Clarion Technologies' Sales Increase More Than 300% for 2000

Apr 18, 2001, 01:00 ET from Clarion Technologies, Inc.

    HOLLAND, Mich., April 18 /PRNewswire/ -- Clarion Technologies, Inc.
 (Nasdaq: CLAR) today announced financial results for its fourth quarter and
 year ended December 31, 2000.
     Clarion's sales for 2000's fourth quarter more than doubled to $31.8
 million from the $15.0 million reported for the same period last year.  The
 increase is primarily due to the Drake acquisition Clarion made in 2000's
 first quarter.  For the quarter, Clarion reported a net loss after preferred
 dividends (loss attributable to common shareholders) of $8.4 million, or $0.36
 per diluted share, compared with $8.3 million, or $0.45 per diluted share,
 reported for 1999's fourth quarter.  During the fourth quarter, the Company
 recorded a charge of approximately $2.3 million before tax for the writedown
 of the NAPCO, L.L.C. acquisition.  Clarion is eliminating certain low-margin
 business that came through the purchase of NAPCO's customer accounts.
     Clarion Technologies' President Bill Beckman commented, "We are very proud
 of the operational improvements we have made over the course of last year.
 Unfortunately these improvements went unrecognized in our fourth-quarter
 results because of the toll that the production slowdown in the automotive and
 heavy truck industries had on our business."
     "To weather this current downturn, we are battening down our operations'
 hatches.  We have begun implementing a series of measures aimed at reducing
 our overhead costs without affecting our ability to serve our customers.  For
 one, we plan to move our Greenville, Michigan, operations into a single
 facility, as part of the consolidation of the Drake acquisition.  This move
 greatly improves our efficiency and still leaves enough capacity to grow with
 the customers that we serve there."
     For the year ended December 31, 2000, sales were $117.4 million, a more
 than 300% increase over the $28.1 million reported for 1999 -- the result of
 four major strategic acquisitions during 1999 and early 2000.  Earnings before
 interest, taxes, depreciation and amortization improved to $4.8 million, or
 $0.22 per diluted share, compared with a loss before interest, taxes,
 depreciation, and amortization of $10.7 million, or $0.63 per diluted share,
 for 1999.  For the year, Clarion's net loss after preferred dividends (loss
 attributable to common shareholders) was $11.7 million, or $0.54 per diluted
 share, compared with a loss of $14.9 million, or $0.88 per share, for 1999.
     Commenting on 2001, Mr. Beckman said, "While we are concerned by how this
 economic downturn will affect our business and financial results in 2001, we
 remain confident of the success of our business strategy in the long term.  We
 actually expect this downturn to provide us with some opportunities to win new
 business as potential customers look to other suppliers that can provide
 better products and services in a more efficient manner.  In addition, through
 the Drake acquisition, we have diversified our customer base to include
 appliance, consumer goods and office furniture manufacturers, thereby reducing
 our dependence on the automotive and heavy truck industries."
     Clarion Technologies, Inc. operates six manufacturing facilities and a
 technical design center with a total of approximately 700,000 square feet
 located in Michigan, Ohio and South Carolina.  Clarion's manufacturing
 operations include 155 injection molding machines ranging in size from 50 to
 5000 tons of clamping force.  The Company's headquarters are located in
 Holland, Michigan.  Further information about Clarion Technologies, including
 an electronic version of the Company's brochure, can be obtained on the
 worldwide web at www.clariontechnologies.com .
     Except for historical information, this news release contains certain
 forward-looking statements that involve unknown risks and uncertainties which
 may cause actual results to differ materially from any future results,
 performance or achievements expressed or implied by the statements made.  Such
 risks and uncertainties include, but are not limited to, uncertainties
 regarding future sales, the marketing of its products, the availability of
 funds for ongoing operations and further development or acquisition activities
 and other risks detailed from time to time in the Company's Securities and
 Exchange Commission filings.  There is no assurance that the Company will be
 successful in achieving its goals.
 
                           Clarion Technologies, Inc.
                              Financial Highlights
                                  (Unaudited)
                      In Thousands, Except Per Share Data
 
                                 Three Months Ended            Year Ended
                                Dec. 30,     Dec. 31,    Dec. 30,     Dec. 31,
                                  2000         1999        2000         1999
 
     Net sales                $  31,811    $  15,011    $117,374    $  28,059
     Cost of sales               31,829       14,002     104,308       27,139
 
     Gross profit (loss)            (18)       1,009      13,066          920
     Selling, general and
      administrative expenses     2,976        8,027      11,958       13,685
     Impairment charge            2,299           --       2,299           --
 
     Operating income (loss)     (5,293)      (7,018)     (1,191)     (12,765)
 
     Interest expense            (2,595)        (403)     (8,008)      (1,010)
     Other income (expenses), net     8         (301)        101         (471)
 
     Loss before income taxes    (7,880)      (7,722)     (9,098)     (14,246)
     Income taxes (credit)          (57)         126         438          126
 
     Net loss                    (7,823)      (7,848)     (9,536)     (14,372)
     Preferred dividends           (554)        (426)     (2,204)        (571)
     Loss designated to common
      shareholders for computing
       per share results       $ (8,377)    $ (8,274)   $(11,740)    $(14,943)
 
     Loss per share
      (basic and diluted)      $  (0.36)    $  (0.45)   $  (0.54)    $  (0.88)
     Weighted average shares
       outstanding
        (basic and diluted)      23,514       18,529      21,625       16,931
 
     EBITDA                    $ (3,727)     $(5,886)    $ 4,792     $(10,736)
 
 

SOURCE Clarion Technologies, Inc.
    HOLLAND, Mich., April 18 /PRNewswire/ -- Clarion Technologies, Inc.
 (Nasdaq: CLAR) today announced financial results for its fourth quarter and
 year ended December 31, 2000.
     Clarion's sales for 2000's fourth quarter more than doubled to $31.8
 million from the $15.0 million reported for the same period last year.  The
 increase is primarily due to the Drake acquisition Clarion made in 2000's
 first quarter.  For the quarter, Clarion reported a net loss after preferred
 dividends (loss attributable to common shareholders) of $8.4 million, or $0.36
 per diluted share, compared with $8.3 million, or $0.45 per diluted share,
 reported for 1999's fourth quarter.  During the fourth quarter, the Company
 recorded a charge of approximately $2.3 million before tax for the writedown
 of the NAPCO, L.L.C. acquisition.  Clarion is eliminating certain low-margin
 business that came through the purchase of NAPCO's customer accounts.
     Clarion Technologies' President Bill Beckman commented, "We are very proud
 of the operational improvements we have made over the course of last year.
 Unfortunately these improvements went unrecognized in our fourth-quarter
 results because of the toll that the production slowdown in the automotive and
 heavy truck industries had on our business."
     "To weather this current downturn, we are battening down our operations'
 hatches.  We have begun implementing a series of measures aimed at reducing
 our overhead costs without affecting our ability to serve our customers.  For
 one, we plan to move our Greenville, Michigan, operations into a single
 facility, as part of the consolidation of the Drake acquisition.  This move
 greatly improves our efficiency and still leaves enough capacity to grow with
 the customers that we serve there."
     For the year ended December 31, 2000, sales were $117.4 million, a more
 than 300% increase over the $28.1 million reported for 1999 -- the result of
 four major strategic acquisitions during 1999 and early 2000.  Earnings before
 interest, taxes, depreciation and amortization improved to $4.8 million, or
 $0.22 per diluted share, compared with a loss before interest, taxes,
 depreciation, and amortization of $10.7 million, or $0.63 per diluted share,
 for 1999.  For the year, Clarion's net loss after preferred dividends (loss
 attributable to common shareholders) was $11.7 million, or $0.54 per diluted
 share, compared with a loss of $14.9 million, or $0.88 per share, for 1999.
     Commenting on 2001, Mr. Beckman said, "While we are concerned by how this
 economic downturn will affect our business and financial results in 2001, we
 remain confident of the success of our business strategy in the long term.  We
 actually expect this downturn to provide us with some opportunities to win new
 business as potential customers look to other suppliers that can provide
 better products and services in a more efficient manner.  In addition, through
 the Drake acquisition, we have diversified our customer base to include
 appliance, consumer goods and office furniture manufacturers, thereby reducing
 our dependence on the automotive and heavy truck industries."
     Clarion Technologies, Inc. operates six manufacturing facilities and a
 technical design center with a total of approximately 700,000 square feet
 located in Michigan, Ohio and South Carolina.  Clarion's manufacturing
 operations include 155 injection molding machines ranging in size from 50 to
 5000 tons of clamping force.  The Company's headquarters are located in
 Holland, Michigan.  Further information about Clarion Technologies, including
 an electronic version of the Company's brochure, can be obtained on the
 worldwide web at www.clariontechnologies.com .
     Except for historical information, this news release contains certain
 forward-looking statements that involve unknown risks and uncertainties which
 may cause actual results to differ materially from any future results,
 performance or achievements expressed or implied by the statements made.  Such
 risks and uncertainties include, but are not limited to, uncertainties
 regarding future sales, the marketing of its products, the availability of
 funds for ongoing operations and further development or acquisition activities
 and other risks detailed from time to time in the Company's Securities and
 Exchange Commission filings.  There is no assurance that the Company will be
 successful in achieving its goals.
 
                           Clarion Technologies, Inc.
                              Financial Highlights
                                  (Unaudited)
                      In Thousands, Except Per Share Data
 
                                 Three Months Ended            Year Ended
                                Dec. 30,     Dec. 31,    Dec. 30,     Dec. 31,
                                  2000         1999        2000         1999
 
     Net sales                $  31,811    $  15,011    $117,374    $  28,059
     Cost of sales               31,829       14,002     104,308       27,139
 
     Gross profit (loss)            (18)       1,009      13,066          920
     Selling, general and
      administrative expenses     2,976        8,027      11,958       13,685
     Impairment charge            2,299           --       2,299           --
 
     Operating income (loss)     (5,293)      (7,018)     (1,191)     (12,765)
 
     Interest expense            (2,595)        (403)     (8,008)      (1,010)
     Other income (expenses), net     8         (301)        101         (471)
 
     Loss before income taxes    (7,880)      (7,722)     (9,098)     (14,246)
     Income taxes (credit)          (57)         126         438          126
 
     Net loss                    (7,823)      (7,848)     (9,536)     (14,372)
     Preferred dividends           (554)        (426)     (2,204)        (571)
     Loss designated to common
      shareholders for computing
       per share results       $ (8,377)    $ (8,274)   $(11,740)    $(14,943)
 
     Loss per share
      (basic and diluted)      $  (0.36)    $  (0.45)   $  (0.54)    $  (0.88)
     Weighted average shares
       outstanding
        (basic and diluted)      23,514       18,529      21,625       16,931
 
     EBITDA                    $ (3,727)     $(5,886)    $ 4,792     $(10,736)
 
 SOURCE  Clarion Technologies, Inc.