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PR: Bell Sports Announces Year-end And Fourth Quarter
Results
(Press Release, July 27, 1998)—Bell Sports Corp. (NASDAQ: BSPT and BSPTG) recently announced the results for the 1998 fiscal year and fourth quarter. Net income for the fiscal 1998 fourth quarter totaled 4.5-million dollars or $.32 per share, compared to 4.2-million dollars or $.31 per share for the fiscal 1997 fourth quarter. Net sales for the three-month period ending June 27, 1998 decreased to 68.7-million dollars compared to 70.3-million dollars for the prior year three-month period-primarily due to the sale of the SportRack business in July 1997. SportRack sales totaled 2.2-million dollars during the fiscal 1997 fourth quarter. Gross margins increased to 36 percent of net sales in the fiscal 1998 fourth quarter compared to 32 percent of net sales in the prior year period. Selling, general and administrative costs decreased to twenty percent of net sales for the three-month period ending June 27, 1998 from 22 percent of net sales during the comparable three-month period ending June 28, 1997. Operating income (defined as gross profit less selling, general and administrative expenses) increased to 10.6-million dollars or fifteen percent of net sales in the fiscal 1998 fourth quarter from 7.1-million dollars or ten percent of net sales during the fiscal 1997 fourth quarter. Net income for fiscal 1998 increased to 8.6-million dollars or $.62 per share, compared to net income of 5.1-million dollars or $.37 per share in fiscal 1997 presented before the loss on disposal of product lines and sale of assets, one-time charges and related tax effects. Net sales decreased twenty percent to 207.2-million dollars in fiscal 1998 from 259.5-million dollars in fiscal 1997 primarily as a result of the divestiture of the Service Cycle/Mongoose and SportRack businesses. The Service Cycle/Mongoose and SportRack businesses contributed 50.8-million dollars in net sales in fiscal 1997. Gross margins increased to 34 percent of net sales in fiscal 1998 from 30 percent of net sales in fiscal 1997, on an actual basis. Selling, general and administrative costs were 23 percent of net sales in both fiscal 1998 and 1997. Operating income increased to 21-million dollars or ten percent of net sales in fiscal 1998 compared to sixteen-million dollars or six percent of net sales in fiscal 1997. The company is the leading manufacturer and marketer of bicycle helmets worldwide and a leading supplier of a broad line of bicycle accessories in North America. The company is also a leading supplier of auto-racing helmets and a supplier of bicycle accessories worldwide. Recently, the company began marketing in-line skating, snowboarding, snow-skiing, and water-sport helmets. The company markets its helmets under the widely recognized Bell, Bell Pro, and Giro brand names, and its accessories under such leading brands as Bell, Blackburn, Rhode Gear, VistaLite, Copper Canyon Cycling, and Spoke-Hedz. |
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