NEWS RELEASE September 25, 1996
For immediate release: Budget National and Analyst Wire
Contacts:
Gary Wagner, Senior Vice President, Chief Financial Officer,
and Dan Stracner, Vice President, Public Affairs: 818/683-4000
Ameron International reports strong third-quarter earnings
Pasadena, Calif.-Ameron International Corporation (NYSE: AMN) today
reported strong third-quarter earnings of $1.50 per share on sales of
$134 million, compared to $1.16 per share on sales of $137 million for the
similar period in 1995. Year-to-date earnings were also strong: $2.71 per
share on sales of $366 million, compared to $2.20 per share on sales of
$354 million last year. These earnings represent a 29% increase for the
quarter and a 23% improvement for the year to date.
Quarterly and nine-month earnings were up sharply for Ameron's
domestic concrete and steel pipe operations. Demand for water transmission
piping remains strong in the western United States as water agencies
continue long-term expansion of aqueducts. Adding to the results were
significant improvements in manufacturing due to an ongoing total quality
management program.
Ameron's worldwide protective coatings business also had higher
sales and significantly improved income. Operations in the United States,
Europe and Hong Kong all reported increased earnings. Operating results were
positively influenced by product streamlining and higher manufacturing
yields in both the United States and Europe.
Ameron's worldwide fiberglass pipe business reported appreciable
improvements in sales and earnings for the quarter and year to date,
primarily because of positive performance by U.S. operations. Although
nine-month European results continued to be impacted by order delays from
earlier in the year, quarterly earnings showed improvement.
While still quite profitable, Ameron Hawaii, the construction
products business, continued to report substantially lower sales and
earnings than in 1995 because of the ongoing economic slowdown in the
Islands. Results from Ameron's domestic pole products business were slightly
lower for the quarter and slightly higher for the year to date.
On Aug. 7, Ameron entered into an agreement to acquire the
worldwide Devoe marine coatings business of Imperial Chemical Industries,
PLC (ICI). The North American portion of that acquisition was completed in
early September, making Ameron the largest supplier of high-performance
marine and offshore coatings in the United States. The remainder of the
acquisition will be completed in late October. In addition, Ameron will
manufacture and sell Devoe coatings to industrial maintenance markets in
Europe, the Middle East and parts of Africa. The total Devoe business being
acquired by Ameron generated sales of approximately $50 million in 1995.
In the first quarter, Ameron acquired Centron International, a manufacturer
of fiberglass pipe for oilfield applications. Annual Centron sales are
approximately $25 million. "These acquisitions are consistent with Ameron's
strategy to grow through alliances and acquisitions, as well as new product
development," said James S. Marlen, Ameron chairman, president and chief
executive officer.
Ameron's affiliated companies had higher overall sales and earnings
both for the quarter and year to date. However, equity income was down due
to lower cash dividends received. Since 1994, Ameron has been using a more
conservative income recognition method under which income is recorded only
to the extent that cash dividends are received.
"I am very pleased with the continued improvement in most of our
businesses, and I am optimistic that Ameron's overall 1996 sales and
earnings will be substantially stronger than in 1995, continuing the
positive earnings trend that began in 1994 following the comprehensive
restructuring of the company," Marlen said.
Ameron International Corporation
Consolidated Statements of Income
Third Quarter Ended August 31,
(in thousands except and per share data)
1996 1995
--------- ---------
Sales $133,622 $137,421
Cost of Sales 97,402 103,990
--------- ---------
Gross Profit 36,220 33,431
Selling, General and Administrative Expenses 26,274 25,664
--------- ---------
Operating Profit 9,946 7,767
Royalty, Equity and Other Income 1,590 1,796
--------- ---------
Income before Interest and Income Taxes 11,536 9,563
Interest, net 2,349 2,986
--------- ---------
Income before Income Taxes 9,187 6,577
Income Taxes 3,215 2,000
--------- ---------
Net Income $ 5,972 $ 4,577
========= =========
Per Share:
Net Income $ 1.50 $ 1.16
========= =========
Cash Dividends Paid $ .32 $ .32
========= =========
Ameron International Corporation
Consolidated Statements of Income
Nine Months Ended August 31,
(in thousands except share and per share data)
1996 1995
--------- ---------
Sales $366,006 $353,978
Cost of Sales 273,571 267,379
--------- ---------
Gross Profit 92,435 86,599
Selling, General and Administrative Expenses 73,723 71,173
--------- ---------
Operating Profit 18,712 15,426
Royalty, Equity and Other Income 5,694 5,563
--------- ---------
Income before Interest and Income Taxes 24,406 20,989
Interest, net 7,796 8,913
--------- ---------
Income before Income Taxes 16,610 12,076
Income Taxes 5,813 3,382
--------- ---------
Net Income $ 10,797 $ 8,694
========= =========
Per Share (based on average of
3,977,481 shares in 1996 and
3,951,549 shares in 1995):
Net Income $ 2.71 $ 2.20
========= =========
Cash Dividends Paid $ .96 $ .96
========= =========
Ameron International Corporation
Consolidated Balance Sheets
(in thousands)
August 31, November 30,
1996 1995
--------- ---------
ASSETS
Current Assets
Cash and equivalents $ 49,440 $ 12,923
Receivables, net 108,012 105,019
Inventories 72,781 76,426
Other 12,533 12,470
--------- ---------
Total current assets 242,766 206,838
Investments and Advances -
Affiliated Companies 35,330 36,197
Property, Plant and Equipment, net 114,418 114,116
Other Assets 18,536 14,230
--------- ---------
Total assets $411,050 $371,381
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 1,157 $ 1,718
Current portion of long-term debt 17,782 17,803
Trade payables 33,054 32,219
Accrued liabilities and other 39,982 40,640
--------- ---------
Total current liabilities 91,975 92,380
Deferred Income Taxes, Credits and Reserves 55,238 52,864
Long-Term Debt 121,982 91,565
--------- ---------
Total Liabilities 269,195 236,809
Stockholders' Equity
Common stock 12,842 12,823
Additional paid-in capital 15,579 15,322
Retained earnings 153,982 146,987
Cumulative translation adjustments 2,231 2,219
Treasury stock (42,779) (42,779)
--------- ---------
Total stockholders' equity 141,855 134,572
--------- ---------
Total liabilities and stockholders' equity $411,050 $371,381
========= =========
