EXHIBIT 99.1
[MEADE INSTRUMENTS CORPORATION LOGO HERE]
Brent W. Christensen, CFO Philip Bourdillon/Eugene Heller
Meade Instruments Corp. Silverman Heller Associates
(949) 451-1450 (310) 208-2550
MEADE INSTRUMENTS CORP. REPORTS
PROFITABLE FISCAL YEAR 2003
IRVINE, CALIFORNIA - APRIL 22, 2003 - MEADE INSTRUMENTS CORP. (NASDAQ NM: MEAD)
today reported results for the fourth quarter and for the year ended February
28, 2003.
Net sales for the year ended February 28, 2003 were $110.8 million, an increase
of $16.1 million, or 17%, over net sales of $94.7 million in the prior year.
Excluding non-cash charges for the Company's ESOP, net income for the year ended
February 28, 2003 was $1.7 million, or $0.10 per diluted share, compared to an
ESOP-adjusted net loss of $552,000, or ($0.04) per share, for the prior year.
Including ESOP charges, net income for the year ended February 28, 2003 was $1.1
million, or $0.07 per diluted share, compared to a net loss of $1.4 million, or
($0.10) per share, in the prior year.
"We are pleased with the results of fiscal 2003," said John C. Diebel, chairman
and CEO of Meade. "Despite a lingering downturn in the general economy and
significant costs incurred both to protect our intellectual property and in an
unsuccessful attempt to acquire a major competitor, we brought the Company back
to profitability, completed the acquisition of Simmons Outdoor Corp., and
continued to bring innovative and enthusiastically received new products to
market."
Simmons, acquired on October 25, 2002 and now operating as a wholly owned
subsidiary of the Company, contributed approximately $10 million to fiscal 2003
revenues. Binoculars -- including sales of the Company's integrated digital
camera-binocular -- contributed approximately $15 million to the increase in
revenues in fiscal 2003. Telescope sales shifted toward the Company's
larger-aperture models, with revenues from smaller-aperture telescopes down
significantly from the prior year.
"With healthy margins on the increased binocular sales and changes in the
telescope product mix," said Diebel, "gross profit improved to 30.6% of net
sales from 26.0% of net sales in the prior year. Simmons' margins were below the
consolidated Company margins as we worked through Simmons inventory that is not
expected to be part of the product mix going forward. Selling, general and
administrative expenses increased over the prior year, principally due to higher
selling costs on higher net sales and legal and professional fees related to
intellectual property protection and acquisition activity."
"Although we anticipate that competitive pressures will continue to affect both
net sales and margins," concluded Diebel, "we look forward to further
improvements in top- and bottom-line performance in fiscal 2004. Currently, we
expect that for fiscal 2004 we will report ESOP-adjusted earnings per diluted
share of $0.13 to $0.23 on net sales of $130 million to $140 million."
Consolidated inventories and accounts receivable at February 28, 2003 were
approximately $39 million and $22 million, respectively. Consolidated short-term
revolving bank debt was approximately $10 million at year-end.
Net sales for the three months ended February 28, 2003 were $22.2 million versus
$16.0 million in the comparable period a year ago. Excluding non-cash charges
for the Company's ESOP, net loss for the three months ended February 28, 2003
was $1.3 million, or ($0.07) per share, compared to ESOP-adjusted net loss of
$1.6 million, or ($0.10) per share, for the comparable period a year ago.
Including ESOP charges, fourth-quarter 2003 net loss was $1.4 million, or
($0.07) per share, compared to a net loss of $1.8 million, or ($0.12) per share,
in the comparable period a year ago.
The Company will host a teleconference with investment professionals at 7:30
a.m. PDT (10:30 a.m. EDT) on April 22, 2003. A live Web-cast of the
teleconference will be available at www.CompanyBoardroom.com and at
www.meade.com under the "Investor Relations" link, where it will be archived for
30 days following the teleconference. A replay will be available for 48 hours,
beginning at 10:30 a.m. PDT on April 22; to access the replay, dial 800-642-1687
or 706-645-9291 and provide conference ID 9810754.
Meade Instruments is a leading designer and manufacturer of optical products
including telescopes and accessories for the beginning to serious amateur
astronomer. Meade offers a complete line of binoculars for the casual observer
to the serious sporting or birding observer. Meade also offers a complete line
of riflescopes under the Simmons(R), Weaver(R) and Redfield(R) brand names. The
Company distributes its products worldwide through a network of specialty
retailers, mass merchandisers and domestic and foreign distributors. Additional
information on Meade is available at www.meade.com.
"SAFE-HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THIS NEWS RELEASE CONTAINS COMMENTS AND FORWARD-LOOKING STATEMENTS BASED
ON CURRENT PLANS, EXCEPTIONS, EVENTS, AND FINANCIAL AND INDUSTRY TRENDS THAT MAY
AFFECT THE COMPANY'S FUTURE OPERATING RESULTS AND FINANCIAL POSITION
EXPECTATIONS, INCLUDING NET SALES AND INCOME FOR FISCAL 2004. SUCH STATEMENTS
INVOLVE RISKS AND UNCERTAINTIES WHICH CANNOT BE PREDICTED OR QUANTIFIED AND
WHICH MAY CAUSE FUTURE ACTIVITIES AND RESULTS OF OPERATIONS TO DIFFER MATERIALLY
FROM THOSE DISCUSSED ABOVE. SUCH RISKS AND UNCERTAINTIES INCLUDE, WITHOUT
LIMITATION: ANY SIGNIFICANT DECLINE IN GENERAL ECONOMIC CONDITIONS OR
UNCERTAINTIES AFFECTING CONSUMER SPENDING; ANY GENERAL DECLINE IN DEMAND FOR THE
COMPANY'S PRODUCTS; ANY LOSS OF, OR FAILURE TO REPLACE, ANY SIGNIFICANT PORTION
OF THE SALES MADE TO ANY SIGNIFICANT CUSTOMER OF THE COMPANY; THE INHERENT RISKS
ASSOCIATED WITH THE ACQUISITION OF SIMMONS OUTDOOR CORP., INCLUDING THE
SUCCESSFUL INTEGRATION OF SUCH BUSINESS INTO THE COMPANY'S EXISTING OPERATIONS;
THE RISKS AND UNCERTAINTIES ASSOCIATED WITH INTELLECTUAL PROPERTY LITIGATION;
THE INHERENT RISKS ASSOCIATED WITH INTERNATIONAL SALES, AS WELL AS THE OTHER
RISKS AND UNCERTAINTIES PREVIOUSLY SET FORTH IN THE COMPANY'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION. THE HISTORICAL RESULTS ACHIEVED ARE NOT
NECESSARILY INDICATIVE OF FUTURE PROSPECTS OF THE COMPANY. FOR ADDITIONAL
INFORMATION, REFER TO THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION.
(Financial Data Follow)
MEADE INSTRUMENTS CORP.
INCOME STATEMENT DATA
(Unaudited)
(000s omitted, except per share data)
Three Months Ended Year Ended
February 28, February 28,
------------------------ -----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net sales ......................... $ 22,210 $ 16,011 $110,817 $ 94,718
Cost of sales ..................... 16,846 12,647 76,923 70,108
--------- --------- --------- ---------
Gross profit ................... 5,364 3,364 33,894 24,610
Selling expenses .................. 3,060 3,167 14,248 12,920
General and administrative expenses 3,260 1,949 12,628 9,098
ESOP expense ...................... 174 370 905 1,367
Research and development expenses . 798 583 3,008 2,167
--------- --------- --------- ---------
Operating income (loss) ........ (1,928) (2,705) 3,105 (942)
Interest expense .................. 409 293 1,137 1,345
--------- --------- --------- ---------
Income (loss) before income taxes . (2,337) (2,998) 1,968 (2,287)
Income tax provision (benefit) .... (952) (1,229) 830 (845)
--------- --------- --------- ---------
Net income (loss) ................. $ (1,385) $ (1,769) $ 1,138 $ (1,442)
========= ========= ========= =========
Per share information:
Net income (loss) -- basic ........ $ (0.07) $ (0.12) $ 0.07 $ (0.10)
========= ========= ========= =========
Net income (loss) -- diluted ...... $ (0.07) $ (0.12) $ 0.07 $ (0.10)
========= ========= ========= =========
Weighted average common shares
outstanding--basic ............. 18,817 15,230 16,410 15,100
========= ========= ========= =========
Weighted average common shares
outstanding--diluted ........... 18,817 15,230 16,624 15,100
========= ========= ========= =========
Reconciliation of Net income, excluding ESOP charges, to Net income, including
ESOP charges (000s omitted, except per share data):
Three Months Ended Year Ended
February 28, February 28,
-------------------------- -------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Net income (loss) ................... $ (1,385) $ (1,769) $ 1,138 $ (1,442)
ESOP expense, net of tax ............ 105 187 543 890
---------- ---------- ---------- ----------
Net income (loss) excluding ESOP,
net of tax ........................ $ (1,280) $ (1,582) $ 1,681 $ (552)
========== ========== ========== ==========
Per share information:
Net income (loss) -- diluted ........ $ (0.07) $ (0.12) $ 0.07 $ (0.10)
ESOP expense, net of tax ............ 0.00 0.02 0.03 0.06
---------- ---------- ---------- ----------
Net income (loss) excluding ESOP --
diluted ........................... $ (0.07) $ (0.10) $ 0.10 $ (0.04)
========== ========== ========== ==========
Net income, excluding ESOP expense, net of tax is a supplemental financial
measure commonly used by management and, management believes, by industry
analysts to evaluate the Company's financial performance. The ESOP expense is a
non-cash expense related to the allocation of Company stock to participants in
its Employee Stock Ownership Plan. The expense related to the ESOP stock
allocation is based on the market value of the allocated stock. The market value
of the Company's stock has fluctuated significantly over the last several years.
Excluding the ESOP expense, net of tax, eliminates the volatility introduced
into the income statement by the market value expense of the ESOP allocation.
Given the possibility for volatility in the future share price of the Company's
stock, the Company is unable to provide guidance with respect to future net
income including ESOP charges.