Bairnco Announces 2001 First Quarter Results

Apr 19, 2001, 01:00 ET from Bairnco Corporation

    LAKE MARY, Fla., April 19 /PRNewswire/ -- Bairnco Corporation (NYSE:   BZ)
 today reported reduced operating results for the first quarter of 2001 as
 compared to the same period last year.  Sales were down 3.5% to $44,218,000,
 net income decreased 59.4% to $1,017,000 and diluted earnings per share
 decreased 56.3% to $.14.  Cost reduction actions continued, including
 headcount being reduced by 15% or 140 employees during the first quarter.
     At the Annual Meeting held today the stockholders elected the nominees for
 director recommended by the Board of Directors and ratified the Board's
 selection of Bairnco's auditors.
 
     Performance
     Sales in the first quarter 2001 were $44,218,000, a decrease of 3.5% from
 $45,816,000 in 2000.  Arlon's sales were up 2.5% from last year primarily as a
 result of a small acquisition in the first quarter.   There were widespread
 varying declines in its graphics, industrial and electrical markets.  Demand
 from the wireless and telecommunication markets dropped dramatically but were
 offset by the early 2001 strength in demand for high-temperature products from
 military and commercial electronics markets.  The strong U.S. dollar continued
 to have an adverse impact on Arlon's export sales.  Kasco's sales decreased
 21.4% as compared to the first quarter last year due to several factors.
 Sales of Kasco's seasoning products were reduced as a result of the decision
 of a major grocery chain to shift its ready-to-cook meat and seafood products
 from in-store preparation to purchasing prepared products from central
 processors.  Significant competitive pressures on its U.S. operations
 continued, resulting in lost sales and overall reduced pricing as compared to
 last year's first quarter.  The strong U.S. dollar also negatively impacted
 the currency translation of Kasco's foreign sales.  Finally, Kasco's European
 operations were impacted by reduced meat consumption due to "mad cow" and
 "hoof-and-mouth" disease outbreaks in Europe.
     Gross profit decreased 18.3% to $12,534,000 from $15,341,000 due to the
 reduced sales, even lower production volumes to reduce inventories, and the
 impact of the strong dollar on export margins.  The gross profit margin as a
 percent of sales decreased to 28.3% from 33.5%.
     Selling and administrative expenses decreased 7.4% to $10,112,000 from
 $10,918,000 as costs were reduced in light of a slowing economy and efforts to
 improve Kasco's financial performance.  As a percent of sales, selling and
 administrative expenses decreased to 22.9% from 23.8%.
     Interest expense increased to $948,000 in 2001 as compared to $683,000 in
 2000 due to higher average borrowings resulting from the acquisitions in the
 first quarter of 2001 and 2000 and the repurchase of Bairnco common stock
 during 2000.  No shares were repurchased during the first quarter of 2001.
     Net income decreased 59.4% to $1,017,000 as compared to $2,506,000 in the
 first quarter of 2000.  Diluted earnings per common share decreased 56.3% to
 $.14 from $.32 as a result of reduced earnings.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:
     Statements in this press release referring to the expected future plans
 and performance of the Corporation are forward-looking statements.  Actual
 future results may differ materially from such statements.  Factors that could
 affect future performance include, but are not limited to, changes in U.S. or
 international economic or political conditions, such as inflation or
 fluctuations in interest or foreign exchange rates; the impact on production
 output and costs from the availability of energy sources and related pricing;
 the costs and other effects of legal and administrative cases and proceedings,
 settlements and investigations; the market demand and acceptance of the
 Corporation's existing and new products; changes in the pricing of the
 products of the Corporation or its competitors; the impact of competitive
 products; changes in the market for raw or packaging materials which could
 impact the Corporation's manufacturing costs; changes in the product mix; the
 loss of a significant customer or supplier; production delays or
 inefficiencies; the ability to achieve anticipated revenue growth, synergies
 and other cost savings in connection with acquisitions; disruptions in
 operations due to labor disputes; the costs and other effects of complying
 with environmental regulatory requirements; and losses due to natural
 disasters where the Corporation is self-insured.  While the Corporation
 periodically reassesses material trends and uncertainties affecting the
 Corporation's results of operations and financial condition in connection with
 its preparation of its press releases, the Corporation does not intend to
 review or revise any particular forward-looking statement referenced herein in
 light of future events.
     Bairnco Corporation is a diversified multinational company that operates
 two distinct businesses -- 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 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 primarily in the meat and deli departments.
 Kasco also distributes equipment to the food industry in France.
 
     Bairnco Corporation
     Comparative Results of Operations  (Unaudited)
 
                                                        Quarter Ended
     Condensed Income Statements                 Mar 31, 2001    Apr 1, 2000
 
     Net sales                                    $44,218,000    $45,816,000
        Cost of sales                              31,684,000     30,475,000
     Gross profit                                  12,534,000     15,341,000
        Selling and administrative expenses        10,112,000     10,918,000
     Operating profit                               2,422,000      4,423,000
        Interest expense, net                         948,000        683,000
     Income before income taxes                     1,474,000      3,740,000
        Provision for income taxes                    457,000      1,234,000
     Net income                                   $ 1,017,000    $ 2,506,000
     Basic Earnings per Share of
      Common Stock                                      $0.14          $0.32
     Diluted Earnings per Share of Common Stock         $0.14          $0.32
 
     Diluted Average Common Shares                  7,437,000      7,852,000
 
 
 
     Condensed Balance Sheets                    Mar 31, 2001   Dec 31, 2000
 
     ASSETS
 
     Cash                                          $1,496,000       $945,000
     Accounts receivable, net                      32,152,000     32,504,000
     Inventories                                   28,997,000     29,471,000
     Other current assets                           6,498,000      7,383,000
        Total current assets                       69,143,000     70,303,000
     Plant and equipment, net                      47,098,000     47,341,000
     Cost in excess of net assets
      of purchased businesses                      12,978,000     12,828,000
     Other assets                                   5,500,000      5,297,000
        Total                                    $134,719,000   $135,769,000
 
     LIABILITIES AND STOCKHOLDERS' INVESTMENT
 
     Short-term debt                               $3,390,000     $5,734,000
     Current maturities of long-term debt           3,250,000      3,000,000
     Accounts payable                              12,622,000     11,479,000
     Accrued expenses                              11,149,000     15,164,000
        Total current liabilities                  30,411,000     35,377,000
     Long-term debt                                41,351,000     37,456,000
     Other liabilities                              9,999,000     10,227,000
     Stockholders' investment                      52,958,000     52,709,000
        Total                                    $134,719,000   $135,769,000
 
 

SOURCE Bairnco Corporation
    LAKE MARY, Fla., April 19 /PRNewswire/ -- Bairnco Corporation (NYSE:   BZ)
 today reported reduced operating results for the first quarter of 2001 as
 compared to the same period last year.  Sales were down 3.5% to $44,218,000,
 net income decreased 59.4% to $1,017,000 and diluted earnings per share
 decreased 56.3% to $.14.  Cost reduction actions continued, including
 headcount being reduced by 15% or 140 employees during the first quarter.
     At the Annual Meeting held today the stockholders elected the nominees for
 director recommended by the Board of Directors and ratified the Board's
 selection of Bairnco's auditors.
 
     Performance
     Sales in the first quarter 2001 were $44,218,000, a decrease of 3.5% from
 $45,816,000 in 2000.  Arlon's sales were up 2.5% from last year primarily as a
 result of a small acquisition in the first quarter.   There were widespread
 varying declines in its graphics, industrial and electrical markets.  Demand
 from the wireless and telecommunication markets dropped dramatically but were
 offset by the early 2001 strength in demand for high-temperature products from
 military and commercial electronics markets.  The strong U.S. dollar continued
 to have an adverse impact on Arlon's export sales.  Kasco's sales decreased
 21.4% as compared to the first quarter last year due to several factors.
 Sales of Kasco's seasoning products were reduced as a result of the decision
 of a major grocery chain to shift its ready-to-cook meat and seafood products
 from in-store preparation to purchasing prepared products from central
 processors.  Significant competitive pressures on its U.S. operations
 continued, resulting in lost sales and overall reduced pricing as compared to
 last year's first quarter.  The strong U.S. dollar also negatively impacted
 the currency translation of Kasco's foreign sales.  Finally, Kasco's European
 operations were impacted by reduced meat consumption due to "mad cow" and
 "hoof-and-mouth" disease outbreaks in Europe.
     Gross profit decreased 18.3% to $12,534,000 from $15,341,000 due to the
 reduced sales, even lower production volumes to reduce inventories, and the
 impact of the strong dollar on export margins.  The gross profit margin as a
 percent of sales decreased to 28.3% from 33.5%.
     Selling and administrative expenses decreased 7.4% to $10,112,000 from
 $10,918,000 as costs were reduced in light of a slowing economy and efforts to
 improve Kasco's financial performance.  As a percent of sales, selling and
 administrative expenses decreased to 22.9% from 23.8%.
     Interest expense increased to $948,000 in 2001 as compared to $683,000 in
 2000 due to higher average borrowings resulting from the acquisitions in the
 first quarter of 2001 and 2000 and the repurchase of Bairnco common stock
 during 2000.  No shares were repurchased during the first quarter of 2001.
     Net income decreased 59.4% to $1,017,000 as compared to $2,506,000 in the
 first quarter of 2000.  Diluted earnings per common share decreased 56.3% to
 $.14 from $.32 as a result of reduced earnings.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:
     Statements in this press release referring to the expected future plans
 and performance of the Corporation are forward-looking statements.  Actual
 future results may differ materially from such statements.  Factors that could
 affect future performance include, but are not limited to, changes in U.S. or
 international economic or political conditions, such as inflation or
 fluctuations in interest or foreign exchange rates; the impact on production
 output and costs from the availability of energy sources and related pricing;
 the costs and other effects of legal and administrative cases and proceedings,
 settlements and investigations; the market demand and acceptance of the
 Corporation's existing and new products; changes in the pricing of the
 products of the Corporation or its competitors; the impact of competitive
 products; changes in the market for raw or packaging materials which could
 impact the Corporation's manufacturing costs; changes in the product mix; the
 loss of a significant customer or supplier; production delays or
 inefficiencies; the ability to achieve anticipated revenue growth, synergies
 and other cost savings in connection with acquisitions; disruptions in
 operations due to labor disputes; the costs and other effects of complying
 with environmental regulatory requirements; and losses due to natural
 disasters where the Corporation is self-insured.  While the Corporation
 periodically reassesses material trends and uncertainties affecting the
 Corporation's results of operations and financial condition in connection with
 its preparation of its press releases, the Corporation does not intend to
 review or revise any particular forward-looking statement referenced herein in
 light of future events.
     Bairnco Corporation is a diversified multinational company that operates
 two distinct businesses -- 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 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 primarily in the meat and deli departments.
 Kasco also distributes equipment to the food industry in France.
 
     Bairnco Corporation
     Comparative Results of Operations  (Unaudited)
 
                                                        Quarter Ended
     Condensed Income Statements                 Mar 31, 2001    Apr 1, 2000
 
     Net sales                                    $44,218,000    $45,816,000
        Cost of sales                              31,684,000     30,475,000
     Gross profit                                  12,534,000     15,341,000
        Selling and administrative expenses        10,112,000     10,918,000
     Operating profit                               2,422,000      4,423,000
        Interest expense, net                         948,000        683,000
     Income before income taxes                     1,474,000      3,740,000
        Provision for income taxes                    457,000      1,234,000
     Net income                                   $ 1,017,000    $ 2,506,000
     Basic Earnings per Share of
      Common Stock                                      $0.14          $0.32
     Diluted Earnings per Share of Common Stock         $0.14          $0.32
 
     Diluted Average Common Shares                  7,437,000      7,852,000
 
 
 
     Condensed Balance Sheets                    Mar 31, 2001   Dec 31, 2000
 
     ASSETS
 
     Cash                                          $1,496,000       $945,000
     Accounts receivable, net                      32,152,000     32,504,000
     Inventories                                   28,997,000     29,471,000
     Other current assets                           6,498,000      7,383,000
        Total current assets                       69,143,000     70,303,000
     Plant and equipment, net                      47,098,000     47,341,000
     Cost in excess of net assets
      of purchased businesses                      12,978,000     12,828,000
     Other assets                                   5,500,000      5,297,000
        Total                                    $134,719,000   $135,769,000
 
     LIABILITIES AND STOCKHOLDERS' INVESTMENT
 
     Short-term debt                               $3,390,000     $5,734,000
     Current maturities of long-term debt           3,250,000      3,000,000
     Accounts payable                              12,622,000     11,479,000
     Accrued expenses                              11,149,000     15,164,000
        Total current liabilities                  30,411,000     35,377,000
     Long-term debt                                41,351,000     37,456,000
     Other liabilities                              9,999,000     10,227,000
     Stockholders' investment                      52,958,000     52,709,000
        Total                                    $134,719,000   $135,769,000
 
 SOURCE  Bairnco Corporation