Exhibit 99.1
Bairnco Announces Improved First Quarter 2003 Results
LAKE MARY, Fla., April 17 /PRNewswire-FirstCall/ -- Bairnco Corporation
(NYSE: BZ) today reported improved operating results for the first quarter
2003 as compared to the same period last year. Sales were up 9.2% to
$39,972,000, net income increased 30.5% to $889,000 and diluted earnings per
share increased 33.3% to $.12.
Performance
Sales in the first quarter 2003 were $39,972,000, an increase of 9.2% from
$36,617,000 in 2002. Arlon's sales were up 5.5% from last year showing
improvements in its electronics, foreign graphics and industrial markets.
Sales to the telecommunications market, however, were down as compared to the
first and fourth quarters of 2002 reflecting the continuing softening of this
market. Kasco's sales increased 21.1% as compared to the first quarter last
year. Kasco's first quarter 2003 sales reflected the increased activity
generated from several significant new retail grocery chain contracts in North
America as well as increased sales in Europe, Africa and Asia. Kasco's foreign
sales were also positively impacted by the currency translation effect of the
weakened US dollar versus the British Pound and the Euro.
Gross profit increased 9.3% to $11,580,000 from $10,591,000 due to the
increased sales. The gross profit margin as a percent of sales increased
slightly to 29.0% from 28.9%. The first quarter 2003 gross profit was
negatively impacted by $213,000 of relocation and closing expenses related to
the consolidation of Arlon's industrial engineered coated product's
businesses.
Selling and administrative expenses increased 8.2% to $10,093,000 from
$9,331,000 due to the increased sales, and to the costs of new engineering and
development hires for the industrial engineered coated product's facility in
San Antonio, Texas. As a percent of sales, selling and administrative expenses
decreased to 25.3% from 25.5%.
Interest expense decreased to $199,000 in 2003 as compared to $273,000 in
2003 due to debt reductions made during 2002 from strong cash generation as
well as lower average interest rates.
The effective tax rate for both the quarters ended April 5, 2003 and March
30, 2002 was 31.0%.
Net income increased 30.5% to $889,000 as compared to $681,000 in the
first quarter of 2002. Diluted earnings per common share increased 33.3% to
$.12 from $.09 as a result of increased earnings.
Litigation
On March 14, 2003 the United States District Court for the Southern
District of New York (the "Court") issued a decision granting all Bairnco and
other defendants' motions for summary judgment and dismissing all remaining
claims in the Transactions Lawsuit. On April 14, 2003, plaintiffs filed a
notice of appeal to the U.S. Court of Appeals for the Second Circuit. The
notice of appeal references both the final judgment entered based on the
Court's summary judgment ruling and also all of the Court's earlier rulings in
the case.
"Safe Harbor" Statement under the Private Securities 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; the costs and other
effects of legal and administrative cases and proceedings, settlements and
investigations; disruptions in operations due to labor disputes; changes in
the pricing of the products of the Corporation or its competitors; the market
demand and acceptance of the Corporation's existing and new products; the
impact of competitive products; changes 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 impact on production output and costs from the
availability of energy sources and related pricing; the ability to achieve
anticipated revenue growth, synergies and other cost savings in connection
with acquisitions; 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.
Bairnco Corporation is a diversified multinational company that operates
two distinct businesses -- Arlon (Engineered Materials and Components segment)
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.
Bairnco Corporation
Comparative Results of Operations (Unaudited)
Quarter Ended
Condensed Income Statements Apr 5, 2003 Mar 30, 2002
Net sales $39,972,000 $36,617,000
Cost of sales 28,392,000 26,026,000
Gross profit 11,580,000 10,591,000
Selling and administrative expenses 10,093,000 9,331,000
Operating profit 1,487,000 1,260,000
Interest expense, net 199,000 273,000
Income before income taxes 1,288,000 987,000
Provision for income taxes 399,000 306,000
Net income $889,000 $681,000
Basic Earnings per Share of
Common Stock $0.12 $0.09
Diluted Earnings per Share of
Common Stock $0.12 $0.09
Diluted Average Common Shares 7,336,000 7,334,000
Condensed Balance Sheets Apr 5, 2003 Dec 31, 2002
ASSETS
Cash $746,000 $705,000
Accounts receivable, net 24,439,000 22,732,000
Inventories 26,251,000 24,882,000
Other current assets 9,261,000 8,689,000
Total current assets 60,697,000 57,008,000
Plant and equipment, net 37,371,000 37,468,000
Cost in excess of net assets
of purchased businesses 13,391,000 13,276,000
Other assets 7,463,000 7,832,000
Total $118,922,000 $115,584,000
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Short-term debt $1,585,000 $1,200,000
Current maturities of long-term debt 8,250,000 7,000,000
Accounts payable 11,774,000 9,855,000
Accrued expenses 12,930,000 15,103,000
Total current liabilities 34,539,000 33,158,000
Long-term debt 20,972,000 19,547,000
Other liabilities 11,325,000 11,363,000
Stockholders' investment 52,086,000 51,516,000
Total $118,922,000 $115,584,000