Exhibit 99
Contact:
At the Company At the Financial Relations Board
401-233-0333 212-661-8030
Sandra Souto Analyst Information: John McNamara
Investor Relations Media Information: David Closs
FOR IMMEDIATE RELEASE
July 18, 2000
BACOU REPORTS ALL-TIME RECORD SALES AND EARNINGS
Q2 Net Sales of $81.5 Million - Up 10.3% Over Q2 '99 of $74.0 Million
Q2 Net Income of $9.4 Million - Up 18.5% Over Q2 '99 of $7.9 Million
Q2 Earnings Per Share of $0.53 - Up 17.8% Over Q2 '99 of $0.45
Six Month Net Sales of $155.7 Million - Up 21.2% Over '99 of $128.5 Million
Six-Month Net Income of $16.4 Million - Up 22.8% Over '99 of $13.4 Million
Six-Month Earnings Per Share of $0.93 - Up 22.4% Over '99 of $0.76
Smithfield, R.I., July 18, 2000 -- Bacou USA, Inc. (NYSE: BAU), a
leading manufacturer of personal protection equipment, today reported record
sales, net income and earnings per share for the quarter ended June 30, 2000.
"This is our fifth record-breaking quarter in a row," said Philip B.
Barr, President and CEO of Bacou USA. "Operating results for the second quarter
of 1999 were excellent and represented a challenging benchmark for us. Against
this backdrop, it is truly a remarkable achievement to report earnings growth of
18%. Even more impressive, net income and earnings per share are up by more than
22% for the first half of 2000 over the same period in 1999. We expect full-year
earnings of approximately $1.81 per share, representing annual growth in excess
of 15% over 1999, which is in line with our previously expressed expectations."
Bacou's net income for the second quarter of 2000 increased to $9.4
million from $7.9 million for the second quarter of 1999--up 18.5%. As for net
income per basic and diluted share, Bacou reported $0.53 for the second quarter
of 2000, up 17.8% from $0.45 for the second quarter of 1999.
Net sales for the second quarter of 2000 increased 10.3% to $81.5
million, compared with 1999 second-quarter net sales of $74.0 million. Net sales
for Bacou's safety segment were $58.0 million in the second quarter of 2000
compared to $52.6 million in 1999, an increase of 10.5%. Net sales for the
optical frames and instruments segment were $7.6 million in the second quarter
of 2000 - down from $8.6 million in 1999. Glove segment sales for the
2000-quarter of $15.9 million were up 24.2% over 1999 sales of $12.8 million.
"All product lines are contributing to our record success," said Mr.
Barr. "In two of our three segments, which represent five of our six product
lines, we had double-digit growth for the second quarter, with hearing
protection and gloves leading the way. In addition, international sales growth
has continued its recovery for the fourth consecutive quarter, with an increase
of 22.4% over second quarter 1999."
Bacou's net income for the six-months ended June 30, 2000, increased to
$16.4 million from $13.4 million for the six-months of 1999--up 22.8%. As for
net income per basic and diluted share, Bacou reported $0.93 for the six-months
ended June 30, 2000, up 22.4% from $0.76 for the six-months of 1999.
Year-to-date net sales have increased 21.2% from $128.5 million in 1999 to
$155.7 million in 2000.
For the six-months ended June 30, 2000, the company reported EBITDA
totaling $40.7 million, up 19.9% from $33.9 million in 1999. The company defines
EBITDA as operating income before depreciation, amortization and non-recurring
items. For the period, depreciation and amortization totaled $9.8 million in
2000 and $8.7 million in 1999.
At June 30, 2000, the company's balance sheet included total assets of
$373.2 million, working capital of $52.8 million, long-term debt of $109.6
million and stockholders' equity of $198.4 million.
During the past two weeks, Bacou USA has announced the acquisition of
Whiting + Davis Safety of North Attleborough, Massachusetts, and a decision to
evaluate strategic alternatives for Bacou USA and its majority shareholder,
Bacou S.A. of Paris, France. Walter Stepan, Co-Chairman of Bacou USA, was
appointed to lead the strategic evaluation process. In his remarks about the
acquisition of Whiting + Davis and the successful second quarter, Stepan said:
"As you know, we have developed a deep and talented team of operating executives
at Bacou USA. We will have a full team continuing our business in its normal
course, including the pursuit of appropriate acquisition opportunities, while I
continue leading the evaluation of strategic alternatives. During the second
quarter, we achieved success on all fronts, demonstrating our ability to handle
these diverse tasks while continuing to achieve excellent operating results."
Bacou USA, Inc. designs, manufactures and sells leading brands of
products that protect the sight, hearing, respiratory systems and hands of
workers, as well as related instrumentation including vision screeners, gas
monitors and test equipment for self-contained breathing apparatus. The
company's products, marketed under Uvex(R), Howard Leight(R), Perfect Fit(TM),
Whiting + Davis(R), Survivair(R), Pro-Tech(R), Biosystems(TM), Titmus(R),
LaserVision(TM) and Lase-R Shield(TM) brand names, are sold principally to
industrial safety distributors, fire fighting equipment distributors and optical
laboratories. News and information about Bacou USA are available on the
Worldwide Web at www.bacouusa.com, including the text of today's conference
call.
Statements contained in this press release that are not historical facts are
forward-looking statements that are made pursuant to the safe harbor provisions
of the Private Securities and Litigation Reform Act of 1995. In addition, words
such as "believes," "anticipates," "expects" and similar expressions are
intended to identify forward-looking statements. Forward-looking statements
involve risks and uncertainties, including but not limited to the timely
development and acceptance of new products, the impact of competitive products
and pricing, changing market conditions, the successful integration of
acquisitions, continued availability and favorable pricing of raw materials, and
the other risks detailed in the company's prospectus filed March 27, 1996, and
from time to time in other filings. Actual results may differ materially from
those projected. These forward-looking statements represent the company's
judgment as of the date of this release. The company disclaims, however, any
intent or obligation to update these forward-looking statements.
(Financial tables follow)
<PAGE>
BACOU USA, INC. AND SUBSIDIARIES
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
Statement of income data (unaudited): 2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 81,523 $ 73,907 $155,743 $128,482
Cost of sales 42,481 40,171 82,743 67,859
-------- -------- -------- --------
Gross profit 39,042 33,736 73,000 60,623
Operating expenses:
Selling 12,245 9,989 23,015 18,682
General and administrative 5,490 5,679 11,416 10,463
Research and development 1,423 1,263 2,862 2,472
Amortization of intangible assets 2,427 2,308 4,832 4,423
-------- -------- -------- --------
Total operating expenses 21,585 19,239 42,125 36,040
-------- -------- -------- --------
Operating income 17,457 14,497 30,875 24,583
Total other expense 2,694 2,162 5,041 3,712
-------- -------- -------- --------
Income before income taxes 14,763 12,335 25,834 20,871
Income taxes 5,391 4,427 9,397 7,489
-------- -------- -------- --------
Net income $ 9,372 $ 7,908 $ 16,437 $ 13,382
======== ======== ======== ========
Basic earnings per share $ 0.53 $ 0.45 $ 0.93 $ 0.76
======== ======== ======== ========
Diluted earnings per share $ 0.53 $ 0.45 $ 0.93 $ 0.76
======== ======== ======== ========
Weighted average shares outstanding:
Basic 17,648 17,619 17,639 17,618
====== ====== ====== ======
Diluted 17,799 17,646 17,724 17,716
====== ====== ====== ======
Other information:
Depreciation and amortization $ 9,804 $ 8,747
======= =======
EBITDA (defined by the company as operating income
before depreciation, amortization and non-recurring
items) $40,679 $33,920
======= =======
</TABLE>
<PAGE>
BACOU USA, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
---- ----
Balance Sheet Data (in thousands, except share data):
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 5,411 $ 10,272
Trade accounts receivable, net 48,726 41,653
Inventories 42,783 42,433
Other current assets 2,651 1,634
Deferred income taxes 3,200 3,733
-------- --------
Total current assets 102,771 99,725
Property and equipment, net 78,012 74,410
Intangible assets, net 189,639 194,258
Other assets 2,802 3,032
-------- --------
Total assets $373,224 $371,425
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $ 22,857 $ 23,637
Accounts payable 14,182 10,559
Accrued expenses 9,717 20,492
Income taxes payable 3,203 1,027
-------- --------
Total current liabilities 49,959 55,715
Long-term debt 109,607 120,256
Deferred income taxes 13,009 11,550
Other liabilities 2,282 2,449
-------- --------
Total liabilities 174,857 189,970
-------- --------
Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares
authorized, no shares issued and outstanding -- --
Common stock, $.001 par value, 50,000,000 shares
authorized, 17,658,165 shares in 2000 and 17,629,865
shares in 1999 issued and outstanding 18 18
Additional paid-in capital 73,535 73,060
Retained earnings 124,814 108,377
-------- --------
Total stockholders' equity 198,367 181,455
-------- --------
Total liabilities and stockholders' equity $373,224 $371,425
======== ========
</TABLE>
