FOR IMMEDIATE RELEASE: November 20, 2000
CONTACT: Gregory L. Wilson
Chairman and President
Bradley T Nielson
Chief Financial Officer and Chief Operating Officer
MITY Enterprises, Inc.
801-224-0589
MITY ENTERPRISES, INC. ANNOUNCES FINANCIAL RESULTS FOR SECOND
QUARTER--RESTATES FIRST QUARTER
OREM, UTAH -- Gregory L. Wilson, president and chief executive officer of MITY
Enterprises, Inc. (NASDAQ: MITY), today announced financial results for the
second quarter ended September 30, 2000.
Net sales for the second quarter totaled $14.9 million, up 36 percent from
$11.0 million a year ago. The Company posted a net loss for the quarter of
($118,000) compared to net income of $1.2 million reported for the second
quarter in the previous year. Basic and diluted earnings per share for the
recent quarter amounted to ($0.02)-- compared with basic and diluted per share
of $0.26 and $0.24, respectively, a year ago.
For the six-month period ended September 30, 2000, net sales totaled $31.4
million, up 42 percent from $22.2 million a year ago. Net income for the
period decreased to $313,000 from $2.3 million in the previous year. Basic
and diluted earnings per share for the six-month period were $0.06. These
compare with basic and diluted earnings per share of $0.47 and $0.44,
respectively, for the year earlier period.
As compared to the second quarter of fiscal 2000, the increase in sales
reflected growth of 15 percent in the multipurpose room unit, 56 percent in
the healthcare seating unit and sales growth from the Company's recent DO
Group acquisition. DO Group's specialty office seating and systems sales
represented 15 percent of net sales for the quarter. The Company's earnings
in its core multipurpose room business and healthcare seating business were
offset by losses at the Company's DO Group operations for the quarter.
MITY also restated its results for the first fiscal quarter ended June 30,
2000. The Company restated results due to inventory and cost accounting
discrepancies recently discovered in the DO Group office systems division.
The Company determined that the inventory balance at June 30, 2000 was
overstated by approximately $611,000 and accrued liabilities were understated
by $97,000. The impact of the restatement has resulted in a decrease in the
Company's operating profit of $708,000 and a decrease in net income of
$439,000, or $0.08 per basic and diluted share for the first fiscal quarter
ended June 30, 2000.
"Once again we are pleased with the performance of our core multipurpose room
and healthcare seating units. These units have achieved a 15 percent and 33
percent growth, respectively, for the first six months of this fiscal year,"
said Wilson. "Our challenges remain with the DO Group and CenterCore
operations in Marked Tree. Despite the disappointments we have faced there,
we have made progress."
"The changes and improvements in Marked Tree are ongoing and will take time to
fully implement," noted Bradley T Nielson, chief operating officer and chief
financial officer of MITY. "Because of the continuing struggles, we are
currently evaluating all strategic alternatives related to the CenterCore and
DO Group operations."
The Company will host a follow-up live broadcast over the Internet to discuss
the financial results at 4:30 PM (EST) today. The live web simulcast of the
conference call will be available to the public online at www.mitylite.com or
on StreetEvent's Individual Investor Center at www.streetevents.com.
Listeners are encouraged to log on five to ten minutes prior to the start time
to ensure participation from the beginning. To listen to the broadcast, you
must have RealAudio installed. If you do not have RealAudio, go to
www.real.com fifteen minutes prior to the call, where you can download
RealPlayer 8 Basic for free. A replay of the broadcast will be available
within approximately one hour of the broadcast for a week following the call
at the referenced websites.
Founded in 1987, MITY Enterprises, Inc. designs, manufactures and markets
innovative institutional furniture created to meet the efficiency needs of its
customers. The Company focuses on providing premium quality institutional
furniture products to niche markets. The product lines consist of
multipurpose room furniture, healthcare seating, call center furniture,
specialty office seating, office systems and dispatch furniture. The
Company's products are marketed under the Mity-Lite, Broda, CenterCore,
Domore, DO3, Corel and JG trade names. Headquartered in Utah, Mity-Lite
serves national and international customers directly and through distributors.
For further information, visit the Company online at www.mitylite.com.
This press release includes statements that constitute "forward-looking"
statements related to (i) the Company's continuing operational challenges in
its CenterCore and DO Group operations in Marked Tree, Arkansas, (ii) the
changes and improvements currently being implemented by management in the
CenterCore DO Group operations, and (iii) the evaluation of strategic
alternatives related to the CenterCore and DO Group operations. These
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
inherently involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. Factors that would
cause or contribute to such differences include, but are not limited to (a)
the inability of management to successfully improve in a timely manner and
operate adequate information systems in its CenterCore and DO Group operations
leading to manufacturing inefficiencies, higher costs, lower margins and
profitability, inefficient or inaccurate inventory management, and continuing
customer dissatisfaction; (b) the Company's inability to increase sales and
restore the CenterCore and DO Group customer base; (c) the Company's inability
to fund continuing losses in its CenterCore and DO Group operations; (d) the
Company's inability for any reason to pursue a satisfactory strategic
alternative with respect to all or part of the CenterCore DO Group operations;
(e) loss of important customer contracts; (f) limited management and key
employee resources; (g) declines in sales volumes and profit margins in the
Company's core business; and (h) other risks and uncertainties detailed in the
Company's periodic report fillings with the Securities and Exchange
Commission. All forward-looking statements in this press release are based
upon information available as of the date of this release. Such information
may change or become invalid after the date of this release, and by making
these forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of this
release.
-more-
MITY Enterprises, Inc.
Unaudited Financial Highlights
Three Months Ended
September 30,
-----------------------------
2000 1999
------------- ---------------
Net sales $14,882,000 $10,979,000
Income from operations (194,000) 1,789,000
Net income (118,000) 1,235,000
Basic earnings per share ($0.02) $0.26
Weighted average number of common shares-basic 5,074,039 4,809,989
Diluted earnings per share ($0.02) $0.24
Weighted average common and common equivalent 5,213,106 5,134,128
shares -- diluted
Six Months Ended
September 30,
-----------------------------
2000 1999
------------- ---------------
Net sales $31,443,000 $22,202,000
Income from operations 500,000 3,220,000
Net income 313,000 2,251,000
Basic earnings per share $0.06 $0.47
Weighted average number of common shares-basic 5,072,103 4,805,199
Diluted earnings per share $0.06 $0.44
Weighted average common and common equivalent 5,252,452 5,077,034
shares -- diluted
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