BRYAN, Texas, May 2 /PRNewswire/ --
Neutral Posture Ergonomics, Inc. (Nasdaq: NTRL) today reported results for the
three- and nine-month periods ended March 31, 2000. The Company reported a
net loss of $50,933 (($.02) per share - basic and diluted) for the three
months ended March 31, 2000 compared to net income of $94,810 ($.03 per share
- basic and diluted) for the corresponding 1999 period. For the nine-month
period ended March 31, 2000, the Company reported net income of $392,342
($.12 per share - basic and diluted) as compared to $810,899 ($.25 per share -
basic; $.24 per share - diluted) for the nine-month period ended
March 31, 1999. Per share amounts are based on the weighted average shares
outstanding for both periods.
Net sales for the three-month period ended March 31, 2000 totaled
$4.1 million, which represents an increase of approximately 15.7% as compared
to $3.5 million for the same period in 1999. Net sales for the nine-month
period ended March 31, 2000 increased approximately 1% to $13.0 million when
compared to $12.9 million for the similar nine-month period in 1999. For the
three-month period ended March 31, 2000, unit sales were up approximately
21.2% on the Neutral Posture(R) chair line and 8.3% on the Harvard chair line
when compared to the similar 1999 period. For the nine-month period ended
March 31, 2000, unit sales for the Neutral Posture(R) chair line were down
approximately 3.6% and up approximately 2.6% on the Harvard chair line when
compared to the similar 1999 period.
Gross profit margin for the three and nine-month periods ended
March 31, 2000 totaled 34.9% and 37.3%, respectively, as compared to margins
for the same three and nine-month periods ended in 1999 of 34.9% and 37.1%,
respectively. While gross margins were consistent with prior year margins,
selling, general and administrative costs were significantly higher than prior
year amounts primarily due to legal fees related to arbitration currently in
progress and to expenses incurred in investing in new products. Based on the
items discussed above, the Company recognized a net loss totaling $50,933 for
the three month period ended March 31, 2000 and net income of $392,342 for the
nine month period ended March 31, 2000 as compared to net income of $94,810
and $810,889, respectively, for the similar 1999 periods.
Commenting on the third quarter results, Rebecca Boenigk stated, "We are
excited to report record sales for the third quarter. Last quarter we talked
about reinvigorating our sales and marketing efforts and recently announced
changes in sales and marketing personnel. With these changes, we hope to be
able to show continued growth in sales while maintaining our margins. We also
introduced our new accessory line, N*Hancements, and although we do not expect
it to have a significant impact on fiscal 2000, we look forward to its
contribution to sales in fiscal 2001. While we were disappointed with the net
loss for the quarter, the loss was primarily the result of legal fees related
to the current arbitration proceeding which we hope to have resolved by the
end of our current fiscal year."
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, the results of arbitration and the
timing thereof, 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,
2000 1999 2000 1999
Net sales $ 4,067 $ 3,516 $ 13,022 $ 12,940
Cost of sales 2,646 2,288 8,170 8,141
Gross Profit 1,421 1,228 4,852 4,799
Selling, general and
administrative 1,527 1,094 4,315 3,587
Operating Income (Loss) (107) 134 537 1,212
Interest (income) expense
and other, net (26) (17) (80) (85)
Income (Loss) Before
Income Taxes (81) 151 617 1,297
Income taxes (Benefit) (30) 56 225 486
Net Income (Loss) (51) 95 392 811
Earnings Per Common Share (EPS):
Basic $ (.02) $ .03 $ .12 $ .25
Diluted (.02) .03 .12 .24
Weighted Average Shares Outstanding:
Basic 3,220 3,309 3,186 3,271
Diluted 3,220 3,387 3,186 3,374
Summarized Balance Sheets
(In thousands)
March 31, June 30,
2000 1999
(Unaudited)
Assets
Current Assets:
Cash $ 3,838 $ 3,316
Accounts Receivable - net 2,186 2,668
Inventory 1,490 1,195
Other 368 598
Total current assets 7,882 7,777
Property and Equipment - Net 2,283 2,277
Other Assets 410 440
Total Assets $ 10,575 $ 10,494
Liabilities
Current Liabilities $ 1,679 $ 2,164
Long-term debt 512 551
Deferred income tax liability 131 131
Shareholders' equity 8,253 7,648
Total Liabilities and
Shareholders' Equity $ 10,575 $ 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., 979-778-0502, Ext. 111
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