Temtex Industries Announces Second Quarter Operating Results

Apr 16, 2001, 01:00 ET from Temtex Industries, Inc.

    DALLAS, April 16 /PRNewswire/ -- TEMTEX INDUSTRIES, INC. (Nasdaq:   TMTX),
 which manufactures woodburning and gas fireplaces and related products, today
 reported operating results for the second quarter and first half of FY2001.
     For the three months ended February 28, 2001, net sales decreased 21% to
 $4.1 million, when compared with net sales of $5.2 million in the second
 quarter of the previous fiscal year.  Despite the decline in sales, the
 Company reported a pretax loss of ($1,404,000), which was 17% smaller than the
 prior-year pretax loss of ($1,698,000).  A net loss of ($1,404,000), or
 ($0.41) per share, was recorded in the most recent quarter, versus a net loss
 of ($1,019,000), or ($0.30) per share, in the year-earlier period.  Temtex
 recorded no income tax benefit during the most recent quarter, whereas
 operating results in the year-earlier period benefited from an income tax
 credit of $679,000 (equivalent to $0.20 per share).
     Net sales declined 20%, to $9.0 million, in the first six months of
 FY2001, compared with net sales of $11.3 million in the first half of FY2000.
 The Company's pretax loss narrowed slightly to ($2,303,000) in the six months
 ended February 28, 2001, versus a pretax loss of ($2,398,000) in the
 prior-year period.  The Company reported a net loss of ($2,303,000), or
 ($0.67) per share, in the first half of FY2001, compared with a net loss of
 ($1,439,000), or ($0.42) per share, in the corresponding period of the
 previous year.  No income tax benefit was recorded in the six months ended
 February 28, 2001, whereas operating results in the year-earlier period
 benefited from an income tax credit of $959,000 (equivalent to $0.28 per
 share).
     "Although sales continued to trail prior-year levels in the most recent
 quarter, we were able to reduce our pretax loss by more than 17% from the
 prior-year period," noted Edwin R. Buford, president and chief executive
 officer of Temtex Industries, Inc.  "Selling, general and administrative
 expenses declined by 33% in the second quarter, relative to the year-earlier
 quarter, largely due to our expense reduction program."
     "Lower sales in the first two quarters of Fiscal 2001 reflect a trend
 which, we believe, is evident throughout the fireplace industry.  A number of
 our competitors have curtailed operations, eliminated product lines, and taken
 other actions which reflect the consolidation that is currently underway in
 the industry.  While we cannot predict when sales growth will resume,
 management is hopeful that increased orders in March and April are a harbinger
 of better times ahead.  We have substantially reduced corporate overhead and
 streamlined our production processes during the past three quarters and are
 aggressively pursuing new distributors and increased sales to existing
 distributors.  We introduced seven new gas fireplaces at the annual Hearth
 Products Association (HPA) trade show in late March, and we have significantly
 enhanced the burn package appearance of several existing products."
     "According to the HPA, industry-wide shipments of gas fireplaces have
 risen from 149,000 units to over 1,043,000 units (annually) during the past
 eight years, while yearly shipments of woodburning fireplaces have grown just
 11% during the same period of time.  While demand for gas-fired units has
 softened recently, in response to higher gas prices, we expect that gas
 fireplaces will continue to rise in popularity over the long-term.  Temtex is
 pursuing a strategy designed to increase its share of the gas fireplace
 segment of the hearth products industry, and we believe the Company is
 positioned for improved profitability when sales recover."
 
     Temtex Industries, Inc. is a leading manufacturer and distributor of
 zero-clearance and gas fireplace products, including vent-free gas logs.  Its
 products are marketed to residential homebuilders, remodeling contractors, and
 consumers.  Temtex Industries is headquartered in Dallas, Texas, and its
 manufacturing facilities are located in Tennessee, California, and Mexico.
     The common stock of Temtex Industries, Inc. is traded on the Nasdaq
 SmallCap Market under the symbol "TMTX."
 
     This press release includes statements that may constitute
 "forward-looking" statements, including statements regarding our future
 profitability and the strategies related thereto, trends in the fireplace
 industry, consolidation in our industry, customer demand for gas fireplace
 products, our ability to achieve or sustain increased sales, our strategy and
 ability to add new distributors and increase sales to existing distributors,
 our product improvements or enhancements, our strategy to increase our market
 share in the gas fireplace industry, as well as statements containing the
 words "believe," "estimate," "project," "expect," "hopeful" or similar
 expressions.  These statements are made pursuant to the safe harbor provisions
 of the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements inherently involve risks and uncertainties that could cause actual
 results to differ materially from the forward-looking statements.  Factors
 that would cause or contribute to such differences include, but are not
 limited to, continued acceptance of the Company's products in the marketplace,
 competitive factors, new products and technological changes, product prices
 and raw material costs, dependence upon third-party vendors, and other risks
 detailed in the Company's periodic report filings with the Securities and
 Exchange Commission.  By making these forward-looking statements, the Company
 undertakes no obligation to update these statements for revisions or changes
 after the date of this release.
 
     For further information, please contact: Ed Buford, CEO at (972) 726-7175,
 or RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or
 via e-mail at info@rjfalkner.com.
 
 
                    TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
 
                CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                      (In thousands, except share amounts)
 
 
                                                       Quarter Ended
                                                February 28,   February 29,
                                                    2001           2000
 
     Net sales                                     $4,098        $5,210
     Cost of goods sold                             3,993         4,829
                                                      105           381
 
     Costs and Expenses
       Selling, general and administrative          1,346         2,015
       Interest                                       126            60
       Other expense (income)                          37             4
                                                    1,509         2,079
     LOSS FROM OPERATIONS
      BEFORE INCOME TAX (BENEFIT)                  (1,404)       (1,698)
 
     State, federal and foreign income tax (benefit)   --          (679)
 
     NET LOSS                                     $(1,404)      $(1,019)
 
     Basic and diluted loss per common share:      $(0.41)       $(0.30)
 
     Basic and diluted weighted average common
      shares outstanding                        3,444,641     3,444,641
 
 
                    TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
 
                CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                      (In thousands, except share amounts)
 
 
                                                     Six Months Ended
                                                February 28,   February 29,
                                                    2001           2000
 
     Net sales                                     $9,034       $11,334
     Cost of goods sold                             8,358         9,977
                                                      676         1,357
 
     Costs and Expenses
       Selling, general and administrative          2,781         3,797
       Interest                                       213           103
       Other expense (income)                         (15)         (145)
                                                    2,979         3,755
     LOSS FROM OPERATIONS
      BEFORE INCOME TAX (BENEFIT)                  (2,303)       (2,398)
 
     State, federal and foreign income tax (benefit)   --          (959)
 
     NET LOSS                                     $(2,303)      $(1,439)
 
     Basic and diluted loss per common share:      $(0.67)       $(0.42)
 
     Basic and diluted weighted average common
      shares outstanding                        3,444,641     3,444,641
 
 

SOURCE Temtex Industries, Inc.
    DALLAS, April 16 /PRNewswire/ -- TEMTEX INDUSTRIES, INC. (Nasdaq:   TMTX),
 which manufactures woodburning and gas fireplaces and related products, today
 reported operating results for the second quarter and first half of FY2001.
     For the three months ended February 28, 2001, net sales decreased 21% to
 $4.1 million, when compared with net sales of $5.2 million in the second
 quarter of the previous fiscal year.  Despite the decline in sales, the
 Company reported a pretax loss of ($1,404,000), which was 17% smaller than the
 prior-year pretax loss of ($1,698,000).  A net loss of ($1,404,000), or
 ($0.41) per share, was recorded in the most recent quarter, versus a net loss
 of ($1,019,000), or ($0.30) per share, in the year-earlier period.  Temtex
 recorded no income tax benefit during the most recent quarter, whereas
 operating results in the year-earlier period benefited from an income tax
 credit of $679,000 (equivalent to $0.20 per share).
     Net sales declined 20%, to $9.0 million, in the first six months of
 FY2001, compared with net sales of $11.3 million in the first half of FY2000.
 The Company's pretax loss narrowed slightly to ($2,303,000) in the six months
 ended February 28, 2001, versus a pretax loss of ($2,398,000) in the
 prior-year period.  The Company reported a net loss of ($2,303,000), or
 ($0.67) per share, in the first half of FY2001, compared with a net loss of
 ($1,439,000), or ($0.42) per share, in the corresponding period of the
 previous year.  No income tax benefit was recorded in the six months ended
 February 28, 2001, whereas operating results in the year-earlier period
 benefited from an income tax credit of $959,000 (equivalent to $0.28 per
 share).
     "Although sales continued to trail prior-year levels in the most recent
 quarter, we were able to reduce our pretax loss by more than 17% from the
 prior-year period," noted Edwin R. Buford, president and chief executive
 officer of Temtex Industries, Inc.  "Selling, general and administrative
 expenses declined by 33% in the second quarter, relative to the year-earlier
 quarter, largely due to our expense reduction program."
     "Lower sales in the first two quarters of Fiscal 2001 reflect a trend
 which, we believe, is evident throughout the fireplace industry.  A number of
 our competitors have curtailed operations, eliminated product lines, and taken
 other actions which reflect the consolidation that is currently underway in
 the industry.  While we cannot predict when sales growth will resume,
 management is hopeful that increased orders in March and April are a harbinger
 of better times ahead.  We have substantially reduced corporate overhead and
 streamlined our production processes during the past three quarters and are
 aggressively pursuing new distributors and increased sales to existing
 distributors.  We introduced seven new gas fireplaces at the annual Hearth
 Products Association (HPA) trade show in late March, and we have significantly
 enhanced the burn package appearance of several existing products."
     "According to the HPA, industry-wide shipments of gas fireplaces have
 risen from 149,000 units to over 1,043,000 units (annually) during the past
 eight years, while yearly shipments of woodburning fireplaces have grown just
 11% during the same period of time.  While demand for gas-fired units has
 softened recently, in response to higher gas prices, we expect that gas
 fireplaces will continue to rise in popularity over the long-term.  Temtex is
 pursuing a strategy designed to increase its share of the gas fireplace
 segment of the hearth products industry, and we believe the Company is
 positioned for improved profitability when sales recover."
 
     Temtex Industries, Inc. is a leading manufacturer and distributor of
 zero-clearance and gas fireplace products, including vent-free gas logs.  Its
 products are marketed to residential homebuilders, remodeling contractors, and
 consumers.  Temtex Industries is headquartered in Dallas, Texas, and its
 manufacturing facilities are located in Tennessee, California, and Mexico.
     The common stock of Temtex Industries, Inc. is traded on the Nasdaq
 SmallCap Market under the symbol "TMTX."
 
     This press release includes statements that may constitute
 "forward-looking" statements, including statements regarding our future
 profitability and the strategies related thereto, trends in the fireplace
 industry, consolidation in our industry, customer demand for gas fireplace
 products, our ability to achieve or sustain increased sales, our strategy and
 ability to add new distributors and increase sales to existing distributors,
 our product improvements or enhancements, our strategy to increase our market
 share in the gas fireplace industry, as well as statements containing the
 words "believe," "estimate," "project," "expect," "hopeful" or similar
 expressions.  These statements are made pursuant to the safe harbor provisions
 of the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements inherently involve risks and uncertainties that could cause actual
 results to differ materially from the forward-looking statements.  Factors
 that would cause or contribute to such differences include, but are not
 limited to, continued acceptance of the Company's products in the marketplace,
 competitive factors, new products and technological changes, product prices
 and raw material costs, dependence upon third-party vendors, and other risks
 detailed in the Company's periodic report filings with the Securities and
 Exchange Commission.  By making these forward-looking statements, the Company
 undertakes no obligation to update these statements for revisions or changes
 after the date of this release.
 
     For further information, please contact: Ed Buford, CEO at (972) 726-7175,
 or RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or
 via e-mail at info@rjfalkner.com.
 
 
                    TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
 
                CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                      (In thousands, except share amounts)
 
 
                                                       Quarter Ended
                                                February 28,   February 29,
                                                    2001           2000
 
     Net sales                                     $4,098        $5,210
     Cost of goods sold                             3,993         4,829
                                                      105           381
 
     Costs and Expenses
       Selling, general and administrative          1,346         2,015
       Interest                                       126            60
       Other expense (income)                          37             4
                                                    1,509         2,079
     LOSS FROM OPERATIONS
      BEFORE INCOME TAX (BENEFIT)                  (1,404)       (1,698)
 
     State, federal and foreign income tax (benefit)   --          (679)
 
     NET LOSS                                     $(1,404)      $(1,019)
 
     Basic and diluted loss per common share:      $(0.41)       $(0.30)
 
     Basic and diluted weighted average common
      shares outstanding                        3,444,641     3,444,641
 
 
                    TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
 
                CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
                      (In thousands, except share amounts)
 
 
                                                     Six Months Ended
                                                February 28,   February 29,
                                                    2001           2000
 
     Net sales                                     $9,034       $11,334
     Cost of goods sold                             8,358         9,977
                                                      676         1,357
 
     Costs and Expenses
       Selling, general and administrative          2,781         3,797
       Interest                                       213           103
       Other expense (income)                         (15)         (145)
                                                    2,979         3,755
     LOSS FROM OPERATIONS
      BEFORE INCOME TAX (BENEFIT)                  (2,303)       (2,398)
 
     State, federal and foreign income tax (benefit)   --          (959)
 
     NET LOSS                                     $(2,303)      $(1,439)
 
     Basic and diluted loss per common share:      $(0.67)       $(0.42)
 
     Basic and diluted weighted average common
      shares outstanding                        3,444,641     3,444,641
 
 SOURCE  Temtex Industries, Inc.