Business News

Flanders Q2 Earnings

SOURCE:

Flanders Corporation

2008-07-30 15:00:00

Flanders Q2 Earnings

ST. PETERSBURG, FL–(EMWNews – July 30, 2008) – Flanders Corporation (NASDAQ: FLDR)

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



Contact:
Harry Smith
Chief Operating Officer
Flanders Corporation
(252) 946-8081

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