Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: William J. Evanson
Executive Vice President & Chief Financial Officer
(440) 720-3301
ANTHONY & SYLVAN POOLS CORPORATION REPORTS
2002 FULL YEAR RESULTS
Mayfield Village, Ohio (February 21, 2003) - Anthony & Sylvan Pools
Corporation (NASDAQ: SWIM) today announced results for its fourth quarter and
full year ended December 31, 2002. Net sales from continuing operations for
the full year were $158,393,000, a 5.5% decrease from the $167,672,000
reported in 2001. Net income from continuing operations for the year of
$1,054,000 compares with $2,748,000 last year. On a per share basis, adjusted
for 10% stock dividends distributed in May and November, 2002, diluted
earnings per share from continuing operations of $0.19 per share for 2002
compares with $0.48 per share recorded in 2001.
For the three months ended December 31, 2002, net sales from continuing
operations of $30,172,000 compared with $33,887,000 for the fourth quarter of
2001. The net loss from continuing operations for the fourth quarter was
($1,607,000), or ($0.31) per share. This compares with a net loss from
continuing operations in the fourth quarter of 2001 of ($895,000), or ($0.16)
per share.
During the fourth quarter of 2002, the previously announced closing of the
Company's swimming pool installation divisions in the Orlando and Southeastern
Florida markets was completed. Thus, results from these divisions are recorded
as discontinued operations in the financial results. For the fourth quarter
ended December 31, 2002, the loss from discontinued operations, net of taxes,
was ($911,000), or ($0.17) per share, compared with ($414,000), or ($0.07) per
share, for the same period last year. For the full year, the loss from
discontinued operations, net of taxes, was ($3,262,000), or ($0.60) per
diluted share for 2002 versus ($1,368,000), or ($0.24) per diluted share in
2001. Including discontinued operations, the Company reported a net loss for
2002 of ($2,208,000), or ($0.41) per share, for all of 2002. This compares
with net income of $1,380,000, or $0.24 per share, reported in 2001. For the
fourth quarter ended December 31, 2002, the net loss, including discontinued
operations, was ($2,518,000), or ($0.48) per share, compared with a net loss
of ($1,309,000), or ($0.23) per share for the same period a year ago.
Commenting on the results, Stuart D. Neidus, Anthony & Sylvan's Chairman and
Chief Executive Officer, said, "With a weak economy and low consumer
confidence, we had a challenging year in 2002. Having said that, we
accomplished many good things during the year, including strengthening our
infrastructure and raising customer awareness of the value that we add to each
and every sale." Regarding the discontinued operations, Mr. Neidus stated
that, "Now that the wind-down of operations of the two closed divisions is
behind us, we have redirected our financial and intellectual assets to markets
and growth strategies that can yield levels of return consistent with our
long-term goal of increasing shareholder value."
Anthony & Sylvan (www.anthonysylvan.com) operates in the leisure industry,
offering in-ground, concrete residential swimming pools, spas and related
products to its customers. The Company serves its customers through a network
of 40 sales design centers in 22 geographic markets in 16 states. It also
sells pool-related consumables, replacement parts, equipment and supplies
through retail service centers.
This press release contains statements that are forward-looking, as that term
is defined by the Private Securities Litigation Reform Act of 1995 or by the
Securities and Exchange Commission in its rules, regulations, and releases.
The Company intends that such forward-looking statements be subject to the
safe harbors created thereby. The Company assumes no obligation to update or
revise any such statements, whether as a result of new information or
otherwise. All forward-looking statements are based on current expectations
regarding important risk factors, including but not limited to: dependence on
existing management; consumer spending; market conditions and weather. A
number of those risks, trends and uncertainties are discussed in the Company's
SEC reports, including the Company's annual report on Form 10-K and quarterly
reports on Form 10-Q. Accordingly, actual results may differ from those
expressed in the forward-looking statements, and the making of such statements
should not be regarded as a representation by the Company or any other person
that results expressed therein will be achieved.
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ANTHONY & SYLVAN POOLS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
2002 2001
-------------- --------------
(unaudited) (audited)
ASSETS
Current Assets:
Cash and cash equivalents......................... $ 432 $ 351
Contract receivables, net......................... 8,354 15,906
Inventories, net ................................. 5,841 5,327
Prepayments and other ............................ 2,399 1,827
Recoverable income taxes ......................... 1,256 400
Deferred income taxes............................. 1,936 2,037
-------- --------
Total current assets........................... 20,218 25,848
Property, plant and equipment, net....................... 7,794 8,565
Goodwill, net............................................ 26,276 26,276
Deferred income taxes.................................... 373 146
Other ................................................... 2,951 2,784
-------- --------
Total Assets .......................................... $ 57,612 $ 63,619
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term debt.............. $ - $ 5
Accounts payable.................................. 4,310 6,378
Accrued expenses.................................. 11,149 10,833
Net liabilities of discontinued operations........ 1,169 822
Accrued income taxes.............................. 14 67
-------- --------
Total current liabilities...................... 16,642 18,105
Long-Term Debt .......................................... 6,300 7,550
Other Long-Term Liabilities.............................. 3,526 2,335
Commitments and Contingencies............................ - -
Shareholders' Equity .................................... 31,144 35,629
-------- --------
Total Liabilities and Shareholders' Equity .............. $ 57,612 $ 63,619
======== ========
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ANTHONY & SYLVAN POOLS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Dollars in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
------- ------- -------- --------
(unaudited) (unaudited) (unaudited) (audited)
Net sales....................... $30,172 $33,887 $158,393 $167,672
Cost of sales................... 22,131 24,857 112,381 119,208
------- ------- -------- --------
Gross profit.................. 8,041 9,030 46,012 48,464
Operating expenses.............. 10,489 10,184 44,002 44,059
------- ------- -------- --------
Income/(loss) from
continuing operations.. (2,448) (1,154) 2,010 4,405
Interest and other expense...... 47 56 248 192
------- ------- -------- --------
Income/(loss) before income
taxes from continuing
operations....... (2,495) (1,210) 1,762 4,213
Provision for income taxes...... (888) (315) 708 1,465
------- ------- -------- --------
Net income/(loss) from
continuing operations... (1,607) (895) 1,054 2,748
Loss from discontinued
Operations, net of
income taxes..... (911) (414) (3,262) (1,368)
------- ------- -------- --------
Net income/(loss)............. $(2,518) $(1,309) $ (2,208) $ 1,380
======= ======= ======== ========
Basic earnings per share:
Basic earnings per share from
continuing operations $ (0.31) $ (0.16) $ 0.20 $ 0.49
Basic earnings per share from
discontinued operations (0.17) (0.07) (0.61) (0.24)
------- ------- -------- --------
Net (loss)/income $ (0.48) $ (0.23) $ (0.41) $ 0.25
======= ======= ======== ========
Diluted earnings per share:
Diluted earnings per share from
continuing operations $ (0.31) $ (0.16) $ 0.19 $ 0.48
Diluted earnings per share from
discontinued operations $ (0.17) (0.07) (0.60) (0.24)
------- ------- -------- --------
Net (loss)/income $ (0.48) $ (0.23) $ (0.41) $ 0.24
======= ======= ======== ========
Average shares outstanding:
Basic 5,235 5,636 5,352 5,625
======= ======= ======== ========
Diluted 5,235 5,636 5,418 5,783
======= ======= ======== ========
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ANTHONY & SYLVAN POOLS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2002 AND 2001
(Dollars in thousands)
2002 2001
--------- ---------
(unaudited) (audited)
Cash Flows from Operating Activities:
Net income......................................... $(2,208) $ 1,380
Adjustments to reconcile net income/(loss)
to net cash provided by operating
activities:
Loss from discontinued operations................ 3,262 1,368
Depreciation and amortization.................... 2,676 3,165
Non-cash deferred stock compensation............. 190 (384)
Deferred income taxes............................ (126) (275)
Other............................................ (123) 52
Changes in operating assets and liabilities:
Contract receivables............................. 7,552 (5,228)
Inventories...................................... (514) (492)
Prepayments and other............................ (572) (380)
Recoverable income taxes......................... (856) (400)
Accounts payable................................. (2,068) 639
Accrued and other expenses....................... 1,287 (558)
------- -------
Net cash provided by/(used in)
operating activities......................... 8,500 (1,113)
------- -------
Cash Flows from Investing Activities:
Additions to property, plant and equipment......... (1,782) (2,957)
------- -------
Net cash used in investing activities.......... (1,782) (2,957)
------- -------
Cash Flows from Financing Activities:
Repayment of long-term debt........................ (1,255) 6,243
Proceeds from exercise of stock options............ 34 -
Purchase of treasury shares........................ (2,501) (1,791)
------- -------
Net cash (used in)/provided by
financing activities......................... (3,722) 4,452
------- -------
Increase in Cash and Cash Equivalents 2,996 382
Net cash used in discontinued operations (2,915) (453)
Cash and Cash Equivalents:
Beginning of period................................ 351 422
------- -------
End of period...................................... $ 432 $ 351
======= =======
Supplemental Cash Flow Information:
Interest paid...................................... $ 212 $ 188
Income taxes (refunded)/paid....................... $ (396) $ 1,969
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