Exhibit 99.1
Cohesant Technologies Reports Record Sales For the Fourth Quarter and
Fiscal Year Ended November 30, 2006
INDIANAPOLIS--(BUSINESS WIRE)--Dec. 22, 2006--Cohesant Technologies Inc.
(Nasdaq:COHT) today reported record sales for the fourth quarter and fiscal year
ended November 30, 2006.
For the fiscal year ended November 30, 2006, consolidated net sales
increased 19.6% to $26,543,175 from $22,197,702 realized in the 2005 period.
Equipment and Parts sales increased 9.1%, while Coatings' sales decreased 4.9%.
The Company had consolidated net income of $1,577,157, a decrease of 3.1% from
the $1,628,179 earned in the prior year period. On a fully diluted per share
basis, net income was $.48 for fiscal 2006 compared to $.57 last year.
For the quarter ending November 30, 2006, consolidated net sales increased
4.6% to $6,914,425 from $6,612,956 realized in the fourth quarter of fiscal
2005. Equipment and Parts sales were up 14.4% when compared to the prior year
fourth quarter, while sales of Coatings decreased 13.3% from the prior period,
due primarily to weakness in business of the Raven Lining Systems division of
CIPAR. The Company had fourth quarter consolidated net income of $316,258, a
decrease of 40.6% below the $532,314 earned in the comparable period. On a fully
diluted per share basis, net income was $.10 in the 2006 period compared to $.17
in the 2005 quarter.
Morris H. Wheeler, the Company's President and Chief Executive Officer,
stated, "GlasCraft had an excellent year in 2006. Sales were up 8.2% and pre-tax
income was up 9.2%. The addition, early this year, of Michael Ruby as VP of
Sales and Marketing and the investments by GlasCraft in product development are
beginning to pay dividends."
The Rehabilitation Services division also had a strong year. The Company
generated $4,255,588 of Rehabilitation revenue and $276,139 of Licensee revenue
in the fiscal 2006 period compared to $1,114,865 in Rehabilitation revenue and
$83,646 in Licensee revenue in the 2005 period. The Company generated $865,457
of Rehabilitation revenue and $142,667 of Licensee revenue in the fourth quarter
of fiscal 2006 compared to $954,235 Rehabilitation revenue and $43,805 of
Licensee revenue in the 2005 quarter. Rehabilitation revenue is comprised of
revenues from the renewal and replacement of plumbing lines and is conducted by
the Company's Rehabilitation Services division, the operations of which were
acquired in the CuraFlo acquisition in August 2005. Licensee revenue is
comprised of license fees, equipment rental as well as other value added
services.
Mr. Wheeler added, "Together GlasCraft and the Rehabilitation Services
division helped propel Cohesant above $25MM in sales for the first time in its
history. Unfortunately the strength of these two components of our business were
offset by continued weakness in our Raven division and by costs related to the
reconfiguration of the CuraFlo Dealership program. Raven recently hired a new VP
of Sales and Marketing and we are hopeful that, together with Raven's newly
appointed President Joanne Hughes, the Raven team can reverse this recent
downtrend in sales. In addition, during 2006 and accelerating in the 4th
Quarter, we incurred significant expenses to rethink the structure of the
CuraFlo Dealership network and to integrate the Triton Spincast System into that
offering. These efforts are nearly complete and we are hopeful that this
investment will begin to pay off in the latter part of 2007. "
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.
COHESANT TECHNOLOGIES INC.
Summary Financial Data (Unaudited)
- ----------------------------------------------------------------------
Three Months Ended Three Months Ended
November 30, 2006 November 30, 2005
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Net sales $6,914,425 $6,612,956
Income before income taxes 511,827 755,401
Net income $316,258 $532,314
Net income per share basic and
diluted $0.10 $0.17
Average number of common shares
outstanding:
Basic 3,190,145 3,118,434
Diluted 3,286,716 3,202,328
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Twelve Months Ended Twelve Months Ended
November 30, 2006 November 30, 2005
- ----------------------------------------------------------------------
Net sales $26,543,175 $22,197,702
Income before income taxes 2,545,536 2,526,827
Net income $1,577,157 $1,628,179
Net income per share
Basic $0.50 $0.58
Diluted $0.48 $0.57
Average number of common shares
outstanding
Basic 3,148,986 2,784,810
Diluted 3,268,543 2,879,598
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 and Triton
acquisitions and the Company's ability to expand its licensing and
rehabilitation business.
CONTACT: Cohesant Technologies Inc.
Morris H. Wheeler, President & Chief Executive Officer,
317 871-7611