Anthony & Sylvan Pools Corporation Announces First Quarter Results

Apr 26, 2001, 01:00 ET from Anthony & Sylvan Pools Corporation

    MAYFIELD VILLAGE, Ohio, April 26 /PRNewswire/ -- Anthony & Sylvan Pools
 Corporation (Nasdaq:   SWIM) today announced results for its first quarter ended
 March 31, 2001.  Net sales were $26,089,000, a decrease of 14.2% from the
 first quarter 2000 sales of $30,391,000.  The net loss for the seasonally slow
 first quarter of $(3,186,000) compares with $(2,212,000) for the same period
 last year.  On a per share basis, the $(.83) loss per share for 2001 compares
 with a per share loss of $(.70) for the first quarter ended March 31, 2000.
 The current quarter had 3,837,000 shares outstanding, an increase of 667,000
 shares compared with a year ago, primarily as a result of a stock option
 exercise in the fourth quarter of 2000.
     The Company records the effect of certain long-term incentive compensation
 plans on a variable versus a fixed basis of accounting, based on changes in
 the Company's stock price.  On a pro-forma basis, excluding the impact of non-
 cash compensation calculations, the net loss for the quarter ended March 31,
 2001 was $(3,735,000), or $(.97) per share, and the net loss for the quarter
 ended March 31, 2000 was $(2,104,000), or $(.66) per share.  The Company is
 amending its long-term incentive compensation plans so that future reported
 financial results will not be impacted by stock price fluctuations.
     Commenting on the results, Stuart D. Neidus, Anthony & Sylvan's Chairman
 and Chief Executive Officer, said, "The cold, wet winter weather,  worse than
 we have seen for several years, had a major impact on our ability to install
 swimming pools in many of our markets.  The good news is that we start the
 second quarter with a good backlog of business, although sales are being
 impacted by lower demand."
     Mr. Neidus also commented on current economic conditions by stating,
 "Because of current soft business conditions, a number of cost-cutting
 measures have been installed to better match revenues and expenses.  We are
 also leveraging our industry leadership position and financial strength to
 take advantage of opportunities often presented in weak economic cycles, while
 continuing initiatives to improve our infrastructure and our execution.  For
 the longer term, we continue to believe that we should be able to gain market
 share and grow revenues and profits at a 15 to 20 percent rate."
     Anthony & Sylvan ( www.anthonysylvan.com ) operates in the leisure
 industry, offering in-ground, concrete residential swimming pools, spas and
 related products to its customers.  The Company serves its customers through a
 network of 52 sales design centers in 29 geographic markets in 16 states.  It
 also sells pool-related consumables, replacement parts, equipment and supplies
 through retail service centers.
     This press release contains statements that are forward-looking, as that
 term is defined by the Private Securities Litigation Reform Act of 1995 or by
 the Securities and Exchange Commission in its rules, regulations, and
 releases.  The Company intends that such forward-looking statements be subject
 to the safe harbors created thereby.  All forward-looking statements are based
 on current expectations regarding important risk factors, including but not
 limited to:  dependence on existing management; consumer spending; market
 conditions and weather.  Accordingly, actual results may differ from those
 expressed in the forward-looking statements, and the making of such statements
 should not be regarded as a representation by the Company or any other person
 that results expressed therein will be achieved.
 
              Anthony & Sylvan Pools Corporation and Subsidiaries
                          Consolidated Balance Sheets
                             (Dollars in thousands)
 
                                                      March 31,    December 31,
                                                        2001           2000
                                                    (Unaudited)      (Audited)
     ASSETS
 
     Current Assets:
       Cash and cash equivalents                         $715           $422
       Contract receivables, net                        7,281         11,592
       Inventories, net                                 7,455          5,219
       Prepayments and other                            1,899          1,542
       Deferred income taxes                            4,005          1,914
         Total current assets                          21,355         20,689
 
     Property, plant and equipment, net                 9,569          8,674
     Goodwill, net                                     26,819         27,003
     Deferred income taxes                                939            939
     Other                                              2,988          2,837
     Total Assets                                     $61,670        $60,142
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
       Current maturities of long-term debt               $42            $62
       Accounts payable                                 7,813          6,323
       Accrued expenses                                17,058         12,379
       Accrued income taxes                               280            505
         Total current liabilities                     25,193         19,269
 
     Long-Term Debt                                     2,350          1,250
     Deferred Income Tax Liability                        945            945
     Other Long-Term Liabilities                        2,269          2,254
 
     Commitments and Contingencies                          -              -
 
     Shareholders' Equity                              30,913         36,424
     Total Liabilities and Shareholders' Equity       $61,670        $60,142
 
              Anthony & Sylvan Pools Corporation and Subsidiaries
                Unaudited Consolidated Statements of Operations
               For the Three Months Ended March 31, 2001 and 2000
                     (in thousands, except per share data)
 
                                                             March 31,
                                                         2001        2000
 
     Net sales                                        $26,089        $30,391
     Cost of sales                                     21,099         23,938
       Gross profit                                     4,990          6,453
     Operating expenses (a)                            10,121          9,763
       Loss from operations                            (5,131)        (3,310)
     Interest and other expense                           146            196
       Loss before income taxes                        (5,277)        (3,506)
     Benefit for income taxes                          (2,091)        (1,294)
       Net loss                                       $(3,186)       $(2,212)
 
     Loss per share:
       Basic                                            $(.83)         $(.70)
       Diluted                                          $(.83)         $(.70)
 
     Average shares outstanding:
       Basic                                            3,837          3,170
       Diluted                                          3,837          3,170
 
     (a) Includes a non-cash deferred compensation credit of $575 in the
         quarter ended March 31, 2001 and a non-cash deferred compensation
         expense of $114 in the quarter ended March 31, 2000.
 
              Anthony & Sylvan Pools Corporation and Subsidiaries
                Unaudited Consolidated Statements of Cash Flows
               For the Three Months Ended March 31, 2001 and 2000
                             (Dollars in thousands)
 
                                                        2001          2000
     Cash Flows from Operating Activities:
       Net loss                                      $(3,186)       $(2,212)
       Adjustments to reconcile net loss to
         net cash provided by operating activities:
           Depreciation and amortization                 820            685
           Deferred income taxes                      (2,091)             -
           Non-cash deferred stock compensation         (575)           114
           Other                                           -             (8)
       Changes in operating assets and liabilities
         net of assets acquired:
           Contract receivables                        4,311          2,501
           Inventories                                (2,236)        (2,343)
           Prepayments and other                        (357)          (257)
           Accounts payable                            1,490          3,540
           Accrued and other expenses                  4,454          1,569
             Cash provided by operating activities     2,630          3,589
     Cash Flows from Investing Activities:
       Additions to property, plant
         and equipment                                (1,532)          (609)
       Other                                            (135)          (161)
       Cash used in investing activities              (1,667)          (770)
     Cash Flows from Financing Activities:
       Proceeds from long-term debt                    1,080         (2,543)
       Proceeds from sale of shares                      250            270
       Purchase of treasury shares                    (2,000)             -
         Cash used in financing activities              (670)        (2,273)
     Increase in Cash and Cash Equivalents               293            546
     Cash and Cash Equivalents:
       Beginning of period                               422            533
       End of period                                    $715         $1,079
 
     Supplemental Cash Flow Information:
       Interest paid                                     $88           $187
       Income taxes paid                                $525            $28
 
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SOURCE Anthony & Sylvan Pools Corporation
    MAYFIELD VILLAGE, Ohio, April 26 /PRNewswire/ -- Anthony & Sylvan Pools
 Corporation (Nasdaq:   SWIM) today announced results for its first quarter ended
 March 31, 2001.  Net sales were $26,089,000, a decrease of 14.2% from the
 first quarter 2000 sales of $30,391,000.  The net loss for the seasonally slow
 first quarter of $(3,186,000) compares with $(2,212,000) for the same period
 last year.  On a per share basis, the $(.83) loss per share for 2001 compares
 with a per share loss of $(.70) for the first quarter ended March 31, 2000.
 The current quarter had 3,837,000 shares outstanding, an increase of 667,000
 shares compared with a year ago, primarily as a result of a stock option
 exercise in the fourth quarter of 2000.
     The Company records the effect of certain long-term incentive compensation
 plans on a variable versus a fixed basis of accounting, based on changes in
 the Company's stock price.  On a pro-forma basis, excluding the impact of non-
 cash compensation calculations, the net loss for the quarter ended March 31,
 2001 was $(3,735,000), or $(.97) per share, and the net loss for the quarter
 ended March 31, 2000 was $(2,104,000), or $(.66) per share.  The Company is
 amending its long-term incentive compensation plans so that future reported
 financial results will not be impacted by stock price fluctuations.
     Commenting on the results, Stuart D. Neidus, Anthony & Sylvan's Chairman
 and Chief Executive Officer, said, "The cold, wet winter weather,  worse than
 we have seen for several years, had a major impact on our ability to install
 swimming pools in many of our markets.  The good news is that we start the
 second quarter with a good backlog of business, although sales are being
 impacted by lower demand."
     Mr. Neidus also commented on current economic conditions by stating,
 "Because of current soft business conditions, a number of cost-cutting
 measures have been installed to better match revenues and expenses.  We are
 also leveraging our industry leadership position and financial strength to
 take advantage of opportunities often presented in weak economic cycles, while
 continuing initiatives to improve our infrastructure and our execution.  For
 the longer term, we continue to believe that we should be able to gain market
 share and grow revenues and profits at a 15 to 20 percent rate."
     Anthony & Sylvan ( www.anthonysylvan.com ) operates in the leisure
 industry, offering in-ground, concrete residential swimming pools, spas and
 related products to its customers.  The Company serves its customers through a
 network of 52 sales design centers in 29 geographic markets in 16 states.  It
 also sells pool-related consumables, replacement parts, equipment and supplies
 through retail service centers.
     This press release contains statements that are forward-looking, as that
 term is defined by the Private Securities Litigation Reform Act of 1995 or by
 the Securities and Exchange Commission in its rules, regulations, and
 releases.  The Company intends that such forward-looking statements be subject
 to the safe harbors created thereby.  All forward-looking statements are based
 on current expectations regarding important risk factors, including but not
 limited to:  dependence on existing management; consumer spending; market
 conditions and weather.  Accordingly, actual results may differ from those
 expressed in the forward-looking statements, and the making of such statements
 should not be regarded as a representation by the Company or any other person
 that results expressed therein will be achieved.
 
              Anthony & Sylvan Pools Corporation and Subsidiaries
                          Consolidated Balance Sheets
                             (Dollars in thousands)
 
                                                      March 31,    December 31,
                                                        2001           2000
                                                    (Unaudited)      (Audited)
     ASSETS
 
     Current Assets:
       Cash and cash equivalents                         $715           $422
       Contract receivables, net                        7,281         11,592
       Inventories, net                                 7,455          5,219
       Prepayments and other                            1,899          1,542
       Deferred income taxes                            4,005          1,914
         Total current assets                          21,355         20,689
 
     Property, plant and equipment, net                 9,569          8,674
     Goodwill, net                                     26,819         27,003
     Deferred income taxes                                939            939
     Other                                              2,988          2,837
     Total Assets                                     $61,670        $60,142
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
       Current maturities of long-term debt               $42            $62
       Accounts payable                                 7,813          6,323
       Accrued expenses                                17,058         12,379
       Accrued income taxes                               280            505
         Total current liabilities                     25,193         19,269
 
     Long-Term Debt                                     2,350          1,250
     Deferred Income Tax Liability                        945            945
     Other Long-Term Liabilities                        2,269          2,254
 
     Commitments and Contingencies                          -              -
 
     Shareholders' Equity                              30,913         36,424
     Total Liabilities and Shareholders' Equity       $61,670        $60,142
 
              Anthony & Sylvan Pools Corporation and Subsidiaries
                Unaudited Consolidated Statements of Operations
               For the Three Months Ended March 31, 2001 and 2000
                     (in thousands, except per share data)
 
                                                             March 31,
                                                         2001        2000
 
     Net sales                                        $26,089        $30,391
     Cost of sales                                     21,099         23,938
       Gross profit                                     4,990          6,453
     Operating expenses (a)                            10,121          9,763
       Loss from operations                            (5,131)        (3,310)
     Interest and other expense                           146            196
       Loss before income taxes                        (5,277)        (3,506)
     Benefit for income taxes                          (2,091)        (1,294)
       Net loss                                       $(3,186)       $(2,212)
 
     Loss per share:
       Basic                                            $(.83)         $(.70)
       Diluted                                          $(.83)         $(.70)
 
     Average shares outstanding:
       Basic                                            3,837          3,170
       Diluted                                          3,837          3,170
 
     (a) Includes a non-cash deferred compensation credit of $575 in the
         quarter ended March 31, 2001 and a non-cash deferred compensation
         expense of $114 in the quarter ended March 31, 2000.
 
              Anthony & Sylvan Pools Corporation and Subsidiaries
                Unaudited Consolidated Statements of Cash Flows
               For the Three Months Ended March 31, 2001 and 2000
                             (Dollars in thousands)
 
                                                        2001          2000
     Cash Flows from Operating Activities:
       Net loss                                      $(3,186)       $(2,212)
       Adjustments to reconcile net loss to
         net cash provided by operating activities:
           Depreciation and amortization                 820            685
           Deferred income taxes                      (2,091)             -
           Non-cash deferred stock compensation         (575)           114
           Other                                           -             (8)
       Changes in operating assets and liabilities
         net of assets acquired:
           Contract receivables                        4,311          2,501
           Inventories                                (2,236)        (2,343)
           Prepayments and other                        (357)          (257)
           Accounts payable                            1,490          3,540
           Accrued and other expenses                  4,454          1,569
             Cash provided by operating activities     2,630          3,589
     Cash Flows from Investing Activities:
       Additions to property, plant
         and equipment                                (1,532)          (609)
       Other                                            (135)          (161)
       Cash used in investing activities              (1,667)          (770)
     Cash Flows from Financing Activities:
       Proceeds from long-term debt                    1,080         (2,543)
       Proceeds from sale of shares                      250            270
       Purchase of treasury shares                    (2,000)             -
         Cash used in financing activities              (670)        (2,273)
     Increase in Cash and Cash Equivalents               293            546
     Cash and Cash Equivalents:
       Beginning of period                               422            533
       End of period                                    $715         $1,079
 
     Supplemental Cash Flow Information:
       Interest paid                                     $88           $187
       Income taxes paid                                $525            $28
 
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 SOURCE  Anthony & Sylvan Pools Corporation