BRYAN, Texas, Jan. 25 /PRNewswire/ --
Neutral Posture Ergonomics, Inc. (Nasdaq: NTRL) today reported results for the
three and six-month periods ended December 31, 1999. The Company reported net
income of $156,918 ($.05 per share - basic and diluted) for the three months
ended December 31, 1999 compared to net income of $428,211 ($.13 per share -
basic and diluted) for the corresponding 1998 period. For the six-month
period ended December 31, 1999, the Company reported net income of $443,275
($.14 per share - basic and diluted) as compared to $716,079 ($.22 per share -
basic; $.21 per share - diluted) for the six-month period ended
December 31, 1998. Per share amounts are based on the weighted average shares
outstanding for both periods.
Net sales for the three-month period ended December 31, 1999 totaled
$4.6 million, which represents a decrease of approximately 12.2% as compared
to $5.2 million for the same period in 1998. Net sales for the six-month
period ended December 31, 1999 totaled $9.0 million, which represents a
decrease of approximately 5.0% as compared to $9.4 million for the similar
six-month period in 1998. For the six-month period ended December 31, 1999,
sales volumes were down approximately 12.4% on the Neutral Posture chair line
when compared to the similar 1998 period, which included one order in excess
of $1.2 million. This volume decrease was partially offset by higher average
prices realized during the current period when compared to the same period
last year. A decrease in average selling price on the Harvard chair line
related to the product mix of chairs sold accounted for the remaining decrease
in sales while volumes remained comparable to prior periods.
Gross profit margin remained relatively flat for the three-month period
ended December 31, 1999 at 38.3% as compared to margins of 38.6% for the same
three-month period in 1998. Margins for the six-month period ended
December 31, 1999 also remained relatively flat, increasing slightly to 38.3%
as compared to a margin of 37.9%. However, the slight improvement in gross
margin for the six-month period was offset by an increase in selling, general
and administrative costs primarily due to increased legal fees related to
arbitration currently scheduled for April 2000, increased commission rates
related to sales promotions during the period, and approximately $60,000 for
consulting fees related to the development and implementation of the new
ergonomic accessory line to be introduced in early February. Based on the
items discussed above, operating income for the three and six month periods
ended December 31, 1999 totaled $218,875 and $644,020, respectively, as
compared to $643,136 and $1,077,373 for the similar 1998 periods, a decrease
of 66% and 40% for the three and six-month periods, respectively.
Commenting on the second quarter results, Rebecca Boenigk stated, "We knew
that matching or exceeding last year's numbers would be a challenge as last
year's amounts included one large sale in excess of $1.2 million. Although
the Company did not exceed last year's results, we laid the foundation for
future growth. We are pleased that we were able to maintain our gross profit
margins as a result of improved operating efficiencies in the plant and enter
the third quarter with a solid order backlog.
"We are very excited about the upcoming introduction of the accessory
line, N*hancements, to be introduced early in February. We believe the
addition of Mr. Tom Peterson as President and Chief Operating Officer, with
his solid background in the industry and his aggressive approach to sales and
marketing, will open new doors and bring in many new sales opportunities. With
the new accessory line, improvements to the Harvard chair line, focused
efforts on sales and marketing and quality products for our customers, we
remain committed to growing the company for the benefit of our shareholders."
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
409-778-0502, 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, 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,
1999 1998 1999 1998
Net sales $4,572 $5,211 $8,956 $9,424
Cost of sales 2,820 3,197 5,524 5,853
Gross Profit 1,752 2,014 3,432 3,571
Selling, general and
administrative 1,533 1,371 2,788 2,493
Operating Income 219 643 644 1,078
Interest (income)
expense and other, net (30) (42) (54) (68)
Income Before
Income Taxes 249 685 698 1,146
Income taxes 92 257 255 430
Net Income 157 428 443 716
Earnings Per
Common Share (EPS):
Basic $ .05 $ .13 $ .14 $ .22
Diluted .05 .13 .14 .21
Weighted Average
Shares Outstanding:
Basic 3,172 3,297 3,172 3,248
Diluted 3,172 3,383 3,172 3,363
Summarized Balance Sheets
(In thousands)
December 31, June 30,
1999 1999
(Unaudited)
Assets
Current Assets:
Cash $ 3,229 $ 3,316
Accounts Receivable - net 3,067 2,668
Inventory 1,323 1,195
Other 502 598
Total current assets 8,121 7,777
Property and Equipment
- Net 2,204 2,277
Other Assets 426 440
Total Assets $10,751 $10,494
Liabilities
Current Liabilities $ 2,008 $ 2,164
Long-term debt 520 551
Deferred income tax liability 131 131
Shareholders' equity 8,092 7,648
Total Liabilities and
Shareholders' Equity $10,751 $10,494
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., 409-778-0502, ext. 111
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