EXHIBIT 99.1
NEWS RELEASE
CONTACT: Investor Relations (NYSE-BMC)
(612) 851-6000 FOR IMMEDIATE RELEASE
BMC INDUSTRIES, INC. REPORTS FIRST QUARTER 2000 EARNINGS
April 25, 2000 - Minneapolis, MN - BMC Industries, Inc. reported net earnings
for the first quarter ended March 31, 2000 of $2.3 million, or $0.08 per diluted
share. This compares to net earnings of $3.2 million, or $0.12 per diluted
share, in the first quarter of 1999. Total first quarter revenue increased 5%
from $84.6 million in 1999 to $88.8 million in 2000.
Paul B. Burke, BMC's Chairman and Chief Executive Officer, stated, "Both of our
businesses have started the year on a positive note. Vision-Ease showed revenue
growth during the quarter and improved revenue mix driven by strong sales of
higher-margin Outlook(TM) polycarbonate progressive and SunRx -Registered
Trademark- polarized polycarbonate lenses. Buckbee-Mears revenue increased 7%
over the prior year quarter and more importantly showed improving revenue mix
reflecting favorable market shifts to larger-sized entertainment and computer
monitor masks. Improved manufacturing processes also contributed to a 62%
increase in earnings for Buckbee-Mears over the prior year period."
BMC's Optical Products group generated revenue of $35.4 million in the first
quarter of 2000, up 2%, or $0.8 million, over the prior year quarter. Sales of
high-end products (polycarbonate, progressive and polarizing sun lenses)
increased 21% in first quarter 2000 from the prior year quarter and accounted
for 62% of total first quarter 2000 revenues, compared to 52% in first quarter
1999.
High-end sales growth was due primarily to strong sales of Outlook(TM)
progressive polycarbonate lenses, which were introducEd last year and a 103%
increase in SunRx -Registered Trademark- polarized polycarbonate lens sales.
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First quarter Optical Product's earnings were $2.0 million compared to $5.6
million in the prior year quarter. Earnings were negatively impacted by higher
product costs related to lenses produced during 1999. Vision-Ease has addressed
these production issues by implementing several changes, including expanding
production capabilities at its existing Jakarta, Indonesia facility and
optimizing lens production among its facilities. Increased research and
development spending and higher bad debt reserves due to the bankruptcy filing
of a major customer during the quarter also negatively impacted Vision-Ease's
first quarter earnings.
During the quarter, Vision-Ease continued its European polycarbonate expansion
efforts by acquiring the assets of La Haute Lunette De Paris SA (HLP), an
optical lens laboratory located outside Paris, France, which has been renamed
Vision-Ease France, SAS. Vision-Ease France will specialize in polycarbonate
lens processing and joins the existing optical laboratory operation in Mullheim,
Germany. These labs are the foundation for Vision-Ease's expanded polycarbonate
distribution capabilities as European optical markets begin to transition from
plastic to polycarbonate ophthalmic lenses.
First quarter revenue from Buckbee-Mears, which includes both the Mask
Operations and Buckbee-Mears St. Paul ("BMSP"), increased 7% from $50.0 million
in 1999 to $53.3 million in 2000.
Sales of computer monitor masks increased 59% in first quarter 2000 as compared
to first quarter 1999. This increase is due to incremental revenue from the
Cortland monitor mask line that was restarted in first quarter 1999 and the
continued migration to larger-sized monitor masks. Sales of entertainment masks
declined 4% in first quarter 2000 as compared to the prior year quarter.
However, more important is the migration to higher-margin jumbo screen
entertainment masks, which increased 42% over the prior year quarter. BMSP sales
in the first quarter declined from the same period a year ago due primarily to a
strategic effort to concentrate on higher-volume business opportunities, which
is expected to diversify its sales base.
Buckbee-Mears first quarter earnings increased $2.2 million, or 62%, from $3.6
million in 1999 to $5.8 million in 2000. This increase is due primarily to the
improved revenue mix, improved production yields across all manufacturing lines
and lower product costs attributable to the automated inspection system that was
installed on both monitor mask lines. Automated inspection is scheduled for
installation on the entertainment mask manufacturing lines over the course of
2000.
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that are intended to be covered by the safe harbors created
thereby. Statements made in this press release which are not strictly
historical, including statements regarding future performance, are
forward-looking statements and as such are subject to a number of risks and
uncertainties, including, among others, ability to implement the Optical
Products group's initiatives in strategic polycarbonate marketing and
manufacturing adjustments;
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ability to grow European sales through the operation of processing laboratories;
lower demand for televisions, computer monitors and ophthalmic lenses; further
mask and ophthalmic lens price declines and imbalances of supply and demand;
customer product qualifications; liability and other claims asserted against the
Company; continued slowdown at BMSP; ability to partner with new BMSP customers
or transition development relationships into full scale production; new product
development, introduction and acceptance; cost reduction and reorganization
efforts; competition with alternative technologies and products, including laser
surgery for the correction of visual impairment and LCD monitors; continued
higher manufacturing costs; adjustments to inventory valuations; negative
foreign currency fluctuations, including adverse fluctuations affecting
cross-currency swaps; ability to recruit and retain key personnel; and the
effect of regional or global economic slowdowns. Certain of these and other
risks and uncertainties are discussed in further detail in BMC's Annual Report
and Form 10-K for the year ended December 31, 1999 and other documents filed
with the Securities and Exchange Commission.
BMC Industries, Inc. is a leading producer of polycarbonate, glass and plastic
eyewear lenses. BMC is also one of the world's largest manufacturers of aperture
masks for color picture tubes used in televisions and computer monitors. BMC's
common stock is traded on the New York Stock Exchange under the symbol "BMC".
For more information about BMC Industries, Inc., visit the Company's website:
WWW.BMCIND.COM.
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended
March 31
-----------------------------------
2000 1999
- --------------------------------------------------------------------------------------------------
Revenues $ 88,751 $ 84,645
Cost of products sold 76,687 71,078
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Gross Margin 12,064 13,567
Selling 4,279 4,365
Administrative 1,290 1,233
- --------------------------------------------------------------------------------------------------
Income from Operations 6,495 7,969
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Other Income and (Expense)
Interest expense (3,215) (3,463)
Interest income 22 5
Other income (expense) - 390
- --------------------------------------------------------------------------------------------------
Earnings Before Income Taxes 3,302 4,901
Income taxes 1,001 1,710
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Net Earnings $ 2,301 $ 3,191
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Net Earnings Per Share:
Basic $ 0.08 $ 0.12
Diluted 0.08 0.12
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Number of Shares Included in Per Share Computation:
Basic 27,384 27,201
Diluted 27,599 27,405
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
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MARCH 31 DECEMBER 31
2000 1999
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ASSETS
Cash and cash equivalents $ 1,998 $ 1,146
Trade accounts receivable, net 46,096 42,025
Inventories 81,576 82,312
Deferred income taxes 12,148 11,588
Other current assets 12,955 12,580
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Total Current Assets 154,773 149,651
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Property, plant and equipment 278,801 278,807
Less accumulated depreciation 130,664 127,569
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Property, Plant and Equipment, Net 148,137 151,238
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Deferred income taxes 10,383 9,221
Intangible assets, net 67,348 68,232
Other assets, net 5,313 5,211
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TOTAL ASSETS $ 385,954 $ 383,553
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LIABILITIES AND STOCKHOLDERS' EQUITY
- --------------------------------------------------------------------------------------------------------
Short-term borrowings $ 1,254 $ 2,303
Accounts payable 30,823 30,342
Income taxes payable 8,630 8,093
Accrued expenses and other current liabilities 24,225 19,197
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Total Current Liabilities 64,932 59,935
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Long-term debt 162,877 165,959
Other liabilities 18,552 18,522
Deferred income taxes 2,631 2,715
Stockholders' equity
Common stock 49,121 49,077
Retained earnings 94,510 92,620
Accumulated other comprehensive income (loss) (4,923 ) (3,495 )
Other (1,746 ) (1,780 )
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TOTAL STOCKHOLDERS' EQUITY 136,962 136,422
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 385,954 $ 383,553
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BMC INDUSTRIES, INC.
SEGMENT INFORMATION
(Unaudited)
(in thousands)
Three Months Ended March 31
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Buckbee-Mears Optical Products Consolidated
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2000 1999 2000 1999 2000 1999
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Revenues $ 53,318 $ 49,999 $ 35,433 $ 34,646 $ 88,751 $ 84,645
Cost of products sold 46,229 45,089 30,458 25,989 76,687 71,078
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Gross Margin 7,089 4,910 4,975 8,657 12,064 13,567
Gross Margin % 13.3% 9.8% 14.0% 25.0% 13.6% 16.0%
Selling 1,325 1,357 2,954 3,008 4,279 4,365
Unallocated corporate
administration - - - - 1,290 1,233
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Income from Operations $ 5,764 $ 3,553 2,021 $ 5,649 $ 6,495 $ 7,969
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Operating income % 10.8% 7.1% 5.7% 16.3% 7.3% 9.4%
Capital spending $ 3,217 $ 2,504
Depreciation and
amortization $ 6,081 $ 5,647
EBITDA $ 12,598 $ 14,011
EBITDA % 14.2% 16.6%
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