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BAIRNCO CORPORATION
2251 LUCIEN WAY, SUITE 300
MAITLAND, FLORIDA 32751-7037
(407) 875-2222
PRESS RELEASE
BAIRNCO ANNOUNCES 19975 FIRST QUARTER RESULTS
AND CONTINUED STOCK REPURCHASE PROGRAM
Maitland, Florida, April 18, 1997 - Bairnco Corporation (NYSE-BZ) today reported net income increased 3.0% and earnings per share increased 9.5% for the first quarter of 1997 as compared to the same period last year. The Board of Directors authorized an additional $5 million to be available for the ongoing repurchase of Bairnco's common stock from time to time in the open market subject to market conditions and the ongoing capital requirements of the Company.
Performance
Sales in the first quarter 1997 were $37,445,000, a decrease of 1.7% from $38,094,000 in 1996. The decrease in the first quarter sales was primarily attributable to a 7.2% decline in Kasco sales resulting from the product line pruning during 1996 and the negative impact of currency translation rates on sales of Kasco's French and German operations. Arlon sales increased 0.9% as the growing graphics and electrical insulation markets offset the decline in sales to the telecommunication markets as compared to last year's strong first quarter.
Gross profit decreased 3.4% to $12,980,000 from $13,438,000 primarily due to reduced sales and lower yields at plants serving the telecommunications and semiconductor markets. The gross profit margin as a percent of sales decreased from 35.3% to 34.7%.
Selling and administrative expenses decreased 5.2% to $9,116,000 from $9,621,000 primarily as a result of the ongoing impact of programs to make Kasco a more cost effective enterprise. As a percent of sales, selling and administrative expenses were reduced to 24.3% from 25.3%.
Interest expense was $415,000 in both 1997 and 1996 as lower average interest rates offset higher average borrowings in the first quarter 1997 versus 1996.
Net income increased 3.0% to $2,173,000 as compared to $2,109,000 in the first quarter of 1996.
During the first quarter Bairnco repurchased 81,800 shares of its common stock.
Earnings per share increased 9.5% to $.23 from $.21 as a result of the increased net income and the reduced number of shares outstanding.
Bairnco Corporation is a diversified multinational company that operates two distinct businesses under the names Arlon (Engineered Materials and Components segment) and Kasco (Replacement Products and Services segment). Arlon's principal products include high technology materials for the printed circuit board industry, cast and calendered vinyl film systems, custom engineered laminates and pressure sensitive adhesive systems, and special silicone rubber compounds and components. Kasco's principal products include replacement band saw blades for cutting meat, fish, wood and metal, and on site maintenance services for the retail food industry primarily in the meat and deli departments. Kasco also distributes equipment to the food industry in Canada and France.
CONTACT: Bob Wilkinson, Bairnco Corporation
Telephone: (407) 875-2222, ext. 228
Comparative Results of Operations (Unaudited) |
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Quarter Ended |
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Condensed Income Statements |
Mar 29, 1997 |
Mar 30, 1996 |
Net sales |
$ 37,445,000 |
$ 38,094,000 |
Cost of sales |
24,465,000 |
24,656,000 |
Gross profit |
12,980,000 |
13,438,000 |
Selling and administrative expenses |
9,116,000 |
9,621,000 |
Operating profit |
3,864,000 |
3,817,000 |
Interest expense, net |
415,000 |
415,000 |
Income before income taxes |
3,449,000 |
3,402,000 |
Provision for income taxes |
1,276,000 |
1,293,000 |
Net income |
$ 2,173,000 |
$ 2,109,000 |
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Earnings per Share of Common Stock |
$ 0.23 |
$ 0.21 |
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Average Common Shares |
9,535,000 |
10,069,000 |
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Condensed Balance Sheets |
Mar 29, 1997 |
Dec 31, 1996 |
ASSETS |
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Cash |
$ 618,000 |
$ 855,000 |
Accounts receivable, net |
24,233,000 |
21,476,000 |
Inventories |
24,974,000 |
23,499,000 |
Other current assets |
5,316,000 |
6,670,000 |
Total current assets |
55,141,000 |
52,500,000 |
Plant and equipment, net |
37,743,000 |
38,276,000 |
Cost in excess of net assets of purchased businesses |
7,792,000 |
7,922,000 |
Other assets |
3,867,000 |
3,902,000 |
Total |
$104,543,000 |
$102,600,000 |
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LIABILITIES AND STOCKHOLDERS’ INVESTMENT |
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Short-term debt |
$ 4,927,000 |
$ 3,337,000 |
Current maturities of long-term debt |
81,000 |
125,000 |
Accounts payable |
9,369,000 |
7,383,000 |
Accrued expenses |
10,321,000 |
11,314,000 |
Total current liabilities |
24,698,000 |
22,159,000 |
Long-term debt |
23,529,000 |
24,717,000 |
Other liabilities |
6,223,000 |
6,260,000 |
Stockholders’ investment |
50,093,000 |
49,464,000 |
Total |
$104,543,000 |
$102,600,000 |
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