Contact:
At the Company
--------------
401-233-0333
Sandra Souto
Investor Relations
FOR IMMEDIATE RELEASE
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October 17, 2000
BACOU REPORTS RECORD THIRD-QUARTER SALES AND EARNINGS
Q3 Net Sales of $81.4 Million - Up 11.6% Over Q3 '99 of $72.9 Million
Q3 Net Income of $8.6 Million - Up 12.5% Over Q3 '99 of $7.6 Million
Q3 Diluted Earnings Per Share of $0.48 - Up 11.6% Over Q3 '99 of $0.43
Nine Month Net Sales of $237.1 Million - Up 17.7% Over '99 of $201.4 Million
Nine Month Net Income of $25.0 Million - Up 17.1% Over '99 of $21.4 Million
Nine Month Diluted Earnings Per Share of $1.41 - Up 16.5% Over '99 of $1.21
[above amounts all prior to non-recurring acquisition charges]
Smithfield, R.I., October 17, 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 September 30,
2000.
"We are pleased to announce our sixth consecutive quarter of record
operating results," said Philip B. Barr, President and CEO of Bacou USA. "Sales
growth has remained strong throughout the year. Sales of our hearing protection,
hand protection and gas monitoring product lines grew at a double digit rate
over 1999 results, and our overall internal growth rate was 9.0% after excluding
the contribution of our newly acquired Whiting + Davis business. In addition,
our international business has continued to make significant contributions to
our results. International sales for our safety segment have grown for five
consecutive quarters, with an increase during the most recent quarter of 33.9%
over the third quarter of 1999."
"Operating earnings, EBITDA, net income and earnings per share also set
third quarter records," continued Barr. "As long as the economy continues at its
current level of strength, we are expecting to finish the year with full-year
operating earnings of approximately $1.81 per share, which would represent
annual growth in excess of 15% over 1999."
"Our previously announced process of evaluating strategic alternatives
is progressing well," said Walter Stepan, Co-Chairman of Bacou USA. "We have
received many expressions of interest concerning the purchase of Bacou USA and
Bacou S.A., and we currently believe that our ongoing process is likely to
result in
<PAGE>
Bacou USA Press Release - page 2
a sale of the business of Bacou USA and Bacou S.A. in their entireties to one
purchaser in a single transaction. We are hopeful that the evaluation process
will be completed during the fourth quarter of 2000. Although we cannot provide
any assurances at this time whether or not a transaction will occur, we would
anticipate that any resulting transaction would be consummated by the early part
of the first quarter of 2001."
Net sales for the third quarter of 2000 increased 11.6% to $81.4
million, compared with 1999 third-quarter net sales of $72.9 million. Bacou's
net income, excluding non-recurring charges, increased to $8.6 million for the
third quarter of 2000 from $7.6 million for the third quarter of 1999--up 12.5%.
As for net income per diluted share, Bacou reported $0.48 (also prior to
non-recurring charges) for the third quarter of 2000, up 11.6% from $0.43 for
the third quarter of 1999. As previously announced, Bacou acquired Whiting +
Davis Safety, a manufacturer of metal mesh safety apparel, effective July 1,
2000. Non-recurring charges of approximately $0.01 per share on an after-tax
basis were incurred during the third quarter in connection with this
acquisition.
Bacou's net income, excluding non-recurring charges, increased to $25.0
million for the nine-months ended September 30, 2000, from $21.4 million for the
nine-months of 1999--up 17.1%. As for net income per diluted share (prior to
non-recurring charges), Bacou reported $1.41 for the nine-months ended September
30, 2000, up 16.5% from $1.21 for the nine-months of 1999. Year-to-date net
sales have increased 17.7% from $201.4 million in 1999 to $237.1 million in
2000.
For the nine-months ended September 30, 2000, the company reported
EBITDA totaling $61.2 million, up 15.7% from $52.9 million in 1999. The company
defines EBITDA as operating income before depreciation, amortization and
non-recurring items. For the period, depreciation and amortization totaled $14.9
million in 2000 and $13.2 million in 1999.
At September 30, 2000, the company's balance sheet included total
assets of $384.0 million, working capital of $48.0 million, long-term debt of
$103.9 million and stockholders' equity of $207.0 million.
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.
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 Nine Months Ended
September 30, September 30,
Statement of income data (unaudited): 2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 81,400 $ 72,940 $237,143 $201,422
Cost of sales 45,498 38,177 128,241 106,036
------ ------ ------- -------
Gross profit 35,902 34,763 108,902 95,386
Operating expenses:
Selling 11,382 10,070 34,397 28,752
General and administrative 5,298 6,263 16,714 16,726
Research and development 1,463 1,347 4,325
3,819
Amortization of intangible assets 2,510 2,570 7,342 6,993
----- ----- ----- -----
Total operating expenses 20,653 20,250 62,778 56,290
------ ------ ------ ------
Operating income 15,249 14,513 46,124 39,096
Total other expense 2,038 2,587 7,079 6,299
----- ----- ----- -----
Income before income taxes 13,211 11,926 39,045 32,797
Income taxes 4,745 4,291 14,142 11,780
----- ----- ------ ------
Net income $ 8,466 $ 7,635 $24,903 $ 21,017
======= ======= ======= ========
Basic earnings per share $ 0.48 $ 0.43 $ 1.41 $ 1.19
====== ====== ======= ======
Diluted earnings per share $ 0.47 $ 0.43 $ 1.40 $ 1.19
====== ====== ======= ======
Weighted average shares outstanding:
Basic 17,659 17,627 17,646 17,623
====== ====== ====== ======
Diluted 17,933 17,694 17,794 17,711
====== ====== ====== ======
Other information:
Depreciation and amortization $ 13,190
========
$14,860
EBITDA (defined by the company as operating income
before depreciation, amortization and non-recurring $61,188 $ 52,876
======== ========
items)
</TABLE>
The Company completed its acquisition of Whiting + Davis Safety effective July
1, 2000, and its acquisition of Perfect Fit Glove and affiliates on April 1,
1999. For comparative purposes, net income and earnings per share excluding
non-recurring items related to these acquisitions would have been as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income $ 8,592 $ 7,635 $25,029 $21,371
======= ======= ======= =======
Basic earnings per share $ 0.49 $ 0.43 $ 1.42 $ 1.21
======= ======= ======= =======
Diluted earnings per share $ 0.48 $ 0.43 $ 1.41 $ 1.21
======= ======= ======= =======
</TABLE>
<PAGE>
BACOU USA, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
(unaudited)
September 30, 2000 December 31, 1999
------------------ -----------------
Balance Sheet Data (in thousands, except share data):
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 732 $10,272
Trade accounts receivable, net 51,822 41,653
Inventories 45,358 42,433
Other current assets 3,689 1,634
Deferred income taxes 3,150 3,733
-------- -------
Total current assets 104,751 99,725
Property and equipment, net 79,221 74,410
Intangible assets, net 197,040 194,258
Other assets 2,947 3,032
-------- --------
Total assets $383,959 $371,425
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt $27,857 $23,637
Accounts payable 15,398 10,559
Accrued expenses 11,493 20,492
Income taxes payable 2,020 1,027
-------- -------
Total current liabilities 56,768 55,715
Long-term debt 103,893 120,256
Deferred income taxes 14,473 11,550
Other liabilities 1,874 2,449
-------- -------
Total liabilities 177,008 189,970
-------- -------
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, 17,660,865 shares in 2000 and 17,629,865
shares in 1999 issued and outstanding 18 18
Additional paid-in capital 73,653 73,060
Retained earnings 133,280 108,377
-------- --------
Total stockholders' equity 206,951 181,455
-------- --------
Total liabilities and stockholders' equity $383,959 $371,425
======== ========
</TABLE>
