CONTACT: Merle D. Kerr (NYSE -- BMC)
(612) 851-6020 FOR IMMEDIATE RELEASE
BMC INDUSTRIES REPORTS RECORD THIRD QUARTER RESULTS
October 18, 1994 -- Minneapolis, MN -- BMC Industries, Inc. today reported net
earnings of $2,286,000 or $.16 per share for the third quarter of 1994, an
increase of $799,000 or 54% from $1,487,000 or $.12 per share in the
year-earlier period. Total revenues rose 19% in the third quarter to
$53,979,000.
Earnings from continuing operations for the first nine months of 1994 totaled
$9,665,000 or $.71 per share. This represented an improvement of $2,955,000 or
44% over the $6,710,000 or $.55 per share for the first nine months of the prior
year.
Paul B. Burke, BMC's president and chief executive officer, said the third
quarter results represented continued improvement in the Company's core
manufacturing operations. Burke said the third quarter net income was a new
third quarter record for BMC. He said the third quarter of 1994 marked the
fourteenth 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
television tubes 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 Nine Months Ended
September 30 September 30
---------------------- ------------------------
1994 1993 1994 1993
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Revenues
Net Sales of primary products $53,488 $44,558 $159,434 $138,902
Equipment and technology sales 491 650 4,256 1,604
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Total Revenues 53,979 45,208 163,690 140,506
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Operating Costs and Expenses
Cost of sales of primary products 45,593 39,421 133,155 118,282
Cost of equipment and technology sales 201 301 3,145 577
Selling 2,038 1,818 6,140 5,784
Administrative 2,067 729 3,049 2,826
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Total Operating Costs and Expenses 945 42,269 145,489 127,469
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Income from Operations 5,153 2,939 18,201 13,037
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Other Income and (Expense)
Interest expense (1,240) (1,149) (3,052) (3,829)
Interest income 168 44 379 159
Other (36) 72 (19) 65
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Earnings from Continuing Operations before Income Taxes
and Cumulative Effect of Accounting Changes 4,045 1,906 15,509 9,432
Income Taxes 1,759 419 5,844 2,722
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Earnings from Continuing Operations before Cumulative
Effect of Accounting Changes 2,286 1,487 9,665 6,710
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 2,286 1,487 8,826 6,710
Cumulative Effect of Accounting Changes (Note 2) -- -- -- 12,131
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Net Earnings $ 2,286 $ 1,487 $ 8,826 $ 18,841
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Earnings Per Share from Continuing Operations $ 0.16 $ 0.12 $ 0.71 $ 0.55
Loss Per Share Related to Discounted Operation -- -- (0.06) --
Cumulative Effect of Accounting Changes -- -- -- 0.99
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Net Earnings Per Share $ 0.16 $ 0.12 $ 0.65 $ 1.54
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Number of Shares Included in Per Share Computation 13,861 12,594 13,569 12,264
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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 $1.05 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 $.06 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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