CFCI Cfc

CFC International, Inc. Reports Increase in 2004 First Quarter Results -- First quarter 2004 net income of $1.1 million, an $880,000 increase over the same period a year ago, which also represents an all-time record first quarter results. CHICAGO HEIGHTS, Ill., April 22 /PRNewswire-FirstCall/ -- Worldwide holographic and specialty coated film manufacturer, CFC International, Inc. today reported results for the first quarter of 2004. Net income and diluted earnings per share for the first quarter of 2004 were $1.1 million or $0.25 cents per share on a fully diluted basis, the highest first quarter net income in the Company's history, and 357.2 percent higher than net income of $246,000 or $0.06 cents per share on a fully diluted basis, for the same period in 2003. The increase in net income in the first quarter 2004 was due to increased sales volumes across all of the Company's product groups and gross margin expansion resulting from a higher utilization of the Company's plants. In particular, woodgrain product volume sales have increased as previously projected due to the exit of a competitor from this market earlier this year. In anticipation of this increased volume the Company invested $230,000 in the fourth quarter of 2003 hiring and training additional personnel, and is now realizing the benefit of those actions. First quarter sales increased 32.6 percent to $20.8 million compared to $15.7 million in the first quarter of 2003. The increase in first quarter sales of 2004 was primarily due to strong sales in its printed products which increased 60.6 percent, and robust holographic sales which increased 30.4 percent over the same period sales in 2003. In addition, sales were favorably affected by the continued strength of the Euro by approximately $872,000, or 4.2 percent. "We are extremely pleased with our first quarter results," said Roger Hruby, Chairman and Chief Executive Officer. "Our earnings for the first quarter of 2004 are indicative of improving economic conditions, volume growth in all of our product lines and a strong Euro. In addition, we are beginning to see the benefits of productivity initiatives and investments that we made in capital and human resources in 2003 in anticipation of this turnaround and the projected increase in the volume of orders in our printed products." Mr. Hruby further stated, "While the American economy is improving, European markets are still soft, and we expect these trends to continue. We are confident that we have the resources and strategies in place to capitalize on the opportunities that we have in front of us on a worldwide basis, including strong order volumes in our printed products and holographic products. Our results for the quarter demonstrate a solid performance, and position us to deliver growth in sales and earnings for the entire year." Based upon the Company's results and the current economic outlook, the Company has increased its previously stated net income of $.44 to $.48 earnings per share on a fully diluted basis for the year, to $.46 to $.50 earnings per share on a fully diluted basis for the full year of 2004. Recent Developments The Company reports the addition of Mr. Rick Shuster as Director of International Business Development. Shuster has more than 10 years of international sales experience and will be responsible for the Company's Asian-Pacific sales. Shuster replaces Mr. Gary Runhaar who retired from the Company after 16 years of service at the end of March 2004. The Company will be exhibiting at the upcoming National Restaurant Association (NRA) 2004 show being held in Chicago, Illinois at the McCormick Place, May 22-25, 2004 in Booth #5880. The Company invites all interested parties to listen to its first quarter conference call at 9:00 a.m. EDT (8:00 a.m. CDT) on Friday, April 23, 2004. The dial-in numbers for the call are 800-884-5695 (U.S.), and 617-786-2960 (International). The participant passcode for this call is 69907198. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will last approximately one hour, will be open to the public, but only investors and financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode. For those unable to listen to the live call, a replay will be available from approximately 11:00 a.m. EDT on April 23 until April 30, 2004. This replay can be accessed by dialing 888-286-8010 (U.S.); 617-801-6888 (International). The passcode is 30481912. The call also will be available as a webcast, both live and for replay, via the Internet on the CFC International, Inc. website at http://www.cfcintl.com/ on the Corporate/Investor Relations page. Headquartered in Chicago Heights, Illinois, CFC International is a market leader in the design, manufacture and marketing of holography and specialty functional coatings that add value to a wide variety of industrial and consumer products. The Company operates facilities in Chicago Heights and Countryside, Illinois; London, England; and Goppingen, Germany. A condensed consolidated statement of operations and balance sheet are attached. Statements made in this press release, including those relating to expectations of future sales, net income, operating costs, earnings per share, expectations of increased sales attributable to various product lines and returns on the Company's investment in facilities and personnel are forward looking and are made pursuant to the safe harbor provisions of the Securities Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in those statements. Among other things, continued unfavorable economic conditions, acts of terrorism and armed conflicts may impact market growth trends in general and the demand for the company's products and services in particular, and could also impact the company's ordinary sources of supply; competition from existing and new competitors and producers of alternative products will impact the company's ability to penetrate or expand its presence in new or growing markets; uncertainties relating to the company's ability to develop and distribute new proprietary products to respond to market needs in a timely manner may impact the company's ability to exploit new or growing markets; the company's ability to continue to successfully identify and implement productivity improvements and cost reductions may impact profitability; and risks inherent in international operations, including possible economic, political or monetary instability may impact the level and profitability of the company's foreign sales. In addition to the factors set forth in this release, the economic, competitive, governmental, technological and other factors identified in the company's filings with the Securities and Exchange Commission, could affect the forward looking statements contained in this press release. Do not unduly rely on forward-looking statements. They give the company's expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date. You may access additional information, including our SEC filings and previous press releases by visiting CFC International's Internet homepage at http://www.cfcintl.com/ . CFC INTERNATIONAL, INC. Consolidated Statements of Income 1st 1st (In Thousands, Except Earnings Per Share and Quarter Quarter Operating Income Percentage) 2004 2003 Net Sales $20,824 $15,710 Cost of Goods Sold (excluding depreciation and amortization shown below) 13,024 10,180 Operating Expenses 4,503 3,838 Depreciation and Amortization 1,339 1,078 Operating Income 1,958 614 Operating Income % 9.4% 3.9% Interest Expense 299 267 Interest Swap Valuation 66 - Other (Income) (28) (7) Income Before Income Taxes 1,621 354 Provision for Income Taxes 494 108 Net Income $1,127 $246 Diluted Weighted Average Number of Shares Outstanding 4,493 4,488 Diluted Earnings Per Share $0.25 $0.06 Earnings Before Interest, Taxes, Depreciation and Amortization (Note 1) $3,297 $1,692 1st 1st (In Thousands) Quarter Quarter 2004 2003 International Net Sales $9,969 $8,430 International Net Sales 47.9% 53.7% NOTE 1: The Company believes earnings before interest expense, income taxes, depreciation and amortization (EBITDA) is an useful measurement for its business because management understands that such information is considered by certain investors as an additional basis on which to evaluate the Company's ability to pay interest, repay debt and make capital expenditures. EBITDA should not necessarily be considered as an alternative to net income or cash flows from operating activities which are determined in accordance with Generally Accepted Accounting Principles as an indicator of operating performance or as a measure of liquidity. The table following reconciles net income to EBITDA as defined: 1st 1st (In Thousands) Quarter Quarter 2004 2003 Net Income $1,127 $246 Add Back (Subtract): Income Taxes 494 108 Interest Expense 299 267 Depreciation and Amortization 1,339 1,078 Interest Swap Valuation 66 - Other Income (28) (7) EBITDA $3,297 $1,692 CFC INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS AT MARCH 31, 2004 AND DECEMBER 31, 2003 March 31 December 31 2004 2003 ASSETS Cash and cash equivalents $5,310,597 $5,672,647 Accounts receivable, less allowance for doubtful accounts 12,808,091 9,821,047 Inventories 12,966,770 13,050,711 Other current assets 1,788,046 1,771,646 Total current assets 32,873,504 30,316,051 Property, plant and equipment, net 28,424,753 28,116,892 Deferred income taxes 3,204,130 3,280,891 Intangible assets, net 3,624,874 3,695,899 Other assets 99,084 105,078 Total assets $68,226,345 $65,514,811 LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $11,057,791 $9,716,066 Accounts payable and accrued expenses 10,746,697 10,075,592 Total current liabilities 21,804,488 19,791,658 Deferred income taxes 2,680,247 2,680,247 Fair value of interest swap 114,245 47,783 Long-term debt 14,590,676 15,066,109 Total liabilities 39,189,656 37,585,797 Stockholders' equity 29,036,689 27,929,014 Total liabilities and stockholders' equity $68,226,345 $65,514,811 DATASOURCE: CFC International, Inc. CONTACT: Dennis Lakomy, Chief Financial Officer of CFC International, Inc., +1-708-757-2803 Web site: http://www.cfcintl.com/ Company News On-Call: http://www.prnewswire.com/comp/110663.html

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