EXHIBIT 99.1
[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE:
SUNBEAM ANNOUNCES 16.6% ONGOING SALES GROWTH
EPS OF $0.30 CLIMBS 900% OVER PRIOR YEAR PERIOD
DELRAY BEACH, FLORIDA JULY 23, 1997 - Sunbeam Corporation (NYSE:SOC) announced
today its second quarter 1997 results. Sales for the quarter were $287.6
million, reflecting a 16.6% increase over the prior year period on a comparable
basis (excluding discontinued businesses and divested product lines). Earnings
per share from continuing operations of $0.30 were 900% ahead of the $0.03
reported in the second quarter of 1996. On a year to date basis, revenue of
$541.1 million was 14.7% above 1996, on a comparable basis, and earnings per
share from continuing operations of $0.54 were 391% above the $0.11 reported in
1996.
In making the announcement, Al Dunlap, Sunbeam's Chairman and Chief Executive
Officer, said, "These financial results show that we have accelerated the growth
experienced in the first quarter of 1997, and they validate our strategy to
divest non-core businesses, rationalize SKU's and focus like a laser on growing
core businesses." Mr. Dunlap, who took over Sunbeam on July 18, 1996, said,
"Contrary to views that this is a slow-growth industry, if you introduce
innovative products and get them to market on time, this can be an outstanding
business with great returns for shareholders."
Mr. Dunlap attributed the impressive second quarter sales results to strong
increases in the Company's global Appliance (up 24%) and Outdoor Cooking (up 11%
after three years of declines) categories which comprised approximately 80%
percent of Sunbeam's sales in the quarter. International sales were up 26%,
driven primarily by 42 new product introductions and the signing of 20 new
international distribution and license agreements during the past nine months.
Domestic sales growth of 14% was attributable to improved distribution, new
product introductions and the first sustained growth in the grill business in
over three years. "Sales to our top ten domestic customers were up over 20%
reflecting our strategic initiative to significantly improve shipping
performance," Mr. Dunlap said.
On a reported basis, Sunbeam's sales for the second quarter and first six months
of 1997 were up slightly less, 13.3% and 11.9%, respectively because of
accounting rules which require that certain divested businesses (time &
temperature products, decorative bedding and Counselor & Borg branded scales)
not be classified as discontinued operations.
"I believe that the toughest quarterly comparison is now behind us, and I look
forward to a continuation of these remarkable financial results, including
strong double digit sales growth, during the balance of the year as we
accelerate introduction of new products such as the soft serve ice cream maker,
a high-end gas grill line and some from our secret product room," Mr. Dunlap
said.
Sunbeam Corporation is a leading consumer products company that designs,
manufactures and markets, nationally and internationally, a diverse portfolio of
brand name products. The Company's Sunbeam(R) and Oster(R) brands have been
household names for generations, both domestically and abroad, and the Company
is a market leader in many of its product categories.
CAUTIONARY STATEMENT: Statements contained in this press release, including
statements relating to the Company's expectations regarding anticipated
performance in the future, are all "forward looking statements" as such term is
defined in the Private Securities Litigation Reform Act of 1995. Actual results
could differ materially from the Company's statements regarding its
expectations, goals or projected results, due to various factors, including
those set forth in the Company's Cautionary Statements contained in its Form
10-K, filed with the Securities and Exchange Commission on March 31, 1997.
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Contact: Media: Investors:
Mari Hope Rich Goudis
(212)885-0339 (561)243-2142
SUNBEAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except EPS)
SIX MONTHS ENDED THREE MONTHS ENDED
--------------------------------------- --------------------------------------
JUNE 29, JUNE 30, JUNE 29, JUNE 30,
1997 1996 1997 1996
------------------ ----------------- ------------------ ------------------
Net sales $541.1 $483.6 $287.6 $253.9
Cost of goods paid 398.8 388.3 213.1 206.7
------------------ ----------------- ------------------ ------------------
Gross profit 142.3 95.3 74.5 47.2
% of sales 26.3% 19.7% 25.9% 18.6%
Selling, general & administrative expense 64.6 70.6 31.6 38.0
------------------ ----------------- ------------------ ------------------
Operating earnings 77.7 24.7 42.9 9.2
% of sales 14.4% 5.1% 14.9% 3.6%
Interest expense 5.0 6.4 3.0 3.4
Other (income) expense, net (0.4) 2.3 (0.5) 0.9
------------------ ----------------- ------------------ ------------------
Earnings from continuing operations before
income taxes 73.1 16.0 40.4 4.9
Income taxes 26.3 6.6 14.2 2.1
------------------ ----------------- ------------------ ------------------
Earnings from continuing operations 46.8 9.4 26.2 2.8
Earnings (loss) from discontinued operations,
net of taxes (13.7) 15.2 - 4.4
------------------ ----------------- ------------------ ------------------
Net earnings $33.1 $24.6 $26.2 $7.2
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Earnings per share from continuing operations $0.54 $0.11 $0.30 $0.03
================== ================= ================== ==================
Earnings per share $0.38 $0.30 $0.30 $0.09
================== ================= ================== ==================
Average number of common shares outstanding 87.3 82.5 87.5 82.5
SUNBEAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
June 29, December 29,
1997 1996
-------- ------------
ASSETS
Current assets:
Cash and cash equivalents $58.0 $11.5
Receivables, net 252.0 213.4
Inventories 208.4 162.3
Net assets of discontinued operations and other assets
held for sale 5.5 102.8
Deferred income taxes 58.6 93.7
Prepaid expenses and other current assets 52.3 40.4
--------- ---------
Total current assets 634.8 624.1
Property, plant and equipment, net 229.3 220.1
Trademarks and trade names, net 197.7 200.3
Other assets 27.5 28.2
--------- ---------
$1,089.3 $1,072.7
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion
of long-term debt $0.7 $0.9
Accounts payable 136.5 107.3
Restructuring accrual 31.2 63.8
Other current liabilities 89.7 99.5
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Total current liabilities 258.1 271.5
Long-term debt 174.9 201.1
Deferred income taxes 55.9 52.3
Non-operating and other long-term liabilities 144.7 152.5
Shareholders' equity 455.7 395.3
--------- ---------
$1,089.3 $1,072.7
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SUNBEAM CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(in millions)
Six Months Ended
---------------------------
June 29, June 30,
1997 1996
-------- ------------
OPERATING ACTIVITIES
Net earnings $33.1 $24.6
Depreciation and amortization 19.8 23.3
Deferred income taxes 32.0 3.6
Loss on sale of discontinued operations, net of taxes 13.7 -
Changes in working capital and other, including
restructuring spending (102.8) (58.7)
--------- -------
(4.2) (7.2)
INVESTING ACTIVITIES
Capital expenditures (26.7) (34.9)
Proceeds from sale of divested operations and other assets 84.7 -
--------- -------
58.0 (34.9)
FINANCING ACTIVITIES
Net borrowings (payments) under revolving credit facility (15.0) 45.0
Issuance of long-term debt - 6.5
Payment of debt obligations (11.8) (0.7)
Proceeds from exercise of stock options 20.3 1.1
Other (0.8) (2.3)
--------- -------
(7.3) 49.6
--------- -------
Net increase in cash and cash equivalents 46.5 7.5
Cash and cash equivalents, beginning of period 11.5 28.3
--------- -------
Cash and cash equivalents, end of period $58.0 $35.8
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