I like this company for several reasons and if you go to the site or better yet get their pkg you will find they are into some pretty exciting stuff. stock has been basing in the 2.25-2.37 area and i am hoping for a good year here...plus there are wildcards in this deck...8m shares outstanding:
Schmitt Industries Completes Profitable Year
PORTLAND, Ore.--(BUSINESS WIRE)--July 20, 2000--Schmitt Industries (Nasdaq:SMIT - news) has completed its most recent fiscal year reporting net income of $561,459 or $.07 per share.
This compares to a net loss of $259,307 or $.03 per share for the fiscal year ended May 31, 1999. Overall sales increased by 11% to $8.9 million from $7.9 million in fiscal 1999 while both cost of sales and operating expenses declined in terms of dollars and as a percentage of sales. There were several factors in fiscal 2000 that produced these results and should also have a positive effect in fiscal years 2001 and beyond.
Sales of balancing systems from the United States increased by 7% over sales of the prior fiscal year. This sales growth is directly attributable to the market acceptance of the SB-4500 control unit (fiscal 2000 was the first full year this product was sold) and the AEMS (Acoustic Emissions Monitoring System) used by customers to monitor portions of the grinding process. Sales of measuring products demonstrated dramatic growth, increasing to $1.6 million from less than $0.6 million in fiscal 1999. Sales growth of this product segment was due to two factors, revenues recognized on large systems sold to the US defense industry and its contractors and from shipments of new technology to historic market segments.
Schmitt Industries -- Financial Summary
Years ended May 31, 1999 and 2000
2000 1999
---- ----
Sales 8,854,000 7,958,000
Gross Profit 4,959,000 3,812,000
Operating Expenses 4,191,000 4,303,000
Net Income (Loss) 561,000 (259,000)
The Company has traditionally reported gross profit percentages in excess of 60% and fiscal 2000 saw a movement back toward those levels. The consolidated gross profit percentage was 56% compared to 48% in fiscal 1999. The result of this significant percentage increase is that gross profits in fiscal 2000 increased over those realized in fiscal 1999 by $1.1 million on increased sales of $0.9 million. Both product segments, Balancing Systems and Measurement Systems saw increases in gross profits. Gross profits from Balancing products increased to 53% from 48% while the increase on Measurement products was to 70% from 45%.
Revenues for the fourth quarter of fiscal 2000 amounted to $1,955,000 compared to $2,044,000 for the same period last year. Gross profits for the fourth quarter of fiscal 2000 were $1,135,000 compared to $868,000 for the fourth quarter of fiscal 1999. Net income for the quarter was $68,000 compared to a net loss of ($109,000) for the same period last fiscal year. Earnings per share was $.01 (fully diluted) compared to a loss per share of ($.01) (fully diluted) for the fourth quarter ended May 31, 1999. Revenues in the fourth quarter of 2000 were slightly below expectations and occurred in the measurement segment. During the fourth quarter of fiscal 2000, sales related to two large projects for the defense industry were deferred due to delays in receipt of materials.
Schmitt Industries -- Financial Summary
Three months ended May 31, 1999 and 2000
2000 1999
---- ----
Sales 1,955,000 2,044,000
Gross Profit 1,135,000 868,000
Operating Expenses 1,012,000 1,143,000
Net Income (Loss) 68,000 (109,000)
Wayne Case, President and CEO of Schmitt Industries, said the following: ``We accomplished most of the strategic goals we had set for fiscal 2000 and have placed the Company in a position to realize continued growth in fiscal 2001 and beyond. Much of this improvement occurred as we responded to customer needs by designing, engineering and introducing new products. Sales growth is directly attributable to the AEMS and noncontact balance head products for the Balancer segment and the RC technology (Radial and Circumferential measurements of disk drives) in the Laser Measurement segment. In addition, our engineers have developed new technology and products that will enhance future revenues. These include the DUV (Deep Ultra-Violet) light scatter products that provide disk drive manufacturers with the ability to measure the surface characteristics of glass substrates and the Precision Roll Monitor products that will be used to measure the dimensional characteristics of industrial rolls used in various industries. In addition, we have taken steps to improve the depth and quality of our engineering staff, with the most significant of those the acquisition of Acuity Research in June of 2000. The engineering staff is now well positioned to continue the development of products that will significantly enhance future sales.''
The information contained in this release contains certain forward-looking statements that anticipate future trends or events. These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks including but not limited to the uncertainties of the Company's new product introductions, the risks of increased competition and technological change in the Company's industry and other factors detailed in the Company's SEC filings. Accordingly, actual results may differ, possible materially, from the predictions contained herein.
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Contact:
For Schmitt Industries --
Linda M. Case, 503/227-7908 (Investor Relations)
www.schmitt-ind.com
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