CONCORD, Mass., Dec. 2 /PRNewswire/ -- Starmet Corporation (Nasdaq: STMT)
a Concord, Massachusetts based manufacturer of specialized metal products,
today announced financial results for the fourth quarter which ended
September 30, 1999.
The Company finished fiscal 1999 with five consecutive profitable months.
The fourth quarter was the first profitable quarter in eighteen months. In
the quarter, the Company generated net income of $553,000 on revenues in
excess of $6.0 million, a profitability of 9.2%. Compared to the Company's
last profitable quarter, net income more than doubled on $4.7 million (44%)
less in sales, reflecting the Company's success in bringing its cost structure
in line with the current levels of revenue.
Compared to the third quarter of fiscal 1999, fourth quarter revenues
increased by $387,000 and net income improved by $1,371,000. The profit
improvement for the quarter is attributable in part to reduced direct and
indirect manufacturing costs but more significantly to reduced selling,
general and administrative expenses. This is a further reflection of the
aggressive cost reductions, comprehensive restructuring of the organization
and spending curbs implemented by the Company over the past year.
The Company generated net income of $553,000 for the fourth quarter, or
$0.12 per share on basic average shares outstanding of 4,791,000. This
compares with a net loss of $817,000, or $0.17 per share for the third
quarter. For the year, the Company sustained a net loss of $2,442,000, or
$0.51 per share. This compares to a net loss of $19,031,000 for fiscal 1998,
or $3.97 per share.
Despite the reported net loss of $2,442,000 for fiscal 1999, the Company
generated positive cash flow from operations, reduced trade accounts payable
by $2.3 million, and paid down its revolving line of credit by $1.0 million.
Unfilled orders backlog was $22.1 million (approximately 10 months' sales)
as of September 30, 1999.
On September 30, 1999, the Company entered into an agreement with its
principal lender to further extend the maturity of its current credit
agreement. The Company presently expects to meet certain conditions that
would extend the final maturity to June 10, 2001, at which time the Company
projects the principal balance to be sharply reduced from current levels.
The Company continues to pursue potential expansion of its titanium powder
business; development of its Beralcast(R) investment casting technology for
aerospace and defense applications; development of its Beralcast(R) MGA
extrusion capability for computer disc drive applications, and development of
its DUCRETE(TM) shielding technology for potential radiation shielding
applications. The Company continues to invest heavily in research and
development for perfecting processes to recover valuable fluorine compounds
from uranium tetrafluoride. All of these have the potential of making
significant contributions to the future profitability of the Company.
FOURTH QUARTER ENDED TWELVE MONTHS ENDED
9/30/99 9/30/98 9/30/99 9/30/98
Sales $6,025,000 $8,625,000 $25,001,000 $34,823,000
Gross Profit $2,057,000 $(10,066,000) $5,704,000 $(5,205,000)
Operating Income
(Loss) $823,000 $(14,664,000) $(933,000) $(17,762,000)
Net Income (Loss) $553,000 $(14,980,000) $(2,442,000) $(19,031,000)
Basic Earnings (Loss)
Per Share $0.12 $(3.12) $(0.51) $(3.97)
Weighted Average
Number of Shares 4,791,000 4,791,000 4,791,000 4,791,000
Special Note Regarding Forward-looking Statements:
Statements contained herein that are not statements of historical fact are
"forward-looking statements." Forward-looking statements include statements
concerning backlog, extension of the credit agreement, the timing of orders,
quarterly, annual and long-term sales growth and future profitability and cash
flow.
Such forward-looking statements are based on a number of assumptions and
involve a number of risks and uncertainties, and, accordingly, actual results
could differ materially from those projected in the forward-looking
statements. Factors that may cause such differences include, but are not
limited to: the effects of government regulation; the need for additional
financing to fund growth, continued and future acceptance of the Company's
products and services; and the presence of competitors with greater technical,
marketing and financial resources.
For further information, please contact:
Gary Mattheson
Chief Financial Officer
(978) 369-5410
Web site: http://www.starmet.com
SOURCE Starmet Corporation
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Related links:
http://www.starmet.com
Company News On-Call:
http://www.prnewswire.com/comp/632850.html or fax,
800-758-5804, ext. 632850
CONTACT:
Gary Mattheson, Chief Financial Officer of
Starmet Corporation, 978-369-5410
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