ONEIDA, N.Y., Aug. 14, 2002 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ) today announced improved earnings of $ 0.18 per share for the 2002 second fiscal quarter ended July 27, 2002, exceeding First Call consensus estimates.
Net income was $3.0 million, or $ 0.18 per share, which included miscellaneous income that was recorded as $1.6 million, or $ 0.09 per share, largely representing income from insurance proceeds and gain on the sale of marketable securities. The overall results were up from net income of $1.7 million, or $ 0.10 per share, in the 2001 second fiscal quarter, which included miscellaneous income of $600,000, or $ 0.02 per share. For the first six months of fiscal 2002, net income increased to $4.7 million, or $ 0.28 per share, up from $2.1 million, or $ 0.13 per share, for the same period a year ago. During the second quarter the company determined there was no impairment to goodwill provisions in relation to its first quarter adoption of the new accounting standard for "Goodwill and Other Intangible Assets" (SFAS No. 142).
Second-quarter sales were $111 million, compared to $119 million a year ago. Sales for the first half of fiscal 2002 totaled $226 million, compared to $246 million for the 2001 fiscal first half.
Oneida made further progress improving its balance sheet, reducing debt by $12 million during the quarter and bringing year-to-date debt reduction to $28 million. It was the fifth straight quarter in which debt was reduced.
INTERNAL IMPROVEMENTS HELP OFFSET SOFT ECONOMY
"We are pleased that our second quarter earnings reflected further improvement in spite of a sluggish economy. As consumer confidence continued to decline, soft spending patterns affected our tabletop sales in both consumer and foodservice markets," said Peter J. Kallet, Oneida Chairman and Chief Executive Officer. "Our performance benefited from continued improvements in our operating efficiencies, including reductions in debt and interest expenses coupled with lower operating costs.
"Our position as a well-established brand and market leader is helping us during these trying conditions. The bridal registry portion of our business showed ongoing strength, although consumer spending in general has been curtailed by weak consumer confidence and continued uncertainty in the equity market," Mr. Kallet said. "Our foodservice unit maintained strong order levels with restaurant chains, though it still feels the impact of an overall decline in personal and business travel which is affecting our hotel, resort and airline accounts. Our international operations performed well while facing global economic uncertainties, and have promising business prospects for the second half of the year."
BALANCE SHEET IS ENCOURAGING
"We also see encouraging signs in our balance sheet performance," Mr. Kallet continued. "We are pleased by our ongoing debt and interest rate reductions, which are surpassing our internal forecasts. This will further strengthen our company and enhance our financial performance as the economy improves."
SALES EVENTS PLANNED FOR SECOND HALF
"Regarding the balance of 2002, Oneida historically has generated stronger results in the second half of the year during the holiday seasons," Mr. Kallet commented. "While projections are difficult, we are planning several major new product introductions in the fall that we anticipate will generate additional business.
"Most importantly, we continue to be profitable, and continue to reduce debt. We remain committed to those ongoing goals, and to the fulfillment of our strategic plan to strengthen our position as the world's most complete tabletop supplier," Mr. Kallet added.
CONFERENCE CALL ON AUGUST 15
Oneida's management will host a conference call with analysts and investors on Thursday, August 15, 2002 at 9 a.m. EST to discuss the second quarter results and operating performance. The conference call will be broadcast live over the Internet at www.oneida.com.To access the webcast, participants should visit the Investor Relations section of the website at least 15 minutes prior to the start of the conference call to download and install any necessary audio software. A replay of the webcast can be accessed one hour after the conference call, and will be available for 30 days.
Oneida Ltd. is a leading manufacturer and marketer of flatware and dinnerware for both the consumer and foodservice industries worldwide. Oneida also is a leading marketer of a variety of crystal, glassware and metal serveware for those industries.
Statements contained in this press release that state that certain results are "expected" or "anticipated" to occur, or otherwise state the company's predictions for the future, are forward looking statements. These particular forward-looking statements and all other statements that are not historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially. Such factors include, but are not limited to: general economic conditions in the Company's markets; difficulties or delays in the development, production and marketing of new products; the impact of competitive products and pricing; unforeseen increases in the cost of raw materials or shortages of raw materials; significant increases in interest rates or the level of the Company's indebtedness; major slowdowns in the retail, travel or entertainment industries; the loss of several of the Company's major customers; underutilization of the Company's plants and factories; and the amount and rate of growth of 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 ENDED SIX MONTHS ENDED
July 27, July 28, July 27, July 28,
2002 2001 2002 2001
------- ------- ------- -------
Net Sales $ 111.2 $ 119.4 $ 226.2 $ 246.2
Cost of Sales 74.0 77.6 151.5 162.9
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Gross Profit 37.2 41.8 74.7 83.3
Operating Revenues 0.3 0.3 0.7 0.7
Selling, Distribution
& Administrative 31.6 34.1 63.1 68.1
Operating Income 5.9 8.0 12.3 15.9
Other (Income) Expense - Net (2.6) (0.6) (3.0) (0.5)
Interest Expense 3.8 5.9 7.8 13.0
------- ------- ------- -------
Income before Income Taxes 4.7 2.7 7.5 3.4
Provision for Income Taxes 1.7 1.0 2.8 1.3
------- ------- ------- -------
Net Income $ 3.0 $ 1.7 $ 4.7 $ 2.1
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Net Income per share:
Basic: $ 0.18 $ 0.10 $ 0.28 $ 0.13
Diluted: $ 0.18 $ 0.10 $ 0.28 $ 0.13
Weighted Average Shares:
Outstanding 16,540 16,459 16,535 16,433
Diluted 16,608 16,553 16,575 16,519
NOTE: Amortization of goodwill was included in prior year's
earnings per share. The effect was $ 0.03 for the second
quarter of 2001 and $ 0.06 for the six month period ended
July 28, 2001.
ONEIDA LTD.
CONDENSED BALANCE SHEET
(Millions of dollars)
July 27, 2002 January 26, 2002
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ASSETS
Cash $ 2.6 $ 11.1
Accounts Receivable - Net 76.2 80.9
Inventory 172.8 169.5
Other Current Assets 15.3 18.6
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Total Current Assets 266.9 280.1
Plant and Equipment - Net 105.1 108.4
Intangibles 135.1 134.1
Other Assets 27.5 23.6
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Total Assets $534.6 $546.2
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LIABILITIES
Accounts Payable &
Accrued Liabilities $ 76.6 $ 66.8
Short-Term Debt 9.3 11.4
Current Portion of Long-Term Debt 5.9 4.0
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Total Current Liabilities 91.8 82.2
Long-Term Debt 228.8 256.2
Other Liabilities 81.6 80.4
Shareholders' Equity 132.4 127.4
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Total Liabilities & Equity $534.6 $546.2
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CONDENSED CASH FLOW STATEMENT
SIX MONTHS ENDED JULY 2002/2001
(Millions of dollars)
Period ended Period ended
July 2002 July 2001
--------- ---------
Net income $ 4.7 $ 2.1
Add: depreciation & amortization 8.0 9.4
Net working capital charges 2.1 2.9
Capital expenditures (4.0) (5.7)
Stock sales/(purchases) - net 0.2 1.1
Proceeds/(payments) of debt (27.5) (1.6)
Dividends paid (0.7) (1.7)
Other - net 8.7 (6.0)
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(Decrease) Increase in Cash $ (8.5) $ 0.5
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