Reinhold Industries Announces Third Quarter 2005 Financial Results; Declares $0.50 Quarterly Dividend
November 14 2005 - 1:40PM
PR Newswire (US)
SANTA FE SPRINGS, Calif., Nov. 14 /PRNewswire-FirstCall/ --
Reinhold Industries, Inc. (NASDAQ:RNHDA) of Santa Fe Springs,
California, today announced results for the third quarter 2005.
Comparative 2004 results are presented to reflect the Samuel
Bingham Enterprises, Inc. ("Bingham") and NP Aerospace Ltd. ("NPA")
subsidiaries separately from continuing operations. Bingham was
sold in December 2004 and NPA is currently held for sale. Third
quarter 2005 revenues from continuing operations were $8.3 million,
up $0.6 million (7%) from third quarter 2004. Sales in the
Aerospace business unit increased by $0.4 million due to additional
shipments of rocket nozzles. Sales for the CompositAir business
unit increased by $0.2 million due to additional shipments of
aircraft seatback components. Sales in the Commercial business unit
were essentially flat. In the first nine months of 2005, revenues
from continuing operations were $23.0 million, up $0.7 million (3%)
compared to 2004. Sales in the Aerospace business unit were flat at
$16.3 million. Sales in the CompositAir business unit increased by
$0.5 million (14%) to $4.1 million due to changes in product mix.
Sales in the Commercial business unit increased by $0.2 million
(7%) to $2.6 million due mainly to higher selling prices. Income
from continuing operations before income taxes for the first nine
months of 2005 was $2.7 million, down $0.6 million (18%) compared
to 2004 due to increased compensation costs and higher audit and
tax compliance fees. The effective tax rate for the first nine
months of 2005 was 121% compared to 40% in 2004 due to the impact
of repatriated foreign income. In determining the effective tax
rate on income from continuing operations for the nine months ended
September 30, 2005, the Company has recorded federal income taxes
on approximately $6.4 million of repatriated income from NP
Aerospace Ltd. Foreign tax credits are normally available to offset
the federal tax liability associated with repatriated foreign
income. However, due to limitations in recognizing the remaining
tax benefit of our net operating loss carryforwards, we were unable
to recognize these foreign tax credits in determining our effective
tax rate. We expect to realize the benefit of these foreign tax
credits in a future period. Net income for the first nine months of
2005 was $4.2 million, or $1.26 per diluted share, compared to net
income of $0.7 million, or $0.23 per diluted share in 2004. The
Company also announced today that it will pay a quarterly dividend
of $0.50 per share on December 16, 2005 to shareholders of record
as of December 2, 2005. "The previously announced sale of NP
Aerospace to The Carlyle Group is progressing as expected," said
Michael T. Furry, President and CEO of Reinhold. "Pending approval
by our shareholders on November 17, 2005, we expect closing to
occur shortly thereafter." This news release contains
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties, and Reinhold's actual experience
may differ materially from that anticipated in such statements.
Factors that might cause such a difference include those discussed
in Reinhold's filings with the Securities and Exchange Commission,
including but not limited to its most recent proxy statement, Form
10-K and Form 10-Q. Reinhold Industries, Inc. is a manufacturer of
advanced custom composite components and sheet molding compounds
for a variety of applications in the United States and Europe.
Reinhold Industries, Inc. (NASDAQ:RNHDA) (Amounts in Thousands,
Except Per Share Data) (Unaudited) Three Months Ended Nine Months
Ended 09/30/05 09/30/04 09/30/05 09/30/04 Sales $8,297 $7,744
$22,974 $22,279 Income from continuing operations before income
taxes 960 1,351 2,684 3,265 Income (loss) from continuing
operations ($451) $828 ($ 557) $1,964 Income (loss) from
discontinued operations $1,174 ($2,999) $4,713 ($1,270) Net income
(loss) $ 723 ($2,171) $4,156 $694 Diluted EPS - continuing
operations ($0.14) $0.26 ($0.17) $0.64 Diluted EPS $0.22 ($0.71)
$1.26 $0.23 DATASOURCE: Reinhold Industries, Inc. CONTACT: Wanda
Morrison of Reinhold Industries, Inc., +1-562-944-3281
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