ONEIDA, N.Y., May 14, 2002 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ) today announced improved earnings of $.10 per share for the first fiscal quarter ended April 27, 2002, surpassing First Call consensus estimates of $.03 to $.05 per share.
Net income for the first quarter of fiscal 2002 was $1.7 million, or $.10 per share, compared to net income of $400,000, or $.02 per share, in the first quarter of fiscal 2001. Oneida reported net revenues of $115 million, within First Call consensus estimates, compared to $126.8 million in the first quarter of fiscal 2001. During the quarter the company adopted the new accounting standard for "Goodwill and Other Intangible Assets" (SFAS No. 142), including its non-amortization provision which accounted for $.03 per share of the first quarter earnings.
The focus on improving the company's balance sheet continued in the 2002 fiscal first quarter, as inventories were reduced by $9 million and debt declined by an additional $15 million.
POSITIONED TO BUILD UPON RECENT PROGRESS
"We are pleased by our first quarter earnings, which exceeded estimates," said Peter J. Kallet, Oneida Chairman and Chief Executive Officer. "The continued reductions in our inventory and debt levels, coupled with lower operating costs and increasing cash flows, are an excellent barometer of our improving operating efficiencies.
"We are encouraged by our recent progress and the steps we are taking to maximize our opportunities as the business climate recovers. Our Consumer tabletop business, while still feeling the effects of a soft economy, is beginning to see increased demand for housewares and bridal flatware products," Mr. Kallet continued. "Our Foodservice business unit experienced improved sales trends toward the end of the first quarter, despite continuing to be affected by the uncertain economy and the lingering impact of September 11 on the travel and airline industry."
CAUTIOUSLY OPTIMISTIC ABOUT 2002
"We remain committed to our strategic initiatives as previously stated, which include reducing debt and inventory while remaining profitable in these challenging economic times," Mr. Kallet concluded. "In another positive sign, based on increased demand for our products, we are implementing a second recall of additional manufacturing employees at our main flatware factory in Oneida/Sherrill, N.Y. Looking forward, we approach the balance of 2002 with cautious optimism, based on the signs of increasing consumer confidence and our anticipation of further product placements and new business prospects over the remainder of the year."
CONFERENCE CALL ON MAY 15
Oneida's management will host a conference call with analysts and investors on Wednesday, May 15, 2002 at 9 a.m. EST to discuss the first 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 for 30 days.
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
THREE MONTHS ENDED
April 27, 2002 April 28, 2001
Net Sales $115.0 $126.8
Cost of Sales 77.5 85.3
---- ----
Gross Profit 37.5 41.5
Operating Revenues 0.4 0.4
Selling, Distribution
& Administrative 31.5 34.0
---- ----
Operating Income 6.4 7.9
Other (Income) Expense - Net (0.4) 0.1
Interest Expense 4.1 7.1
----- -----
Income before Income Taxes 2.7 0.7
Provision for Income Taxes 1.0 0.3
----- -----
Net Income $1.7 $0.4
Net Income per share:
Basic $0.10 $0.02
Diluted $0.10 $0.02
Weighted Average Shares:
Outstanding 16,530 16,411
Diluted 16,558 16,497
ONEIDA LTD.
CONDENSED BALANCE SHEET
(Millions of dollars)
ASSETS April 27, 2002 January 26, 2002
-------------- ----------------
Cash $ 4.6 $11.1
Accounts Receivable - Net 82.2 80.9
Inventory 160.7 169.5
Other Current Assets 17.9 18.6
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Total Current Assets 265.4 280.1
Plant and Equipment - Net 106.5 108.4
Intangibles 133.5 134.1
Other Assets 27.9 23.6
------ ------
Total Assets $533.3 $546.2
LIABILITIES
Accounts Payable & Accrued Liabilities $66.9 $66.8
Short-Term Debt 7.2 11.4
Current Portion of Long-Term Debt 4.9 4.0
------ -----
Total Current Liabilities 79.0 82.2
Long-Term Debt 244.2 256.2
Other Liabilities 81.3 80.4
Shareholders' Equity 128.8 127.4
----- -----
Total Liabilities & Equity $533.3 $546.2
CONDENSED CASH FLOW STATEMENT
APRIL 2002/2001
(Millions of dollars)
Quarter ended Quarter ended
April 2002 April 2001
---------- ----------
Net income $ 1.7 $ 0.4
Add: depreciation & amortization 3.9 4.5
Net working capital changes 8.5 (1.1)
Capital expenditures (1.9) (2.6)
Stock sales and purchases - net 0.1 0.4
Proceeds/payments of debt (15.2) 10.4
Dividends paid (0.4) (1.7)
Other - net (3.2) (8.0)
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Increase (Decrease) in Cash ($ 6.5) $ 2.3