Ionics Reports First Quarter Results

Apr 30, 2001, 01:00 ET from Ionics, Incorporated

    WATERTOWN, Mass., April 30 /PRNewswire/ -- Ionics, Incorporated
 (NYSE:   ION) today reported first quarter revenues, net income, and earnings
 per share for the period ended March 31, 2001.  Revenues for the quarter were
 $123.0 million, up 19.6% compared to the first quarter of 2000.  Net income of
 $3.0 million and earnings per share of $0.18 were down 15.9% and 18.2% from
 the year-earlier period.  Bookings for the quarter totaled $111.1 million,
 down 17.9% compared to $135.3 million for the first quarter of 2000.  Backlog
 at the end of the quarter was $258.8 million, down 5.5% over the year-earlier
 backlog of $273.8 million.
     Commenting on results for the quarter, Arthur L. Goldstein, Chairman and
 Chief Executive Officer, noted that "we are encouraged by our continuing
 revenue growth, as well as by the improvement in our gross margins which, as
 expected, have begun to move closer to historical levels."
     He also noted that it was unnecessary to reflect additional accruals
 relating to the recent settlement of the lawsuit with U.S. Filter in the first
 quarter because the charges specifically applicable to that settlement were
 accrued in the fourth quarter of 2000.
     Ionics is a global separations technology company involved in the
 manufacture and sale of membranes, equipment and own and operate services for
 the purification, disinfection, concentration, treatment and analysis of
 water, wastewater and ultrapure water.  Over a period of more than 50 years
 Ionics has built more desalination plants than any company in the world.
 Ionics has been a pioneer in purified water with its worldwide five-gallon
 brand, Aqua Cool(R) Pure Bottled Water.
     Safe-harbor statement under the Private Securities Litigation Reform Act
 of 1995:  Forward-looking statements in this news release involve risk and
 uncertainty.  The statements contained in this release which are not
 historical facts are forward-looking statements.  Important factors, including
 overall economic conditions, demand for Company products, raw material
 availability, availability of manufacturing capacity, technological and
 product development risks, competitors' actions, and other factors described
 in the Company's filings with the Securities and Exchange Commission could
 cause actual results to differ materially.
 
 
                        IONICS REPORTS FIRST QUARTER RESULTS
 
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Amounts in thousands, except earnings per share)
 
                                                        Three months ended
                                                             March 31,
                                                      2001              2000
 
     Revenues:
        Equipment Business Group                     $51,981           $41,356
        Ultrapure Water Group                         33,848            27,746
        Consumer Water Group                          29,345            26,419
        Instrument Business Group                      7,788             7,274
                                                     122,962           102,795
     Costs and expenses:
        Cost of sales of Equipment Business
         Group                                        40,000            31,405
        Cost of sales of Ultrapure Water
         Group                                        25,680            21,865
        Cost of sales of Consumer Water
         Group                                        18,004            15,701
        Cost of sales of Instrument
         Business Group                                3,439             3,278
        Research and development                       1,690             1,821
        Selling, general and administrative           28,501            22,974
                                                     117,314            97,044
 
     Income from operations                            5,648             5,751
 
     Interest expense                                 (1,379)             (457)
 
     Equity income                                       441               332
 
     Income before income taxes and
      minority interest                                4,710             5,626
 
     Provision for income taxes                        1,601             1,913
 
     Income before minority interest                   3,109             3,713
 
     Minority interest expense                           114               151
 
     Net income                                       $2,995            $3,562
 
     Basic earnings per share                          $0.18             $0.22
 
     Diluted earnings per share                        $0.18             $0.22
 
     Shares used in basic earnings per
      share calculations                              16,389            16,209
 
     Shares used in diluted earnings per
      share calculations                              16,574            16,404
 
     Backlog                                        $258,750          $273,825
 
 
                        IONICS REPORTS FIRST QUARTER RESULTS
 
                            CONSOLIDATED BALANCE SHEETS
                               (Amounts in thousands)
 
                                                   March 31,       December 31,
                                                      2001              2000
     Current assets:
        Cash and cash equivalents                   $21,976            $25,497
        Short-term investments                          468              1,105
        Notes receivable, current                     4,194              4,741
        Accounts receivable                         154,966            162,711
        Receivables from affiliated
         companies                                    1,375                792
        Inventories                                  36,256             34,701
        Other current assets                         10,985             16,443
        Deferred income taxes                        12,749             12,749
           Total current assets                     242,969            258,739
 
     Notes receivable, long-term                     21,764             17,502
     Investments in affiliated companies             22,277             18,310
     Property, plant and equipment, net             217,302            222,843
     Other assets                                    58,313             60,072
           Total assets                            $562,625           $577,466
 
     Current liabilities:
        Notes payable and current portion
         of long-term debt                          $78,898            $75,045
        Accounts payable                             37,617             56,014
        Other current liabilities                    45,510             42,304
           Total current liabilities                162,025            173,363
 
     Long-term debt and notes payable                11,049             10,911
     Deferred income taxes                           27,636             30,334
     Other liabilities                                6,073              5,997
     Stockholders' equity                           355,842            356,861
           Total liabilities and
            stockholders' equity                   $562,625           $577,466
 
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SOURCE Ionics, Incorporated
    WATERTOWN, Mass., April 30 /PRNewswire/ -- Ionics, Incorporated
 (NYSE:   ION) today reported first quarter revenues, net income, and earnings
 per share for the period ended March 31, 2001.  Revenues for the quarter were
 $123.0 million, up 19.6% compared to the first quarter of 2000.  Net income of
 $3.0 million and earnings per share of $0.18 were down 15.9% and 18.2% from
 the year-earlier period.  Bookings for the quarter totaled $111.1 million,
 down 17.9% compared to $135.3 million for the first quarter of 2000.  Backlog
 at the end of the quarter was $258.8 million, down 5.5% over the year-earlier
 backlog of $273.8 million.
     Commenting on results for the quarter, Arthur L. Goldstein, Chairman and
 Chief Executive Officer, noted that "we are encouraged by our continuing
 revenue growth, as well as by the improvement in our gross margins which, as
 expected, have begun to move closer to historical levels."
     He also noted that it was unnecessary to reflect additional accruals
 relating to the recent settlement of the lawsuit with U.S. Filter in the first
 quarter because the charges specifically applicable to that settlement were
 accrued in the fourth quarter of 2000.
     Ionics is a global separations technology company involved in the
 manufacture and sale of membranes, equipment and own and operate services for
 the purification, disinfection, concentration, treatment and analysis of
 water, wastewater and ultrapure water.  Over a period of more than 50 years
 Ionics has built more desalination plants than any company in the world.
 Ionics has been a pioneer in purified water with its worldwide five-gallon
 brand, Aqua Cool(R) Pure Bottled Water.
     Safe-harbor statement under the Private Securities Litigation Reform Act
 of 1995:  Forward-looking statements in this news release involve risk and
 uncertainty.  The statements contained in this release which are not
 historical facts are forward-looking statements.  Important factors, including
 overall economic conditions, demand for Company products, raw material
 availability, availability of manufacturing capacity, technological and
 product development risks, competitors' actions, and other factors described
 in the Company's filings with the Securities and Exchange Commission could
 cause actual results to differ materially.
 
 
                        IONICS REPORTS FIRST QUARTER RESULTS
 
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                 (Amounts in thousands, except earnings per share)
 
                                                        Three months ended
                                                             March 31,
                                                      2001              2000
 
     Revenues:
        Equipment Business Group                     $51,981           $41,356
        Ultrapure Water Group                         33,848            27,746
        Consumer Water Group                          29,345            26,419
        Instrument Business Group                      7,788             7,274
                                                     122,962           102,795
     Costs and expenses:
        Cost of sales of Equipment Business
         Group                                        40,000            31,405
        Cost of sales of Ultrapure Water
         Group                                        25,680            21,865
        Cost of sales of Consumer Water
         Group                                        18,004            15,701
        Cost of sales of Instrument
         Business Group                                3,439             3,278
        Research and development                       1,690             1,821
        Selling, general and administrative           28,501            22,974
                                                     117,314            97,044
 
     Income from operations                            5,648             5,751
 
     Interest expense                                 (1,379)             (457)
 
     Equity income                                       441               332
 
     Income before income taxes and
      minority interest                                4,710             5,626
 
     Provision for income taxes                        1,601             1,913
 
     Income before minority interest                   3,109             3,713
 
     Minority interest expense                           114               151
 
     Net income                                       $2,995            $3,562
 
     Basic earnings per share                          $0.18             $0.22
 
     Diluted earnings per share                        $0.18             $0.22
 
     Shares used in basic earnings per
      share calculations                              16,389            16,209
 
     Shares used in diluted earnings per
      share calculations                              16,574            16,404
 
     Backlog                                        $258,750          $273,825
 
 
                        IONICS REPORTS FIRST QUARTER RESULTS
 
                            CONSOLIDATED BALANCE SHEETS
                               (Amounts in thousands)
 
                                                   March 31,       December 31,
                                                      2001              2000
     Current assets:
        Cash and cash equivalents                   $21,976            $25,497
        Short-term investments                          468              1,105
        Notes receivable, current                     4,194              4,741
        Accounts receivable                         154,966            162,711
        Receivables from affiliated
         companies                                    1,375                792
        Inventories                                  36,256             34,701
        Other current assets                         10,985             16,443
        Deferred income taxes                        12,749             12,749
           Total current assets                     242,969            258,739
 
     Notes receivable, long-term                     21,764             17,502
     Investments in affiliated companies             22,277             18,310
     Property, plant and equipment, net             217,302            222,843
     Other assets                                    58,313             60,072
           Total assets                            $562,625           $577,466
 
     Current liabilities:
        Notes payable and current portion
         of long-term debt                          $78,898            $75,045
        Accounts payable                             37,617             56,014
        Other current liabilities                    45,510             42,304
           Total current liabilities                162,025            173,363
 
     Long-term debt and notes payable                11,049             10,911
     Deferred income taxes                           27,636             30,334
     Other liabilities                                6,073              5,997
     Stockholders' equity                           355,842            356,861
           Total liabilities and
            stockholders' equity                   $562,625           $577,466
 
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                http://tbutton.prnewswire.com/prn/11690X30878780
 
 SOURCE  Ionics, Incorporated