EXHIBIT 99.1
![]() | Material Sciences Corporation 2200 East Pratt Blvd. Elk Grove Village, IL 60007 847-439-2210 | |
COMPANY CONTACT: | MEDIA CONTACT: | |
James M. Froisland | Katie Wood Znameroski | |
Senior Vice President, Chief Financial Officer, | Edelman | |
Chief Information Officer and Corporate Secretary | 312-240-2827 | |
847-718-8020 |
FOR IMMEDIATE RELEASE
THURSDAY, July 10, 2008
Material Sciences Announces First Quarter Fiscal 2009 Final Results
ELK GROVE VILLAGE, IL, July 10, 2008 – Material Sciences Corporation (NYSE: MSC), a leading provider of material-based solutions for acoustical and coated applications, today reported final results for the first quarter of fiscal 2009, ended May 31, 2008. The final results reflect a foreign currency transaction gain of $0.4 million for the first quarter of fiscal 2009, which had not been included in the company’s preliminary results released on July 9, 2008.
After accounting for the foreign currency gain, the company recorded a net loss of $1.6 million, or $0.11 per diluted common share, compared with a loss of $0.5 million, or $0.04 per diluted common share, in the prior year’s first fiscal quarter. The company previously reported a net loss of $1.9 million, or $0.14 per diluted common share, for the first quarter of fiscal 2009.
The company’s final results were included in its quarterly report on Form 10-Q, filed on July 10, 2008, and are included in this release.
About Material Sciences
Material Sciences Corporation is a leading provider of material-based solutions for acoustical and coated applications. MSC uses its expertise in materials, which it leverages through relationships and a network of partners, to solve customer-specific problems. The Company’s stock is traded on the New York Stock Exchange under the symbol MSC.
This news release contains forward-looking statements that are based on current expectations, forecasts and assumptions. MSC cautions the reader that the following factors could cause its actual outcomes and results to differ materially from those stated or implied in the forward-looking statements: impact of changes in the overall economy; changes in the business environment, including the transportation, building and construction, electronics and durable goods industries; competitive factors, including domestic and foreign competition for both acoustical and coated applications as well as changes in industry capacity; changes in laws, regulations, policies or other activities of governments, agencies or similar organizations (including the ruling under Section 201 of the Trade Act of 1974); the stability of governments and business conditions inside and outside of the U.S., which may affect a successful penetration of the Company’s products; acceptance of brake damping materials, engine components and body panel laminate parts by customers in North America, Asia and Europe; the continued successful operation of the Application Research Center in Michigan and the Application Development Center in Europe; increases in the prices of raw and other material inputs used by the Company, as well as availability; the loss, or changes in the operations, financial condition or results of operations, of one or more of the Company’s significant customers; our ability to retain key personnel; overcapacity in the coil coating industry; shifts in the supply model for our products; the impact of future warranty expenses; environmental risks, costs, recoveries and penalties associated with the Company’s past and present manufacturing operations; and other factors, risks and uncertainties identified in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended February 29, 2008, filed with the Securities and Exchange Commission on May 29, 2008, and from time to time in our other reports filed with the Securities and Exchange Commission.
Additional information about Material Sciences is available atwww.matsci.com.
Material Sciences Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended May 31, | ||||||||
(In thousands, except per share data) | 2008 | 2007 | ||||||
Net Sales | $ | 57,165 | $ | 60,665 | ||||
Cost of Sales | 50,364 | 51,944 | ||||||
Gross Profit | 6,801 | 8,721 | ||||||
Selling, General and Administrative Expenses | 10,354 | 10,288 | ||||||
Loss from Operations | (3,553 | ) | (1,567 | ) | ||||
Other (Income) and Expense: | ||||||||
Interest (Income) Expense, Net | (74 | ) | (82 | ) | ||||
Equity in Results of Joint Venture | (81 | ) | (56 | ) | ||||
Other, Net | (490 | ) | (517 | ) | ||||
Total Other Income, Net | (645 | ) | (655 | ) | ||||
Loss from Continuing Operations Before | ||||||||
Benefit for Income Taxes | (2,908 | ) | (912 | ) | ||||
Benefit for Income Taxes | (1,336 | ) | (367 | ) | ||||
Loss from Continuing Operations | (1,572 | ) | (545 | ) | ||||
Net Loss | $ | (1,572 | ) | $ | (545 | ) | ||
Basic Net Loss Per Share | $ | (0.11 | ) | $ | (0.04 | ) | ||
Diluted Net Loss Per Share | $ | (0.11 | ) | $ | (0.04 | ) | ||
Weighted Average Number of Common Shares Outstanding Used for Basic Net Loss Per Share | 13,856 | 14,531 | ||||||
Dilutive Shares | — | — | ||||||
Weighted Average Number of Common Shares Outstanding Plus Dilutive Shares | 13,856 | 14,531 | ||||||
Material Sciences Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
May 31, | February 29, | |||||||
(In thousands) | 2008 | 2008 | ||||||
Assets: | ||||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 10,801 | $ | 7,913 | ||||
Short Term Investment | 4,132 | 6,933 | ||||||
Receivables | 29,723 | 28,547 | ||||||
Income Taxes Receivable | 3,013 | 3,316 | ||||||
Prepaid Expenses | 1,747 | 744 | ||||||
Inventories | 29,579 | 31,811 | ||||||
Deferred Income Taxes | 3,287 | 3,754 | ||||||
Assets Held For Sale | 3,882 | 3,882 | ||||||
Other Assets | 175 | 180 | ||||||
Total Current Assets | 86,339 | 87,080 | ||||||
Property, Plant and Equipment | 215,250 | 213,842 | ||||||
Accumulated Depreciation and Amortization | (149,273 | ) | (146,541 | ) | ||||
Net Property, Plant and Equipment | 65,977 | 67,301 | ||||||
Other Assets: | ||||||||
Investment in Joint Venture | 3,308 | 3,094 | ||||||
Deferred Income Taxes | 8,730 | 6,608 | ||||||
Other | 345 | 232 | ||||||
Total Other Assets | 12,383 | 9,934 | ||||||
Total Assets | $ | 164,699 | $ | 164,315 | ||||
Liabilities: | ||||||||
Current Liabilities: | ||||||||
Accounts Payable | $ | 26,645 | $ | 22,513 | ||||
Accrued Payroll Related Expenses | 4,445 | 4,691 | ||||||
Accrued Expenses | 7,575 | 7,403 | ||||||
Total Current Liabilities | 38,665 | 34,607 | ||||||
Long-Term Liabilities: | ||||||||
Pension and Postretirement Liabilities | 9,348 | 9,628 | ||||||
Other | 5,722 | 4,948 | ||||||
Total Long-Term Liabilities | 15,070 | 14,576 | ||||||
Commitments and Contingencies | ||||||||
Shareowners’ Equity: | ||||||||
Preferred Stock | — | — | ||||||
Common Stock | 381 | 381 | ||||||
Additional Paid-In Capital | 79,582 | 79,491 | ||||||
Treasury Stock at Cost | (55,684 | ) | (52,978 | ) | ||||
Retained Earnings | 86,700 | 88,272 | ||||||
Accumulated Other Comprehensive Income | (15 | ) | (34 | ) | ||||
Total Shareowners’ Equity | 110,964 | 115,132 | ||||||
Total Liabilities and Shareowners’ Equity | $ | 164,699 | $ | 164,315 | ||||
Material Sciences Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended May 31, | ||||||||
(In thousands) | 2008 | 2007 | ||||||
Cash Flows From: | ||||||||
Operating Activities: | ||||||||
Net Income (Loss) | $ | (1,572 | ) | $ | (545 | ) | ||
Adjustments to Reconcile Net Income (Loss) to Net Cash | ||||||||
Provided by Operating Activities: | ||||||||
Depreciation, Amortization and Accretion | 2,680 | 2,911 | ||||||
Provision for Deferred Income Taxes | (1,705 | ) | — | |||||
Compensatory Effect of Stock Plans | 91 | 34 | ||||||
Foreign Currency Transaction Gain | (354 | ) | (413 | ) | ||||
Other, Net | (81 | ) | (25 | ) | ||||
Changes in Assets and Liabilities: | ||||||||
Receivables | (1,116 | ) | 16,718 | |||||
Income Taxes Receivable | 303 | (474 | ) | |||||
Prepaid Expenses | (1,001 | ) | (647 | ) | ||||
Inventories | 2,295 | (5,901 | ) | |||||
Accounts Payable | 4,540 | (9,369 | ) | |||||
Accrued Expenses | (112 | ) | (460 | ) | ||||
Other, Net | 479 | (398 | ) | |||||
Net Cash Provided by Continuing Operations | 4,447 | 1,431 | ||||||
Net Cash Provided by (Used in) Discontinued Operations | — | 15 | ||||||
Net Cash Provided by Operating Activities | 4,447 | 1,446 | ||||||
Investing Activities: | ||||||||
Capital Expenditures | (1,639 | ) | (1,763 | ) | ||||
Proceeds from Sale of Marketable Securities | 2,800 | — | ||||||
Net Cash Used in Investing Activities | 1,161 | (1,763 | ) | |||||
Financing Activities: | ||||||||
Purchases of Treasury Stock | (2,706 | ) | (278 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | (2,706 | ) | (278 | ) | ||||
Effect of Exchange Rate Changes on Cash | (14 | ) | 11 | |||||
Net Increase (Decrease) in Cash | 2,888 | (584 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 7,913 | 11,667 | ||||||
Cash and Cash Equivalents at End of Period | $ | 10,801 | $ | 11,083 | ||||
Non-Cash Transactions: | ||||||||
Capital Expenditures in Accounts Payable at End of Period | $ | 461 | $ | 404 | ||||
Supplemental Cash Flow Disclosures: | ||||||||
Interest Paid | $ | 26 | $ | 61 | ||||
Income Taxes Paid | $ | 8 | $ | 319 |