Material Sciences Reports First Quarter Fiscal 2010 Results
Net sales for the latest three months were
Improving Operations in Difficult Markets
“As expected, we saw no improvements in the automotive and housing markets during our first quarter – and faced a comparison with a much stronger quarter a year ago,” said
Lower Sales More than Offset Operational Improvements
Sales of acoustical materials – mainly purchased by automotive manufacturers – were
Coated materials sales – primarily to appliance, building product and automotive customers – at
Gross profit for the most recent three months was
Selling, general and administrative expenses (SG&A) were
The quarterly loss from operations was
Stronger Financial Condition
Net cash provided by operations during the first three months was
The cash balance at
Automotive Revenues Protected; Focus on New Opportunities
“Two of our customers – General Motors and Chrysler – are involved in very large bankruptcy filings,” Nastas said. “However, none of Material Sciences’ receivables with these companies are at risk, and our company has seen no increases in bad debt expense.
“We continue to make progress introducing new products and reaching new markets. ElectroBrite(R) has been approved by a major OEM for use in a suite of kitchen appliances it plans to introduce next year. We also are exploring opportunities to supply additional laminated materials to our European partner. And while sales in the coming fiscal 2010 quarters will remain weak, we are positioning the company to capitalize on opportunities to grow as our markets improve,” Nastas concluded.
Conference Call
Material Sciences will host a conference call to share its first quarter results on
The company invites interested investors to listen to the presentation, which will be carried live on Material Sciences’ Web site: www.matsci.com. A replay of the call will be available on the site for the following 30 days. Those who wish to listen should go to the Web site several minutes before the discussion begins. After clicking on the presentation icon, investors should follow the instructions to ensure their systems are set up to hear the event, or download the correct applications at no charge.
About Material Sciences
Material Sciences Corporation is a leading provider of material-based solutions for acoustical and coated applications. Material Sciences uses its expertise in materials, which it leverages through relationships and a network of partners, to solve customer-specific problems. The company’s stock is traded on the OTC Bulletin Board under the symbol MASC.
This news release contains forward-looking statements that are based on current expectations, forecasts and assumptions. Material Sciences cautions the reader that the following factors could cause its actual outcomes and results to differ materially from those stated or implied in this release: the recent unprecedented deterioration in the overall economy; changes in the business environment, including the transportation, building and construction, electronics and durable goods industries; competitive factors, including domestic and foreign competition for both acoustical and coated applications, pricing acceptance, union activity, as well as changes in industry capacity; changes in laws, regulations, policies or other activities of governments, agencies or similar organizations (including the ruling under Section 201 of the Trade Act of 1974); the stability of governments and business conditions inside and outside of the U.S., which may affect a successful penetration of the company’s products; acceptance of brake damping materials, engine components and body panel laminate parts by customers in
Additional information about Material Sciences is available at www.matsci.com.
FINANCIAL TABLES FOLLOW
Condensed Consolidated Statements of Operations (Unaudited)
Material Sciences Corporation and Subsidiaries
Three Months Ended
May 31,
(In thousands, except per share data) 2009 2008
-------------------------------------- ---- ----
Net Sales $31,827 $57,165
Cost of Sales 29,361 50,364
------ ------
Gross Profit 2,466 6,801
Selling, General and Administrative
Expenses 6,655 10,354
Loss from Operations (4,189) (3,553)
------ ------
Other Income, Net:
Interest Income, Net (71) (74)
Equity in Results of Joint Venture (36) (81)
Other, Net (43) (490)
--- ----
Total Other Income, Net (150) (645)
---- ----
Loss from Operations Before
Benefit for Income Taxes (4,039) (2,908)
Provision (Benefit) for Income Taxes 18 (1,336)
--- ------
Net Loss $(4,057) $(1,572)
======= =======
Basic Net Loss Per Share $(0.30) $(0.11)
====== ======
Diluted Net Loss Per Share $(0.30) $(0.11)
====== ======
Weighted Average Number of Common
Shares Outstanding Used for Basic
Net Loss Per Share 13,339 13,856
Dilutive Shares - -
--- ---
Weighted Average Number of Common
Shares Outstanding Plus Dilutive
Shares 13,339 13,856
====== ======
Outstanding Common Stock Options Having
No Dilutive Effect 472 372
=== ===
Condensed Consolidated Balance Sheets (Unaudited)
Material Sciences Corporation and Subsidiaries
May 31, February 28,
(In thousands) 2009 2009
-------------- ---- ----
Assets:
Current Assets:
Cash and Cash Equivalents $16,352 $10,664
Receivables, Less Reserves of $2,695
and $2,965, Respectively 12,938 13,297
Income Taxes Receivable 701 2,567
Prepaid Expenses 1,396 657
Inventories 20,742 24,657
Assets Held for Sale 3,275 3,329
Total Current Assets 55,404 55,171
------ ------
Property, Plant and Equipment 171,064 170,010
Accumulated Depreciation (124,751) (122,264)
-------- --------
Net Property, Plant and
Equipment 46,313 47,746
------ ------
Other Assets:
Notes Receivable 4,072 4,363
Investment in Joint Venture 2,428 2,288
Other 431 471
--- ---
Total Other Assets 6,931 7,122
----- -----
Total Assets $108,648 $110,039
======== ========
Liabilities:
Current Liabilities:
Accounts Payable $14,122 $10,442
Accrued Payroll Related Expenses 4,763 3,269
Accrued Expenses 5,437 8,284
----- -----
Total Current Liabilities 24,322 21,995
------ ------
Long-Term Liabilities:
Pension and Postretirement
Liabilities 10,288 10,574
Other 3,246 3,250
----- -----
Total Long-Term Liabilities 13,534 13,824
------ ------
Commitments and Contingencies
Shareowners' Equity:
Preferred Stock - -
Common Stock 380 380
Additional Paid-In Capital 79,764 79,696
Treasury Stock at Cost (56,520) (56,146)
Retained Earnings 51,103 55,161
Accumulated Other Comprehensive
Income (3,935) (4,871)
------ ------
Total Shareowners' Equity 70,792 74,220
------ ------
Total Liabilities and Shareowners'
Equity $108,648 $110,039
======== ========
Condensed Consolidated Statements of Cash Flows (Unaudited)
Material Sciences Corporation and Subsidiaries
Three Months Ended
May 31,
(In thousands) 2009 2008
-------------- ---- ----
Cash Flows From:
Operating Activities:
Net Income (Loss) $(4,057) $(1,572)
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation, Amortization and Accretion 2,237 2,680
Change in Provision for Deferred Income
Taxes - (1,705)
Compensatory Effect of Stock Plans 68 91
Foreign Currency Transaction Gain - (354)
(Gain) on Derivative Instruments (107) -
Other, Net (36) (81)
Changes in Assets and Liabilities:
Receivables 822 (1,116)
Income Taxes Receivable 1,866 303
Prepaid Expenses (732) (1,001)
Inventories 4,128 2,295
Accounts Payable 3,596 4,540
Accrued Expenses (1,316) (112)
Other, Net (115) 479
---- ---
Net Cash Provided by Operating
Activities 6,354 4,447
----- -----
Investing Activities:
Capital Expenditures (345) (1,639)
Proceeds from Sale of Marketable Securities - 2,800
---- -----
Net Cash Provided by (Used in)
Investing Activities (345) 1,161
---- -----
Financing Activities:
Purchases of Treasury Stock (374) (2,706)
---- ------
Net Cash Used in Financing
Activities (374) (2,706)
---- ------
Effect of Exchange Rate Changes on Cash 53 (14)
Net Increase (Decrease) in Cash 5,688 2,888
Cash and Cash Equivalents at Beginning of
Period 10,664 7,913
------ -----
Cash and Cash Equivalents at End of
Period $16,352 $10,801
======= =======
Non-Cash Transactions:
Capital Expenditures in Accounts Payable
at End of Period $84 $461
Supplemental Cash Flow Disclosures:
Interest Paid $15 $26
Income Taxes Paid $46 $8
SOURCE Material Sciences Corporation