Kaman Reports First Quarter Earnings Per Share Up 20 Percent; Shareholders Elect Directors
BLOOMFIELD, Conn., April 11 /PRNewswire/ -- At the annual shareholders meeting today, Kaman Corp. (NASDAQ:KAMNA)
reported first quarter earnings per share increased to 36 cents on a diluted basis, from 30 cents per share diluted a year ago, a 20 percent increase. Net earnings for the quarter were $8.6 million, compared to $7.3 million a year ago.
Revenues for the first quarter 2000 were $260.0 million, compared to $249.8 million the previous year.
Paul R. Kuhn, president and CEO, said, "This was a good start to the year and it is pleasing to see improvement in each of our operating segments."
SEGMENT PERFORMANCE Industrial Distribution
Operating profit for Kaman Industrial Technologies (KIT) rose 37 percent in the first quarter to $5.5 million, compared to $4.0 million a year ago. Net sales also increased to $133.2 million in the first quarter, from $128.7 million the previous year.
"KIT had sales increases in the first quarter, benefiting from improved market conditions," said Kuhn.
"We also are seeing positive results from steps announced in December and undertaken during the first quarter to make the Industrial Distribution segment a leaner and more responsive competitor. We reorganized the sales, marketing and field management structure to have senior people closer to the customer. We also consolidated certain branches and closed others. These actions contributed to improved cost-efficiency and service," said Kuhn.
"In the third quarter, we plan to launch our e-Commerce site on the Internet that will include our complete catalog of more than one million industrial products, and will provide a new channel for both current and potential customers to transact business with us. Wherever they are located, KIT will easily be accessible through the Internet," he said.
Aerospace
Operating profits for Kaman Aerospace were $10.8 million, compared to $10.4 million in last year's first quarter. Net sales increased slightly to $96.5 million in the first quarter from $92.8 million last year.
Kuhn said that the SH-2G Super Seasprite helicopter program was an important contributor to Aerospace's results in the first quarter. The company is scheduled to begin deliveries of five SH-2G(NZ) helicopters to the Royal New Zealand Navy late this year, with deliveries of 11 SH-2G(A)s to the Royal Australian Navy scheduled to begin early next year.
The aircraft structures and components business also performed well in the first quarter, although down slightly from a year ago, as a result of continuing softness in this market. "Analysts have been projecting an overall decline in deliveries of commercial aircraft over the next few years, and as a result, we have been pursuing additional opportunities," said Kuhn.
Last week, the company announced it had been selected by MD Helicopters, Inc., Mesa, Ariz., to build fuselages for MD 500 and MD 600 commercial helicopters. The multi-year program has a potential estimated value of $100 million to Kaman. The company will build the fuselages in Moosup, Conn., and perform final assembly in Jacksonville, Fla.
The first K-MAX helicopter delivery of the year was made to Heli-Air Zagel Lufttransport AG of Germany in March. The aircraft will be used principally for logging operations, which has been a depressed market for K-MAX during the past two years. The company continues its efforts to further develop additional global market opportunities for K-MAX in other industries, including oil and gas exploration, power line and other utility construction, fire fighting and movement of equipment.
Music Distribution
Kaman Music's operating profit increased during the first quarter to $1.5 million, from $1.3 million a year ago. Net sales during the quarter were $30.0 million, compared to $28.0 million in 1999.
"The improving trend in Music's domestic business that began last year continued into the first quarter. International sales also were up, reflecting improved market demand in those countries where we do business," said Kuhn. "We also unveiled a new business-to-business e-Commerce site that will significantly strengthen our ability to provide the kind of service that our customers require."
Shareholders Elect Directors
Shareholders re-elected the following directors: Brian E. Barents, president and chief executive officer of Galaxy Aerospace Co., LP; E. Reeves Callaway III, president, Callaway Advanced Technology Corp.; Frank C. Carlucci, chairman, The Carlyle Group; Laney J. Chouest, owner-manager, Edison Chouest Offshore, Inc.; John A. DiBiaggio, president and chief executive officer, Tufts University; Huntington Hardisty, Admiral, U.S. Navy (Ret.), and former president, Kaman Aerospace International Corp.; Charles H. Kaman, chairman, Kaman Corp.; C. William Kaman II, chairman and chief executive officer, AirKaman of Jacksonville, Fla.; Eileen S. Kraus, chairman, Connecticut Fleet National Bank; Paul R. Kuhn, president and chief executive officer, Kaman Corp.; Hartzel Z. Lebed, retired president, CIGNA Corp.; Walter H. Monteith, Jr., retired chairman, Southern New England Telecommunications Corp.; and Wanda Lee Rogers, president and chief executive officer, Rogers Helicopters, Inc.
Shareholders also authorized the board to elect one additional director during the ensuing year.
In other business, shareholders appointed KPMG LLP as the corporation's independent auditors.
Kaman Corp., based here, is a $1 billion company, with businesses in aerospace manufacturing, and industrial and music distribution markets.
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Summaries of Operations
(In thousands except per share amounts)
For the Three Months
Ended March 31,
2000 1999
Revenues $259,976 $249,831
Costs and expenses:
Cost of sales 194,620 184,714
Selling, general and administrative expense 51,978 52,951
Interest income, net (350) (160)
Other expense, net 307 256
246,555 237,761
Earnings before income taxes 13,421 12,070
Income taxes 4,865 4,797
Net earnings $8,556 $7,273
Net earnings per share:
Basic $.37 $.31
Diluted $.36 $.30
Average shares outstanding:
Basic 23,126 23,652
Diluted 24,356 25,062
Dividends declared per share $.11 $.11
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
Assets
Current assets:
Cash and cash equivalents $61,180 $76,249
Accounts receivable, net 189,136 156,173
Inventories 188,583 199,731
Other current assets 28,026 27,958
Total current assets 466,925 460,111
Property, plant and equipment, net 62,938 64,332
Other assets 9,987 9,760
$539,850 $534,203
Liabilities and shareholders' equity
Current liabilities:
Notes payable $4,213 $4,514
Accounts payable 51,651 48,760
Accrued liabilities 26,722 31,421
Advances on contracts 47,652 50,243
Other current liabilities 31,646 29,499
Income taxes payable 7,403 3,937
Total current liabilities 169,287 168,374
Deferred credits 23,440 22,906
Long-term debt, excluding current portion 24,886 26,546
Shareholders' equity 322,237 316,377
$539,850 $534,203
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
For the Three Months
Ended March 31
2000 1999
Cash flows from operating activities:
Net earnings $8,556 $7,273
Depreciation and amortization 2,912 2,915
Accounts receivable (32,963) 26,915
Inventory 11,148 3,404
Advances on contracts (2,591) (10,860)
Income taxes payable 3,466 1,717
Changes in other current assets and liabilities 270 (2,169)
Other, net 638 551
Cash provided by (used in)
operating activities (8,564) 29,746
Cash flows from investing activities:
Expenditures for property, plant & equipment (1,471) (1,796)
Other, net (88) 42
Cash provided by (used in)
investing activities (1,559) (1,754)
Cash flows from financing activities:
Additions (reductions) to notes payable (301) 292
Reductions to long-term debt (1,660) (1,660)
Purchase of treasury stock (833) (2,014)
Dividends paid (2,544) (2,605)
Other, net 392 493
Cash provided by (used in)
financing activities (4,946) (5,494)
Net increase (decrease) in cash
and cash equivalents (15,069) 22,498
Cash and cash equivalents at
beginning of period 76,249 65,130
Cash and cash equivalents at end of period $61,180 $87,628
Source: Kaman Corp.
Contact: David Long of Kaman Corp., 860-243-6319, or dml-corp@kaman.com
Website: http://www.kaman.com/
Company News On-Call: http://www.prnewswire.com/comp/480450.html or fax,
800-758-5804, ext. 480450
