BRYAN, Texas, Oct. 27 /PRNewswire/ -- Neutral Posture Ergonomics, Inc.
(Nasdaq: NTRL) today reported results for the three month period ended
September 30, 1999. The Company reported net income of $286,356 ($0.09 per
share - basic and diluted) for the three month period ended September 30, 1999
as compared to net income of $287,868 ($0.09 per share - basic and diluted)
for the corresponding 1998 period. Per share amounts are based on the
weighted average shares outstanding for both periods.
Net sales for the three month period ended September 30, 1999 increased
approximately 4% to $4.4 million, as compared to $4.2 million for the similar
1998 period. Gross profit margin increased as a percent of sales to 38.3% for
the three month period ended September 30, 1999 as compared 37.0% for the
three month 1998 period. The increased margin related to a reduction of
direct material cost pursuant to continued efforts of the engineering
department to reduce the cost of our products and increase the quality of the
chair lines. However, the increase in gross margin was offset by an
approximate 12% increase in selling, general and administrative costs
primarily due to increased commission rates related to sales promotions during
the quarter, consulting fees related to development of the Company's strategic
plan and costs associated with a public relations firm hired late in fiscal
year 1999. Based on the above, operating income remained flat at
approximately $425,000 as compared to last year.
Commenting on the first quarter results, Rebecca Boenigk, Chairman and CEO
said, "Although the Company did not exceed last year's results significantly,
we were pleased to be able to show comparative earnings per share results of
$0.09 per share. We are just beginning to see the results of the strategic
plan to increase operating efficiencies in the plant and will continue to
monitor the margins and operating efficiency levels. We are also in the
process of implementing an aggressive marketing campaign and intend to
introduce additional ergonomic products within the next ninety (90) days. We
remain committed to the growth of our business and will continue to focus on
bottom line earnings."
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
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 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.
Neutral Posture Ergonomics, Inc.
Summarized Statements of Income
(In thousands, except for per share amounts)
For the Three Months
Ended September 30,
1999 1998
(Unaudited) (Unaudited)
Net sales $4,384 $4,212
Cost of sales 2,704 2,656
Gross Profit 1,680 1,556
Selling, general and administrative 1,255 1,122
Operating Income 425 434
Interest (income) expense and other, net 24 27
Income Before Income Taxes 449 461
Income taxes 163 173
Net Income $286 $288
Earnings Per Common Share (EPS):
Basic $.09 $.09
Diluted $.09 $.09
Weighted Average Shares Outstanding:
Basic 3,309 3,200
Diluted 3,313 3,344
Summarized Balance Sheets
(In thousands)
September 30, June 30,
1999 1999
(Unaudited)
Assets
Current Assets:
Cash $3,266 $3,316
Accounts Receivable - net 2,867 2,668
Inventory 1,067 1,195
Other 591 598
Total current assets 7,791 7,777
Property and Equipment - Net 2,246 2,277
Other Assets 424 440
Total Assets $10,461 $10,494
Liabilities
Current Liabilities $1,877 $2,164
Long-term debt 518 551
Deferred income tax liability 131 131
Shareholders' equity 7,935 7,648
Total Liabilities and
Shareholders' Equity $10,461 $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., 409-778-0502, Ext. 111
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