-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EZwWL1zC/MtjYF41BnKmSdFsOxQeBYlLOCTKBiGijiq0zXRwi3xtJpt0qeHvgW1D YBXJlBV7k/91o29CpuiJTQ== 0000912057-97-017746.txt : 19970520 0000912057-97-017746.hdr.sgml : 19970520 ACCESSION NUMBER: 0000912057-97-017746 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BMC INDUSTRIES INC/MN/ CENTRAL INDEX KEY: 0000215310 STANDARD INDUSTRIAL CLASSIFICATION: COATING, ENGRAVING & ALLIED SERVICES [3470] IRS NUMBER: 410169210 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08467 FILM NUMBER: 97606058 BUSINESS ADDRESS: STREET 1: 2 APPLETREE SQUARE CITY: MINNEAPOLIS STATE: MN ZIP: 55425 BUSINESS PHONE: 6128516000 MAIL ADDRESS: STREET 1: TWO APPLETREE SW SUITE 400 STREET 2: TWO APPLETREE SW SUITE 400 CITY: MINNEAPOLIS STATE: MN ZIP: 55425 FORMER COMPANY: FORMER CONFORMED NAME: BUCKBEE MEARS CO/MN DATE OF NAME CHANGE: 19830517 10-Q 1 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 X --------- QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the Quarterly Period ended March 31, 1997. --------- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition Period from N/A to . --- ------------- Commission File No. 1-8467 BMC INDUSTRIES, INC. -------------------- (Exact Name of Registrant as Specified in its Charter) Minnesota 41-0169210 ---------- ----------- (State of Incorporation) (IRS Employer Identification No.) Two Appletree Square, Minneapolis, Minnesota 55425 ---------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (612) 851-6000 ---------------- (Registrant's Telephone Number, Including Area Code) Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. X Yes No --------- --------- BMC Industries, Inc. has outstanding 27,459,104 shares of common stock as of May 10, 1997. There is no other class of stock outstanding. Page 1 of 18 Exhibit Index Begins at Page 9. PART I: FINANCIAL INFORMATION BMC INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands) Item 1: Financial Statements
March 31 December 31 -------- ----------- ASSETS 1997 1996 - ----------------------------------------------------------------------------------------------------------- Current Assets Cash and cash equivalents $ 4,169 $ 2,544 Trade accounts and notes receivable, net of allowances 28,490 24,979 Inventories 52,034 50,451 Deferred income taxes 5,904 5,372 Other current assets 9,162 8,354 - ----------------------------------------------------------------------------------------------------------- Total Current Assets 99,759 91,700 - ----------------------------------------------------------------------------------------------------------- Property, Plant and Equipment 241,981 220,489 Less Accumulated Depreciation 96,564 96,644 ---------- ---------- Property, Plant and Equipment, Net 145,417 123,845 ---------- ---------- Deferred Income Taxes 5,363 5,797 Other Assets, Net 11,643 11,627 - ----------------------------------------------------------------------------------------------------------- Total Assets $ 262,182 $ 232,969 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY - ----------------------------------------------------------------------------------------------------------- Current Liabilities Short-term borrowings $ 593 $ 1,355 Accounts payable 28,000 19,434 Income taxes payable 9,941 7,657 Accrued expenses and other liabilities 20,558 21,900 - ----------------------------------------------------------------------------------------------------------- Total Current Liabilities 59,092 50,346 - ----------------------------------------------------------------------------------------------------------- Long-Term Debt 32,642 16,634 Other Liabilities 18,803 19,421 Deferred Income Taxes 2,317 2,460 Stockholders' Equity Common stock 57,282 56,551 Retained earnings 92,101 84,629 Cumulative translation adjustment 847 3,974 Other (902) (1,046) - ----------------------------------------------------------------------------------------------------------- Total Stockholders' Equity 149,328 144,108 - ----------------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 262,182 $ 232,969 - ----------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------
See accompanying Notes to Condensed Consolidated Financial Statements. Page 2 BMC INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in thousands, except per share amounts)
Three Months Ended March 31 -------------------------- 1997 1996 - ------------------------------------------------------------------------------------------- Revenues $ 77,127 $ 68,301 Cost of products sold 61,145 55,261 - ------------------------------------------------------------------------------------------- Gross margin 15,982 13,040 Selling 2,837 2,558 Administrative 1,539 1,227 - ------------------------------------------------------------------------------------------- Income from Operations 11,606 9,255 - ------------------------------------------------------------------------------------------- Other Income and (Expense) Interest expense (144) (130) Interest income 42 119 Other income (expense) 262 (50) - ------------------------------------------------------------------------------------------- Earnings before Income Taxes 11,766 9,194 Income Taxes 3,883 3,011 - ------------------------------------------------------------------------------------------- Net Earnings $ 7,883 $ 6,183 - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- Net Earnings Per Share $ 0.28 $ 0.22 - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- Number of Shares Included in Per Share Computation 28,458 28,278 - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- Dividends Declared Per Share $ 0.015 $ 0.0125 - ------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------
See accompanying Notes to Condensed Consolidated Financial Statements. Page 3 BMC INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Three Months Ended March 31 ------------------------- 1997 1996 - ----------------------------------------------------------------------------------------------- Net Cash Provided by Operating Activities Net earnings $ 7,883 $ 6,183 Depreciation and amortization 3,283 2,423 Changes in operating assets and liabilities 1,997 (7,194) - ----------------------------------------------------------------------------------------------- Total 13,163 1,412 - ----------------------------------------------------------------------------------------------- Net Cash Used in Investing Activities Additions to property, plant and equipment (26,321) (11,529) Business acquisitions, net of cash acquired (1,817) -- - ----------------------------------------------------------------------------------------------- Total (28,138) (11,529) - ----------------------------------------------------------------------------------------------- Net Cash Provided by Financing Activities Net decrease in short-term borrowings (769) -- Net increase in long-term debt 16,950 -- Common stock issued 731 1,736 Cash dividends paid (411) (338) Other 144 (78) - ----------------------------------------------------------------------------------------------- Total 16,645 1,320 - ----------------------------------------------------------------------------------------------- Effect of Exchange Rate Changes on Cash and Cash Equivalents (45) (89) - ----------------------------------------------------------------------------------------------- Net Increase (Decrease) in Cash and Cash Equivalents 1,625 (8,886) Cash and Cash Equivalents at Beginning of Period 2,544 15,874 - ----------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of Period $ 4,169 $ 6,988 - ----------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------
See accompanying Notes to Condensed Consolidated Financial Statements. Page 4 BMC INDUSTRIES, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (in thousands, except per share amounts) 1. Financial Statements In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly the financial position of the Company as of March 31, 1997,and the results of operations and the cash flows for the periods ended March 31, 1997 and 1996. Such adjustments are of a normal recurring nature. Certain items in the financial statements for the period ended March 31, 1996 have been reclassified to conform to the presentation for the period ended March 31, 1997. The results of operations for the three-month period ended March 31, 1997 are not necessarily indicative of the results to be expected for the full year. The balance sheet as of December 31, 1996 is derived from the audited balance sheet as of that date. For further information, refer to the financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1996. 2. Inventories March 31, 1997 December 31, 1996 -------------- ----------------- Raw materials $ 15,372 $ 15,461 Work in process 11,980 9,807 Finished goods 24,682 25,183 --------- --------- Total Inventories $ 52,034 $ 50,451 --------- --------- --------- --------- 3. Earnings Per Share Primary earnings per share is computed using the weighted average number of common and common equivalent shares outstanding during the period. Common stock equivalents include dilutive stock options using the treasury stock method. Fully diluted earnings per share did not differ significantly from primary earnings per share in both periods. Page 5 Currently, earnings per share calculations are performed pursuant to Accounting Principles Board Opinion No. 15, EARNINGS PER SHARE. The Company will be required to present earnings per share data in accordance with Statement of Accounting Standards No. 128, EARNINGS PER SHARE, commencing with the fourth quarter of 1997. Statement No. 128 will require the presentation of basic earnings per share and diluted earnings per share. Basic earnings per share is calculated as net earnings divided by the weighted average outstanding common shares. Diluted earnings per share includes the effect of all outstanding dilutive securities, such as stock options, and is calculated similarly to the current fully-diluted earnings per share. While early adoption of Statement No. 128 is not permitted, the following pro-forma supplemental data is presented using the Statement No. 128 approach: Three months ended March 31 ------------------- 1997 1996 ---- ---- Basic $ 0.29 $ 0.23 Diluted 0.28 0.22 4. Legal Matters There are no material changes in the status of the Barth Industries legal proceeding or any other legal proceeding or environmental matter described in the Company's Annual Report on Form 10-K for the year ended December 31, 1996. Page 6 BMC INDUSTRIES, INC. ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS COMPARISON OF THREE MONTHS ENDED MARCH 31, 1997 AND 1996 Total revenues for the first quarter of 1997 increased by $8.8 million or 13% from the first quarter of 1996. Revenues of the Precision Imaged Products group for the first quarter increased 14% due primarily to sales of large (25" to 29") and invar television aperture masks increasing 28% and 7%, respectively, over first quarter 1996 sales. First quarter sales of Jumbo (30" and larger) television aperture masks were strong but nevertheless were 19% lower than first quarter 1996 sales. First quarter 1996 sales were unusually robust with a 98% increase over 1995 levels. The weakening of the German mark relative to the U.S. dollar had virtually no impact on earnings but reduced sales, as compared with the prior year quarter, by nearly $3 million. First quarter sales included over $3 million of computer monitor mask sales, including the Company's initial sales of 15-inch monitor masks. Net sales of the Optical Products group increased 10% due to higher sales in all product lines. Sales of high end products (polycarbonate, progressive, high index and polarizing sun lenses) increased 28% over the same quarter in the prior year. Optical Products' international sales increased 27% over the prior year quarter. Cost of sales were 79% of net sales for the first quarter of 1997, compared to 81% in the same period of 1996. The improvement occurred in both groups and was due primarily to improved sales mix of higher-margin products and improved yields and manufacturing efficiencies. The Optical Products group also benefited from the acquisition of plastic lenses from a lower cost, off-shore manufacturer. Despite an increased debt level, interest expense in the first quarter of 1997 was comparable to the prior year's period due to the capitalization of interest costs in connection with the Company's expansion projects. The provision for income taxes was 33% of pre-tax income in the first quarter of both 1997 and 1996. FINANCIAL POSITION AND LIQUIDITY Cash and cash equivalent balances increased $1.6 million while debt increased $15.2 million during the first three months of 1997. The increased debt level was due primarily to $26.3 million of capital expenditures relating primarily to the expansion of the Company's aperture mask manufacturing facilities and increased accounts receivable levels, offset partially by increased accounts payable balances and cash generated from earnings. The increased accounts receivable levels were due primarily to the increased quarterly sales and the increased accounts payable balance was due to payables related to the mask expansion project. Working capital was $40.7 million at March 31, 1997 compared to $41.4 million at December 31, 1996. The current ratio was 1.69 at March 31, 1997, compared to 1.82 at December 31, 1996. The ratio of debt to equity increased to 0.22 at March 31, 1997 compared to 0.12 at December 31, 1996. Page 7 The Company expects to incur more than $75 million of capital spending during 1997, a significant portion of which is related to completing the expansion of the Cortland facility. The Company has $88 million in revolving credit facilities which will provide the funds needed for capital spending related to the Cortland expansion and the Company's new polycarbonate facility under construction in Ramsey, Minnesota. The Company's $80 million acquisition credit facility will provide funds in the event the Company encounters a strategic acquisition opportunity. As of March 31, 1997, the Company had commitments of approximately $25.0 million related to capital projects, a majority of which were related to the Cortland expansion. These credit facilities along with cash generated from operations should be sufficient to meet the Company's future capital and operating requirements. FOREIGN CURRENCY Fluctuations in foreign currency exchange rates, principally the German mark versus the U.S. dollar, may affect the Company's financial results. The Company's German subsidiary has a large portion of its sales denominated in U.S. dollars. As most of the German subsidiary's expenses are denominated in the German mark, this represents the most significant element of the Company's exposure to currency rate fluctuations. This exposure is generally addressed as needed through the purchase of forward contracts and options. As of March 31, 1997, the Company had approximately $15 million of foreign exchange options to exchange U.S. dollars for German marks at a set exchange rate. These options mature at various intervals through March 1998. Exposure to foreign currency exchange rate fluctuations also may exist with respect to intercompany payables or receivables with the Company's German subsidiary. The Company minimizes this exposure by holding such balances at low levels. ENVIRONMENTAL There are no material changes in the status of the legal proceedings and environmental matters described in the Company's Annual Report on Form 10-K for the year ended December 31, 1996. CAUTIONARY STATEMENTS Certain statements included in this Discussion and Analysis of Financial Condition and Results of Operations by the Company or its representatives, as well as other communications, including reports to shareholders, news releases and presentations to securities analysts or investors, contain forward-looking statements made in good faith by the Company pursuant to the "Safe Harbor" provisions of the PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. These statements relate to non-historical information which are subject to certain risks and uncertainties that could cause actual results to differ materially from those presently anticipated or projected. The Company wishes to caution the reader not to place undo reliance on any such forward-looking statements. These statements are qualified by important factors listed separately in "Item 1 - Business" of the Company's Form 10-K for the year ended December 31, 1996, which in some cases have affected and in the future could adversely affect the Company's actual results and could cause the Company's actual financial performance to differ materially from that expressed in any forward-looking statement. These factors should not, however, be considered an exhaustive list. The Company does not undertake the responsibility to update any forward-looking statement that may be made from time to time by or on behalf of the Company. Page 8 Part II: OTHER INFORMATION ITEM 1. With regard to legal proceedings and certain environmental matters, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" on page 8 and Note 4 of the "Notes to Condensed Consolidated Financial Statements" on page 6. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS PAGE -------- 10.1 1997 Management Incentive Bonus Plan Summary . . . . . . . . . . . . . . . 10 11.1 Computation of Net Earnings Per Share. . . . . . . . . . . . . . . . . . . 13 27. Financial Data Schedule (filed only in electronic format) 99.1 News Release, dated April 23, 1997, announcing the first quarter 1997 operating results . . . . . . . . . . . . . . . . . . . . . . 14 99.2 News Release, dated April 7, 1997, announcing stock repurchase program.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
(b) REPORTS ON FORM 8-K. The Company did not file any reports on Form 8-K during the quarter ended March 31, 1997. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BMC INDUSTRIES, INC. /s/ Jeffrey L. Wright ----------------------------------------- Jeffrey L. Wright Controller (Principal Accounting Officer) Dated: May 14, 1997 Page 9 EX-10.1 2 EX-10.1 BMC INDUSTRIES, INC. 1997 MANAGEMENT INCENTIVE PLAN OBJECTIVES - To focus management's attention on annual profit performance and balance sheet management. - To recognize the extraordinary contributions of individual managers, in years when earnings exceed "Par" performance. GLOSSARY OF TERMS "Maximum" Performance - That level of consolidated net earnings justifying a "maximum" incentive award. "Par" Performance - The level of consolidated net earnings, as approved by the Board, justifying a "target/par" incentive award. "Cut-in" Performance - The minimum level of consolidated net earnings justifying a "minimum" incentive award. "Target/Par" Incentive - The percent (%) of base pay when a "target/par"incentive award is earned. "Minimum" Incentive - The percent (%) of base pay when a "minimum" incentive award is earned. "Maximum" Incentive - The percent (%) of base pay when a "maximum" incentive award is earned. Page 10 1997 MANAGEMENT INCENTIVE PLAN SUMMARY PARTICIPANTS: Elected officers and key managers. PERFORMANCE STANDARDS: "Maximum" performance is 108.3% of the "Par" consolidated net earnings. "Par" performance is the consolidated net earnings number, as approved by the Board. "Cut-in" performance is 95% of the "Par" consolidated net earnings. AWARD LEVELS: "Target" incentive award levels vary as a percentage of base salary, depending on level of responsibility. ORGANIZATION WEIGHTING: There is no organization weighting, i.e., Corporate participants earn awards based on Corporate performance. INCENTIVE OPPORTUNITY: Individual incentive awards will be prorated and calculated based on the following, once the applicable "Thresholds" have been exceeded. - The "Maximum" Incentive is earned when reported earnings, as defined above, equal or exceed "Maximum" Performance. - The "Target/Par" Incentive is earned when reported earnings, as defined above, equal "Par" Performance. - The "Minimum" Incentive is earned when reported earnings, as defined above, equal "Cut-in" Performance. Page 11 INCENTIVE OPPORTUNITY: - No incentive will be paid when reported (continued) earnings, as defined above, fall below "Cut-in" Performance. - "Discretionary Incentive Pools" will be generated when earnings performance exceeds "Par". Any MIP participant is eligible to participate. The "Pool" will be 10% of the accrued incentive dollars at "Par". Discretionary awards will be in addition to the incentive awards by formula. Such awards must be determined by the CEO. PAYMENT FORM: Cash. Page 12 EX-11.1 3 EX-11.1 EXHIBIT 11.1 COMPUTATION OF NET EARNINGS PER SHARE (Dollars in thousands, except per share amounts)
Quarter Ended March 31 ----------------------- 1997 1996 ----------------------- PRIMARY Net Earnings $ 7,883 $ 6,183 ----------------------- ----------------------- Shares of common stock and common stock equivalents: Weighted average shares outstanding 27,410 27,167 Dilutive effect of stock options and warrants outstanding (1) 1,048 1,111 ----------------------- Total 28,458 28,278 ----------------------- ----------------------- Net Earnings Per Share $ 0.28 $ 0.22 ----------------------- ----------------------- FULLY DILUTED Net Earnings $ 7,883 $ 6,183 ----------------------- ----------------------- Shares of common stock and common stock equivalents: Weighted average shares outstanding 27,410 27,167 Dilutive effect of stock options and warrants outstanding (2) 1,048 1,111 ----------------------- Total 28,458 28,278 ----------------------- ----------------------- Net Earnings Per Share $ 0.28 $ 0.22 ----------------------- -----------------------
(1) Outstanding stock options and warrants based on the treasury stock method using the average market price for the quarter. (2) Outstanding stock options and warrants based on the treasury stock method using the greater of the average market price or the ending market price for the quarter. Page 13 EX-27 4 FDS
5 1,000 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 4,092 77 31,684 3,194 52,034 99,759 241,981 96,564 262,182 59,092 0 0 0 57,282 92,046 262,182 77,026 77,127 61,145 61,145 (262) 0 144 11,766 3,883 7,883 0 0 0 7,883 0.28 0.28
EX-99.1 5 EX-99.1 CONTACT: Michael P. Hawks (NYSE -- BMC) (612) 851-6030 FOR IMMEDIATE RELEASE BMC REPORTS RECORD FIRST QUARTER EARNINGS April 23, 1997 -- Minneapolis, MN -- BMC Industries, Inc. today reported first quarter net earnings of $7,883,000 or $.28 per share, up 27% from earnings of $6,183,000 or $.22 per share in the year-earlier period. First quarter revenues increased 13% from $68.3 million in the first quarter of 1996 to $77.1 million in the first quarter of 1997. Paul B. Burke, BMC's chairman and chief executive officer stated "The first quarter represents another quarterly earnings record for BMC and is the twenty- fourth consecutive quarter of increased net earnings over the year-earlier period, excluding income from the sale of equipment and technology and other non-recurring items. Once again, each division contributed to this significant accomplishment." The Company's Precision Imaged Products operation (including both Mask Operations and Buckbee-Mears St. Paul) posted record first quarter results. First quarter sales increased 14% over the prior year quarter while profits increased 29%. The profitability of Mask Operations increased due to the continued sales mix shift to higher margin products, including high resolution computer monitor masks, and improved operating performance. Sales of large (25- 29 inches) and invar television aperture masks increased 28% and 7%, respectively, over first quarter 1996 sales. First quarter sales of jumbo (30 inches and larger) aperture masks were strong but nevertheless were 19% lower than first quarter 1996 sales. First quarter 1996 jumbo sales were unusually robust with a 98% increase over first quarter 1995 levels. The weakening of the German Mark relative to the U.S. Dollar had virtually no impact on earnings but reduced sales, as compared with the prior year quarter, by nearly $3 million. First quarter PIP sales included over $3 million of high resolution computer monitor masks sales, including sales of 15-inch invar masks. First quarter high resolution mask sales were impacted by a market conversion from 14-inch monitors to 15-inch monitors that occurred much more quickly than anticipated by the tube manufacturers and by BMC. This conversion, along with capacity additions by tube manufacturers, resulted in an inventory build of 14-inch monitors at the end of 1996 and weaker than anticipated first quarter demand for 14-inch monitor masks. Page 14 Moreover, this rapid change prompted BMC's German high resolution mask line to convert production to 15-inch invar masks. As a consequence, much of the first and second quarters will be spent ramping up the yield curve and securing customer part approval for these part types. The monitor and entertainment line expansions at the Cortland, New York facility remain on schedule for start up this quarter. Following the typical time period required to de-bug these lines and qualify parts with customers, they are expected to run at full capacity with commensurate demand for their products. BMC's Optical Products operation also produced record first quarter results. First quarter sales increased 10% over the prior year quarter, while profitability increased 16%. Sales growth occurred in each major product line. Sales of high end products (polycarbonate, progressive, high index and polarizing sun lenses) increased 28% over the year-earlier period. International sales growth continued at a strong pace. Construction of the new polycarbonate manufacturing, centralized distribution and research and development facility remains on schedule for completion in the third quarter 1997. BMC is one of the world's largest manufacturers of aperture masks for color television tubes and computer monitors. The Company is also a leading supplier of polycarbonate, glass and plastic eyewear lenses. The common stock of the Company is traded on the New York Stock Exchange under the symbol "BMC". Page 15 BMC INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in thousands, except per share amounts)
Three Months Ended March 31 ------------------------- 1997 1996 - ------------------------------------------------------------------------------------------ Revenues $ 77,127 $ 68,301 Cost of products sold 61,145 55,261 - ------------------------------------------------------------------------------------------ Gross Margin 15,982 13,040 Selling 2,837 2,558 Administrative 1,539 1,227 - ------------------------------------------------------------------------------------------ Income from Operations 11,606 9,255 - ------------------------------------------------------------------------------------------ Other Income and (Expense) Interest expense (144) (130) Interest income 42 119 Other income (expense) 262 (50) - ------------------------------------------------------------------------------------------ Earnings before Income Taxes 11,766 9,194 Income Taxes 3,883 3,011 - ------------------------------------------------------------------------------------------ Net Earnings $ 7,883 $ 6,183 - ------------------------------------------------------------------------------------------ Earnings Per Share $ 0.28 $ 0.22 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ Number of Shares Included in Per Share Computation 28,458 28,278 - ------------------------------------------------------------------------------------------
Page 16 BMC INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands)
March 31 December 31 -------- ----------- ASSETS 1997 1996 - --------------------------------------------------------------------------------------- Current Assets Cash and cash equivalents $ 4,169 $ 2,544 Trade accounts and notes receivable, net of allowances 28,490 24,979 Inventories 52,034 50,451 Deferred income taxes 5,904 5,372 Other current assets 9,162 8,354 - --------------------------------------------------------------------------------------- Total Current Assets 99,759 91,700 - --------------------------------------------------------------------------------------- Property, Plant and Equipment 241,981 220,489 Less Accumulated Depreciation 96,564 96,644 ---------- ---------- Property, Plant and Equipment, Net 145,417 123,845 ---------- ---------- Deferred Income Taxes 5,363 5,797 Other Assets, Net 11,643 11,627 - --------------------------------------------------------------------------------------- Total Assets $ 262,182 $ 232,969 - --------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY - --------------------------------------------------------------------------------------- Current Liabilities Short-term borrowings $ 593 $ 1,355 Accounts payable 28,000 19,434 Income taxes payable 9,941 7,657 Accrued expenses and other current liabilities 20,558 21,900 - --------------------------------------------------------------------------------------- Total Current Liabilities 59,092 50,346 - --------------------------------------------------------------------------------------- Long-Term Debt 32,642 16,634 Other Liabilities 18,803 19,421 Deferred Income Taxes 2,317 2,460 Stockholders' Equity Common stock 57,282 56,551 Retained earnings 92,101 84,629 Cumulative translation adjustment 847 3,974 Other (902) (1,046) - --------------------------------------------------------------------------------------- Total Stockholders' Equity 149,328 144,108 - --------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 262,182 $ 232,969 - --------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------
Page 17 EX-99.2 6 EX-99.2 CONTACT: Michael P. Hawks (NYSE -- BMC) (612) 851-6030 FOR IMMEDIATE RELEASE BMC ANNOUNCES STOCK REPURCHASE PROGRAM April 7, 1997 -- Minneapolis, MN -- BMC Industries, Inc. today announced approval by its Board of Directors of a stock repurchase program to repurchase up to one million shares of the Company's outstanding common stock. These shares will be repurchased in open market or negotiated transactions, with the timing and terms of the purchases to be determined by BMC management based on market conditions. BMC Industries, Inc. is one of the world's largest manufacturers of aperture masks for color picture tubes used in televisions and computer monitors. Through Vision-Ease, the Company is also a leading producer of polycarbonate, glass and plastic eyewear lenses. The common stock of the Company is traded on the New York Stock Exchange under the symbol "BMC". Page 18 -----END PRIVACY-ENHANCED MESSAGE-----