EXHIBIT 99
BAIRNCO CORPORATION
300 PRIMERA BOULEVARD, SUITE 432
LAKE MARY, FLORIDA 32746
(407) 875-2222
PRESS RELEASE
BAIRNCO ANNOUNCES AMENDED FOURTH QUARTER AND FULL YEAR 2004
FINANCIAL RESULTS DUE TO TAX BENEFIT FROM SETTLEMENT
Lake Mary, Florida, February 18, 2005 - Bairnco Corporation (NYSE-BZ) today reported that subsequent to year end and the issuance of its January 27, 2005 press release on the 2004 operating results, a review of tax information on the settlement of the NOL Lawsuit resulted in a $1,015,000 tax receivable, and related income, which is included in income from spun off subsidiary. The 2004 fourth quarter and full year consolidated financial statements have been amended to reflect this information.
Bairnco Corporation is a diversified multinational company that operates two distinct businesses - Arlon (Electronic Materials and Coated Materials segments) and Kasco (Replacement Products and Services segment). Arlon’s principal products include high technology materials for the printed circuit board industry, cast and calendered vinyl film systems, custom-engineered laminates and special silicone rubber compounds and components. Kasco’s principal products include replacement band saw blades for cutting meat, fish, wood and metal, and on site maintenance primarily in the meat and deli departments. Kasco also distributes equipment to the food industry in France.
CONTACT: Lawrence C. Maingot, Bairnco Corporation
Telephone: (407) 875-2222, ext. 230
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
Statements in this press release referring to the expected future plans and performance of the Corporation are forward-looking statements. Actual future results may differ materially from such statements. Factors that could affect future performance include, but are not limited to, changes in US or international economic or political conditions, such as inflation or fluctuations in interest or foreign exchange rates; disruptions in operations due to labor disputes; renegotiation of the Corporation’s Credit Agreement; changes in the pricing of the products of the Corporation or its competitors; the impact on production output and costs from the availability of energy sources and related pricing; the market demand and acceptance of the Corporation’s existing and new products; the impact of competitive products; cha nges in the market for raw or packaging materials which could impact the Corporation’s manufacturing costs; changes in the product mix; the loss of a significant customer or supplier; production delays or inefficiencies; the costs and other effects of legal and administrative cases and proceedings, settlements and investigations; the ability to achieve anticipated revenue growth, synergies and other cost savings in connection with acquisitions and plant consolidations; the costs and other effects of complying with environmental regulatory requirements; and losses due to natural disasters where the Corporation is self-insured. While the Corporation periodically reassesses material trends and uncertainties affecting the Corporation’s results of operations and financial condition in connection with its preparation of its press releases, the Corporation does not intend to review or revise any particular forward-looking statement referenced herein in light of future events.
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Comparative Consolidated Results of Operations (Unaudited)
| | Quarter Ended | Year Ended |
Condensed Consolidated Statements of Income | Dec. 31, 2004 | Dec. 31, 2003 | Dec. 31, 2004 | Dec. 31, 2003 |
Net sales | $40,544,000 | $37,135,000 | $165,496,000 | $152,696,000 |
Cost of sales | 28,934,000 | 26,708,000 | 117,612,000 | 109,825,000 |
Gross profit | 11,610,000 | 10,427,000 | 47,884,000 | 42,871,000 |
Selling and administrative expenses | 8,998,000 | 9,367,000 | 39,827,000 | 38,248,000 |
Operating profit | 2,612,000 | 1,060,000 | 8,057,000 | 4,623,000 |
Interest expense, net | 18,000 | 190,000 | 566,000 | 768,000 |
Income before income taxes | 2,594,000 | 870,000 | 7,491,000 | 3,855,000 |
Provision for income taxes | 720,000 | 281,000 | 2,372,000 | 1,206,000 |
Income from continuing operations | 1,874,000 | 589,000 | 5,119,000 | 2,649,000 |
Income from spun off subsidiary | 1,015,000 | -- | 25,710,000 | -- |
Net income | $ 2,889,000 | $ 589,000 | $ 30,829,000 | $ 2,649,000 |
| | | | | |
Basic Earnings Per Share of Common Stock from Continuing Operations |
$ 0.25 |
$ 0.08 |
$ 0.70 |
$ 0.36 |
Basic Earnings per Share of Common Stock from Spun Off Subsidiary |
0.14 |
-- |
3.49 |
-- |
Basic Earnings per Share of Common Stock |
$ 0.39 |
$ 0.08 |
$ 4.19 |
$ 0.36 |
Diluted Earnings per Share of Common Stock from Continuing Operations |
$ 0.24 |
$ 0.08 |
$ 0.68 |
$ 0.36 |
Diluted Earnings per Share of Common Stock from Spun Off Subsidiary |
0.13 |
-- |
3.40 |
-- |
Diluted Earnings per Share of Common Stock |
$ 0.38 |
$ 0.08 |
$ 4.07 |
$ 0.36 |
| | | | | |
Basic Average Common Shares | 7,386,000 | 7,342,000 | 7,362,000 | 7,338,000 |
Diluted Average Common Shares | 7,660,000 | 7,436,000 | 7,569,000 | 7,391,000 |
| | | | | |
Condensed Consolidated Balance Sheets | Dec. 31, 2004 | Dec. 31, 2003 |
ASSETS | | |
| | | |
Cash | $ 3,451,000 | $ 796,000 |
Accounts receivable, net | 24,912,000 | 23,511,000 |
Inventories | 24,964,000 | 25,516,000 |
Other current assets | 7,702,000 | 7,873,000 |
Total current assets | 61,029,000 | 57,696,000 |
Plant and equipment, net | 34,429,000 | 36,476,000 |
Cost in excess of net assets of purchased businesses | 14,542,000 | 14,360,000 |
Other assets | 8,781,000 | 9,697,000 |
Total | $118,781,000 | $118,229,000 |
| | | |
LIABILITIES AND STOCKHOLDERS’ INVESTMENT | | |
| | | |
Short-term debt | $ 1,030,000 | $ 1,875,000 |
Current maturities of long-term debt | 663,000 | 2,173,000 |
Accounts payable | 10,601,000 | 10,159,000 |
Accrued expenses | 10,515,000 | 10,916,000 |
Total current liabilities | 22,809,000 | 25,123,000 |
Long-term debt | 231,000 | 27,785,000 |
Other liabilities | 10,974,000 | 11,023,000 |
Stockholders’ investment | 84,767,000 | 54,298,000 |
Total | $118,781,000 | $118,229,000 |
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