Server: Netscape-Commerce/1.1 Date: Thursday, 18-Dec-97 04:53:09 GMT Last-modified: Tuesday, 02-Dec-97 21:28:00 GMT Content-length: 10522 Content-type: text/html
![]() | CHEMFAB CORPORATION ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR FISCAL 1997 RESULTS |
Montopoli To Step Down As CEO; Verbicky To Succeed Him |
Net income for the fourth quarter was a record $2,961,000, or $.36 per share, up 17% and 16%, respectively, over comparable amounts for the same quarter in the prior year. Worldwide sales for the quarter rose 11% to a record $25.3 million from $22.7 million in the fourth quarter a year ago. Year ago fourth quarter net income was $2,521,000, or $.31 per share.
For the full year ended June 30, 1997, net income reached a record $9,105,000, or $1.10 per share, up 18% and 17%, respectively, over comparable amounts for the preceding fiscal year. Worldwide sales for the year increased 8% to a record $90.8 million from $83.9 million in the prior year. Year ago full year net income was $7,714,000, or $.94 per share.
Commenting on the results for the quarter, Duane C. Montopoli, Chemfab’s President and Chief Executive Officer, said, "The Company’s solid fourth quarter performance caps off another excellent year. Double digit sales growth was achieved for the quarter due to continued strong demand for the Company’s industrial and fabricated products worldwide and comparatively higher sales of architectural products. Also, our Canton Bio-Medical subsidiary again posted higher sales and substantially higher profits versus the same quarter a year ago."
Commenting on the outlook for fiscal 1998, Mr. Montopoli added, "Demand for industrial and fabricated products is expected to remain strong, and the outlook for architectural product sales has improved considerably. Based on these factors, we expect a sales growth rate for fiscal 1998 that is higher than was achieved this past year and a strong double-digit percentage increase in earnings per share for the full year."
The Company also announced that Mr. Montopoli has informed the Board of Directors that he intends to end his employment with the Company effective on or about December 31 of this year, and that the Board has named Dr. John W. Verbicky, currently the Company’s Executive Vice President and Chief Operating Officer, to succeed him as President and CEO at that time. Mr. Montopoli will remain on the Company’s Board of Directors and, effective with the CEO change, current outside director Nicholas Pappas will fill the newly-established office of Chairman of the Board.
Commenting on his decision to end his tenure as CEO, Mr. Montopoli, 48, said, "I have long held the view that no one should be CEO of anything for more than about ten years, and I have now been CEO of Chemfab for eleven years. It’s been a great run which I have thoroughly enjoyed. The Company is performing very well, its future prospects are bright, and John Verbicky is well-qualified and ready to take over the reins of the business. This is the right time for me to move on to seek new and different challenges. I am pleased, however, that I will be able to stay close to the business, and continue working with John, through my participation on the Board."
Dr. Verbicky holds a Ph.D. in organic chemistry from the Georgia Institute of Technology. He joined Chemfab in 1993 as Vice President - Research & Development, after having gained 14 years of experience with General Electric. In April, 1994, Dr. Verbicky assumed the position of Vice President - U.S. Business Group, and in March, 1996, he was promoted to his present position of Executive Vice President and Chief Operating Officer. Commenting on his pending promotion, Dr. Verbicky, 45, said, "I am extremely pleased and excited at the prospect of leading Chemfab into the 21st century. Our challenge and focus going forward will be to accelerate the Company’s rate of profitable growth while extending the range of products and markets that will shape the future of our business."
Chemfab Corporation is a world leader in polymer-based engineered products and materials systems for use in severe service environments. Chemfab’s principal core competence is in the design, manufacture and fabrication of flexible fiber-reinforced fluoropolymer composite materials which comprise, in whole or in part, the majority of its products. The Company also produces and sells specialty fluoropolymer films and silicone- based products. Worldwide end-use applications are in electrical, environmental, food processing, architectural, aerospace, communications, protective clothing and other industrial markets.
FOR MORE INFORMATION CONTACT: | |
---|---|
Moosa E. Moosa | |
Vice President - Finance and Chief Financial Officer | |
CHEMFAB CORPORATION | |
701 Daniel Webster Highway | |
P.O. Box 1137 | |
Merrimack, New Hampshire 03054 | |
Phone: 603-424-9000 ext. 2302 | |
Fax: 603-424-9028 | |
Toll-free: 1-800-451-6101 |
Quarter Ended | ||
---|---|---|
06/30/97 | 06/30/96 | |
(unaudited) | (unaudited) | |
Net Sales | $25,272,000 | $22,717,000 |
Gross Profit | 8,863,000 | 7,931,000 |
Selling, General and Administrative Expenses | 4,075,000 | 3,637,000 |
Research and Development | 634,000 | 540,000 |
Other (Income) Expense, Net | (45,000) | 36,000 |
Interest (Income) Expense, Net | (92,000) | 46,000 |
Income Before Taxes | 4,291,000 | 3,672,000 |
Provision For Income Taxes | 1,329,000 | 1,151,000 |
Net Income | $2,962,000 | $2,521,000 |
Earnings Per Share | $0.36 | $0.31 |
Weighted Average Common and Common Equivalent Shares | 8,304,000 | 8,244,000 |
Fiscal Year Ended | ||
---|---|---|
06/30/97 | 06/30/96 | |
(unaudited) | ||
Net Sales | $90,783,000 | $83,882,000 |
Gross Profit | 30,944,000 | 28,109,000 |
Selling, General and Administrative Expenses | 15,539,000 | 14,157,000 |
Research and Development | 2,498,000 | 2,270,000 |
Other (Income) Expense, Net | (213,000) | 51,000 |
Interest (Income) Expense, Net | (180,000) | 477,000 |
Income Before Taxes | 13,300,000 | 11,154,000 |
Provision For Income Taxes | 4,194,000 | 3,440,000 |
Net Income | $9,106,000 | $7,714,000 |
Earnings Per Share | $1.10 | $0.94 |
Weighted Average Common and Common Equivalent Shares | 8,278,000 | 8,199,000 |