BRYAN, Texas, Aug. 17 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) today announced net sales of $17.1 million for the fiscal year
ended June 30, 1999, a 40% increase over the comparable fiscal period ended in
1998. Net sales for the quarter ended June 30, 1999 were $4.2 million
increasing approximately 19% as compared to the corresponding 1998 period.
For the fiscal year ended June 30, 1999, the Company reported net income of
$838,241 ($.26 per share -- basic; $.25 per share -- diluted) reflecting a
7% increase as compared to $784,650 ($.27 per share -- basic; $.26 per share -
- diluted) for the twelve month period ended June 30, 1998. Net income
decreased 86% to $27,352 ($.01 per share - basic and diluted) for the fourth
quarter ended June 30, 1999 compared to net income of $189,036 ($.06 per share
-- basic and diluted) for the corresponding 1998 period. Per share amounts
for the current periods are based on weighted average shares outstanding for
the three and twelve-month periods ended June 30, 1999 and 1998.
Net operating income for the twelve-month period ended June 30, 1999
increased 12% to $1.2 million as compared to the similar period in 1998 and
net operating income decreased 97% to $8,314 as compared to the three month
1998 period. Net operating income for the three and twelve-month periods
ended June 30, 1999 included a one-time charge related to the resignation of
David Campbell, former President. The Company also expensed approximately
$72,000 of costs related to reviewing certain acquisition opportunities which
the Company did not pursue and increased its reserves for obsolete inventory
and design costs related to its computERGO(R) product line by approximately
$70,000. On an equivalent basis, excluding the one-time charge, the charges
related to reviewing acquisitions and the increase in reserves for
computERGO(R), earnings per share for the three month period ended
June 30, 1999 would have been $.09 per share -- basic and diluted as compared
to $.06 per share -- basic and diluted for the comparable 1998 period, an
increase of 50%. On a similar equivalent basis as above, earnings per share
for the twelve month period would have been $.34 per share -- basic, $.33 per
share -- diluted, an increase of 26% as compared to $.27 per share -- basic
and $.26 per share -- diluted for the twelve month period ended June 30, 1998.
Commenting on the fourth quarter and annual results, Rebecca Boenigk,
Chairman and CEO said, "We are excited to be able to show continued growth in
sales for the fiscal year just ended. We believe the increases in sales were
the result of a dedicated effort to expand our presence in the marketplace.
We believe that these efforts will continue and are being further enhanced
with the help of our strategic consultant as we focus on our existing channels
of distribution and begin exploring new channels of distribution for our
products. The continued development of new products such as the "big & tall"
chair, the "prop stool," "height adjustable workstations" and ancillary
products such as the "Fring(TM) Footrest" and "Cloud-9 fabric," all of which
were introduced at NEOCON, the largest furniture trade show in the industry,
should further advance our growth as we move into the new fiscal year.
"The Company's current financial position and focus on cash flow provides
opportunities for future growth and is highlighted by more than $3 million in
cash and a low debt position. We are pleased to be able to show that the
acquisition of the Harvard chair lines had a positive impact on sales and
earnings. During the fourth quarter, we were very active in pursuing
additional acquisition opportunities which could expand our product offerings,
and although no acquisition occurred, we will continue to review acquisition
opportunities which could further increase shareholder value and will continue
to invest our capital in product improvements, new product development, and
capacity expansion through increased operating efficiencies."
In early 1998, the Company produced a portable ergonomic workstation for
the transport and use of a laptop computer and other items that would
otherwise be carried in a briefcase. This workstation was marketed under the
trade name computERGO(R) was designed to provide laptop users with (i) a fully
adjustable portable work surface with two fold-out wings for documents, an
organizer, document file pockets, retractable power/phone cords and built-in
surge protection, and (ii) a compact carrying case on wheels with a
retractable handle. Based on the initial market response, the Company decided
to reevaluate computERGO(R) and hired an external engineering firm to study
the marketability and design of the product.
The Company has decided the original concept will not be pursued any
further. The product was too expensive to manufacture and the market would
not bear the price the Company needed to receive. At this time alternative
designs are being evaluated to determine if there is any future for this
product line. As a result, the Company recorded a reserve against the
existing inventory.
In addition, the Company has voluntarily applied with Nasdaq to move to
the Small Cap Market. The Company believes that it satisfies all the
standards to move to the Small Cap Market and expects to have a definitive
answer early next week.
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
National 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 increase or maintain
the market value of the Company's common stock, 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.
(SEE ATTACHED SUMMARY FINANCIAL DATA)
Neutral Posture Ergonomics, Inc.
Summarized Statements of Income
(In thousands, except for per share amounts)
For the Three Months For the Twelve Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
(Unaudited) (Unaudited)
Net sales $4,150 $3,476 $17,090 $12,181
Cost of sales 2,596 2,229 10,737 7,582
Gross Profit 1,554 1,247 6,353 4,599
Selling, general and
administrative 1,546 949 5,133 3,507
Operating Income 8 298 1,220 1,092
Interest (income) expense
and other, net (23) (40) 108 (153)
Income Before Income Taxes 31 338 1,328 1,245
Income taxes (A) 4 149 490 460
Net Income (A) $27 $189 $838 $785
Earnings Per Common Share
(EPS): (A)
Basic $.01 $.06 $.26 $.27
Diluted $.01 $.06 $.25 $.26
Weighted Average Shares
Outstanding:
Basic 3,309 3,200 3,253 2,924
Diluted 3,362 3,344 3,344 3,066
(A) Pro Forma prior to October 1997.
Summarized Balance Sheets
(In thousands)
June 30, June 30,
1999 1998
Assets
Current Assets:
Cash $3,316 $3,370
Accounts Receivable - net 2,668 1,991
Inventory 1,195 1,061
Other 598 373
Total current assets $7,777 $6,795
Property and Equipment - Net 2,277 1,850
Other Assets 440 478
Total Assets $10,494 $9,123
Liabilities
Current Liabilities $2,164 $1,496
Long-term debt 551 576
Deferred income tax liability 131 162
Shareholder's equity 7,648 6,889
Total Liabilities and Shareholders'
Equity $10,494 $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:
Gregory A. Katt, Vice President and CFO of
Neutral Posture Ergonomics, Inc., 409-778-0502, ext. 111
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