CONTACT: Michael P. Hawks (NYSE BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
BMC REPORTS RECORD THIRD QUARTER RESULTS;
DECLARES A 2-FOR-1 STOCKSPLIT; AND ANNOUNCES
AN INCREASE IN THE AUTHORIZED QUARTERLY DIVIDEND
October 19, 1995 -- Minneapolis, MN -- BMC Industries, Inc. today reported
third quarter 1995 net earnings of $4,548,000 or $.32 per share, up 99% from
net earnings of $2,286,000 or $.16 per share in the year-earlier period.
Third quarter total revenues were $59,203,000 an increase of 10% from
$53,979,000 a year ago.
Earnings from continuing operations for the first nine months of 1995
totaled $16,719,000 or $1.19 per share. This represented an improvement of
$7,054,000 or 73% over the $9,665,000 or $.71 per share recorded for the
first nine months of the prior year. Year-to-date total revenues were
$190,184,000, up 16% from the prior year.
Third quarter results showed the continuing benefits from operating
improvements in each of the Company's businesses, and from a continuing shift
in sales mix to high-margin products. In the third quarter, sales of invar,
jumbo (30" and larger) and large (25" to 29") aperture masks increased 46%,
25% and 15%, respectively, over third quarter 1994 sales. On a year-to-date
basis, these sales were up 77%, 41% and 26%, respectively. Precision Imaged
Products also benefited from Buckbee-Mears St. Paul's record third quarter
results. Third quarter sales of etched parts increased 88% over the prior
year while year-to-date sales of etched parts were up 67%. The focus of
BMC's Optical Products operation has been polycarbonate lenses, sales of
which were up 43% in the third quarter and 52% year-to-date.
Capital spending during the nine months ended September 30, 1995 increased
three-fold to $23.3 million from the $7.3 million spent during the comparable
period last year. Approximately $13 million of this spending related to the
Company's 60% capacity expansion at its two aperture mask manufacturing
facilities in New York and Germany. Despite the increased capital spending,
cash balances increased to $18.9 million at the end of the third quarter from
$14.3 million at the end of 1994, and BMC's balance sheet at September 30
remained debt-free.
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Paul B. Burke, BMC's chairman and chief executive officer stated that "The
Company's strengthening cash position in a period during which it is devoting
more funds to capital projects than at any time in its history is indicative
of the strength of its core manufacturing operations. The Company's on-going
shift in its sales mix toward high-margin aperture mask and eyewear lens
products resulted in its eighteenth consecutive quarter of increased net
earnings over the year-earlier period, excluding income from the sale of
equipment and technology and other non-recurring items. The third quarter
also benefited from higher equipment and technology earnings and lower
interest expense."
Burke added that "The Precision Imaged Products expansion efforts are in
full swing. We are looking forward to the fourth quarter start-up of the new
high-resolution aperture mask line at our German plant. During the third
quarter, work began on the two new aperture mask lines and related facility
at our Cortland, New York plant. We expect these two lines to be in
production in the first half of 1997, as scheduled."
BMC also announced today that its Board of Directors has approved a
two-for-one stock split of its outstanding common shares. Shareholders of
record as of October 30, 1995 will receive an additional share for each share
owned on that date, to be distributed on November 13, 1995.
Mr. Burke stated that "The continuing growth in BMC's earnings and the
strengthening of its balance sheet has led to increased interest in BMC's
shares on the part of the investment community and a stronger share price.
This split is designed to increase the liquidity of the Company's stock so
that more shares are available for trading."
The Board of Directors also approved a 25% increase in the Company's
quarterly dividend from $.01 per share (post-split) to $.0125 per share,
effective with the next quarterly dividend.
Mr. Burke stated that "The Board's decision to increase the quarterly
dividend is directly attributable to the strong earnings growth which
continues to be exhibited by the Company's businesses."
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 Nine Months Ended
September 30 September 30
--------------------- ---------------------
1995 1994 1995 1994
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Revenues
Net sales of primary products $58,189 $53,488 $179,968 $159,434
Equipment and technology sales 1,014 491 10,216 4,256
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Total Revenues 59,203 53,979 190,184 163,690
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Operating Costs and Expenses
Cost of sales of primary products 47,677 45,593 146,787 133,155
Cost of equipment and technology sales 466 201 6,134 3,145
Selling 2,078 2,038 6,558 6,140
Administrative 1,653 994 4,237 3,049
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Total Operating Costs and Expenses 51,874 48,826 163,716 145,489
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Income from Operations 7,329 5,153 26,468 18,201
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Other Income and (Expense)
Interest expense (103) (1,240) (208) (3,052)
Interest income 206 168 604 379
Other income (expense) 7 (36) (152) (19)
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Earnings from Continuing Operations before Income Taxes 7,439 4,045 26,712 15,509
Income Taxes 2,891 1,759 9,993 5,844
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Earnings from Continuing Operations 4,548 2,286 16,719 9,665
Provision for Loss Related to Discontinued Operation (less
applicable income tax benefit of $461) -- (Note) -- -- -- (839)
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Net Earnings $ 4,548 $ 2,286 $ 16,719 $ 8,826
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Earnings Per Share from Continuing Operations $ 0.32 $ 0.16 $ 1.19 $ 0.71
Loss Per Share Related to Discontinued Operation -- -- -- (0.06)
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Net Earnings Per Share $ 0.32 $ 0.16 $ 1.19 $ 0.65
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Number of Shares Included in Per Share Computation 14,185 13,861 14,105 13,569
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NOTE: 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.
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
September 30 December 31
------------ -----------
ASSETS 1995 1994
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Current Assets
Cash and cash equivalents $ 18,901 $ 14,327
Trade accounts and notes receivable, net of allowances 25,998 24,564
Inventories 32,289 28,792
Deferred income taxes 3,980 5,914
Other current assets 5,368 5,221
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Total Current Assets 86,536 78,818
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Property, Plant and Equipment 156,867 130,622
Less Accumulated Depreciation 89,424 80,764
-------- --------
Property, Plant and Equipment - Net 67,443 49,858
-------- --------
Deferred Income Taxes 3,428 3,297
Other Assets - Net 7,954 6,713
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Total Assets $165,361 $138,686
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
Accounts payable $ 13,905 $ 12,090
Income taxes payable 7,925 5,514
Accrued expenses and other liabilities 23,652 22,445
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Total Current Liabilities 45,482 40,049
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Other Liabilities 18,917 15,835
Deferred Income Taxes 866 1,014
Stockholders' Equity
Common stock 52,038 51,156
Other (1,242) (1,263)
Retained earnings 43,472 27,559
Cumulative translation adjustment 5,828 4,336
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Total Stockholders' Equity 100,096 81,788
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Total Liabilities and Stockholders' Equity $165,361 $138,686
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