 of the increase for the six-month period
ended December 31, 2000.
Gross profit margin decreased to 34.8% for the three-month period ended
December 31, 2000 as compared to margins of 38.3% for the same three-month
period in 1999. Margins for the six-month period ended December 31, 2000 of
36.3% also decreased when compared to margins of 38.3% for the same six-month
period in 1999. The current year gross profit margins are below profit
margins for the prior year for both periods primarily due to increases in
freight and labor costs.
Selling, general, and administrative costs ("SG&A") for the three-month
period ended December 31, 2000 were $1.8 million, or 17% greater than the
$1.5 million for the three-month period ended December 31, 1999. SG&A for the
six-month period ending December 31, 2000 was $3.4 million as compared to
$2.8 million for the six-month period ending December 31, 1999. The reason
for the increase in both periods over prior year amounts relates primarily to
the increased salary and travel costs of additional sales personnel, along
with an increase in the costs of marketing materials. Lower consulting fees
helped offset the increases above as well as approximately $280,000 in
reimbursements of legal fees from our insurance carrier related to the ongoing
Ergobilt/Bodybilt arbitration proceeding.
Commenting on the second quarter results, Rebecca Boenigk stated, "We are
pleased by the growth in sales for this quarter as we are beginning to see the
impact of our new sales structure. However, the increase in labor and freight
costs, the costs associated with our marketing efforts, and the increased
wages and travel costs of sales personnel offset a majority of the sales
increase. We were also pleased to have received an additional reimbursement
of legal fees from our insurance carrier in the amount of $280,000 and we
continue to seek possible further reimbursements of legal fees related to the
ongoing Ergobilt/Bodybilt arbitration. This brings our cumulative
reimbursement of legal fees to approximately $380,000." The trial portion of
the arbitration has been completed.
Neutral Posture Ergonomics, Inc. manufactures, markets and distributes
ergonomic products. Neutral Posture Ergonomics, Inc. is a certified Women
Business Enterprise and its common stock is currently listed on the NASDAQ
Small Cap Market under the symbol NTRL.
PRESS CONTACT:
Gregory A. Katt, Vice President and CFO
979-778-0502, Ext. 111
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, results of
arbitration and litigation, 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. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect management's
analysis only as of the date hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof. Readers should carefully
review the risk factors described in other documents the Company files from
time to time with the Securities and Exchange Commission.
(SEE ATTACHED SUMMARY FINANCIAL DATA)
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,
2000 1999 2000 1999
Net sales $5,107 $4,572 $9,735 $8,956
Cost of sales 3,330 2,820 6,204 5,524
Gross Profit 1,777 1,752 3,531 3,432
Selling, general and
administrative 1,794 1,533 3,418 2,788
Operating Income (Loss) (17) 219 113 644
Interest (income) expense and
other, net (34) (30) (64) (54)
Income Before Income Taxes 17 249 177 698
Income taxes 14 92 81 255
Net Income 3 157 96 443
Earnings Per Common Share (EPS):
Basic $ .00 $ .05 $.03 $.14
Diluted .00 .05 .03 .14
Weighted Average Shares
Outstanding:
Basic 3,272 3,172 3,272 3,172
Diluted 3,272 3,172 3,272 3,172
Summarized Balance Sheets
(In thousands)
December 31, June 30,
2000 2000
(Unaudited)
Assets
Current Assets:
Cash $2,779 $3,139
Accounts Receivable -- net 3,342 2,719
Inventory 1,597 1,289
Other 603 573
Total current assets 8,321 7,720
Property and Equipment -- Net 2,300 2,267
Other Assets 375 389
Total Assets $10,996 $10,376
Liabilities
Current Liabilities $2,488 $1,974
Long-term debt 511 501
Deferred income tax liability 69 69
Shareholders' equity 7,928 7,832
Total Liabilities and Shareholders' Equity $10,996 $10,376
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:
Gregory A. Katt, Vice President and CFO of
Neutral Posture Ergonomics, Inc., 979-778-0502, Ext. 111
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