ONEIDA, N.Y., Nov. 14, 2001 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ) today announced results for the third fiscal quarter ended October 27, 2001. Earnings were $.02 per share, compared to $.52 per share (before restructuring and unusual charges) for the third fiscal quarter of the prior year. Net revenues were $129 million, compared to $152 million for the same period a year ago. The results are in line with Oneida's October 24, 2001 announcement of revised earnings expectations.
For the first nine months of the fiscal year, earnings totaled $.14 per share, compared to $1.18 per share (before restructuring and unusual charges) for the same period a year ago. Net revenues totaled $375 million, compared to $374 million for the first nine months of the previous fiscal year.
BALANCE SHEET IMPROVEMENTS
Oneida reported significant operational improvements in its balance sheet, beyond what was anticipated in the October 24 announcement. Inventories were reduced by $7 million during the third quarter, following reductions that totaled $19 million over the first half of the year. In addition, compared to October of last year, inventories were down by $42 million. Debt levels also were reduced by $7 million during the third quarter, and were down by $31 million from the same period a year ago.
"As previously noted, the weakening economy combined with the September 11 terrorist attacks were factors in the continued softness within our primary business units, and in the resulting effect on our third quarter earnings," said Peter J. Kallet, Oneida Chairman and Chief Executive Officer. "For the final six weeks of the quarter following the attacks, our Foodservice unit experienced a lessening in orders from the airline, restaurant and hotel industries, while the slowdown in retail store traffic affected our Consumer unit's results.
"Despite these very challenging conditions, our previously announced plans to reduce internal costs and manage our operations more efficiently are proving successful, as reflected by our solid reductions in inventory and debt levels that are noted above," Mr. Kallet added. "We are following through on our commitment to these cost-control disciplines. The ongoing cost reductions will have a positive long-term impact on our cash flow and overall efficiencies going forward.
"Based on the current economic climate, we will continue to address our business units' operational situations, and we will take the necessary actions to continue to reduce inventory, lower our debt and remain profitable," Mr. Kallet concluded.
CONFERENCE CALL ON NOVEMBER 15
Oneida's management will host a conference call with analysts and investors on Thursday, November 15, 2001 at 9 a.m. EST to discuss the third quarter results and operating performance. The conference call will be broadcast live over the Internet at www.oneida.com. To access the Webcast, participants should visit the Investor Relations section of the Website at least fifteen minutes prior to the start of the conference call to download and install any necessary audio software. A replay of the Webcast can be accessed one hour after the conference call, and will be available through November 17, 2001.
Oneida Ltd. is a leading manufacturer and marketer of flatware and dinnerware for both the consumer and foodservice industries worldwide. Oneida also is a leading marketer of a variety of crystal, glassware and metal serveware for those industries.
Statements contained in this press release that state that certain results are "expected" or "anticipated" to occur, or otherwise state the company's predictions for the future, are forward-looking statements. These particular forward-looking statements and all other statements that are not historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially. Such factors include, but are not limited to: general economic conditions in the Company's markets; difficulties or delays in the development, production and marketing of new products; the impact of competitive products and pricing; unforeseen increases in the cost of raw materials or shortages of raw materials; significant increases in interest rates or the level of the Company's indebtedness; major slowdowns in the retail, travel or entertainment industries; the loss of several of the Company's major customers; underutilization of the Company's plants and factories; and the amount and rate of growth of the Company's selling, general and administrative expenses.
ONEIDA LTD.
CONDENSED CONSOLIDATED INCOME STATEMENT
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
FOR THE FOR THE
THREE MONTHS ENDED NINE MONTHS ENDED
Oct. 27, Oct. 28, Oct. 27, Oct. 28,
2001 2000 2001 2000
---- ---- ---- ----
Net Sales $128.5 $152.0 $374.8 $374.2
Cost of Sales (a) 87.7 98.3 250.7 260.8
---- ---- ---- ----
Gross Profit 40.8 53.7 124.1 113.4
Operating Revenues 0.4 4.8 1.1 6.3
Selling, Distribution &
Administrative 34.3 37.6 102.4 98.6
Restructuring/Unusual
Charges (a) -- 7.0 -- 15.0
---- ---- ---- ----
Operating Income 6.9 13.9 22.8 6.1
Other (Income) Expense
- Net 0.7 0.3 0.1 0.4
Interest Expense 5.7 7.1 18.8 14.0
---- ---- ---- ----
Income (Loss) before
Income Taxes 0.5 6.5 3.9 (8.3)
Provision (Credit) for
Income Taxes 0.2 2.4 1.5 (3.1)
---- ---- ---- ----
Net Income (Loss) $ 0.3 $ 4.1 $ 2.4 $ (5.2)
Net Income (loss) per
share:
Basic:
Reported $ 0.02 $ 0.25 $ 0.14 $(0.33)
Core Earnings (b) $ 0.02 $ 0.52 $ 0.14 $ 1.18
Diluted:
Reported $ 0.02 $ 0.25 $ 0.14 $(0.33)
Core Earnings (b) $ 0.02 $ 0.52 $ 0.14 $ 1.18
Weighted Average Shares:
Basic 16,459 16,273 16,433 16,286
Diluted 16,553 16,337 16,519 16,286
(a) The earnings for the nine months ended October 28, 2000
include the impact of the following special charges: restructuring
costs of $15 million (principally severance and impairment of assets
related to manufacturing tools and other product procurement assets)
and an inventory writedown of $24 million related to product
rationalization as a result of acquisitions, as well as significant
other stock keeping unit reductions.
(b) Core earnings represent earnings from operations, net of
restructuring and unusual charges.
ONEIDA LTD.
CONDENSED BALANCE SHEET
(Millions of dollars)
ASSETS Oct. 27, Jan. 27,
2001 2001
------ ------
Cash $ 4.7 $ 2.2
Accounts Receivable - Net 93.2 90.0
Inventory 190.2 215.9
Other Current Assets 18.8 16.7
------ ------
Total Current Assets 306.9 324.8
Plant and Equipment - Net 108.6 112.4
Intangibles 135.8 139.7
Other Assets 27.0 33.7
------ ------
Total Assets $ 578.3 $ 610.6
LIABILITIES
Accounts Payable & Accrued
Liabilities $ 79.2 $ 95.4
Short-Term Debt 10.5 8.0
Current Portion of Long-Term Debt 8.2 9.2
------ ------
Total Current Liabilities 97.9 112.6
Long-Term Debt 272.2 282.8
Other Liabilities 86.0 90.9
Shareholders' Equity 122.2 124.3
------ ------
Total Liabilities & Equity $ 578.3 $ 610.6
CONDENSED CASH FLOW STATEMENT
NINE MONTHS ENDED OCTOBER 2001/2000
(Millions of dollars)
Period ended Period ended
Oct. 2001 Oct. 2000
------------ ------------
Net income (loss) $2.4 $(5.2)
Add: depreciation & amortization 13.9 11.9
Net working capital changes 7.6 (40.6)
Impairment of assets -- 29.0
Capital expenditures (7.5) (9.0)
Purchase of subsidiaries -- (118.0)
Stock sales/ (purchases) - net 1.2 (3.0)
Proceeds/(payments) of debt (9.3) 162.4
Dividends paid (3.3) (5.0)
Other - net (2.5) (22.9)
------- ------
Increase (Decrease) in Cash $2.5 $(0.4)