BRYAN, Texas, Sept. 19 /PRNewswire/ --
Neutral Posture Ergonomics, Inc. (Nasdaq: NTRL) today reported a decrease in
earnings to show a net loss of $29,173 (($.01) per share -- basic and diluted)
for its fiscal year ended June 30, 2000. As previously announced on
August 18, 2000, the Company had reported net income of $119,740
($.04 per share, basic and diluted) for the fiscal year ended June 30, 2000.
The Company is re-releasing earnings due to management's decision to increase
its allowance for doubtful accounts receivable by $235,913. Subsequent to
year-end, management became aware of a change in circumstances at one of its
largest customers that indicated collection was doubtful. The Company
anticipates increasing its allowance an additional $100,000 during the first
quarter of fiscal 2001 related to products shipped to this customer subsequent
to year-end.
For the fourth quarter, the Company's net loss increased to $421,515
(($.13) per share -- basic and diluted) from the amount originally reported of
$272,602 (($.08) per share -- basic and diluted) for the fourth quarter ended
June 30, 2000. Per share amounts for the current periods are based on
weighted average shares outstanding for the three- and twelve-month periods
ended June 30, 2000.
Commenting on the decrease in earnings for fiscal 2000, Rebecca Boenigk,
Chief Executive Officer for the Company stated, "Recent developments at the
Relax the Back Corporation ('RTB'), one of our largest customers, led the
Company to question the collectibility of such account as it relates to RTB's
corporate-owned stores, which comprise approximately 40% of the total RTB
sales. While we are disappointed to have to increase our allowance for
doubtful accounts, we will continue to sell to the corporate stores on a cash
basis. The Company will continue to sell to the independently-owned and
operated franchise stores, which account for the remaining 60% of total RTB
sales."
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, 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, results of
arbitration and litigation, 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. Readers are cautioned not to place undue
reliance on these forward-looking statements, which reflect management's
analysis only as of the date hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof. Readers should carefully
review the risk factors described in other documents the Company files from
time to time with the Securities and Exchange Commission.
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,
2000 1999 2000 1999
Net sales $4,194 $4,150 $17,217 $17,090
Cost of sales 2,753 2,596 10,924 10,737
Gross Profit 1,441 1,554 6,293 6,353
Selling, general and
administrative 2,159 1,546 6,474 5,133
Operating Income (Loss) (718) 8 (181) 1,220
Interest (income) expense and
other, net (55) (23) (135) (108)
Income (Loss) Before Income
Taxes (663) 31 (46) 1,328
Income taxes (Benefit) (241) 4 (17) 490
Net Income (Loss) $(422) $27 $(29) $838
Earnings (Loss) Per Common
Share (EPS):
Basic $(.13) $.01 $(.01) $.26
Diluted $(.13) $.01 $(.01) $.25
Weighted Average Shares
Outstanding:
Basic 3,272 3,309 3,207 3,253
Diluted 3,272 3,362 3,207 3,344
Summarized Balance Sheets
(In thousands)
June 30, June 30,
2000 1999
Assets
Current Assets:
Cash $3,139 $3,316
Accounts Receivable - net 2,719 2,668
Inventory 1,289 1,195
Other 573 598
Total current assets 7,720 7,777
Property and Equipment - net 2,267 2,277
Other Assets 389 440
Total Assets $10,376 $10,494
Liabilities
Current Liabilities $1,974 $2,164
Long-term debt 501 551
Deferred income tax liability 69 131
Shareholders' equity 7,832 7,648
Total Liabilities and Shareholders' Equity $10,376 $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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