Higher Sales Help Noland to 48% Rise in '04 Earnings
February 25 2005 - 11:30AM
PR Newswire (US)
Higher Sales Help Noland to 48% Rise in '04 Earnings NEWPORT NEWS,
Va., Feb. 25 /PRNewswire-FirstCall/ -- Noland Company (NASDAQ:NOLD)
today reported 2004 net income of $18,358,000, or $5.45 per share
(diluted), 48 percent more than 2003's $12,442,000, or $3.64 per
share. The wholesale distribution firm said the rise in earnings
stemmed from a significant improvement in sales and a $3,450,000
year-to-year increase in after-tax gains from the disposal of
surplus real property. Sales for 2004 totaled $548,135,000, 16
percent greater than the $471,756,000 total in 2003. "Our strong
sales performance last year was widespread," said Chairman Lloyd U.
Noland III, "reflecting our success in capitalizing on the
continued strength in the construction market." Noland said
plumbing sales, which also benefited from rising prices, were 18
percent higher than the year-earlier period's, while air
conditioning sales rose 14 percent. "And our electrical/industrial
sales were up 13 percent, largely due to a sharper focus on the
strong commercial construction market," said Noland. Gross profit
margins were down slightly, due to costs associated with the LIFO
method of accounting for inventories. But the higher sales led to a
$13,255,000, or 12 percent, rise in gross profit for the year.
Operating expenses rose $7,877,000, or 8 percent, primarily due to
costs associated with the company's new central distribution center
and five new branches opened since mid-2003. Operating profit
totaled $31,397,000, $11,450,000, or 57 percent, greater than the
$19,947,000 total in 2003. Gains from the sale of surplus property
produced $6,058,000 of the increase in operating profit. In the
fourth quarter, sales totaled $139,479,000, or 19 percent higher
than the year-earlier period's $117,290,000. Net income totaled
$6,576,000, or $1.95 per share (diluted), versus $3,252,000, or 97
cents per share, for the fourth quarter of 2003. Noland said he is
optimistic about the company's prospects for continued sales growth
in 2005. "While we have to be alert to a possible cooling of the
housing market," he said, "we think the climate is right for
another good housing construction year. Plus, commercial
construction is forecast to do even better than last year. If these
projections hold up, we will have ample opportunities in 2005 to
build on last year's success." Noland operates 100 branches in 13
states, and distributes products in the plumbing, HVAC, water
systems, electrical, and industrial fields. The company's stock is
traded on NASDAQ's SmallCap Market. Its trading symbol is NOLD.
UNAUDITED FINANCIAL HIGHLIGHTS For the Three Months Ended December
31 2004 2003 Merchandise Sales $139,478,502 $117,290,391 Net Income
$6,575,843 $3,251,785 Basic Earnings Per Share(1) $1.97 $.97
Diluted Earnings Per Share(2) $1.95 $.97 For the Twelve Months
Ended December 31 2004 2003 Merchandise Sales $548,135,450
$471,756,511 Net Income $18,358,412 $12,441,690 Basic Earnings Per
Share(3) $5.50 $3.67 Diluted Earnings Per Share(4) $5.45 $3.64 (1)
Based on 3,341,043 shares outstanding in 2004 and 3,331,964 shares
outstanding in 2003. (2) Based on 3,375,772 shares outstanding in
2004 and 3,363,641 shares outstanding in 2003. (3) Based on
3,338,360 shares outstanding in 2004 and 3,392,924 shares
outstanding in 2003. (4) Based on 3,370,163 shares outstanding in
2004 and 3,422,390 shares outstanding in 2003. Note: Included in
this news release are forward-looking management comments and other
statements which reflect management's current outlook for the
future. Such forward-looking statements are not guarantees of
future performance and are subject to risks and uncertainties that
could cause actual results to differ materially from those
anticipated in the statements. Such risks and uncertainties
include, but are not limited to, general business and economic
conditions, climatic conditions, competitive pricing pressures, and
product availability. DATASOURCE: Noland Company CONTACT: John E.
Gullett of the Noland Company, +1-757-928-9000 Web site:
http://www.noland.com/
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