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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May 1998.
DENISON INTERNATIONAL plc
(Translation of registrant's name into English)
Masters House
107 Hammersmith Road
London W14 0QH
England
(Address of principal executive offices)
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Contact: Anthony Mustacchio Roanne Kulakoff or Josh Rosen
Chief Financial Officer Kekst and Company
Denison International plc 212-521-4800
937-644-4534
For Immediate Release
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DENISON INTERNATIONAL PLC REPORTS RESULTS FOR FIRST QUARTER
Marysville, OH, April 30, 1998 -- Denison International plc (NASDAQ: DENHY)
announced today its financial results for the first quarter ended March 31,
1998.
For the current three months ended March 31, the Company's net sales increased
1.2% to $37.4 million, from $38.9 million in the first quarter of 1997.
Restated, net sales (at 1997 first quarter exchange rates) for the current first
quarter were $39.4 million, a 6.7% increase over the comparable 1997 period.
Net income was $3.9 million or $.35 per diluted share, for the first quarter of
1998, up 9.0% from net income of $3.6 million or $.33 per diluted share, for the
comparable 1997 period. The increase in net income was impacted by an effective
tax rate increase to 29.3% for the first quarter of 1998 versus an effective tax
rate of 24.3% for the comparable 1997 period.
For the quarter ended March 31, 1998, gross profit increased 7.5%, and gross
profit as a percentage of net sales increased to 37.1% from 34.9% for the same
period in 1997. The increase in gross margin was primarily due to a shift in
product mix during the first quarter of 1998 toward the Company's higher margin
vane pump product line.
Operating income in the current first quarter increased 13.9%, and operating
income as a percentage of net sales increased to 14.2% from 12.6% in the same
period in 1997.
Commenting on the results, David Weir, President and CEO, said, "We are pleased
with Denison's performance for the first quarter 1998, which showed growth in
sales despite the adverse effects of the current conditions in Asia and the
strengthening U.S.dollar. Overall, our strong results for the quarter are
primarily due to increased volume and operational efficiencies obtained by the
Company. In particular, we are pleased with our profitability improvement, as
gross margins continued to improve over the year ago first quarter and remained
in line with our long-term margin targets.
Denison International plc designs, manufactures, sells and services highly
engineered hydraulic fluid power systems and components. Denison sells its
products globally to a diverse group of end users in a broad array of industrial
applications, such as machine tools and material handling equipment, mobile
construction, agricultural and utility equipment, and marine applications,
including military equipment.
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Certain matters discussed in this press release are "forward-looking statements"
intended to qualify for the safe harbors from liability established by the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to certain risks and uncertainties which could cause
actual results to differ materially from those currently anticipated.
Shareholder, potential investors and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements. The
forward-looking statements made herein are only made as of the date of this
press release and the company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.
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(Tables Follows)
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DENISON INTERNATIONAL, plc
STATEMENT OF OPERATIONS
(unaudited)
Three Months Ended Mar. 31,
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USD - (000's) 1998 1997
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Net Sales $37,371 $36,912
Cost of Sales 23,509 24,019
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Gross Profit 13,862 12,893
SG&A 8,540 8,220
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Operating Income 5,322 4,673
Other Income 0 24
Net Interest Income 158 1
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Income Before Taxes 5,480 4,698
Tax Provision 1,603 1,142
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Net Income $3,877 $3,556
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Basic earnings per share $0.35 $0.34
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Diluted earnings per share $0.35 $0.33
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DENISON INTERNATIONAL, plc
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, December 31,
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1998 1997
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Current assets:
Cash & cash equivalents $31,457 $30,337
Accounts Receivable, net 30,488 29,212
Inventories 31,523 28,182
Other current assets 3,156 3,327
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Total current assets 96,624 91,058
Property, plan and equipment, net 15,368 14,948
Other assets 1,915 1,487
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Total assets $113,907 $107,493
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Current liabilities:
Notes payable to bank $1,367 $1,472
Accounts payable and other accrued liabilities 29,980 25,752
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Total current liabilities 31,347 27,224
Noncurrent liabilities 19,829 20,171
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Shareholders' equity:
Retained earnings 61,992 58,115
Other shareholders equity 739 1,437
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Total shareholders' equity 62,731 59,552
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Total liabilities and shareholders' equity $113,907 $107,493
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DENISON INTERNATIONAL plc
By: /s/ Anthony D. Mustacchio
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Anthony D. Mustacchio
Chief Financial Officer
Date: May 1, 1998
