Del Laboratories, Inc., Reports Increased Third Quarter Results
27 Oktober 2004 - 10:22PM
PR Newswire (US)
Del Laboratories, Inc., Reports Increased Third Quarter Results
UNIONDALE, N.Y., Oct. 27 /PRNewswire-FirstCall/ -- Del
Laboratories, Inc. (AMEX:DLI) today announced results for the third
quarter and nine months ended September 30, 2004. Net sales for the
third quarter of 2004 were $115,552,000, an increase of 16%
compared to third quarter 2003 net sales of $99,716,000. Net
earnings for the third quarter of 2004 were $6,462,000, or $0.66
per basic share, an increase of 39% compared to net earnings of
$4,651,000, or $0.48 per basic share reported for the third quarter
of 2003. The net earnings for the third quarter include an
after-tax charge of approximately $1,096,000, or $0.11 per basic
share for costs related to the merger announced on July 2, 2004.
Net sales for the first nine months of 2004 were $301,565,000, an
increase of 3.6% compared to net sales of $291,055,000 reported for
the first nine months of 2003. Net earnings for the first nine
months of 2004 were $10,899,000, or $1.12 per basic share compared
to net earnings reported for the first nine months of 2003 of
$13,916,000, or $1.45 per basic share. The decrease in net earnings
for the first nine months of 2004 compared to the prior year is
primarily attributable to the previously reported higher production
costs incurred during the first and second quarters of 2004 due to
the start-up problems encountered with the transfer of
manufacturing operations from Farmingdale, N.Y. to Rocky Point,
North Carolina. Dan K. Wassong, Chairman, President and Chief
Executive Officer, said: "I am pleased to report that along with
the increased sales and earnings in the third quarter excellent
progress has been achieved in improving the production processes in
our Rocky Point, North Carolina manufacturing facility. We believe
that the consolidation of our principal manufacturing operations
with our distribution facility in North Carolina should generate
improved operating efficiencies and cost savings compared to our
pre-relocation operating costs." "During the quarter we continued
to build on the strength of our brands. In our cosmetic business,
Sally Hansen remains the number one brand in the mass market nail
care category with a 27.0% share of market for the third quarter,
as reported by ACNielsen. Orajel, the core brand in our over-the-
counter pharmaceutical business, continues as the market leader in
the oral analgesics category with a 30.4% share of market for the
third quarter, as reported by Information Resources, Inc.," said
Mr. Wassong. As previously reported, on July 2, 2004, the Company
announced it signed a definitive merger agreement to be acquired by
DLI Holding Corp. The Company anticipates that the special meeting
of Del's shareholders will be held in December for the purpose of
seeking shareholder approval of the transaction. Condensed
Statements of Consolidated Earnings (In thousands, except per share
amounts) Three Months Ended Nine Months Ended September 30
September 30 2004 2003 2004 2003 (Unaudited) (Unaudited) Net sales
$115,552 $99,716 $301,565 $291,055 Net earnings (1) and (2) $6,462
$4,651 $10,899 $13,916 Earnings per common share (1), (2) and (3)
Basic $ 0.66 $0.48 $ 1.12 $ 1.45 Diluted $ 0.62 $0.46 $ 1.05 $ 1.38
Weighted average common shares outstanding (3) Basic 9,742 9,692
9,731 9,628 Diluted 10,432 10,209 10,392 10,064 (1) The third
quarter results of 2004 include an after-tax charge of
approximately $1,096,000, or $0.11 per basic share for costs
related to the definitive merger agreement announced on July 2,
2004. The nine month results of 2004 include an after-tax charge of
approximately $1,227,000, or $0.13 per basic share for costs
related to the definitive merger agreement. (2) The nine month
results of 2003 include after-tax charges of approximately
$1,213,000, or $0.13 per basic share for severance and related
costs. (3) All share and per share amounts have been adjusted to
reflect the 5% stock dividend distributed December 29, 2003. Del
Laboratories, Inc., markets and manufactures cosmetics and
over-the- counter pharmaceuticals. Its major brands include SALLY
HANSEN HARD AS NAILS(R), America's number one nail protection,
HEALING BEAUTY(R) skin care makeup, CORNSILK(R) face makeup,
LACROSS(R) nail and beauty implements, lip color, skin care,
bleaches and depilatories, all under the SALLY HANSEN brand
franchise, NATURISTICS(R) cosmetics, and N.Y.C. New York Color(R)
cosmetics. The Company's Del Pharmaceuticals subsidiary includes
ORAJEL(R), the number one brand of topical oral analgesics,
ARTHRICARE(R), PRONTO(R), DERMAREST(R) PSORIASIS, GENTLE NATURALS
(R), AURO-DRI(R), TANAC(R) and PROPA pH(R). Certain statements in
this press release may constitute "forward-looking statements"
under the federal securities laws. Forward-looking statements
contain information that is subject to certain risks,
uncertainties, trends and other factors that could cause actual
results to be materially different from any future results implied
by such forward-looking statements. Factors that might cause such a
difference include, but are not limited to: delays in introducing
new products or failure of consumers to accept new products;
actions by competitors which may result in mergers, technology
improvement or new product introductions; the dependence on certain
national chain drug stores, food stores and mass merchandiser
relationships due to the concentration of sales generated by such
chains; changes in fashion-oriented color cosmetic trends; the
effect on sales of lower retailer inventory targets; the effect on
sales of political and/or economic conditions; the Company's
estimates of costs and benefits, cash flow from operations and
capital expenditures; interest rate or foreign exchange rate
changes affecting the Company and its market sensitive financial
instruments including the Company's qualitative and quantitative
estimates as to market risk sensitive instruments; changes in
product mix to products which are less profitable; shipment delays;
depletion of inventory and increased production costs resulting
from disruptions of operations at any of our manufacturing or
distribution facilities; foreign currency fluctuations affecting
our results of operations and the value of our foreign assets and
liabilities; the relative prices at which we sell our products and
our foreign competitors sell their products in the same market; our
operating and manufacturing costs outside of the United States;
changes in the laws, regulations and policies, including changes in
accounting standards, that effect, or will effect, us in the United
States and/or abroad; and trends in the general economy. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that its expectations will be achieved.
Without limitation, use of the following words is intended to
identify forward-looking statements: "may," "will," "should,"
"expect," "anticipate," "estimate," "intend," "plan," or "continue"
or the negative thereof or other variations thereon. For further
information on factors which could impact the Company and the
statements contained herein, please refer to the Company's filings
with the Securities and Exchange Commission, including without
limitation the Company's Annual Report on Form 10-K and the
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" contained or incorporated by reference
therein and quarterly reports on Form 10-Q. Filings with the
Securities and Exchange Commission are available on the Company's
website at http://www.dellabs.com/. DATASOURCE: Del Laboratories,
Inc. CONTACT: Enzo J. Vialardi, Executive Vice President and Chief
Financial Officer of Del Laboratories, Inc., +1-516-844-2050 Web
site: http://www.dellabs.com/
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