BRYAN, Texas, Nov. 12 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) today reported a 36 percent increase in net income to $203,453
($.08 per common share) for the three months ended September 30, 1997 compared
to net income of $149,295 ($.06 per common share) for the corresponding 1996
period. Earnings per common share is based on 2,500,000 common shares
outstanding before completion of the Company's initial public offering in
October in which 900,000 additional shares were issued.
The rise in net income is primarily attributable to reductions in legal
fees related to litigation and interest expense and increased profit margins.
The Company was able to achieve increased profit margins by shifting its
product mix of sales to higher-priced models and reducing sales to a large,
lower-margin customer. Although unit sales decreased approximately 12 percent
from the three months ended September 30, 1996, net sales remained flat at
approximately $3.0 million. The decrease in unit sales is primarily due to
the Company's transition in sales strategy.
Commenting on the first quarter results, Rebecca Boenigk, Chairman and CEO
said, "The increase in the Company's profit margins and net income is
attributable to a 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. These dealers
typically provide end-users a range of value-added services that may include
installation, delivery, site planning and warranty repairs."
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 actual 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 raw materials 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
Ended September 30,
1997 1996
Net Sales $ 2,949 $ 2,970
Cost of Sales 1,792 1,849
Gross Profit 1,157 1,121
Selling general and administrative 819 849
Operating Income 338 272
Interest expense and other (net) 16 36
Income Before Income Taxes 322 236
Pro Forma Income Taxes 119 87
Pro Forma Net Income $ 203 $ 149
Pro Forma Net Income Per
Common Share $ .08 $ .06
Average Shares Outstanding 2,500 2,500
Summarized Balance Sheets
(In thousands)
September 30, June 30,
1997 1997
(Unaudited)
Assets
Current Assets $ 2,694 $ 2,083
Property and Equipment - Net 1,441 1,435
Other assets 199 180
Total assets $ 4,334 $ 3,698
Liabilities and Shareholders' Equity
Current liabilities $ 1,571 $ 1,492
Long-term debt 800 607
Shareholders' equity 1,963 1,599
Total liabilities and
shareholders' equity $ 4,334 $ 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 of Neutral Posture
Ergonomics, Inc., 409-778-0502
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