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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)

 

 

 

 

Quarter Ended

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

 

 

 

Earnings per Share of Common Stock

$ 0.23

$ 0.21

 

 

 

Average Common Shares

9,535,000

10,069,000

 

 

 

 

 

 

 

 

 

Condensed Balance Sheets

Mar 29, 1997

Dec 31, 1996

ASSETS

 

 

 

 

 

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

 

 

 

LIABILITIES AND STOCKHOLDERS’ INVESTMENT

 

 

 

 

 

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