Exhibit 99.1
Cohesant Technologies Reports Record Sales and Earnings For the First Half of
Fiscal 2006
INDIANAPOLIS--(BUSINESS WIRE)--June 20, 2006--Cohesant
Technologies Inc. (Nasdaq:COHT) today reported record sales and
earnings for the first half of fiscal 2006 and record sales for the
second quarter fiscal 2006.
For the first half ended May 31, 2006, consolidated net sales
increased 33.1% to $13,257,997 from $9,963,756 achieved in the 2005
period. The Company had first half consolidated net income of
$881,926, an increase of 36.8% over the $644,621 earned in the prior
year period. On a fully diluted per share basis, net income was $.27
for the first half of fiscal 2006 compared to $.24 last year.
Sales of Equipment and Parts sales increased over 7% and Coatings
were up over 5%. Additionally, the Company generated $2,505,522 of
Rehabilitation revenue and $105,438 of Licensee revenues in the
current six month period. Rehabilitation revenue is comprised of
revenues from the renewal and replacement of plumbing lines. Licensee
revenue is comprised of license fees, equipment rental as well as
other value added services.
For the quarter ending May 31, 2006, consolidated net sales
increased 19.1% to $6,792,400 from $5,702,957 achieved in the second
quarter of fiscal 2005. The Company had second quarter consolidated
net income of $502,254, an increase of 23.4% over the $406,986 earned
in the comparable period. On a fully diluted per share basis, net
income was $.15 in both the current and prior year quarter.
Equipment and Parts sales were flat when compared to the prior
year second quarter, while sales of Coatings decreased 6% from the
prior period. The Company generated $1,116,868 of Rehabilitation
revenue and $61,827 of Licensee revenues in the current period.
Morris H. Wheeler, the Company's President and Chief Executive
Officer, stated, "The Company's business units performed well during
the first half, especially considering the management, logistics and
other changes over the last several months as a result of the
Company's reconfiguration of its business units. The CuraFlo
acquisition in particular is showing excellent returns. The
Rehabilitation Services business had unexpectedly strong performance
during the 1st half of this year. GlasCraft also had a strong first
half. As expected, newly developed products are energizing GlasCraft
sales on a worldwide basis. The P2 dispense gun continues to sell
strongly and the introduction of the Guardian dispense system during
the last quarter marks a rebirth for GlasCraft's offerings to the foam
market, its fastest growing segment."
In other matters, the Company announced that its Board of
Directors approved a share repurchase program of up to 100,000 of its
issued and outstanding shares of common stock. Purchases under this
program may be made from time to time in open market or privately
negotiated transactions. Common stock acquired through the repurchase
program will be available for general corporate purposes. In
announcing the repurchase program, Morris Wheeler, Chief Executive
Officer, indicated that the performance of our business continues to
allow us to invest in our future growth and to maximize value for our
shareholders. Additionally, the Company announced that Morton A. Cohen
will assume the role of Chairman of the Board of Directors effective
on September 1, 2006, the start of the Company's fourth quarter.
Dwight D. Goodman will remain Chairman of the Audit and Compensation
Committees of the Board of Directors. This change reflects the recent
broadening of the strategic vision of Cohesant.
Cohesant Technologies Inc., based in Indianapolis, Indiana is
engaged in the protection and renewal of drinking water distribution
systems and wastewater collection systems for municipal, industrial,
commercial and residential infrastructure, the design, development,
manufacture and sale of specialized dispense equipment systems,
replacement parts and supplies used in the operation of the equipment
and the design, development, manufacture and sale of specialty
coatings. The Company markets its products under numerous trade names
including; AquataPoxy, CuraFlo, CuraPoxy, GlasCraft, Guardian, Probler
and Raven.
During the 4th Quarter of Fiscal 2005, the Company conducted its
operations through its GlasCraft, Inc. and Raven Lining Systems, Inc.
subsidiaries and through the newly acquired CuraFlo Companies. In the
4th Quarter of 2005, the Company began reporting its revenues in four
categories - Coatings, Equipment and Parts, Licensee and Protection
and Renewal Services (Rehabilitation). On December 1, 2005 the Company
completed the integration of the CuraFlo Companies and the
reconfiguration of its business units into three wholly owned
subsidiaries, GlasCraft Inc., Cohesant Materials Inc., and CIPAR Inc.
(Cohesant Infrastructure Protection and Renewal).
GlasCraft manufactures markets and sells high-quality equipment
for metering, mixing and dispensing a wide variety of construction and
other chemicals. Cohesant Materials manufactures markets and sells
corrosion protection and other specialty coatings used in the
protection and renewal of infrastructure. Currently, a majority of
Cohesant Materials' sales are to the Company's CIPAR subsidiary.
Finally, CIPAR accounts for both our Licensee revenue and Protection
and Renewal Services (Rehabilitation) revenue as well equipment sales
to Certified Applicators and Licensed Dealers.
COHESANT TECHNOLOGIES INC.
Summary Financial Data (Unaudited)
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Three Months Ended Three Months Ended
May 31, 2006 May 31, 2005
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Net sales $6,792,400 $5,702,957
Income before income taxes 810,213 656,428
Net income $502,254 $406,986
Net income per share
Basic $0.16 $0.15
Diluted $0.15 $0.15
Average number of common
shares outstanding:
Basic 3,129,898 2,642,835
Diluted 3,270,232 2,730,462
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Six Months Ended Six Months Ended
May 31, 2006 May 31, 2005
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Net sales $13,257,997 $9,963,756
Income before income taxes 1,422,589 1,039,712
Net income $881,926 $644,621
Net income per share
Basic $0.28 $0.24
Diluted $0.27 $0.24
Average number of common
shares outstanding
Basic 3,127,367 2,633,916
Diluted 3,255,062 2,733,706
Certain statements contained in this report that are not
historical facts are forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking
statement. These risks and uncertainties include, but are not limited
to, a slow-down in domestic and international markets for plural
components dispensing systems, a reduction in growth of markets for
the Company's epoxy coating systems, customer resistance to Company
price increases, the successful integration of the CuraFlo acquisition
and the Company's ability to expand its licensing and rehabilitation
business.
CONTACT: Cohesant Technologies Inc.
Morris H. Wheeler, 317-871-7611