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EXHIBIT 99
FOR IMMEDIATE RELEASE
Contact: Mark E. Brody
Executive Vice President and Chief Financial Officer
(440) 285-7946 (SWIM)
ANTHONY & SYLVAN POOLS CORPORATION ANNOUNCES SECOND QUARTER RESULTS AND
COMPLETION OF SPLIT-OFF FROM ESSEF CORPORATION
Chardon, Ohio (August 10, 1999) - Anthony & Sylvan Pools Corporation (NASDAQ:
SWIM) today announced results for its second quarter and six-month period ended
June 30, 1999. For the quarter, net sales of $62,154,000 increased 19% from
$52,415,000 for the same period last year. Net income increased 10% for the
fiscal 1999 second quarter to $2,850,000, or $0.85 per basic share, from
$2,587,000 or $0.77 per basic share, for the same period last year. For the
first six months of 1999, net sales were $88,576,000, increasing 26% from
$70,455,000 for the first six months of 1998. Net loss for the current year
period of $108,000, or $0.03 per basic share, compared to net income of
$1,086,000, or $0.32 per basic share in 1998. Diluted earnings per share are not
presented, as they will not be determinable until the Company's stock begins
trading.
"Much of our current year sales increase was attributable to the acquisition of
Pools by Andrews in August 1998, which had annual sales of approximately
$27,000,000. However, continued downward pressure on margins led to earnings
that were below what we would have expected given the growth in sales,"
commented Stuart D. Neidus, Anthony & Sylvan's Chairman and Chief Executive
Officer. Mr. Neidus added, "Given the high demand for labor due to strong
construction activity, our costs have increased in several of our markets at a
faster rate than our pricing."
Mr. Neidus concluded, "Looking to our third quarter, which is seasonally a
strong quarter, we remain optimistic and expect 1999 to be a solid year of
performance for our first year as a stand-alone public company."
The Company also announced that its split-off from Essef Corporation was
completed today and that Anthony & Sylvan's common shares will begin trading on
the NASDAQ SmallCap Market on August 11, 1999 under the symbol SWIM.
Anthony & Sylvan (http://www.anthony-sylvan.com) is one of the largest
installers of residential in-ground concrete swimming pools in the United States
with a network of 40 sales offices in 24 geographic markets in 15 states. The
Company also is a provider of other pool-related products and services,
including; renovation, retail stores, commercial pool construction and pool
servicing.
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. All forward-looking statements are based on current
expectations regarding important risk factors, including but not limited to: the
costs of integrating acquired businesses; dependence on existing management;
consumer spending and market conditions; weather; and year 2000 issues.
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
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
-------- -------- -------- --------
Net sales ......................... $ 62,154 $ 52,415 $ 88,576 $ 70,455
Cost of sales ..................... 44,433 36,928 65,152 50,597
-------- -------- -------- --------
Gross profit .................... 17,721 15,487 23,424 19,858
Operating expenses ................ 12,422 10,694 21,927 17,071
-------- -------- -------- --------
Income from operations .......... 5,299 4,793 1,497 2,787
Interest and other expense ........ 628 547 1,723 1,026
-------- -------- -------- --------
Income/(loss) before
income taxes .................. 4,671 4,246 (226) 1,761
Provision/(benefit) for
income taxes .................... 1,821 1,659 (118) 675
-------- -------- -------- --------
Net income/(loss) ............... $ 2,850 $ 2,587 $ (108) $ 1,086
======== ======== ======== ========
Earnings per share:
Basic ........................... $ .85 $ .77 ($ .03) $ .32
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Average shares outstanding:
Basic ........................... 3,351 3,357 3,351 3,357
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Note: Diluted shares outstanding and diluted earnings per share have not been
presented as they are not currently determinable under the treasury stock method
as such calculations are dependent on the Company's first day trading price for
its common shares following the split-off from Essef. The Company's common
shares are scheduled to commence trading on August 11, 1999. The calculation of
diluted shares outstanding and diluted earnings per share will be reflected in
the Company's Form 10-Q for the current quarter.