CITATION CORPORATION
2 Office Park Circle, Suite 204
Birmingham, AL 35223
Contact: Stanley B. Atkins
205-871-5731
Fax: 205-871-5772
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.