Press Releases
: 1998
CITATION CORPORATION
2 Office Park Circle, Suite 204
Birmingham, AL 35223
Contact: Stanley B. Atkins
205-871-5731
April 20, 1998
Citation Corporation Reports Record $0.47 EPS for Second
Fiscal Quarter
BIRMINGHAM, Alabama -- Citation Corporation (Nasdaq: CAST)
today announced record sales and earnings for its fiscal second quarter
and six months ended March 29, 1998.
- Second quarter sales were $193.1 million, an increase
of $22.7 million or 13.3 percent from fiscal 1997 second quarter sales
of $170.4 million.
- Earnings for the quarter were $8.4 million, a 31.3
percent increase from the $6.4 million earned in the second quarter
of fiscal 1997.
- Earnings per share (EPS) for the fiscal 1997 second
quarter (fully diluted) were $0.47 versus $0.36 for the same period
in fiscal 1998. The EPS of $0.47 is the best Citation has registered
for any quarter in its history.
- For the six month period of fiscal 1998, sales were
$363.3 million, an increase of $52.4 million or 16.9 percent over the
$310.9 million sales in the first six months of fiscal 1997.
- Earnings for the six months were $13.5 million, an
increase of 36.4 percent, versus $9.9 million in the first six months
of fiscal 1997.
- EPS (fully diluted) for the first six months of fiscal
1998 was $0.75 as compared to $0.55 in the first six months of fiscal
1997.
- In the second quarter, 7.9 percent of the sales increase
was attributable to acquisitions; 5.4 percent to increases in the "same
store" units. For the 1998 six months, 8.5 percent of the sales increase
was attributable to acquisitions; 8.4 percent to increases by the same
store units.
- The operating margin for the fiscal 1998 quarter improved
to 9.0 percent from 8.4 percent in the second quarter of fiscal 1997.
For the six months, the operating margin was 7.9 percent versus 7.6
percent in the 1997 six-month period.
- SG&A expenses for the 1998 fiscal quarter decreased
to 8.6 percent of sales versus 9.0 percent in the second quarter of
fiscal 1997.
T. Morris Hackney, Chairman and CEO, said, "Citation's performance is indicative
of a strong sales environment and improvement in operating efficiencies.
This shows very good progress in successful integration of our acquisitions
of recent years. In addition, our SG&A expenses as a percentage of sales
have continued to decline.
"We have completed three relatively small acquisitions so far this year,
although the most recent, Citation Precision, was closed just after the
end of the quarter. The search for solid acquisition prospects that allow
us to better serve our customers and provide financial benefits to Citation
is continuing.
"While there is no guarantee that any given acquisition can be successfully
completed, the pipeline of prospects appears very good at this time.
"On the operating side, demand for castings and forgings continues to be
strong, buoyed by outsourcing activity from several large original equipment
manufacturers. Overall, we are operating at a good level of capacity and
we anticipate that more new business will be added during the remainder
of this year. This should have a positive impact for both fiscal 1998 and
1999.
"We continue to believe that we can do better at the operating and gross
margin lines, but we are pleased by results so far this year and expect
to keep improving," he said.
Citation Corporation is a metal components supplier to capital and durable
goods industries. The Company currently operates 19 manufacturing divisions
in 10 states and employs more than 6,500 employees. Sales for fiscal 1997
were $649 million.
Note: The statements in this news release that are not historical fact are
forward-looking statements that involve risks and uncertainties including,
but not limited to, changes in the economy, demand for durable goods, pricing
by competitors, entry of new competitors, the effect of acquisitions, and
other risks detailed in the Company's Form 10-K for the fiscal year ended
September 28, 1997, and other filings with the Securities and Exchange Commission.
