BRYAN, Texas, Jan. 12 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) today reported record results for the three and six month
periods ended December 31, 1997. The Company reported a 55 percent increase
in net income to $307,237 ($.10 per share - basic and diluted) for the three
months ended December 31, 1997 compared to net income of $197,967 ($.09 per
share - basic; $.08 per share - diluted) for the corresponding 1996 period.
For the six month period ended December 31, 1997, the Company reported a 47%
increase in net income to $510,689 ($.19 per share - basic; $.18 per share -
diluted) as compared to $347,261 ($.15 per share - basic; $.14 per share -
diluted) for the six month period ended December 31, 1996. Per share amounts
for the current periods are based on a substantial increase in shares
outstanding related to the Company's initial public offering in October 1997.
Operating income for the three and six month periods ended December 31,
1997 increased approximately 71% and 45%, respectively, as compared to the
corresponding 1996 periods. These increases in operating income are primarily
the result of increased profit margins achieved by shifting the mix of chairs
sold to higher-priced models and the ability to hold selling, general and
administrative expenses relatively constant during the current periods.
Although units sold decreased approximately 13 percent from the three months
ended December 31, 1996, net sales remained flat at approximately $3.1
million. The decrease in units sold is primarily due to decreased sales to a
major customer which suffered a strike in mid 1997. Reductions in interest
expense and increases in interest income, resulting from the Company's
completion of its initial public offering in October, also contributed to
increased net income.
For the three month period ended December 31, 1997, the effective pro
forma income tax rate was approximately 31% as compared to 0% for the similar
three month 1996 period due to tax credit refunds received. On an equivalent
basis, using the three month 1997 period effective tax rate, net income per
share would have been $.06 per share - basic and diluted, for the three month
period ended December 31, 1996 versus $.10 per share - basic and diluted, a
67% increase for the current three month period.
Commenting on the second quarter results, Rebecca Boenigk, Chairman and
CEO said, "The Company continues to achieve increased profit margins and net
income attributable to the significant shift in our strategic focus to selling
our products to or through value-added dealers marketed by independent sales
representatives instead of selling directly to end-users. A temporary strike
suffered by one of our major customers delayed projects which accounted for a
majority of the decrease in units sold. The Company also was pleased to
complete its initial public offering on October 20, 1997 in which the Company
received net proceeds of approximately $4.4 million for the 900,000 shares
issued. These funds will allow the Company the opportunity to enhance and
expand the Company's core products and add to our current engineering and
marketing efforts."
Neutral Posture Ergonomics, Inc. manufactures, markets and distributes
ergonomic chairs. Neutral Posture Ergonomics, Inc. common stock is listed on
the Nasdaq National Market under the symbol NTRL.
This press release includes certain statements that may be deemed to be
"forward-looking statements" 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 results to differ materially from
those anticipated by some of the forward-looking statements. Some 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, whether due to future national or regional
economic and competitive conditions, changes in relationships with customers
including, but not limited to, the Company's relationship with its significant
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
businesses.
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,
1997 1996 1997 1996
Net Sales $3,077 $3,052 $6,026 $6,022
Cost of Sales 1,818 1,972 3,609 3,821
Gross Profit 1,259 1,080 2,417 2,201
Selling, general and
administrative 880 859 1,700 1,708
Operating Income 379 221 717 493
Interest (income) expense and
other, net (69) 30 (53) 66
Income Before Income Taxes 448 191 770 427
Pro Forma Income Taxes (Benefit) 141 (7) 259 80
Pro Forma Net Income $307 $198 $511 $347
Pro Forma Net Income Per
Common Share (EPS):
Basic EPS $.10 $.09 $.19 $.15
EPS - assuming dilution $.10 $.08 $.18 $.14
Weighted Average Shares:
Common Shares Outstanding 3,004 2,300 2,652 2,300
Adjusted Shares - assuming
exercise of stock options 3,141 2,500 2,786 2,500
Summarized Balance Sheets
(In thousands)
December 31, June 30,
1997 1997
(Unaudited)
Assets
Current Assets $7,026 $2,083
Property and Equipment - Net 1,448 1,435
Other assets 234 180
Total Assets $8,708 $3,698
Liabilities and Shareholders' Equity
Current liabilities $1,371 $1,492
Long-term debt 594 607
Shareholders' equity 6,743 1,599
Total liabilities and
shareholders' equity $8,708 $3,698
SOURCE Neutral Posture Ergonomics, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 125652
CONTACT:
Gregory A. Katt, CFO, of Neutral Posture
Ergonomics, Inc., 409-778-0502
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