PITTSBURGH, April 18 -- Matthews International today announced earnings for the second fiscal quarter ended March 31, 2002. Net income for the quarter, excluding a charge of $0.10 per share for impairment of goodwill resulting from the adoption of Statement of Financial Accounting Standards (SFAS) No. 142 "Goodwill and Other Intangible Assets'', was $9,633,000 versus $8,124,000 for the same quarter last year.
Earnings per share, before the effect of the accounting change, for the second quarter of fiscal 2002 were $0.30 compared to $0.26 a year ago, an increase of 15.4 percent. Net income and earnings per share for the quarter also included the Company's loss on the sale of its imported granite business during March 2002. The loss on the sale reduced earnings per share by one cent for the quarter and six months ended March 31, 2002.
Sales in the quarter increased 66.0 percent to $110,110,000 versus $66,339,000 in the second quarter of fiscal 2001. The increase in sales for the quarter reflects additional sales resulting from the acquisitions of York Bronze, York Casket and Rudolf (a German graphics business) which were completed subsequent to March 31 a year ago.
Net income for the six months ended March 31, 2002 was $17,454,000 (excluding the effect of the accounting change) versus $14,866,000 for the six months ended March 31, 2001. Earnings per share (excluding the effect of the accounting change) for the first half of fiscal 2002 increased 17.0 percent to $0.55 compared to $0.47 for the first six months a year ago.
Sales for the first half of fiscal 2002 increased 47.1 percent to $195,429,000 versus $132,895,000 for the first half of fiscal 2001. The additional sales resulting from the previously mentioned acquisitions more than offset a reduction in sales resulting from the divestiture of Tukaiz Communications LLC in January 2001.
In discussing the financial results for the quarter and first half of the fiscal year, David M. Kelly, Chairman and Chief Executive Officer, stated:
"The increase in our sales, operating income, net income and earnings per share compared to the same periods a year ago have been driven by recent acquisitions. The benefits of these acquisitions have more than offset declining sales and reduced profitability in our Marking Products and domestic Graphics businesses. Sales volume in Marking Products is running below last year mainly due to the downturn in the domestic economy, while sales into the graphics industry have been hampered by reductions in advertising coupled with price pressure on printing plates sold into the corrugated packaging industry.''
Mr. Kelly also stated that, "The Company continues to have a solid balance sheet with a cash position of $49 million."And he noted that the Company paid down $10 million on its credit facility during its second fiscal quarter.
The Board of Directors of Matthews International Corporation also declared at its regularly scheduled meeting today a dividend of $0.02625 per share on the Company's common stock for the quarter ended March 31, 2002. The dividend is payable May 15, 2002 to stockholders of record April 30, 2002.
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