<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ------------ SECURITIES EXCHANGE ACT OF 1934. For the Quarterly Period ended
June 30, 1995.
- ------------ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934. For the Transition Period from
N/A to .
--- ----------------
Commission File No. 1-8467
BMC INDUSTRIES, INC.
--------------------
(Exact Name of Registrant as Specified in its Charter)
MINNESOTA 41-0169210
--------- ----------
(State of Incorporation) (IRS Employer Identification No.)
TWO APPLETREE SQUARE, MINNEAPOLIS, MINNESOTA 55425
---------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(612) 851-6000
--------------
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days.
X Yes No
----- -----
BMC Industries, Inc. has outstanding 13,468,222 shares of common stock as of
August 10, 1995. There is no other class of stock outstanding.
Page 1 of 14.
Exhibit Index Begins at Page 9.
<PAGE>
PART I: FINANCIAL INFORMATION
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands)
Item 1: Financial Statements
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
--------- -----------
ASSETS 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 19,437 $ 14,327
Trade accounts and notes receivable, net of allowances 25,978 24,564
Inventories - Note 3 33,449 28,792
Deferred income taxes 4,491 5,914
Other current assets 5,580 5,221
- -------------------------------------------------------------------------------
Total Current Assets 88,935 78,818
- -------------------------------------------------------------------------------
Property, Plant and Equipment 147,636 130,622
Less Accumulated Depreciation 88,494 80,764
--------- ---------
Property, Plant and Equipment - Net 59,142 49,858
--------- ---------
Deferred Income Taxes 3,423 3,297
Other Assets - Net 7,710 6,713
- -------------------------------------------------------------------------------
Total Assets $ 159,210 $ 138,686
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
- -------------------------------------------------------------------------------
Current Liabilities
Accounts payable $ 14,038 $ 12,090
Income taxes payable 7,678 5,514
Accrued expenses and other liabilities 22,094 22,445
- -------------------------------------------------------------------------------
Total Current Liabilities 43,810 40,049
- -------------------------------------------------------------------------------
Other Liabilities 18,463 15,835
Deferred Income Taxes 943 1,014
Stockholders' Equity
Common stock 51,544 51,156
Other (1,411) (1,263)
Retained earnings 39,194 27,559
Cumulative translation adjustment 6,667 4,336
- -------------------------------------------------------------------------------
Total Stockholders' Equity 95,994 81,788
- -------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 159,210 $ 138,686
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
Page 2
<PAGE>
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
-------------------------------- --------------------------------
1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues
Net sales of primary products $ 64,026 $ 53,701 $121,779 $105,946
Equipment and technology sales 5,621 3,604 9,202 3,765
- ------------------------------------------------------------------------------------------------------------------------------
Total revenues 69,647 57,305 130,981 109,711
- ------------------------------------------------------------------------------------------------------------------------------
Operating Costs and Expenses
Cost of sales of primary products 50,764 43,496 99,110 87,562
Cost of equipment and technology sales 3,757 2,674 5,668 2,944
Selling 2,205 2,067 4,480 4,102
Administrative 1,330 945 2,584 2,055
- ------------------------------------------------------------------------------------------------------------------------------
Total operating costs and expenses 58,056 49,182 111,842 96,663
- ------------------------------------------------------------------------------------------------------------------------------
Income from Operations 11,591 8,123 19,139 13,048
- ------------------------------------------------------------------------------------------------------------------------------
Other Income and (Expense)
Interest expense (28) (837) (105) (1,812)
Interest income 213 127 398 211
Other income (expense) (92) (44) (159) 17
- ------------------------------------------------------------------------------------------------------------------------------
Earnings from Continuing Operations before Income Taxes 11,684 7,369 19,273 11,464
Income Tax Provision 4,207 2,692 7,102 4,085
- ------------------------------------------------------------------------------------------------------------------------------
Earnings from Continuing Operations 7,477 4,677 12,171 7,379
Provision for Loss Related to Discontinued
Operation (less applicable income tax benefit of
$461) - Note 2 -- -- -- (839)
- ------------------------------------------------------------------------------------------------------------------------------
Net Earnings $ 7,477 $ 4,677 $ 12,171 $ 6,540
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Earnings Per Share from Continuing Operations $ 0.53 $ 0.34 $ 0.87 $ 0.55
Loss Per Share Related to Discontinued Operation -- -- -- (0.06)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Net Earnings Per Share $ 0.53 $ 0.34 $ 0.87 $ 0.49
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Number of Shares Included in Per Share Computation 14,117 13,570 14,065 13,422
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Dividends Declared Per Share $ 0.02 $ -- $ 0.04 $ --
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
Page 3
<PAGE>
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
------------------------
1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
Net Cash Provided by Operating Activities
Net earnings $ 12,171 $ 6,540
Depreciation and amortization 4,363 4,426
Changes in operating assets and liabilities 146 6,954
- --------------------------------------------------------------------------------
Total 16,680 17,920
- --------------------------------------------------------------------------------
Net Cash Provided by (Used in) Investing Activities
Additions to property, plant and equipment (11,590) (3,064)
Other 22 2
- --------------------------------------------------------------------------------
Total (11,568) (3,062)
- --------------------------------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities
Repayment of long-term debt(1) (9) (8,549)
Common stock issued(1) 388 2,077
Cash dividends paid (536) --
Employee loans for exercise of stock options (148) (68)
- --------------------------------------------------------------------------------
Total (305) (6,540)
- -------------------------------------------------------------------------------
Effect of Exchange Rate Changes on Cash and Cash
Equivalents 303 182
- --------------------------------------------------------------------------------
Net Increase in Cash and Cash Equivalents 5,110 8,500
Cash and Cash Equivalents at Beginning of Period 14,327 10,927
- --------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period $ 19,437 $ 19,427
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<FN>
(1) IN 1994, IN ADDITION TO THE LONG-TERM DEBT REPAYMENT AND COMMON STOCK
ISSUANCE SHOWN ABOVE, $1,809 OF LONG-TERM DEBT WAS FORGIVEN AS CONSIDERATION FOR
THE EXERCISE OF WARRANTS.
</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
Page 4
<PAGE>
BMC INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(in thousands, except per share amounts)
1. Financial Statements
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments necessary to
present fairly the financial position of the Company as of June 30, 1995,
and the results of operations and the cash flows for the periods ended
June 30, 1995 and 1994. Such adjustments are of a normal recurring nature.
Certain items in the financial statements for the periods ended June 30,
1994 have been reclassified to conform to the presentation for the
periods ended June 30, 1995. Per share amounts for the periods ended
June 30, 1994 have been restated to reflect a two-for-one stock split in
the third quarter of 1994. The results of operations for the three-month
and six-month periods ended June 30, 1995 are not necessarily indicative
of the results to be expected for the full year. The balance sheet as of
December 31, 1994 is derived from the audited balance sheet as of that
date. For further information, refer to the financial statements and
footnotes thereto included in the Company's annual report on Form 10-K
for the year ended December 31, 1994.
2. Provision for Loss Related to Discontinued Operation
In the first quarter of 1994, the Company made a provision for estimated
losses of $1,300, less applicable income tax effect of $461, related to a
discontinued operation. This provision was prompted by claims and expenses
growing out of environmental contamination and other claims related to the
discontinued operation. The environmental contamination occurred before
1980 at an operation acquired by the Company in 1983 and disposed of in
1986.
3. Inventories
<TABLE>
<CAPTION>
JUNE 30, 1995 DECEMBER 31, 1994
------------- -----------------
<S> <C> <C>
Raw materials $ 12,222 $ 9,748
Work in process 5,490 5,501
Finished goods 15,737 13,543
--------- ----------
Total Inventories $ 33,449 $ 28,792
--------- ----------
--------- ----------
</TABLE>
Page 5
<PAGE>
4. Long-term Contract
Work is continuing on a long-term contract for the construction of aperture
mask production equipment for a customer in China. At June 30, 1995, the
contract was approximately 75% complete. Pursuant to a periodic review of
the contract, estimates of total costs to complete the contract were
reduced during the second quarter, resulting in profit recognition for
the cumulative project-to-date effect of such reduction in total
contract costs.
5. Earnings Per Share
Primary earnings per share is computed using the weighted average number of
common and common equivalent shares outstanding during the period. Common
stock equivalents include dilutive stock options and warrants using the
treasury stock method. All remaining outstanding warrants were exercised
during the third quarter of 1994. Fully diluted earnings per share did
not differ significantly from primary earnings per share in both years.
As noted in Note 1, per share amounts for the periods ended June 30, 1994
have been restated to reflect a two-for-one stock split in the third
quarter of 1994.
Page 6
<PAGE>
BMC INDUSTRIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED JUNE 30, 1995 AND 1994
Total revenues for the second quarter of 1995 increased by $12.3 million or
21.5% from the second quarter of 1994. Net sales of primary products increased
$10.3 million or 19.2% from the second quarter of 1994. Net sales of the
Precision Imaged Products group, excluding equipment and technology sales,
increased by 30.2% due primarily to an improvement in sales mix related to
increased sales of larger-sized and invar color television aperture masks. Net
sales of the Optical Products group for the second quarter were equivalent to
the second quarter of 1994. Unit sales of polycarbonate eyewear lenses
continued to increase, offset by declines in unit sales of glass and plastic
eyewear lenses.
Cost of sales of primary products was 79.3% of net sales for the second quarter
of 1995, compared to 81.0% in the same period of 1994. The improvement occurred
in both groups and was due primarily to improved sales mix and manufacturing
efficiencies.
Administrative expenses increased by $0.4 million or 40.7% primarily as a
result of an increase in the Company's stock price to which certain deferred
compensation plans are tied. Interest expense for the second quarter of 1995
declined by $0.8 million in comparison to the prior year's second quarter. This
was due to the payoff of all the Company's outstanding debt during the third
quarter of 1994.
The provision for income taxes was 36.0% of pre-tax income in the second quarter
of 1995 compared to 36.5% for the same period in 1994.
COMPARISON OF SIX MONTHS ENDED JUNE 30, 1995 AND 1994
Total revenues for the first six months of 1995 increased $21.3 million or 19.4%
over the first six months of 1994. Net sales of primary products increased
$15.8 million or 14.9%. Net sales of the Precision Imaged Products group
increased by 22.4% due primarily to an improvement in sales mix related to
increased sales of larger-sized and invar color television aperture masks. Net
sales of the Optical Products group increased 2%, due primarily to an increase
in unit sales of polycarbonate eyewear lenses which was partially offset by
declines in unit sales of glass and plastic eyewear lenses.
Cost of sales of primary products was 81.4% of net sales in the first six months
of 1995, compared to 82.6% in the same period of 1994. The improvement occurred
throughout the Company and was due primarily to improved sales mix and
manufacturing efficiencies.
Administrative expenses increased by $0.5 million or 25.7% primarily as a
result of an increase in the Company's stock price to which certain deferred
compensation plans are tied. Interest expense declined by $1.7 million in the
first six months of 1995 compared to the same period in 1994. This was due to
the payoff of all the Company's outstanding debt during the third quarter of
1994.
Page 7
<PAGE>
The provision for income taxes was 36.8% of pre-tax income in the first six
months of 1995 compared to 35.6% for the same period in 1994. The higher
effective rate in the first six months of 1995 was due primarily to a higher
proportion of foreign earnings which incur taxes at rates higher than in the
U.S. The Company anticipates that its effective tax rate for the total year
of 1995 will be in the approximate range of 36% to 38%.
FINANCIAL POSITION AND LIQUIDITY
Cash and cash equivalent balances increased by $5.1 million during the first six
months of 1995, due primarily to cash generated from earnings, partially offset
by capital expenditures. Working capital was $45.1 million at June 30, 1995
compared to $38.8 million at December 31, 1994. The current ratio was 2.03 at
June 30, 1995 compared to 1.97 at December 31, 1994. The ratio of total
liabilities to equity declined to .66 at June 30, 1995 compared to .70 at
December 31, 1994.
The Company had $43.8 million available for borrowing under domestic and foreign
bank lines at June 30, 1995.
The Company announced during the second quarter an $80 to $85 million expansion
program within its aperture mask operations. The cost of this expansion is
expected to be financed primarily through internally-generated cash and bank
debt. The Company believes that such sources are adequate to meet its short and
long-term financing needs.
Page 8
<PAGE>
PART II. OTHER INFORMATION.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
10. Form of Change of Control Agreement entered into
between the Company and Mr. Nygaard. -- (Incorporated
by reference to Exhibit 10.32 of the Company's
Annual Report on Form 10-K for the year ended
December 31, 1991 (File No. 1-8467)).
27. Financial Data Schedule (filed only in electronic
format).
28.1 News Release, dated August 2, 1995, announcing
organizational changes . . . . . . . . . . . . . . . . . 10
28.2 News Release, dated July 25, 1995, announcing second
quarter 1995 operating results . . . . . . . . . . . . . 11
28.3 News Release, dated July 17, 1995, announcing
management changes . . . . . . . . . . . . . . . . . . . . 13
28.4 News Release, dated June 9, 1995, announcing quarterly
dividend . . . . . . . . . . . . . . . . . . . . . . . . 14
</TABLE>
(b) REPORTS ON FORM 8-K.
The Company did not file any reports on Form 8-K during the quarter
ended June 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BMC INDUSTRIES, INC.
----------------------------------------
Terry R. Nygaard
Controller (Principal Accounting Officer)
Dated: August 11, 1995
Page 9
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 4,688
<SECURITIES> 14,749
<RECEIVABLES> 28,973
<ALLOWANCES> 2,995
<INVENTORY> 33,449
<CURRENT-ASSETS> 88,935
<PP&E> 147,636
<DEPRECIATION> 88,494
<TOTAL-ASSETS> 159,210
<CURRENT-LIABILITIES> 43,810
<BONDS> 0
<COMMON> 50,395
0
0
<OTHER-SE> 45,599
<TOTAL-LIABILITY-AND-EQUITY> 159,210
<SALES> 130,888
<TOTAL-REVENUES> 130,981
<CGS> 104,778
<TOTAL-COSTS> 111,842
<OTHER-EXPENSES> 159
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (293)
<INCOME-PRETAX> 19,273
<INCOME-TAX> 7,102
<INCOME-CONTINUING> 12,171
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,171
<EPS-PRIMARY> 0.87
<EPS-DILUTED> 0.87
</TABLE>
<PAGE>
CONTACT: Michael P. Hawks (NYSE -- BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
August 2, 1995 . . . Minneapolis, MN . . . Paul B. Burke, Chairman, President
and Chief Executive Officer of BMC Industries, Inc., today announced the
following organizational changes effective August 1, 1995:
(1) John L. Gburek to become Vice President, Corporate Development -- John
Gburek, currently the Vice President and General Manager of BMC's
Buckbee-Mears St. Paul division will become Vice President, Corporate
Development. In this position, Mr. Gburek will lead the effort to identify
acquisition opportunities outside of BMC's base businesses.
(2) Benjamin A. Teno to assume position of Vice President and General Manager
of Buckbee-Mears St. Paul -- Ben Teno, most recently employed by Raytheon
Company in Lexington, Massachusetts, will replace Mr. Gburek as Vice
President and General Manager of Buckbee-Mears St. Paul.
In commenting on these organizational changes Mr. Burke stated, "Because we
anticipate a need to grow outside of our base businesses in the next three to
four years, we have made the decision to resource a corporate development
effort. The proper preparation for, and execution of, this acquisition program
is critical. With John Gburek, we have an individual who is experienced and
knowledgeable about BMC's existing capabilities and has a proven record of
success as an operating manager. I am confident that John will do an excellent
job of providing leadership to this effort."
"At the same time, I am confident that Ben Teno can continue the progress made
in the last two years at Buckbee-Mears St. Paul and can lead the growth of this
business to the point where it can be a major contributor to BMC's total
profits."
BMC is one of the world's largest manufacturers of aperture masks for color
television tubes and computer monitors. The Company is also a leading producer
of polycarbonate, glass and plastic eyewear lenses. The common stock of the
Company is traded on the New York Stock Exchange under the symbol "BMC".
- 30 -
Page 10
<PAGE>
CONTACT: Michael P. Hawks (NYSE -- BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
BMC REPORTS RECORD SECOND QUARTER RESULTS
July 25, 1995 -- Minneapolis, MN -- BMC Industries, Inc. today reported second
quarter 1995 net earnings of $7,477,000 or $.53 per share, up 60% from earnings
from continuing operations of $4,677,000 or $.34 per share in the year-earlier
period. Second quarter total revenues were $69,647,000, an increase of 22% from
$57,305,000 a year ago.
Earnings from continuing operations for the first six months of 1995 totaled
$12,171,000 or $.87 per share. This represented an improvement of $4,792,000 or
65% over the $7,379,000 or $.55 per share recorded for the first six months of
the prior year.
Paul B. Burke, BMC's president and chief executive officer, said second quarter
results represented continued improvement in the Company's core manufacturing
operations. Burke said second quarter net income was a new second quarter
record for BMC. The second quarter of 1995 also marks the seventeenth
consecutive quarter of increased net earnings over the year-earlier period,
excluding income from the sale of equipment and technology and other non-
recurring items. This long string of quarterly increases reflects the ongoing
shift in the Company's sales mix toward high-margin aperture mask and eyewear
lens products and continuing operating improvement. In addition, the second
quarter also benefited from higher equipment and technology earnings and lower
interest expense.
Burke added that both of the Company's core manufacturing operations, Precision
Imaged Products and Optical Products, showed improved profit margins. He said
these improvements reflected improved operating efficiencies and the Company's
ongoing focus on higher-margin growth opportunities in its primary markets.
BMC is one of the world's largest manufacturers of aperture masks for color
television tubes and computer monitors. The Company is also a leading producer
of polycarbonate, glass and plastic eyewear lenses. The common stock of the
Company is traded on the New York Stock Exchange under the symbol "BMC".
Page 11
<PAGE>
BMC INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
-------------------------------- ------------------------------------
1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues
Net sales of primary products $64,026 $53,701 $121,779 $105,946
Equipment and technology sales 5,621 3,604 9,202 3,765
- ------------------------------------------------------------------------------------------------------------------------------
Total revenues 69,647 57,305 130,981 109,711
- ------------------------------------------------------------------------------------------------------------------------------
Operating Costs and Expenses
Cost of sales of primary products 50,764 43,496 99,110 87,562
Cost of equipment and technology sales 3,757 2,674 5,668 2,944
Selling 2,205 2,067 4,480 4,102
Administrative 1,330 945 2,584 2,055
- ------------------------------------------------------------------------------------------------------------------------------
Total operating costs and expenses 58,056 49,182 111,842 96,663
- ------------------------------------------------------------------------------------------------------------------------------
Income from Operations 11,591 8,123 19,139 13,048
- ------------------------------------------------------------------------------------------------------------------------------
Other Income and (Expense)
Interest expense (28) (837) (105) (1,812)
Interest income 213 127 398 211
Other income (expense) (92) (44) (159) 17
- ------------------------------------------------------------------------------------------------------------------------------
Earnings from Continuing Operations before Income Taxes 11,684 7,369 19,273 11,464
Income Taxes 4,207 2,692 7,102 4,085
- ------------------------------------------------------------------------------------------------------------------------------
Earnings from Continuing Operations 7,477 4,677 12,171 7,379
Provision for Loss Related to Discontinued
Operation (less applicable income tax benefit of
$461) -- (Note) -- -- -- (839)
- ------------------------------------------------------------------------------------------------------------------------------
Net Earnings $ 7,477 $ 4,677 $ 12,171 $ 6,540
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Earnings Per Share from Continuing Operations $ 0.53 $ 0.34 $ 0.87 $ 0.55
Loss Per Share Related to Discontinued Operation -- -- -- (0.06)
- ------------------------------------------------------------------------------------------------------------------------------
Net Earnings Per Share $ 0.53 $ 0.34 $ 0.87 $ 0.49
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Number of Shares Included in Per Share Computation 14,117 13,570 14,065 13,422
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE: In the first quarter of 1994, the Company made a provision for estimated
losses of $1,300, less applicable income tax effect of $461, related to a
discontinued operation. This provision was prompted by claims and expenses
growing out of environmental contamination and other claims related to the
discontinued operation. The environmental contamination occurred before 1980 at
an operation acquired by BMC in 1983 and disposed of in 1986.
Page 12
<PAGE>
CONTACT: MICHAEL P. HAWKS (NYSE-BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
BMC ANNOUNCES MANAGEMENT CHANGES
July 17, 1995 . . . Minneapolis, Minnesota . . . Paul B. Burke, Chairman,
President and Chief Executive Officer of BMC Industries, Inc., today announced
the following management changes:
Merle D. Kerr, BMC's Senior Vice President of Finance and Administration, Chief
Financial Officer, will become General Manager of BMC's aperture mask operation
located in Mullheim, Germany. This change will be effective on or before
October 1.
Effective August 7, Michael P. Hawks, BMC's Treasurer and Secretary, will become
Vice President of Finance and Administration, Chief Financial Officer and
Secretary.
Burke said, "This reorganization will strengthen our team in both the short- and
long-term. As a consequence of these changes, Edmund Bolanz, the current
General Manager of the Mullheim, Germany operation, will be able to devote more
of his time and expertise to key manufacturing issues, including the startup in
the fourth quarter of this year of the new high-resolution computer monitor
aperture mask line at the German facility."
Burke also said, "These changes will benefit BMC over the long-term by providing
both Merle and Mike with the opportunity to expand their experience and
demonstrated capabilities. Both of them have done a terrific job in their
current and prior positions during their twelve years of service at BMC and are
well prepared for their new challenges. I am very confident that both Merle and
Mike will be successful in their new positions."
BMC Industries, Inc. is one of the world's largest manufacturers of aperture
masks for color picture tubes used in televisions and computer monitors. The
Company is also a leading producer of polycarbonate, glass and plastic eyewear
lenses. BMC's common stock is traded on the New York Stock Exchange under the
symbol BMC.
-30-
Page 13
<PAGE>
Contact: Michael P. Hawks (NYSE-BMC)
(612) 851-6030 FOR IMMEDIATE RELEASE
BMC ANNOUNCES QUARTERLY DIVIDEND
June 9, 1995--Minneapolis, Minnesota--BMC Industries, Inc. today announced that
its Board of Directors has approved a continuation of its quarterly cash
dividend of two cents per share.
Shareholders of record as of June 21, 1995 will receive a dividend of two cents
for each share owned on that date, to be paid on July 5, 1995.
BMC Industries, Inc. is one of the world's largest manufacturers of aperture
masks for color picture tubes used in televisions and computer monitors. The
Company is also a leading producer of polycarbonate, glass and plastic eyewear
lenses. BMC's common stock is traded on the New York Stock Exchange under the
symbol BMC.
-30-
Page 14
