Flanders Q2 Earnings
SOURCE:
Flanders Corporation
2008-07-30 15:00:00
Flanders Q2 Earnings
ST. PETERSBURG, FL–(EMWNews – July 30, 2008) – Flanders Corporation (
today announced its results for the second quarter ended June 30, 2008.
Net Earnings were $6.9 million or $.27 per share, compared to Net Earnings
of $802 thousand, or $0.03 per share, for the second quarter ended June 30,
2007. Revenues for the quarter were $57.3 million, down 10% from $64.3
million for the second quarter ended June 30, 2007.
Harry Smith, Chief Operating Officer, commented, “Once again we have
continued optimism for our 2008 operating results. We are continuing to
focus on our core competencies and during the second quarter we sold
another direct sales office, as well as finalized the sale of the media
operation which we believe will help make our operation more profitable.”
Smith concluded, “We have worked thoroughly to bring the organization back
to core competence. Our operations continue to improve as evidenced by our
service levels to our big box retailers in the 98% range during the second
quarter. As a result, we have increased interest by the big box retailers
for our products based on a renewed focus of quality and service into these
accounts.
“Our main focus at this point is to correct our price points in our
markets. We have implemented significant price increases in both our
commercial and industrial division and with our retail customers. These
price increases will be underway during the third quarter of 2008 and we
have high optimism with the level of success of our price increases
attained. We also continue to work on our infrastructure and our new IT
platform installation will be in progress soon. This will aid operations
in getting relevant data quickly to make us quicker and smarter. We also
are continuing to focus on automation and leveraging our purchase volume on
raw material purchases to get us a distinct advantage over our smaller
competitors in the air filtration industry.”
Conference Call
A conference call with investors, analysts and other interested parties is
scheduled for 4:30 p.m. EDT on Wednesday, July 30, 2008, to discuss 2008
second quarter operating results. People wishing to participate in the
conference call should dial 866-425-6192.
Safe Harbor Statement
The statements made in this press release regarding Flanders (1) belief of
and intention to achieve long-term profitable growth, (2) continued
optimism for its 2008 operating results, (3) return to profitability, (4)
focus on our core competencies, product mix, and factory utilization, (5)
focusing on operations and profitability in order to maximize shareholder
value. (5) being very close to finalizing the sale of the media operation
which is a testament to the Company’s focus of shedding verticality and
making operations efficient and profitable, (6) thoroughly bringing the
organization back to core competence, (7) working diligently with its
vendor base for raw materials and logistics to build a structure that gives
the Company a significant advantage over competitors due to large volume
purchases in both areas, (8) focusing on automation to continue to drive
down head-count and get plants more efficient, (9) achieving sales of $245
million in sales for 2008, (10) monitoring and working toward a potential
MOX contract, (12) remaining focused on bringing the organization back to
a health and (13) that the decisions the new management team has made and
changes implemented will lead to long term profitability and increased
shareholder value going forward and other statements that are not
historical in nature constitute forward-looking statements within the
meaning of the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. Such statements are based on the current expectations
and beliefs of the management of Flanders and are subject to a number of
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. Such
risks and uncertainties include, without limitation, the Company’s ability
to increase sales; the Company’s ability to maintain its customer base; the
Company’s ability to have profitable long-term relationships with its
customers; that the market for the Company’s products will continue to
grow; seasonality, competition and other factors; the effect of competitive
and economic factors and the Company’s reaction to them; possible
disruption in commercial activities caused by terrorist activity and armed
conflicts; changes in logistics and security arrangements; reduced
purchases relative to security expectations or economic factors; possible
disruption in commercial activity as a result of natural disasters; the
Company’s ability to generate positive cash flows from operating
activities; the ability of the Company to repurchase its common shares and
what effect those transactions may have on cash and liquidity; the
Company’s ability to expand current markets and develop new markets. For a
more detailed discussion of risk factors that may affect Flanders
operations, please refer to the Company’s Form 10-K for the year ended
December 31, 2007. These forward-looking statements speak only as of the
date on which such statements are made, and the Company undertakes no
obligation to update such forward-looking statements, except as required by
law.
About Flanders
Flanders is a leading air filtration products manufacturer. Flanders’
products are utilized by many industries, including those associated with
commercial and residential heating, ventilation and air conditioning
systems, semiconductor manufacturing, ultra-pure materials, biotechnology,
pharmaceuticals, synthetics, nuclear power and nuclear materials
processing.
This press release contains forward-looking statements that are inherently
subject to risk. These forward-looking statements are not intended to be
promises or predictions of the future and may be affected by a number of
factors that may change the currently anticipated outcome. These factors
include market acceptance of Flanders’ products, competition in the
marketplace for Flanders’ products, the success of retailers and
distributors through which Flanders sells its products, Flanders’ ability
to contain costs and maintain production and efficiency with a reduced
workforce, a determination by potential Flanders customers that the higher
cost of its high-end filtration systems can be justified for general
application, Flanders’ ability to successfully retrofit existing buildings
with effective sophisticated filtering and air handling systems, the
ability to increase its high end containment products for commercial and
governmental settings, and the development of increased demand for its
high-end products. Many of these factors are not within Flanders’ control.
These factors, and others, are discussed in Flanders’ periodic reports
filed with the Securities and Exchange Commission and should be reviewed by
the reader of this press release.
For further information on Flanders and its products, visit its web site at
http://www.flanderscorp.com/ or contact Harry Smith at (252) 946-8081.
Selected Operations Data (all but per share data in Millions) Q2 2008 Q2 2007 --------- ---------- Net sales $ 57.3 $ 64.3 Gross profit 8.5 11.6 Operating expenses 9.3 11.1 Operating income (loss) (0.8) 0.5 Non-operating income (expense) 1.0 0.0 Earnings (Loss) before income taxes and extraordinary item 0.1 0.5 Extraordinary item 6.8 0.5 Net earnings $ 6.9 $ 0.8 Net earnings per share: Basic $ 0.27 $ 0.03 Diluted $ 0.26 $ 0.03 Common shares outstanding: Basic 25.7 26.7 Diluted 26.2 27.6 Selected Balance Sheet Data (in Millions) 6/30/2008 12/31/2007 --------- ---------- Working capital $ 55.0 $ 50.3 Total assets 178.8 183.6 Long-term obligations, including current maturities 31.6 32.3 Total shareholders' equity 96.6 87.4
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