CONTACT: Michael P. Hawks (NYSE -- BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
BMC REPORTS RECORD SECOND QUARTER EARNINGS
July 18, 1996 -- Minneapolis, MN -- BMC Industries, Inc. today reported second
quarter net earnings of $9,842,000 or $.35 per share, up 32% from earnings of
$7,477,000 or $.26 per share in the year-earlier period. Second quarter
revenues for primary products (excluding equipment and technology sales)
increased 5% over the prior year quarter.
Net earnings for the first six months of 1996 totaled $16,025,000 or $.57 per
share. This represented an improvement of $3,854,000 or 32% over the
$12,171,000 or $.43 per share recorded for the first six months of the prior
year. Revenues from primary products for the first six months of 1996 were
11% higher than the same period in the prior year.
Paul B. Burke, BMC's chairman and chief executive officer stated "The second
quarter represents a new second quarter earnings record for BMC and is the
twenty-first 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. Very importantly, all three of our
divisions contributed to our record results."
The Company's Precision Imaged Products operation (including both the Mask
Operation and Buckbee-Mears St. Paul) produced record second quarter results.
Due to the impact of the decline in the value of the Deutsche Mark (DM)
relative to the dollar on the German Mask operation, primary product revenues
for the Precision Imaged Products operation increased only slightly from the
exceptionally strong second quarter of 1995. However, year-to-date revenues
were up over 11%, notwithstanding the weakening of the DM. More importantly,
second quarter profitability for the Precision Imaged Products operation
increased 40% when compared to the year earlier quarter. This increase in
profitability was due to the continued sales mix shift to higher-margin
products and improved operating performance. In the second quarter, sales of
jumbo (30" and larger) aperture masks increased 42% over second quarter 1995
sales. BMC's new computer monitor high-resolution mask line at the Company's
manufacturing facility in Germany (BME) continued to move up the yield curve
and ran at better than planned yields in the month of June. The Company made
its first sales of computer monitor high-resolution masks from the new line at
the end of the second quarter. While the sales impact of this
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line was nominal, substantial initial inventories have been built and the
Company believes that the BME high-resolution line will contribute significant
sales in future quarters. Finally, Buckbee-Mears St. Paul's profitability in
the second quarter increased 32% over the second quarter of 1995, due
primarily to increased sales, sales mix changes and production efficiencies.
BMC's Optical Products operation also produced record second quarter results.
Second quarter sales of Optical Products increased 17% over the second quarter
of 1995, while profitability increased 39%. The increase in sales was
attributable to higher sales in all product lines. In particular, sales of
high end products (polycarbonate, progressive, high index and polarizing
sunglass lenses) increased more than 21% over the same quarter in the prior
year. The increase in Optical Products' profitability in the second quarter
was driven by the increased sales and strong gross margin contributions from
all product lines.
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 Six Months Ended
June 30 June 30
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1996 1995 1996 1995
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Revenues
Net sales of primary products $ 67,513 $ 64,026 $ 135,622 $ 121,779
Equipment and technology sales 661 5,621 853 9,202
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Total Revenues 68,174 69,647 136,475 130,981
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Operating Costs and Expenses
Cost of sales of primary products 49,487 50,764 104,582 99,110
Cost of equipment and technology sales 204 3,757 370 5,668
Selling 2,559 2,205 5,117 4,480
Administrative 1,288 1,330 2,515 2,584
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Total Operating Costs and Expenses 53,538 58,056 112,584 111,842
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Income from Operations 14,636 11,591 23,891 19,139
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Other Income and (Expense)
Interest expense (60) (28) (190) (105)
Interest income 31 213 150 398
Other income (expense) 81 (92) 31 (159)
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Earnings before Income Taxes 14,688 11,684 23,882 19,273
Income Taxes 4,846 4,207 7,857 7,102
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Net Earnings $ 9,842 $ 7,477 $ 16,025 $ 12,171
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Earnings Per Share $ 0.35 $ 0.26 $ 0.57 $ 0.43
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Number of Shares Included in Per Share
Computation 28,369 28,233 28,324 28,131
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
JUNE 30 December 31
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ASSETS 1996 1995
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Current Assets
Cash and cash equivalents $ 5,540 $ 15,874
Trade accounts and notes receivable, net of allowances 25,276 23,003
Inventories 47,098 34,772
Deferred income taxes 4,831 3,753
Other current assets 7,659 5,964
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Total Current Assets 90,404 83,366
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Property, Plant and Equipment 188,920 171,711
Less Accumulated Depreciation 92,551 90,302
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Property, Plant and Equipment, Net 96,369 81,409
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Deferred Income Taxes 5,607 5,362
Other Assets, Net 11,899 12,195
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Total Assets $ 204,279 $ 182,332
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
Short-term borrowings $ 6,020
Accounts payable 18,444 $ 20,408
Income taxes payable 10,094 9,308
Accrued expenses and other current liabilities 24,533 20,920
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Total Current Liabilities 59,091 50,636
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Other Liabilities 19,261 21,654
Deferred Income Taxes 1,532 1,576
Stockholders' Equity
Common stock 55,302 52,974
Retained earnings 66,305 50,962
Cumulative translation adjustment 4,070 5,749
Other (1,282) (1,219)
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Total Stockholders' Equity 124,395 108,466
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Total Liabilities and Stockholders' Equity $ 204,279 $ 182,332
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