Selas Corporation of America reported consolidated net income for the quarter ended December 31, 1999 of US$ 910,000 or US$ 0.18 per diluted share on sales of US$ 27.14 million compared to fourth quar…
Selas Corporation of America reported consolidated net income for the quarter ended December 31, 1999 of US$ 910,000 or US$ 0.18 per diluted share on sales of US$ 27.14 million compared to fourth quarter 1998 net income of US$ 367,000 or US$ 0.07 per diluted share on sales of US$ 27.26 million. Consolidated net income for the year ended December 31, 1999 of US$ 1.73 million or US$ 0.33 per diluted share on sales of US$ 102.75 million compared to 1998 net income of US$ 3.61 million or US$ 0.68 per diluted share on sales of US$ 99.55 million. Stephen F. Ryan, chairman and CEO of Selas, said that, while the year was profitable and showed an improvement in the second half over the first two quarters (US$ 0.40 per share vs. a loss of US$ 0.06), there were a number of factors holding the company back from experiencing its full potential for the year. These included losses on foreign currency translation and delays in receipt and execution of orders in both the Heat Technology and the Precision, Miniature Medical and Electronics Group. This delay in project execution income is not lost to Selas and will be recognized when these contracts, which are already in-house, are executed in 2000, he said. Although subsidiary company CFR, acquired in February 1998, was profitable for the year, a slower execution rate, as well as some unanticipated expenses in the fourth quarter, resulted in lower than expected earnings. “We have made management changes at CFR that we believe will improve its performance and bring it to the level of profitability that we expect,” Ryan said. Ryan said that the after-tax impact of all of the above items reduced income for the fourth quarter by approximately US$ 500,000. Ryan said that Selas ended the year having received several new contracts in its Precision Medical and Electronics Group for precision components from its customers in the ambulatory pump and needleless syringe markets as well as for digitally programmable and digital amplifier packages from its Hearing Health customers. This group also introduced its new patented Intellimic(TM) series of directional microphones for improving hearing in noisy environments. Selas“ Heat Technology Group ended the year with an exceptionally strong backlog – in excess of US$ 46 million – and subsidiary, Deuer Manufacturing, reported its best year ever in 1999 in both revenues and profits. Deuer entered 2000 with a very strong, diversified customer base, he said. “With new orders in the Precision, Miniature Medical and Electronics Group, the backlog in the Heat Technology Group and a well-diversified Deuer customer base, we are confident that in 2000 Selas will continue the profitability experienced in the latter half of 1999,” Ryan said. Ryan said that in March of 2000 Selas will retire the debt incurred with the acquisition of Resistance Technology, Inc. in 1993, putting it ahead of schedule in clearing this debt from its balance sheet. He said that 57% of the 250,000 shares authorized by the company“s stock repurchase plan in March, 1999 have been acquired and that the company continues to evaluate extending the programme beyond the approved number of shares.