CONTACT: Merle D. Kerr (NYSE -- BMC)
(612) 851-6020 FOR IMMEDIATE RELEASE
BMC INDUSTRIES REPORTS RECORD SECOND QUARTER RESULTS
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July 26, 1994 -- Minneapolis, MN -- BMC Industries, Inc. today reported net
earnings of $4,677,000 or $.69 per share for the second quarter of 1994, an
increase of $871,000 or 23% from $3,806,000 or $.62 per share in the year-
earlier period. Total revenues rose 16% in the second quarter to $57,305,000.
Earnings from continuing operations for the first six months of 1994 totaled
$7,379,000 or $1.10 per share. This represented an improvement of $2,156,000 or
41% over the $5,223,000 or $.86 per share for the first six months of the prior
year.
Paul B. Burke, BMC's president and chief executive officer, said the second
quarter results represented continued improvement in the Company's core
manufacturing operations, increased earnings from the Company's equipment and
technology business and reduced interest expense due to reduced debt. Burke
said the second quarter net income was a new quarterly record for BMC, excluding
a one-time accounting gain in 1993. He said the second quarter of 1994 marked
the thirteenth successive quarter of higher earnings in comparison to the year-
earlier period, excluding income from the sale of equipment and technology and
other non-recurring items.
Burke added that both of the Company's core manufacturing operations, Precision
Imaged Products and Optical Products, showed improved sales and improved profit
margins. He said these improvements reflected increased unit volumes, improved
operating efficiencies and the Company's ongoing focus on higher-margin growth
opportunities in its primary markets.
BMC is one of the world's largest manufacturers of aperture masks for color
picture tubes used in televisions and computer monitors. The Company is also a
leading producer of polycarbonate, glass and plastic eyewear lenses. The common
stock of the Company is traded on the New York Stock Exchange under the symbol
"BMC".
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
THREE MONTHS ENDED THREE MONTHS ENDED
JUNE 30 JUNE 30
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1994 1993 1994 1993
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Revenues
Net sales of primary products $ 53,701 $ 48,436 $105,946 $ 94,344
Equipment and technology sales 3,604 841 3,765 954
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Total Revenues 57,305 49,277 109,711 95,298
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Operating Costs and Expenses
Cost of sales of primary products 43,496 39,705 87,562 78,861
Cost of equipment and technology sales 2,674 43 2,944 276
Selling 2,067 1,951 4,102 3,966
Administrative 945 935 2,055 2,097
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Total Operating Costs and Expenses 49,182 42,634 96,663 85,200
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Income from Operations 8,123 6,643 13,048 10,098
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Other Income and (Expense)
Interest expense (837) (1,281) (1,812) (2,680)
Interest income 127 41 211 115
Other (44) (26) 17 (7)
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Earnings from Continuing Operations before Income
7,369 5,377 11,464 7,526
Taxes and Cumulative Effect of Accounting Changes
Income Taxes 2,692 1,571 4,085 2,303
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Earnings from Continuing Operations before Cumulative
Effect of Accounting Changes 4,677 3,806 7,379 5,223
Provision for Loss Related to Discontinued Operation
(less applicable income tax benefit of $461) - (Note 1) -- -- (839) --
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Earnings before Cumulative Effect of Accounting Changes 4,677 3,806 6,540 5,223
Cumulative Effect of Accounting Changes (Note 2) -- -- -- 12,131
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Net Earnings $ 4,677 $ 3,806 $ 6,540 $ 17,354
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Earnings Per Share from Continuing Operations $ 0.69 $ 0.62 $ 1.1 $ 0.86
Loss Per Share Related to Discontinued Operation -- -- (.13) --
Cumulative Effect of Accounting Changes -- -- -- 2.01
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Net Earnings Per Share $ 0.69 $ 0.62 $ 0.97 $ 2.87
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Number of Shares Included in Per Share Computation 6,785 6,166 6,711 6,049
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Note 1 - Provision for Loss Related to Discontinued Operation
In the first quarter of 1994, the Company made a provision for estimated losses
of $1,300, less applicable income tax effect of $461, related to a discontinued
operation. This provision was prompted by claims and expenses growing out of
environmental contamination and other claims related to the discontinued
operation. The environmental contamination occurred before 1980 at an operation
acquired by BMC in 1983 and disposed of in 1986. This provision is in addition
to a provision made in the fourth quarter of 1993 which related to the same
matter.
Note 2 - Cumulative Effect of Accounting Changes
Effective January 1, 1993, the Company changed its method of accounting for
income taxes as required by Financial Accounting Standards Board Statement
No. 109, ACCOUNTING FOR INCOME TAXES. As permitted under the new rules, prior
years' financial statements were not restated. The cumulative effect of
adopting Statement No. 109 as of January 1, 1993 was to increase net income by
$12,855 or $2.13 per share. The principal change affecting the Company under
Statement No. 109 is a change in the recognition and measurement criteria with
respect to deferred tax assets.
Also effective January 1, 1993, the Company adopted Financial Accounting
Standards Board Statement No. 106, EMPLOYERS' ACCOUNTING FOR POSTRETIREMENT
BENEFITS OTHER THAN PENSIONS. The cumulative effect of adopting Statement
No. 106 was to decrease net income by $724, net of tax, or $.12 per share.
Under the new rules the Company accrues the expected cost of providing
postretirement benefits other than pensions during the years that eligible
employees render service.
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