RANCHO CUCAMONGA, Calif., Nov. 4 /PRNewswire/ -- Pacer Technology
(Nasdaq: PTCH), owner of such branded consumer products as Super Glue, ZAP(R),
PRO SEAL(R), Cook Bates(R), Diamond Deb(R)/Kurlash(R) and Gem(R), today
announced continued gains in net sales, operating income and net income for
its first quarter ended Sept. 30, 1998.
Commented President and Chief Executive Officer Jim Munn, "We are pleased
with these strong results, most of which is attributable to our acquisition of
Cook Bates. We acquired Cook Bates last March in order to expand the number
of products we distribute through our existing retail channels to gain
additional shelf space in key retail locations."
Financial Results
For the three months ended Sept. 30, 1998, net sales were $13,657,709, an
85.2% increase over the $7,375,150 reported for the first quarter of 1997.
Operating income improved to $1,875,271 for the first quarter from $935,072 in
the same period a year ago. Net income increased 112.2% to $956,911, or $.05
per share, versus $450,872, or $.03 per share, for the corresponding quarter
last year.
Domestic Operations
The Company reported domestic sales of $12,502,759 for the first quarter
ended Sept. 30, 1998 compared to $5,743,736 in 1997. The increase was driven
largely by revenues from Cook Bates, including strong seasonal sales related
to pre-holiday purchases. Domestic sales accounted for 91.5% of total company
sales for the first quarter.
International Operations
International sales decreased to $1,154,950 representing 8.5% of total
sales for the current quarter compared to $1,631,414, or 22.1% of total sales
in the corresponding year-ago quarter. The Company reported lower revenues
from overseas due to challenging economic conditions in Asia, South America,
and Europe. The Company believes this resulted from a number of key retailers
trimming back inventory levels. Munn further explained international sales
represented a lower percentage of total revenue primarily due to the inclusion
of results from Cook Bates, whose products are mostly distributed
domestically.
Other Operating Expenses
Pacer's gross margin was 36.0% for the first quarter of fiscal 1999 versus
37.1% in the comparable quarter the year before. This gross margin reduction
was the result of competitive pricing pressures. Operating margin was 13.7%
of net sales during the current quarter compared to 12.7% in the corresponding
quarter in the prior year. Selling, general and administrative expenses were
22.3% of sales for the three-month period versus 24.4% reported during the
same quarter a year ago. Munn stated, "The operating margin improvements
resulted from economies of scale."
Financial Position
At Sept. 30, 1998, Pacer reported total assets of $33,409,106,
stockholders' equity of $11,605,873, long-term debt of $10,919,556 and working
capital of $16,689,051.
Except for historical information contained herein, the matters set forth
in this news release are forward looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those set forth herein in the forward looking statements,
including such factors, among others, as significant fluctuations in operating
results, uncertain market acceptance of the company's products and intense
competition.
Pacer Technology is a manufacturer and worldwide marketer of advanced
technology adhesives, sealants and related products for a variety of consumer
and industrial applications, as well as manicure implements for consumer
markets. It is the provider of SUPER GLUE, ZAP(R), PRO SEAL(R), Cook
Bates(R), Diamond Deb(R)/Kurlash(R) and Gem(R), and other well known branded
products.
PACER TECHNOLOGY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
September 30, June 30,
1998 1998
ASSETS
Current Assets:
Cash $ 559,060 $277,370
Trade Receivables 13,627,037 8,591,327
Notes and Other Receivables 303,658 334,941
Inventories 10,848,060 10,974,578
Prepaid Expenses 1,088,144 810,451
Deferred Income Tax - Current1,146,769 1,146,769
Total Current Assets $27,572,728 $22,135,436
Equipment and Leasehold
Improvements, Net 2,064,308 1,819,783
Deferred Income Tax Asset 124,065 124,065
Cost In Excess of Net
Assets Acquired 3,618,962 3,689,516
Other Assets 29,043 30,125
Total Assets 33,409,106 $27,798,925
LIABILITY AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable 6,144,945 4,135,472
Other Accrued Expenses 4,405,399 3,162,266
Current Portion of
Long-Term Debt 333,333 333,333
Total Current
Liabilities 10,883,677 7,631,071
Long-Term Liabilities:
Long-Term Debt, Excluding
Current Installments 10,919,556 9,535,889
Total Liabilities 21,803,233 17,166,960
Stockholders' Equity:
Notes Receivable From
Directors (265,227) (265,257)
Common Stock 8,270,633 8,270,633
Retained Earnings 3,570,364 2,613,453
Exchange Rates Difference 30,103 13,136
Total Stockholders'
Equity 11,605,873 10,631,965
Total Liabilities and
Equity $33,409,106 $27,798,925
Working Capital 16,689,051 14,504,365
Current Ratio 2.53 2.90
PACER TECHNOLOGY AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
Three Months Ended
September 30,
1998 1997
Net Sales $13,657,709 $7,375,150
Cost of Sales 8,738,720 4,641,009
Gross Profit on Sales 4,918,989 2,734,141
Selling, General and
Administrative Expenses 3,043,718 1,799,069
Operating Income 1,875,271 935,072
Interest Expense (Income)
and Other 210,778 121,052
Income Before Taxes 1,664,493 814,020
Income Taxes 707,582 363,148
Net Income $956,911 $450,872
Weighted Average Shares 15,864,975 15,849,975
Basic Earnings Per Share $0.06 $0.03
Adjusted Weighted Average
Shares 17,624,745 17,611,839
Diluted Earnings Per Share $0.05 $0.03
SOURCE Pacer Technology
 back to top
CONTACT:
Roberto J. Cavazos, Jr. Chief Financial
Officer of Pacer Technology, 909-987-0550 ; or General
Information, Karen Taylor, or Investor- Analyst Contact, Moira
Conlon, 310-442-0599
NOTE TO EDITORS: For more information about Pacer Technology via
facsimile simply call 1-800-PRO-INFO and dial client code "PTCH."
|
