CONTACT: Michael P. Hawks (NYSE -- BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
BMC REPORTS RECORD SECOND QUARTER EARNINGS
July 22, 1997 -- Minneapolis, MN -- BMC Industries, Inc. today reported record
second quarter net earnings of $11,989,000 or $0.42 per share, up 22% from
earnings of $9,842,000 or $0.35 per share in the year-earlier period. Second
quarter revenues increased 18% from $68.2 million in the second quarter of 1996
to $80.3 million in the second quarter of 1997.
Net earnings for the first six months of 1997 totaled $19,872,000 or $0.70 per
share. This represented an improvement of $3,847,000 or 24% over the
$16,025,000 or $0.57 per share recorded for the first six months of the prior
year. Revenues for the first six months of 1997 were 15% higher than the same
period in the prior year.
The second quarter of 1997 represented another quarterly earnings record for BMC
and its twenty-fifth 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. Once again, each division contributed to this
significant accomplishment.
The Company's Precision Imaged Products operation (PIP includes both the Mask
Operations and Buckbee-Mears St. Paul) posted record second quarter results.
Second quarter sales and profits increased 25% over the prior year quarter. The
profitability of Mask Operations increased primarily due to the continued sales
mix shift to higher margin products, including high resolution computer monitor
masks. Sales of large (25 - 29 inches) and invar television aperture masks
increased 35% and 31%, respectively, over second quarter 1996 sales. Jumbo mask
sales slightly lagged 1996, which was a difficult comparison following a 42%
increase over the second quarter of 1995. The further weakening of the German
mark relative to the U.S. dollar had virtually no impact on earnings but reduced
sales, as compared with the prior year quarter, by nearly $1 million. Finally,
second quarter etching sales of Buckbee-Mears St. Paul increased 27% over the
prior year, due to strong growth in the electronics, medical, filtration and
automotive markets.
Second quarter Precision Imaged Products sales included over $2 million of
high resolution computer monitor mask sales. High resolution mask sales were
depressed by a number of factors including: line time required for new customer
and part qualification, a continued market surplus
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of 14-inch monitor tubes due to an inventory build at the end of 1996 and the
devotion of over two weeks of line time to invar television mask production
due to a customer emergency. The line is performing at expectations and we
expect sales to grow significantly over the balance of the year as we receive
new customer and part approvals.
The new television line in Cortland started-up in the second quarter and
performance exceeded expectations. Initial shipments from this new line
occurred during the second quarter. The new monitor line in Cortland is
scheduled for third quarter start-up, with de-bugging of the line currently
taking place.
BMC's Optical Products operation also produced record second quarter results.
Second quarter sales increased 4% over the prior year quarter, while
profitability increased 5%. Sales growth occurred in each major product
line, except for glass. Sales of high end products (polycarbonate,
progressive, high index and polarizing sun lenses) showed strong growth,
increasing 15% over the year-earlier period. Profitability was impacted by a
number of one-time expenses including: expenses preparatory to the shutdown
of the Ft. Lauderdale plastic lens manufacturing facility which ceased
operations in July, expenses incidental to the new polycarbonate
manufacturing, centralized distribution and research and development facility
and start-up costs for the operation's first anti-reflective coating machine.
In addition, resources devoted to the ongoing development of new products
and materials were higher in the second quarter. Construction of the new
facility remains on schedule for completion in the third quarter of 1997.
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
supplier 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
--------------------- ----------------------
1997 1996 1997 1996
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Revenues $ 80,257 $ 68,174 $ 157,384 $ 136,475
Cost of products sold 58,398 49,691 119,543 104,952
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Gross margin 21,859 18,483 37,841 31,523
Selling 2,737 2,559 5,574 5,117
Administrative 1,089 1,288 2,628 2,515
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Income from Operations 18,033 14,636 29,639 23,891
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Other Income and (Expense)
Interest expense (160) (60) (304) (190)
Interest income 56 31 98 150
Other income (expense) (33) 81 229 31
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Earnings before Income Taxes 17,896 14,688 29,662 23,882
Income Taxes 5,907 4,846 9,790 7,857
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Net Earnings $ 11,989 $ 9,842 $ 19,872 $ 16,025
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Net Earnings Per Share $ 0.42 $ 0.35 $ 0.70 $ 0.57
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Number of Shares Included in Per Share Computation 28,496 28,369 28,477 28,324
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BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
JUNE 30 DECEMBER 31
ASSETS 1997 1996
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Current Assets
Cash and cash equivalents $ 2,092 $ 2,544
Trade accounts and notes receivable, net of allowances 31,310 24,979
Inventories 59,177 50,451
Deferred income taxes 6,356 5,372
Other current assets 10,705 8,354
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Total Current Assets 109,640 91,700
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Property, Plant and Equipment 268,246 220,489
Less Accumulated Depreciation 99,347 96,644
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Property, Plant and Equipment, Net 168,899 123,845
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Deferred Income Taxes 5,019 5,797
Other Assets, Net 12,258 11,627
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Total Assets $295,816 $232,969
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
Short-term borrowings $ 1,464 $ 1,355
Accounts payable 25,901 19,434
Income taxes payable 9,292 7,657
Accrued expenses and other current liabilities 22,006 21,900
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Total Current Liabilities 58,663 50,346
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Long-Term Debt 54,949 16,634
Other Liabilities 18,834 19,421
Deferred Income Taxes 2,506 2,460
Stockholders' Equity
Common stock 57,776 56,551
Retained earnings 103,678 84,629
Cumulative translation adjustment 162 3,974
Other (752) (1,046)
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Total Stockholders' Equity 160,864 144,108
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Total Liabilities and Stockholders' Equity $ 295,816 $ 232,969
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