ONEIDA, NY, Feb. 23, 2000 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ) today announced that 1999 fourth quarter earnings rose 77% to $0.69 per diluted share, up from $0.39 per diluted share in the fourth quarter last year, excluding a 1998 fourth quarter restructuring charge. Sales rose 4% to $130.4 million, up from $125.9 million in the corresponding fourth quarter last year. Net income was $11.4 million compared to $6.5 million (excluding the 1998 special charge) a year ago.
For the 1999 year, Oneida's earnings, excluding restructuring and other special charges, totaled $2.15 per share, a 59% increase over 1998 earnings of $1.35 per share. Sales rose 6% to $495 million, compared to $466 million last year. Income excluding charges was $36.0 million, compared to $22.9 million a year ago.
The key components of the restructuring program in 1999 were: the closure of a manufacturing facility in Canada; the consolidation of international operations; the realignment of senior management, including the separation of sales and marketing; the reduction of worldwide employment; and the elimination of underperforming product lines. The restructuring program, when fully realized in 2000, will result in $20 million of annualized savings. During the current year, approximately two-thirds of the benefits were realized. In addition, Oneida also accomplished the following during the year:
An improvement in gross profit margin from 37.1% to 39.6%;
A reduction in operating expenses as a percent of sales from
27.6% to 25.9%, resulting in;
An increase in operating income as a percent of sales from
9.7% to 13.9%.
Other fiscal 1999 highlights include:
In the second quarter, the Company completed construction
and began operating a distribution center in Buffalo, NY, for
foodservice dinnerware products;
In the fourth quarter, the Company completed construction
and began operating a manufacturing facility in China, for
foodservice metal products and;
In the fourth quarter, Oneida completed construction of a
major consumer products distribution center in Oneida, NY, which
will commence operations in the first quarter of fiscal 2000.
Peter J. Kallet, President and Chief Executive Officer of Oneida Ltd., commented, "We are extremely pleased with our financial results for fiscal 1999, which clearly reflect the benefits, cost savings and synergies achieved by the major restructuring initiated early in the year. We expect to achieve additional improvement in operations in fiscal 2000 as well, to support our firm commitment to increasing shareholder value. All of our business units grew during the year, with particular strength emanating from our new glassware lines and foodservice dinnerware products. We are continuing to develop our product offering and to reach new markets through internal product development, acquisitions, licensing agreements and strategic partnerships. Oneida, with its leading brands, is continuing to strengthen its leadership position in the worldwide tabletop industry."
Balance Sheet/Cash Flow Highlights During the fourth quarter, Oneida realized $31 million of free cash flow (i.e. cash flow after funding working capital, capital expenditures and dividends). The Company used $29.5 million to reduce debt and used the balance to buy back stock. During fiscal 1999, the Company repurchased approximately 305,000 shares of its common stock at a cost of $6.8 million. The Company has authorization to buy back an additional 570,000 shares under prior Board of Directors resolutions.
Total debt at the end of fiscal 1999 amounted to $146 million, as compared to $150 million at the end of last year. EBITDA, prior to restructuring charges, totaled $83 million at the end of fiscal 1999, as compared to $62 million in the prior year period. Total debt/adjusted EBITDA was 1.8 at the end of this year as compared to 2.4 at the end of last year. Interest coverage, adjusted for restructuring charges, was 6.3 at January 29, 2000 as compared to 5.1 a year ago.
Also today, Oneida's Board of Directors declared a regular quarterly dividend of 10 cents per share on common stock and 37 1/2 cents per share on preferred stock, both payable on March 30, 2000 to stockholders of record as of the close of business on March 10, 2000. This will be the 257th consecutive cash dividend paid on the common shares.
Oneida Ltd. is the world's largest manufacturer of stainless steel and silverplated flatware for both the consumer and foodservice industries, and the largest supplier of dinnerware to the foodservice industry. Oneida also is a leading supplier of a variety of crystal, glassware and metal serveware for the tabletop market.
Statements contained in this press release that state that certain results are "expected" or "anticipated" to occur, or therwise state the company's predictions for the future, are orward looking statements. These particular forward-looking tatements and all other statements that are not historical acts, are subject to a number of risks and uncertainties, and ctual results may differ materially. Such factors include, but re not limited to: general economic conditions in the Company's arkets; difficulties or delays in the development, production nd marketing of new products; the impact of competitive products nd pricing; unforeseen increases in the cost of raw materials or hortages of raw materials; significant increases in interest ates or the level of the Company's indebtedness; major slowdowns n the retail, travel or entertainment industries; the loss of everal of the Company's major customers; underutilization of the ompany's plants and factories; and the amount and rate of growth f the Company's selling, general and administrative expenses.
ONEIDA LTD.
CONDENSED CONSOLIDATED INCOME STATEMENT
(In millions, except per share amounts)
FOR THE FOR THE
THREE MONTHS TWELVE MONTHS
ENDED ENDED
January January January January
29, 30, 29, 30,
2000 1999 2000 1999
Net sales $ 130.4 $ 125.9 $ 495.1 $ 465.9
Cost of sales-
recurring 79.3 79.4 299.0 292.9
Cost of sales-
restructuring(a) - - 3.0 -
Total cost of sales 79.3 79.4 302.0 292.9
Gross profit 51.1 46.5 193.1 173.0
Operating revenues 0.3 0.3 0.8 0.8
Selling, distribution &
administrative expenses 30.5 33.7 128.1 128.7
Restructuring and
unusual charges(a) - 5.0 41.3 5.0
Operating Income 20.9 8.1 24.5 40.1
Other Income - Net 0.4 - 0.2 0.8
Interest Expense 2.9 2.6 10.9 9.0
Income Before Income 18.4 5.5 13.8 31.9
Taxes
Provision For Income 7.0 2.1 8.3 12.2
Taxes
Net Income $ 11.4 $ 3.4 $ 5.5 $ 19.7
Net Income Per Share:
Basic $ 0.69 $ 0.20 $ 0.33 $ 1.18
Diluted $ 0.69 $ 0.20 $ 0.32 $ 1.16
Weighted Average Shares:
Outstanding 16,476 16,631 16,524 16,670
Diluted 16,620 16,773 16,673 16,888
(a) NOTE: The Company's 1999 earnings include the impact of
various special charges including restructuring costs, asset
impairments and unusual charges (relating to expansion into
glassware and an unsolicited takeover proposal) and finally,
an inventory writedown related to costs associated with
exiting certain products. Before the impact of all these
charges, the Company's operating earnings during the current
year were $36.0 million or $2.15 per share, and $22.9
million, or $1.35 per share in the prior year.
ONEIDA LTD.
CONDENSED BALANCE SHEET
(Millions of dollars)
ASSETS January 29, January 30,
2000 1999
Cash $ 3.9 $ 1.9
Accounts receivable - net 84.4 75.7
Inventory 183.5 190.1
Other current assets 9.9 8.2
Total current assets 281.7 275.9
Plant and equipment - net 106.3 95.0
Intangibles 28.2 39.2
Other assets 33.0 31.9
Total assets $ 449.2 $ 442.0
LIABILITIES
Accounts payable & accrued
liabilities $ 88.9 $ 75.0
Short-term debt 31.7 56.1
Current portion of long-term debt 16.0 4.8
Total current liabilities 136.6 135.9
Long-term debt 98.5 89.6
Other liabilities 80.8 76.3
Shareholder's equity 133.3 140.2
Total liabilities & equity $ 449.2 $ 442.0
CONDENSED CASH FLOW STATEMENT
(Millions of dollars)
Year Year
ended ended
January January
29, 30,
2000 1999
Operating earnings, before
special charges $ 36.0 $ 22.9
Restructuring and unusual
charges-net of tax (30.5) (3.2)
Net income
5.5 19.7
Add: depreciation &
amortization 13.6 15.8
Net working capital changes 10.1 (65.3)
Impairment of long term assets 12.0 -
Capital expenditures (22.2) (21.8)
Stock sales and purchases - net (5.0) (3.8)
Proceeds/payments of debt (4.3) 63.6
Dividends paid (6.7) (8.5)
Other - net (1.0) (0.9)
Increase (decrease) in cash $ 2.0 $ (1.2)
CONTACT: INVESTOR RELATIONS CONTACTS:
Ed Thoma
Senior Vice President, Finance
Oneida Ltd.
(315) 361-3108
Donna Stein/Valerie Carmello
Morgen-Walke Associates, Inc.
(212) 850-5600
PRESS CONTACTS:
Dave Gymburch
Corporate Public Relations
Oneida Ltd.
(315) 361-3271
Gregory Tiberend
Morgen-Walke Associates, Inc.
(212) 850-5600