-----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, Hk+irqxD+fRHIZf5hanoQh4wU5apX0DPcJkf5dyQKLC1PSoDpKZovVZrv70gqvVp 0nBvPLOLrnsu/eR4y2MMPg== 0000820318-04-000031.txt : 20040805 0000820318-04-000031.hdr.sgml : 20040805 20040804185719 ACCESSION NUMBER: 0000820318-04-000031 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040630 FILED AS OF DATE: 20040805 FILER: COMPANY DATA: COMPANY CONFORMED NAME: II-VI INC CENTRAL INDEX KEY: 0000820318 STANDARD INDUSTRIAL CLASSIFICATION: OPTICAL INSTRUMENTS & LENSES [3827] IRS NUMBER: 251214948 STATE OF INCORPORATION: PA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-16195 FILM NUMBER: 04952832 BUSINESS ADDRESS: STREET 1: 375 SAXONBURG BLVD CITY: SAXONBURG STATE: PA ZIP: 16056 BUSINESS PHONE: 724-352-4455 MAIL ADDRESS: STREET 1: 375 SAXONBURG BLVD CITY: SAXONBURG STATE: PA ZIP: 16056 10-Q 1 r-8k06302004.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (date of earliest event reported): August 4, 2004 II-VI INCORPORATED (Exact name of registrant as specified in its charter) Pennsylvania 0-16195 25-1214948 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification Number) 375 Saxonburg Boulevard, Saxonburg, Pennsylvania 16056 (Address of principal executive offices) (ZIP Code) Registrant's telephone number, including area code: 724-352-4455 Former name or former address, if changed, since last report: Not Applicable Item 12. Results of Operations and Financial Condition On August 4, 2004, II-VI Incorporated issued a press release announcing its financial results for the quarter and fiscal year ended June 30, 2004. A copy of the press release is furnished as Exhibit 99.1 to this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. II-VI INCORPORATED (Registrant) Date: August 4, 2004 By: /s/ Carl J. Johnson Chairman and Chief Executive Officer Date: August 4, 2004 By: /s/ Craig A. Creaturo Chief Accounting Officer and Treasurer EXHIBIT INDEX Exhibit No. Description - ---------- ----------- 99.1 Press Release EX-99 2 ex99.txt Exhibit 99 Release Date: August 4, 2004 Contact: Craig A. Creaturo Chief Accounting Officer and Treasurer (724) 352-4455 ccreaturo@ii-vi.com Homepage: www.ii-vi.com II-VI INCORPORATED ACHIEVES RECORD FOURTH QUARTER AND FISCAL YEAR 2004 EARNINGS, REVENUES AND BOOKINGS; RAISES FISCAL YEAR 2005 GUIDANCE PITTSBURGH, PA., August 4, 2004 -- II-VI Incorporated (NASDAQ NMS: IIVI) today reported results for its fourth fiscal quarter and year ended June 30, 2004. Net earnings for the quarter were a record $6,024,000 ($0.41 per share-diluted). These results compare with net earnings of $3,626,000 ($0.25 per share-diluted) in the fourth quarter of last fiscal year. For the fiscal year ended June 30, 2004, net earnings were $17,337,000 ($1.18 per share-diluted). This compares with net earnings of $11,620,000 ($0.81 per share-diluted) for the same period last fiscal year. Bookings for the quarter increased 41% to a record $45,702,000 compared to $32,359,000 in the fourth quarter of last fiscal year. Bookings for the fiscal year ended June 30, 2004 increased 19% to $162,775,000 from $136,337,000 for the same period last year. Bookings are defined as customer orders received that are expected to be converted into revenues during the next 12 months. Revenues for the quarter increased 31% to a record $42,990,000 from $32,852,000 in the fourth quarter of last fiscal year. Revenues for the fiscal year ended June 30, 2004 increased 18% to $150,848,000 from $128,210,000 for the same period last fiscal year. Francis J. Kramer, president and chief operating officer said, "Record revenues and bookings for both the fourth quarter and fiscal year attest to strong worldwide demand for II-VI products. Record earnings for the same periods result from operating improvements in every II-VI business segment. While the infrared optics segment fueled earnings growth, strong bookings and revenues were achieved in near infrared and military infrared optics segments, as well as by the Compound Semiconductor Group. Earnings for the quarter ended June 30, 2004 benefited by a lowering of our effective tax rate for fiscal year 2004." Kramer continued, "Given current business conditions, we anticipate first quarter fiscal year 2005 revenues to increase over 20% and earnings per share to increase over 50% from the comparable year-ago quarter. We also are increasing our guidance for fiscal year 2005." Segment Bookings and Revenues Bookings for the quarter for infrared optics increased 28% to $23.1 million from $18.0 million in the fourth quarter of last fiscal year. Bookings for the fiscal year ended June 30, 2004 for infrared optics increased 14% to $90.4 million from $79.3 million for the same period last fiscal year. Revenues for the quarter for infrared optics increased 34% to $24.2 million from $18.0 million in the fourth quarter of the last fiscal year. Revenues for the fiscal year ended June 30, 2004 for infrared optics increased 19% to $87.7 million from $73.6 million for the same period last fiscal year. Bookings for the quarter for near-infrared optics increased 89% to $11.5 million from $6.1 million in the fourth quarter of last fiscal year. Bookings for the fiscal year ended June 30, 2004 for near-infrared optics increased 22% to $30.2 million from $24.8 million for the same period last fiscal year. Revenues for the quarter for near-infrared optics increased 30% to $7.9 million from $6.1 million in the fourth quarter of the last fiscal year. Revenues for the fiscal year ended June 30, 2004 for near-infrared optics increased 13% to $25.8 million from $22.8 million for the same period last fiscal year. Bookings for the quarter for military infrared optics increased 93% to $8.7 million from $4.5 million in the fourth quarter of the last fiscal year. Bookings for the fiscal year ended June 30, 2004 for military infrared optics increased 26% to $29.2 million from $23.1 million for the same period last fiscal year. Revenues for the quarter for military infrared optics increased 10% to $7.3 million compared to $6.6 million in the fourth quarter of the last fiscal year. Revenues for the fiscal year ended June 30, 2004 for military infrared optics increased 10% to $25.3 million from $23.0 million for the same period last fiscal year. Combined bookings for the quarter for the "Compound Semiconductor Group" category for segment reporting purposes (which primarily represent the eV PRODUCTS division and the Wide Bandgap Materials group) were $2.3 million compared to $3.8 million in the fourth quarter of the last fiscal year. Combined bookings for the fiscal year ended June 30, 2004 for this Group were $13.0 million compared to $9.2 million for the same period last fiscal year. Combined revenues for the quarter for this Group were $3.6 million compared to $2.2 million in the fourth quarter of last fiscal year. Combined revenues for the fiscal year ended June 30, 2004 for this Group were $12.1 million compared to $8.7 million for the same period last fiscal year. Outlook For the first fiscal quarter ending September 30, 2004, the Company currently forecasts revenues to range from $41 million to $43 million and earnings per share to range from $0.32 to $0.35. For the fiscal year ending June 30, 2005, the Company expects revenues to range from $167 million to $172 million and earnings per share to range from $1.35 to $1.43. As discussed in more detail below, actual results may differ from these forecasts due to numerous factors including changes in product demand, competition and general economic conditions. Webcast Information The Company will host a conference call at 10:00 a.m. Eastern Time on Thursday, August 5, 2004 to discuss these results. The conference call will be broadcast live over the Internet and can be accessed by all interested parties from the Company's web site at www.ii-vi.com as well as at http://phx.corporate-ir.net/playerlink.zhtml?c=65340&s=wm&e=921038. Please allow extra time prior to the call to visit the site and, if needed, download the media software required to listen to the Internet broadcast. A replay of the webcast will be available for 2 weeks following the call. Headquartered in Saxonburg, Pennsylvania, II-VI Incorporated designs, manufactures and markets optical and opto-electronic components, devices and materials for infrared, near-infrared, visible light, x-ray and gamma-ray instrumentation. The Company's infrared optics business manufactures optical and opto-electronic components sold under the II-VI brand name are used primarily in CO2 lasers. The Company's near-infrared optics business manufactures near-infrared and visible light products for industrial, scientific, military and medical instruments and laser gain materials and products for solid-state YAG and YLF lasers at the Company's VLOC subsidiary. The Company's military infrared optics business manufactures infrared products for military applications under the Exotic Electro-Optics (EEO) brand name. In the Company's Compound Semiconductor Group, the eV PRODUCTS division manufactures and markets solid-state x-ray and gamma-ray detection products and materials for use in medical, industrial, environmental, scientific and homeland security applications; the Company's Wide Band Gap Materials (WBG) group manufactures and markets single crystal silicon carbide substrates for use in the solid-state lighting, wireless infrastructure, RF electronics and power switching industries. This press release contains forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934. Any information which is not historical in nature constitutes such forward-looking statements. Actual results may differ from the results described in any forward-looking statements due to, among other things, changes in market demand for infrared, near-infrared and military infrared optics, and products of the Compound Semiconductor Group, including eV PRODUCTS division and Wide Bandgap Materials group, the Company's ability to maintain or increase market share, the Company's ability to effectively address market opportunities, and general market and economic conditions throughout the world. Additional information on potential factors that could affect the Company's financial results was included in the Company's Form 10-K for the year ended June 30, 2003 as filed with the Securities and Exchange Commission. CONTACT: Craig A. Creaturo, Chief Accounting Officer and Treasurer of II-VI Incorporated, 724-352-4455, or e-mail, ccreaturo@ii-vi.com. II-VI Incorporated and Subsidiaries Condensed Consolidated Statements of Earnings (Unaudited) (000 except per share data) Three Months Ended June 30, 2004 2003 ---------- ---------- Revenues Net sales $ 40,663 $ 29,798 Contract research and development 2,327 3,054 ---------- ---------- 42,990 32,852 ---------- ---------- Costs, Expenses & Other Expense (Income) Cost of goods sold 22,976 16,543 Contract research and development 1,960 3,234 Internal research and development 1,252 714 Selling, general and administrative 9,199 6,959 Interest expense 60 150 Other (expense) income, net 137 (97) ---------- ---------- 35,584 27,503 ---------- ---------- Earnings Before Income Taxes 7,406 5,349 Income Taxes 1,382 1,723 ---------- ---------- Net Earnings $ 6,024 $ 3,626 ========== ========== Diluted Earnings Per Share $ 0.41 $ 0.25 ========== ========== Average Shares Outstanding - Diluted 14,780 14,556 II-VI Incorporated and Subsidiaries Condensed Consolidated Statements of Earnings (Unaudited) (000 except per share data) Year Ended June 30, 2004 2003 ---------- ---------- Revenues Net sales $ 142,162 $ 117,210 Contract research and development 8,686 11,000 ---------- ---------- 150,848 128,210 ---------- ---------- Costs, Expenses & Other Expense (Income) Cost of goods sold 79,558 69,408 Contract research and development 7,135 10,436 Internal research and development 4,965 2,660 Selling, general and administrative 34,359 28,510 Interest expense 412 849 Other (expense) income, net 2 297 ---------- ---------- 126,431 112,160 ---------- ---------- Earnings Before Income Taxes 24,417 16,050 Income Taxes 7,080 4,430 ---------- ---------- Net Earnings $ 17,337 $ 11,620 ========== ========== Diluted Earnings Per Share $ 1.18 $ 0.81 ========== ========== Average Shares Outstanding - Diluted 14,718 14,390 II-VI Incorporated and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) ($000) June 30, June 30, 2004 2003 ------------ --------- Assets Current Assets Cash and cash equivalents $ 21,683 $ 15,583 Accounts receivable, net 25,540 22,086 Inventories 29,201 24,384 Deferred income taxes 4,561 3,794 Other current assets 1,595 1,968 ------------ --------- Total Current Assets 82,580 67,815 Property, Plant & Equipment, net 62,339 57,954 Goodwill, net 28,987 28,987 Investment 1,888 1,792 Other Intangible Assets, net 5,852 4,643 Other Assets 2,288 1,602 ------------ --------- $183,934 $162,793 ============ ========= Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 8,337 $ 6,115 Current portion of long-term debt 7,550 6,923 Other current liabilities 19,909 14,577 ------------ --------- Total Current Liabilities 35,796 27,615 Long-Term Debt-less current portion 7,986 16,782 Other Liabilities, primarily deferred income taxes 8,285 6,875 Shareholders' Equity 131,867 111,521 ------------ --------- $183,934 $162,793 ============ ========= II-VI Incorporated and Subsidiaries Condensed Segment and Other Selected Financial Information (Unaudited) ($000) The following segment and other financial information includes segment earnings (defined as earnings before income taxes, interest expense and other income or expense, net) and earnings before interest, income taxes, depreciation and amortization (EBITDA). Management believes segment earnings are a useful performance measure because they reflect the results of segment performance over which management has direct control. Similarly, EBITDA reflects operating profitability before certain non-operating expenses and non-cash charges. Three Months Ended Year Ended June 30, June 30, ------------------ ----------------- Segment Information 2004 2003 2004 2003 - ----------------- -------- -------- -------- ------- Revenues Infrared Optics $24,230 $17,997 $ 87,652 $ 73,638 Near-Infrared Optics 7,879 6,051 25,786 22,844 Military Infrared Optics 7,276 6,622 25,322 23,003 Compound Semiconductor Group 3,605 2,182 12,088 8,725 - ----------------- -------- -------- -------- ------- Total Revenues $42,990 $32,852 $150,848 $128,210 ======== ======== ======== ======== Segment earnings (loss) Infrared Optics $ 6,423 $ 5,856 $ 23,564 $ 19,965 Near-Infrared Optics 999 547 2,350 1,698 Military Infrared Optics 371 (103) 886 (65) Compound Semiconductor Group (190) (898) (1,969) (4,402) - ----------------- -------- -------- -------- ------- Total Segment Earnings $ 7,603 $ 5,402 $ 24,831 $ 17,196 ======== ======== ======== ======== Three Months Ended Year Ended June 30, June 30, Other Selected --------------------- ------------------- Financial Information 2004 2003 2004 2003 - ---------------------- -------- -------- -------- ------- Earnings before interest, income taxes, depreciation $ 9,858 $ 7,575 $ 34,461 $ 26,226 and amortization (EBITDA) Cash paid for capital expenditures $ 3,840 $ 2,964 $ 12,729 $ 7,017 Payments on indebtedness, net of borrowings $ 2,387 $ 2,014 $ 8,423 $ 10,885 II-VI Incorporated and Subsidiaries Condensed Segment and Other Selected Financial Information (Unaudited) (cont.) ($000) Reconciliation of Segment Earnings and EBITDA to Earnings Before Income Taxes Three Months Ended Year Ended June 30, June 30, --------------------- ------------------- 2004 2003 2004 2003 -------- -------- -------- ------- Total Segment Earnings $ 7,603 $ 5,402 $ 24,831 $ 17,196 Interest expense 60 150 412 849 Other (income) expense, net 138 (97) 2 297 -------- -------- -------- -------- Earnings before income taxes $ 7,406 $ 5,349 $ 24,417 $ 16,050 ======== ======== ======== ======== EBITDA $ 9,858 $ 7,575 $ 34,461 $ 26,226 Interest expense 60 150 412 849 Depreciation and amortization 2,392 2,076 9,632 9,327 -------- -------- -------- -------- Earnings before income taxes $ 7,406 $ 5,349 $ 24,417 $ 16,050 ======== ======== ======== ======== # # # # -----END PRIVACY-ENHANCED MESSAGE-----