|
LEICESTER, N.Y., June 5, 1997-- CPAC,
Inc. (Nasdaq: CPAK
today posted record earnings per share of $1.02 for fiscal year 1997, on a 38% increase in
profits.
For the year ended March 31, 1997, CPAC, Inc. sales were
up to $93 million, versus $89 million one year ago. Net income rose 38% to $7.53 million
from $5.47 million. Earnings per share for the year were up 20% to $1.02 from $0.85 last
year.
CPAC Chief Executive Officer, Thomas N. Hendrickson said
that in keeping with the Company's strategy of being the high-quality, low-cost producer,
its investments in plant and equipment have led to additional cost reductions.
According to Mr. Hendrickson, sales growth during the
fiscal year was attributable to expanded contract manufacturing in the Cleaning and
Personal Care Segment, and higher international sales in Imaging. In Cleaning and Personal
Care, on a 5% increase in sales to $47.1 million, operating income was up 35%. Imaging
sales rose 3% to $45.8 million, and operating income for this segment increased 24%.
"Our balance sheet is strong at year end, placing the
Company in an excellent position to make an acquisition," Mr. Hendrickson said.
"We have made successful acquisitions in the past, and we expect that our philosophy
of targeting undervalued companies will continue to provide significant rewards for our
shareholders."
In the fourth quarter ended March 31, 1997, net income was
up 22% to $1.49 million from $1.22 million last year. Earnings per share rose 25% to
$0.20, versus $0.16 last year. For the three month period CPAC sales remained steady with
last year, at $22.33 million versus $22.46 million in fiscal 1996. Mr. Hendrickson noted
that CPAC's fourth quarter earnings growth also reflected the Company's ongoing cost
reductions and internal improvements, with operating cash flows increasing 13%.
CPAC, Inc. is a specialty chemical manufacturer operating
in two business segments: Cleaning and Personal Care with its Fuller Brush subsidiary; and
Imaging, with its six subsidiaries, including Trebla Chemical Co. and Allied Diagnostic
Imaging Resources, Inc. The Company has over 200 registered trademarks for chemical and
non-chemical products. CPAC Inc. shares are traded over the Nasdaq National Market System
under the ticker symbol, "CPAK". Additional information is available on the
Company's website (http://www.cpac-fuller.com).
Except for the historical matters contained herein,
statements in this press release are forward looking and are made pursuant to the safe
harbor provisions of the Securities Litigation Reform Act of 1995. Investors are cautioned
that forward looking statements involve risks and uncertainties which may affect CPAC's
business and prospects, including economic, competitive, governmental technological and
other factors discussed in CPAC's filings with the Securities and Exchange Commission.
CPAC, Inc. Results of Operations
Fourth Quarter and Year Ended March 31, 1997
Fourth Quarter Ended March 31, 1996
|
|
1997 |
|
1996 |
change |
|
1997 |
|
1996 |
change |
Net sales:
|
|
|
|
|
|
|
|
|
|
<
|
| Imaging |
$ |
11,340,902 |
$ |
11,155,019 |
+1.7 |
$ |
45,813,721 |
$ |
44,307,311 |
+ 3.4 |
| Cleaning & Personal Care |
|
10,991,320 |
|
11,307,762 |
-2.8 |
|
47,152,431 |
|
44,761,622 |
+ 5.3 |
| Total Sales: |
$ |
22,332,222 |
$ |
22,462,781 |
-0.6 |
$ |
92,966,152 |
$ |
89,068,933 |
+ 4.4 |
|
|
|
|
|
|
|
|
|
|
|
Net
income |
$ |
1,486,125 |
$ |
1,220,142 |
+21.8 |
$ |
7,528,269 |
$ |
5,473,461 |
+37.5 |
|
|
|
|
|
|
|
|
|
|
|
Income per share*
|
$ |
0.20 |
|
0.16 |
+25.0 |
|
1.02 |
|
0.85 |
+20.0 |
| Operating cash flows ** |
$ |
3,109,910 |
$ |
2,746,689 |
+13.2 |
$ |
15,155,572 |
$ |
12,327,904 |
+22.9 |
Weighted average number
of common shares
outstanding* |
|
7,276,142 |
|
7,479,372 |
-2.8 |
|
7,364,476 |
|
6,422,693 |
+14.6 |
*Income per share and weighted average number of shares
outstanding have been restated to include the 5 for 4 common stock split declared on April
17, 1996, distributed on May 15, 1996.
** Earnings before interest, taxes, depreciation, and
amortization (EBITDA).
# # #
|
