BRYAN, Texas, April 29 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) today reported results for the three and nine month periods
ended March 31, 1999. The Company reported net income of $94,810 ($.03 per
share) for the three months ended March 31, 1999 compared to net income of
$84,924 ($.03 per share) for the corresponding 1998 period, an increase of
approximately 12%. For the nine month period ended March 31, 1999, the
Company reported a 36% increase in net income to $810,889 ($.25 per share -
basic; $.24 per share - diluted) as compared to $595,614 ($.21 per share -
basic; $.20 per share - diluted) for the nine month period ended
March 31, 1998. Per share amounts for the current periods are based on
weighted average shares outstanding for the three and nine month periods,
ended March 31, 1999. The 15% increase in weighted average shares outstanding
for the nine month period relates to the Company's initial public offering in
October, 1997.
Net sales for the three and nine month periods ended March 31, 1999
increased 31% and 49%, respectively to $3.5 million and $12.9 million, as
compared to $2.7 million and $8.7 million, respectively, for the similar
periods ended in 1998. Operating income for the three and nine month periods
ended March 31, 1999 totaled $134,306 and $1.2 million, respectively, as
compared to $76,266 and $793,533, respectively, for the similar 1998 periods,
an increase of approximately 76% for the three month period and 53% for the
nine month period. The increase in net sales and operating income for the
three month period related primarily to the contribution of the Harvard chair
line which was acquired in late March, 1998. The increase for the nine month
period resulted primarily from a combination of the acquisition of the Harvard
chair line and the addition of several large orders received during the nine
month period.
Rebecca Boenigk, Chairman and Chief Executive Officer commented, "As
stated in our press release dated April 2, 1999, while we were disappointed in
reporting only a 31% increase in net sales for the third quarter, we are
optimistic about the growth potential for the Company. Our balance sheet
remains strong as we continue to seek opportunities for additional
improvements to the existing chair lines and expansion into new product lines.
During the third quarter, we increased our cash balance by 26% to $3.0 million
and reduced our inventory level by 10% to $1.2 million.
"We continue to review the costs associated with increasing our sales,
marketing and engineering efforts to ensure the costs remain in line with
growing the profits of the Company. We remain focused in our efforts to
pursue sales opportunities, to establish and maintain relationships with new
and existing customers and to improve and expand our product base. In June,
1999, the Company will introduce two new chairs and additional enhancements to
further complement our existing Neutral Posture chair line. The Company also
has signed a distribution agreement with a third party to manufacture and
develop a 'height adjustable electric table' for office and industrial use.
The table is currently being test marketed and should be available in June,
1999. These new products and enhancements are a continuing step towards
offering a complete line of quality ergonomic office products and
accessories."
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.
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 Nine Months
Ended March 31, Ended March 31,
1999 1998 1999 1998
Net sales $ 3,516 $ 2,679 $ 12,940 $ 8,705
Cost of sales 2,288 1,744 8,141 5,353
Gross Profit 1,228 935 4,799 3,352
Selling, general and
administrative 1,094 859 3,587 2,558
Operating Income 134 76 1,212 794
Interest (income) expense
and other, net (17) (61) (85) (113)
Income Before Income Taxes 151 137 1,297 907
Pro forma Income taxes (A) 56 52 486 311
Pro forma Net
Income (A) $ 95 $ 85 $ 811 $ 596
Pro forma Net Income per
Common Share (EPS):
Basic EPS $ .03 $ .03 $ .25 $ .21
EPS - assuming
dilution $ .03 $ .03 $ .24 $ .20
Weighted Average Shares
Common Shares Outstanding 3,309 3,200 3,271 2,832
Adjusted Shares -
assuming exercise
of stock options 3,387 3,342 3,374 2,969
(A) Pro Forma prior to October 1997.
Summarized Balance Sheets
(In thousands)
March 31, June 30,
1999 1998
(Unaudited)
Assets
Current Assets:
Cash $ 3,000 $ 3,370
Accounts receivable - net 2,357 1,991
Inventory 1,168 1,061
Other 354 373
Total current assets $ 6,879 $ 6,795
Property and Equipment - Net 2,272 1,850
Other Assets 492 478
Total Assets $ 9,643 $ 9,123
Liabilities and Shareholders' Equity
Current liabilities $ 1,124 $ 1,496
Long-term debt 578 576
Deferred income tax liability 162 162
Shareholder's equity 7,779 6,889
Total Liabilities and
Shareholders' Equity $ 9,643 $ 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 of Neutral Posture
Ergonomics, Inc., 409-778-0502
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