ONEIDA, N.Y., Feb. 26, 2002 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ) today announced operating results for the fourth quarter and year ended January 26, 2002 that are in line with estimates.
Net revenues for the fourth quarter of 2001 were $124.5 million compared to $141.4 million in the fourth quarter of 2000. Earnings for the quarter, excluding income from marketable securities, were $1.0 million, or $ .06 per share, compared to $3.9 million, or $ .24 per share, for the same period a year ago. Income from the receipt of marketable securities during the quarter was recorded as $5.1 million, or $.31 per share. As a result, Oneida reported total net income of $6.1 million or $ .36 per share in the fourth quarter of 2001.
For the entire fiscal 2001, net revenues totaled $499.2 million compared to $515.5 million in fiscal 2000. Earnings excluding the marketable securities income totaled $3.4 million, or $ .20 per share, compared to $23.2 million, or $1.41 per share, in 2000 before restructuring and unusual charges. Total 2001 net income was $8.5 million, or $ .51 per share.
DEBT AND INVENTORY REDUCTIONS SURPASS PROJECTIONS
Oneida's year-long improvements in its balance sheet continued during the fourth quarter, as inventory and debt were reduced beyond the company's projections from its third quarter 2001 conference call. Inventories were reduced by over $40 million compared to the end of fiscal 2000, while debt was reduced by $28 million compared to the same period a year ago.
"These substantial reductions in inventory and debt, beyond what was anticipated, are especially positive for our company," said Peter J. Kallet, Oneida Chairman and Chief Executive Officer. "To be able to achieve such progress in the face of difficult economic conditions will strengthen our operations for the long term. We had previously expressed a commitment to reducing our internal costs and improving our efficiencies and cash flow, and we have not wavered in that effort.
"Our fourth quarter results, as in the third quarter, were affected by the continued softness in the economy coupled with the lingering impact of the September 11 terrorist attacks," Mr. Kallet added. "Our Foodservice unit continued to be affected by the decline in travel, as indicated by product orders from the airline, restaurant and hotel industries. Retail store traffic, which drives our Consumer unit's performance, remained below its levels from earlier in the year.
"We recently have seen some initial signs of recovery in our consumer business in terms of product placements, new business opportunities and market conditions, which hopefully will benefit us later in 2002; we have started recalling manufacturing employees at our main flatware factory in Oneida/Sherrill, N.Y. Overall, we will continue our ongoing programs to reduce inventory and debt as well as to control costs wherever possible, taking the appropriate actions to maintain our profitability," Mr. Kallet concluded.
CONFERENCE CALL ON FEBRUARY 27
Oneida's management will host a conference call with analysts and investors on Wednesday, February 27, 2002 at 9 a.m. EST to discuss the fourth quarter and year-end 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 FOR THE
THREE MONTHS ENDED TWELVE MONTHS ENDED
Jan. 26, Jan. 27, Jan. 26, Jan. 27,
2002 2001 2002 2001
------- ------- ------- -------
Net Sales $ 124.5 $ 141.4 $ 499.2 $ 515.5
Cost of Sales (NOTE 1) 85.5 93.0 336.1 353.7
------- ------- ------- -------
Gross Profit 39.0 48.4 163.1 161.8
Operating Revenues 0.4 0.1 1.5 6.4
Selling, Distribution
& Administrative 32.2 34.5 134.5 133.1
Restructuring/Unusual
Charges (NOTE 1) -- -- -- 15.0
------- ------- ------- -------
Operating Income 7.2 14.0 30.1 20.1
Other (Income)
Expense - Net (7.3) 0.2 (7.1) 0.6
Interest Expense 4.4 7.6 23.2 21.6
------- ------- ------- -------
Income (Loss) before
Income Taxes 10.1 6.2 14.0 (2.1)
Provision (Credit)
for Income Taxes 4.0 2.3 5.5 (0.8)
------- ------- ------- -------
Net Income (Loss)
(NOTE 3) $ 6.1 $ 3.9 $ 8.5 $ (1.3)
Net Income (loss)
per share:
Basic:
Reported $ 0.37 $ 0.24 $ 0.51 $ (0.09)
Core Earnings
(NOTE 2) $ 0.37 $ 0.24 $ 0.51 $ 1.41
Diluted:
Reported $ 0.36 $ 0.24 $ 0.51 $ (0.09)
Core Earnings
(NOTE 2) $ 0.36 $ 0.24 $ 0.51 $ 1.41
Weighted Average
Shares:
Basic 16,512 16,355 16,468 16,386
Diluted 16,553 16,417 16,519 16,386
NOTE 1: The earnings for the year ended January 27, 2001 include the impact of the following special charges: restructuring costs of $15 million (principally severance and impairment of assets related to manufacturing tools and other product procurement assets) and an inventory writedown of $24 million related to product rationalization as a result of acquisitions, as well as significant other stock keeping unit reductions.
NOTE 2: Core earnings represent earnings from operations, net of restructuring and unusual charges.
NOTE 3: Included in net income for the quarter and year ended January 26, 2002 is $5.1 million from the receipt of marketable securities.
ONEIDA LTD.
CONDENSED BALANCE SHEET
(Millions of dollars)
ASSETS Jan. 26, Jan. 27,
2002 2001
-------- --------
Cash $ 11.1 $ 2.2
Accounts Receivable - Net 80.9 90.0
Inventory 169.5 211.3
Other Current Assets 18.6 16.7
------ ------
Total Current Assets 280.1 320.2
Plant and Equipment - Net 108.4 117.0
Intangibles 134.1 141.2
Other Assets 23.6 32.2
------ ------
Total Assets $546.2 $610.6
LIABILITIES
Accounts Payable & Accrued Liabilities $ 66.4 $ 95.4
Short-Term Debt 11.4 8.0
Current Portion of Long-Term Debt 4.0 9.2
------ ------
Total Current Liabilities 81.8 112.6
Long-Term Debt 256.2 282.8
Other Liabilities 80.8 90.9
Shareholders' Equity 127.4 124.3
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Total Liabilities & Equity $546.2 $610.6
CONDENSED CASH FLOW STATEMENT
TWELVE MONTHS ENDED JANUARY 2002/2001
(Millions of dollars)
Period ended
January 2002 January 2001
-------- ---------
Net income (loss) $ 8.5 $ (1.3)
Add: depreciation & amortization 17.1 15.4
Net working capital changes 27.9 (27.9)
Impairment of assets -- 29.0
Capital expenditures (8.5) (14.7)
Purchase of subsidiaries -- (122.2)
Stock sales/ (purchases) - net 1.6 (3.7)
Proceeds/(payments) of debt (28.6) 144.4
Dividends paid (3.8) (5.0)
Other - net (5.3) (15.7)
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Increase (Decrease) in Cash $ 8.9 ($ 1.7)