FOR IMMEDIATE RELEASE CONTACT: CHRIS WELLBORN, (214) 309-4007
DAL-TILE REPORTS RECORD FIRST QUARTER RESULTS
DALLAS, APRIL 11-- Dal-Tile International Inc. (NYSE: DTL) today announced
record sales and profits for the first quarter of 2001. Sales increased $15.5
million, or 6.7%, to $245.6 million compared to $230.1 million in the first
quarter of 2000. On a pro forma - fully taxed basis, net income for the quarter
increased $2.5 million, or 17.9%, over the prior quarter to $16.5 million, or
$0.29 per share.
Growth was achieved across all distribution channels. Versus the prior year,
sales through company-operated sales centers increased 8.0%, while sales to
independent distributors and home centers increased 3.9% and 7.2%, respectively.
Profit margin before tax increased 100 basis points to 10.9% due to improved
productivity, reduced operating costs and lower interest expense. Free cash flow
was $8.0 million versus $3.5 million in the prior year, and debt decreased $85.1
million to $319 million versus first quarter prior year.
"As we cross these turbulent economic times, we are focusing on two major
goals," stated Jacques Sardas, chairman, president and CEO. "We want to continue
to reduce our debt and, at the same time, we want to invest in low cost, high
quality manufacturing capabilities and exciting new products to support the
ambitious growth we believe Dal-Tile is capable of attaining in the years to
come. Meanwhile, we will continue to obsessively pursue all opportunities to
maximize sales, reduce costs and increase our profits and cash flow. We will
face the pressures of today's economy while preparing for a bright future for
our company."
The company believes that to advance any forecast for the balance of the year in
this unstable economic environment is a difficult, if not impossible, task.
However, recognizing the need to communicate with investors and to comply with
regulation FD, the company will begin providing estimates of sales and profits
for the current year. It is very important for investors to realize that these
estimates depend upon many things outside the company's control and may change
materially at any time. Based on the information available to the company at
this time, the company currently estimates that for its fiscal year ending
December 28, 2001, sales growth will be between 6% to 8% and earnings per share
growth will be between 8% to 10% versus the prior year.
Dal-Tile is the largest manufacturer, distributor and marketer of ceramic tile
in the United States, and one of the largest in the world. Headquartered in
Dallas, Texas, the Company has approximately 7,600 employees at its facilities
in North America. The Company sells its products, marketed under the brand names
Daltile(R) and
American Olean(R) through a network of Company-operated sales centers,
independent distributors and leading retail home centers nationwide. Dal-Tile
common stock is traded on the New York Stock Exchange under the symbol DTL.
Additional information on the company and its products is available on the
Worldwide Web at http://www.daltile.com.
Note: SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995: CERTAIN OF THE STATEMENTS IN THIS PRESS RELEASE, PARTICULARLY THOSE
ANTICIPATING FUTURE FINANCIAL PERFORMANCE, BUSINESS PROSPECTS, GROWTH AND
OPERATING STRATEGIES, NEW PRODUCTS AND SIMILAR MATTERS, CONSTITUTE
"FORWARD-LOOKING STATEMENTS". FOR THOSE STATEMENTS, DAL-TILE CLAIMS THE
PROTECTION OF THE SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS CONTAINED IN THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THE STATEMENTS ARE BASED ON
ASSUMPTIONS REGARDING THE COMPANY'S ABILITY TO MAINTAIN ITS SALES GROWTH AND
GROSS MARGINS AND TO CONTROL COSTS AND ON ASSUMPTIONS REGARDING THE PERFORMANCE
OF THE ECONOMY. THESE STATEMENTS ARE BASED LARGELY ON THE COMPANY'S EXPECTATIONS
AND ARE SUBJECT TO A NUMBER OF RISKS, UNCERTAINTIES, AND OTHER FACTORS THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN THE
FORWARD-LOOKING STATEMENTS. SUCH FACTORS INCLUDE, AMONG OTHER THINGS, THE IMPACT
OF COMPETITIVE PRESSURES AND CHANGING ECONOMIC CONDITIONS ON THE COMPANY'S
BUSINESS AND ITS DEPENDENCE ON RESIDENTIAL AND COMMERCIAL CONSTRUCTION ACTIVITY,
THE FACT THAT THE COMPANY IS HIGHLY LEVERAGED, RELIANCE ON THIRD PARTY
SUPPLIERS, INCREASES IN PRICES OF RAW MATERIALS AND ENERGY, CURRENCY
FLUCTUATIONS, OTHER FACTORS RELATING TO THE COMPANY'S FOREIGN MANUFACTURING
OPERATIONS, THE IMPACT OF PENDING REDUCTIONS IN TARIFFS AND CUSTOMS DUTIES,
ENVIRONMENTAL LAWS AND REGULATIONS, AND THE RISK FACTORS OR UNCERTAINTIES LISTED
FROM TIME TO TIME IN DAL-TILE'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION.
-- FINANCIAL TABLES FOLLOW --
DAL-TILE INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 30, 2001 AND MARCH 31, 2000
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
MARCH 30, MARCH 31,
2001 2000
----------------- ----------------
Net sales $245,590 $230,113
Cost of goods sold 128,596 119,429
----------------- ----------------
Gross profit 116,994 110,684
Expenses:
Transportation 16,495 15,705
Selling, general and administrative 65,371 63,070
Amortization of intangibles 1,378 1,378
----------------- ----------------
Total expenses 83,244 80,153
----------------- ----------------
Operating income 33,750 30,531
Interest expense, net 6,409 7,881
Other income (expense) (563) 177
----------------- ----------------
Income before income taxes 26,778 22,827
Income tax provision 10,310 1,502
----------------- ----------------
Net Income $16,468 $21,325
================= ================
*Pro forma net income $16,468 $14,039
================= ================
DILUTED EARNINGS PER SHARE
Net income per common share $0.29 $0.39
================= ================
* Pro forma net income per common share $0.29 $0.26
================= ================
Average shares 57,664 54,815
================= ================
BALANCE SHEET DATA
Working capital (excluding current portion of debt) $194,121 $162,025
Total assets 684,303 656,204
Total debt 318,978 404,073
Long-term debt 259,467 347,277
Stockholders' equity 229,866 123,570