Denali news & news releases
March 18, 1999 The world’s largest engineered FRP products company is formed. Oldenzaal, The Netherlands and Houston, United States Denali Incorporated (Nasdaq: DNLI) and Welna N.V. (Amsterdam
Stock Exchange: Welna) today announced they have entered into
a letter of intent under which Denali will acquire Welna for 37.00
Euros per share, as well as assume approximately 11.5 million
Euros in debt. The total transaction is valued at approximately
50 million Euros or U.S. $55 million. The transaction will create the world’s largest engineered fiberglass-reinforced
plastics (FRP) company dedicated to providing corrosion-resistant
products and services to process industries, including chemical
processing, pulp and paper, microelectronics, power and others.
Welna also has a trading company that specializes in providing
engineered systems for power generation, water treatment, paper
and chemical processing industries. The company will have approximately
$250 million in annual revenues and manufacturing locations in
the United States, The Netherlands, Germany, France, United Kingdom,
Poland, Venezuela, and Thailand. The Welna companies will continue
to operate autonomously. "The combination of Denali and Welna creates a tremendous core
of engineering and manufacturing capabilities," stated Edward
de Boer, president and chief executive officer of Denali Incorporated.
"The diversity and scope of our products, markets, and technologies
will allow Denali to provide more complete and efficient solutions
to our customers’ needs, whether they are in North America, Europe,
Asia or South America. Between product and market synergies, technology
transfers, cross-selling opportunities, and our strategy for continued
growth, the next few years will be very exciting for our customers,
our suppliers, our shareholders, and our employees." "Denali Incorporated and Welna N.V. together create a promising
opportunity for all stakeholders," commented Henk Kroes, Welna
N.V. chief executive officer. "The operating characteristics and
business philosophies of both companies are identical and will
create value in the future. Welna brings to the combination a
strong competitive position in the European market as well as
good access to the markets surrounding Europe, particularly through
our subsidiaries in France and the United Kingdom. Through its
technology and market experience, Welna will have a key role in
the ongoing growth of the combined company and numerous opportunities
for Welna’s personnel are present." "Besides being highly strategic, Denali believes the transaction
to be accretive in calendar year 2000 and beyond," said Edward
de Boer. "Furthermore, the transaction provides another platform
to continue our growth and deliver value to shareholders and customers
around the world." The transaction is subject to approval by Welna N.V. shareholders
and other customary closing conditions. It is expected that the
transaction will be completed this summer, first quarter of fiscal
year 2000. Denali Incorporated is a provider of products and services for
handling critical fluids, which are liquids, liquid mixtures,
and slurries that are economically valuable or potentially hazardous
to the environment. The company is a manufacturer of engineered
fiberglass-composite products for corrosion-resistant applications
as well as steel, aboveground storage tanks. Denali Incorporated
is headquartered in Houston, Texas, and markets its products nationally
through its subsidiaries Containment Solutions (Houston), Ershigs
(Bellingham, WA), Fibercast (Tulsa, OK), SEFCO (Tulsa, OK), Plasti-Fab
(Tualatin, OR), and Belco (Belton, TX). Welna N.V., a 120-year-old company, operates through two divisions.
Welna Kunststoffen B. V. designs, manufactures, and installs all
forms of FRP pipe systems, vessels and other related equipment
requiring high levels of corrosion resistance. Welna Handel B.V.
is a trading firm that specializes in high quality products and
engineered systems for power generation, water treatment, and
paper and chemical processing industries. Welna N.V. is headquartered
in Oldenzaal, The Netherlands, and markets its products through
its subsidiaries in The Netherlands, Germany, United Kingdom,
Belgium, Sweden, France, and Poland. For more information on Denali Incorporated, please contact Mel
Carter, vice president of business development, at 713.627.0933,
or visit the Denali Incorporated Website at www.denaliincorporated.com. NOTE: This news release contains certain forward-looking statements
as such term is defined in the Private Securities Litigation Reform
Act of 1995 and information relating to the company and its subsidiaries
that are based on the beliefs of the company's management as well
as assumptions made by and information currently available to
the company management. When used in this report, the words, "anticipate",
"believe", "estimate", "expect", and "intend" and words or phrases
of similar import, as they relate to the company or its subsidiaries
or company management, are intended to identify forward-looking
statements. Such statements reflect the current risks, uncertainties
and assumptions related to certain factors including, without
limitations, competitive factors, general economic conditions,
customer relations, relationships with vendors, the interest rate
environment, governmental regulation and supervision, seasonality,
distribution networks, product introductions and acceptance, technological
change, changes in industry practices, onetime events and other
factors described herein. Based upon changing conditions, should
any one or more of these risks or uncertainties materialize, or
should any underlying assumptions prove incorrect, actual results
may vary materially from those described herein as anticipated,
believed, estimated, expected or intended.
March 2, 1999 Denali appoints new chairman of the board. Houston Denali Incorporated (Nasdaq: DNLI) today announced the appointment
of Richard W. Volk and Edward de Boer to the board of directors
of the company. Mr. Volk was also elected chairman of the board
of directors. Mr. Volk has a consulting practice that specializes in the formulation
and implementation of long-term strategies for a varied client
base. Mr. Volk also serves on the board of directors of Cockrell
Resources, Inc., Osborn Heirs Company, and The Yuma Companies,
and has been involved in numerous other business and civic boards. Prior to forming his consulting practice, Mr. Volk was group general
manager of BHP Petroleum’s Australia Division in Melborne, Australia,
from 1989 to 1991; president and chief executive officer of BHP
Petroleum (Americas) from 1985 to 1989; and chairman and CEO of
Energy Reserves Group from 1983 to 1985 and president and CEO
from 1973 to 1982. Mr. Volk has a petroleum engineering degree
from the Colorado School of Mines and a J.D. from the University
of Denver. Mr. de Boer is president and chief executive officer of Denali
Incorporated. Prior to joining Denali in January 1997, Mr. de
Boer served as president and CEO of EnviroTech Pumpsystems, Inc.,
a wholly-owned subsidiary of the Weir Group of Glasgow, Scotland,
between 1994 and 1996; was president of Baker Hughes’ EnviroTech
Pump Group from 1990 to 1994; and president of BGA International
from 1988 to 1990. Mr. de Boer has a B.S. in mechanical engineering
from the Institute of Technology in the Netherlands. Denali Incorporated is a provider of products and services for
handling critical fluids, which are liquids, liquid mixtures,
and slurries that are economically valuable or potentially hazardous
to the environment. The company is a manufacturer of engineered
fiberglass-composite products for corrosion-resistant applications
as well as steel, aboveground storage tanks. Denali Incorporated
is headquartered in Houston, Texas, and markets its products nationally
through its subsidiaries Containment Solutions (Houston), Ershigs
(Bellingham, WA), Fibercast (Tulsa, OK), SEFCO (Tulsa, OK), Plasti-Fab
(Tualatin, OR), and Belco (Belton, TX). For more information on Denali Incorporated, please contact Mel
Carter, vice president of business development, at 713.627.0933,
or visit the Denali Incorporated Website at www.denaliincorporated.com. NOTE: This news release contains certain forward-looking statements
as such term is defined in the Private Securities Litigation Reform
Act of 1995 and information relating to the company and its subsidiaries
that are based on the beliefs of the company's management as well
as assumptions made by and information currently available to
the company management. When used in this report, the words, "anticipate",
"believe", "estimate", "expect", and "intend" and words or phrases
of similar import, as they relate to the company or its subsidiaries
or company management, are intended to identify forward-looking
statements. Such statements reflect the current risks, uncertainties
and assumptions related to certain factors including, without
limitations, competitive factors, general economic conditions,
customer relations, relationships with vendors, the interest rate
environment, governmental regulation and supervision, seasonality,
distribution networks, product introductions and acceptance, technological
change, changes in industry practices, onetime events and other
factors described herein. Based upon changing conditions, should
any one or more of these risks or uncertainties materialize, or
should any underlying assumptions prove incorrect, actual results
may vary materially from those described herein as anticipated,
believed, estimated, expected or intended. February 4, 1999 Denali completes Belco acquisition. Houston - Denali Incorporated (Nasdaq: DNLI) today announced that it
has completed the purchase of the outstanding stock of the Belco
Manufacturing Companies ("Belco") for a combination of cash, stock,
and seller’s note. Located in Belton, Texas, Belco is a manufacturer
of engineered fiberglass-reinforced plastic ("FRP") tanks, vessels,
and piping systems. Belco’s products are sold primarily into the
water/wastewater and oil and gas industries where corrosion-resistant
products are needed. "Belco’s manufacturing and market expertise enhances Denali’s
overall product offering, leading to more opportunities to provide
comprehensive solutions to our customers," stated Edward de Boer,
president and chief executive officer of Denali Incorporated.
"Belco and Plasti-Fab, our two most recent acquisitions, are particularly
strong in the water/wastewater industry and provide us with a
strong foundation for continued growth in that market." Denali Incorporated is a provider of products and services for
handling critical fluids, which are liquids, liquid mixtures,
and slurries that are economically valuable or potentially hazardous
to the environment. The company is a manufacturer of fiberglass-composite,
underground storage tanks; steel, aboveground storage tanks; and
engineered, fiberglass-composite products for corrosion-resistant
applications. Denali Incorporated is headquartered in Houston,
Texas, and markets its products nationally through its subsidiaries
Containment Solutions, Inc. (Houston), Ershigs, Inc. (Bellingham,
WA), Fibercast (Tulsa, OK), SEFCO, Inc. (Tulsa, OK) and Plasti-Fab,
Inc. (Tualatin, OR). For more information on Denali Incorporated, please contact Mel
Carter, vice president of business development, at 713.627.0933,
or visit the Denali Incorporated Website at www.denaliincorporated.com. NOTE: This news release contains certain forward-looking statements
as such term is defined in the Private Securities Litigation Reform
Act of 1995 and information relating to the company and its subsidiaries
that are based on the beliefs of the company's management as well
as assumptions made by and information currently available to
the company management. When used in this report, the words, "anticipate",
"believe", "estimate", "expect", and "intend" and words or phrases
of similar import, as they relate to the company or its subsidiaries
or company management, are intended to identify forward-looking
statements. Such statements reflect the current risks, uncertainties
and assumptions related to certain factors including, without
limitations, competitive factors, general economic conditions,
customer relations, relationships with vendors, the interest rate
environment, governmental regulation and supervision, seasonality,
distribution networks, product introductions and acceptance, technological
change, changes in industry practices, onetime events and other
factors described herein. Based upon changing conditions, should
any one or more of these risks or uncertainties materialize, or
should any underlying assumptions prove incorrect, actual results
may vary materially from those described herein as anticipated,
believed, estimated, expected or intended. January 25, 1999 Denali reports significant increase in earnings for second quarter. Houston - Denali Incorporated (Nasdaq: DNLI) today reported net income
for the second quarter ended December 26, 1998, was $916,000,
or $.19 per diluted share on revenues of $38.4 million. Denali
Incorporated’s net income was $1,339,000 or $.28 per diluted share,
excluding a non-recurring compensation charge of $682,000 ($423,000
net of tax) associated with the late Stephen Harcrow’s salary
continuation agreement. As compared to the same quarter the prior year, revenues increased
54% and earnings, net of the non-recurring compensation charge,
increased 139% to $1,339,000 from $561,000. For the six months ended December 26, 1998, as compared to the
six months ended, December 27, 1997, revenues increased over 57%
to $73.9 million from $46.9 million. For the same periods, net
income increased 189% to $2,624,000 from $908,000, excluding the
impact of non-recurring compensation charges in both years. "Denali’s revenues and earnings continue to show tremendous growth
on a year-to-year basis, resulting from both acquisitions and
internal growth," stated Edward de Boer, president and chief executive
officer. "Denali’s fiberglass-composite underground and steel
aboveground storage tanks businesses are particularly strong.
These products, marketed to the downstream petroleum equipment
industry, are benefiting from both EPA regulations and our customers’
expansion plans." Denali Incorporated is a provider of products and services for
handling critical fluids, which are liquids, liquid mixtures,
and slurries that are economically valuable or potentially hazardous
to the environment. The company is a manufacturer of fiberglass-composite,
underground storage tanks; steel, aboveground storage tanks; and
engineered, fiberglass-composite products for corrosion-resistant
applications. Denali Incorporated is headquartered in Houston,
Texas, and markets its products nationally through its subsidiaries
Containment Solutions, Inc. (Houston), Ershigs, Inc. (Bellingham,
WA), Fibercast (Tulsa, OK), SEFCO, Inc. (Tulsa, OK) and Plasti-Fab,
Inc. (Tualatin, OR). For more information on Denali Incorporated, please contact Mel
Carter, vice president of business development, at 713.627.0933,
or visit the Denali Incorporated Website at www.denaliincorporated.com. NOTE: This news release contains certain forward-looking statements
as such term is defined in the Private Securities Litigation Reform
Act of 1995 and information relating to the company and its subsidiaries
that are based on the beliefs of the company's management as well
as assumptions made by and information currently available to
the company management. When used in this report, the words, "anticipate",
"believe", "estimate", "expect", and "intend" and words or phrases
of similar import, as they relate to the company or its subsidiaries
or company management, are intended to identify forward-looking
statements. Such statements reflect the current risks, uncertainties
and assumptions related to certain factors including, without
limitations, competitive factors, general economic conditions,
customer relations, relationships with vendors, the interest rate
environment, governmental regulation and supervision, seasonality,
distribution networks, product introductions and acceptance, technological
change, changes in industry practices, onetime events and other
factors described herein. Based upon changing conditions, should
any one or more of these risks or uncertainties materialize, or
should any underlying assumptions prove incorrect, actual results
may vary materially from those described herein as anticipated,
believed, estimated, expected or intended. January 15, 1999 Denali appoints new chief executive officer. Houston - Denali Incorporated (Nasdaq: DNLI) today announced that it
has appointed Edward de Boer as chief executive officer and president.
Mr. de Boer previously held the position of chief operating officer
and president of Denali Incorporated and succeeds the late Stephen
Harcrow as CEO. Prior to joining Denali in January 1997, Mr. de Boer served as
president and CEO of EnviroTech Pumpsystems, Inc., a wholly owned
subsidiary of the Weir Group of Glasgow, Scotland, between 1994
and 1996; was president of Baker Hughes’ EnviroTech Pump Group
from 1990 to 1994; and president of BGA International from 1988
to 1990. Mr. de Boer has a B.S. in Mechanical Engineering from
the Institute of Technology in the Netherlands. Messrs. Philip J. Burguieres and J. Taft Symonds, who are directors
of Denali, will continue to serve on the executive committee as
chairman and vice chairman respectively, which is comprised of
all the independent directors of the company. Mr. Burguieres is currently chairman emeritus of Weatherford International,
Inc., and vice chairman of Cogen Technologies, Inc. and has previously
served as chairman and chief executive officer of Cameron Iron
Works, Inc., Panhandle Eastern Corporation and Weatherford International,
Inc. Mr. Symonds was a founding investor of Denali Incorporated
and serves as chairman of the board of Tetra Technologies, Inc.,
and Maurice Pincoffs Company, Inc., and on the board of Plains
Resources, Inc. Both Mr. Symonds and Mr. Burguieres also serve
on numerous other business and civic boards. Denali Incorporated is a provider of products and services for
handling critical fluids, which are liquids, liquid mixtures,
and slurries that are economically valuable or potentially hazardous
to the environment. The company is a manufacturer of fiberglass-composite,
underground storage tanks; steel, aboveground storage tanks; and
engineered, fiberglass-composite products for corrosion-resistant
applications. Denali Incorporated is headquartered in Houston,
Texas, and markets its products nationally through its subsidiaries
Containment Solutions, Inc. (Houston), Ershigs, Inc. (Bellingham,
WA), Fibercast (Tulsa, OK), SEFCO, Inc. (Tulsa, OK) and Plasti-Fab,
Inc. (Tualatin, OR). For more information on Denali Incorporated, please contact Mel
Carter, vice president of business development, at 713.627.0933,
or visit the Denali Incorporated Website at www.denaliincorporated.com. NOTE: This news release contains certain forward-looking statements
as such term is defined in the Private Securities Litigation Reform
Act of 1995 and information relating to the company and its subsidiaries
that are based on the beliefs of the company's management as well
as assumptions made by and information currently available to
the company management. When used in this report, the words, "anticipate",
"believe", "estimate", "expect", and "intend" and words or phrases
of similar import, as they relate to the company or its subsidiaries
or company management, are intended to identify forward-looking
statements. Such statements reflect the current risks, uncertainties
and assumptions related to certain factors including, without
limitations, competitive factors, general economic conditions,
customer relations, relationships with vendors, the interest rate
environment, governmental regulation and supervision, seasonality,
distribution networks, product introductions and acceptance, technological
change, changes in industry practices, onetime events and other
factors described herein. Based upon changing conditions, should
any one or more of these risks or uncertainties materialize, or
should any underlying assumptions prove incorrect, actual results
may vary materially from those described herein as anticipated,
believed, estimated, expected or intended.
Denali Incorporated
Consolidated Statements of Operations
(Unaudited)
Three months ended
Six months ended
(In thousands, except per share amounts)
Net sales
$
38,353
$
24,914
$
73,888
$
46,893
Cost of sales
28,213
19,183
54,982
36,332
Gross profit
10,140
5,731
18,906
10,561
Selling, general and administrative expenses
7,317
4,421
13,506
8,246
Non-recurring compensation expense
682
682
2,312
Operating income
2,141
1,310
4,718
3
Interest expense
631
486
1,285
1,093
Interest income
(27)
(12)
(47)
Other expense (income), net
31
(84)
(107)
(226)
Income (loss) before income taxes
1,479
935
3,552
(817)
Income tax expense
563
355
1,351
568
Net income (loss) before extraordinary item
916
580
2,201
(1,385)
Extraordinary loss on early extinguishment of
debt, net of income tax benefit of $12
19
19
Net income (loss)
916
561
2,201
(1,404)
Dividends on Series A Preferred Stock
(30)
Net income (loss) attributable to common stock
$
916
$
561
$
2,201
$
(1,434)
Net income (loss) per common share assuming dilution:
Income (loss) before extraordinary item
$
0.19
$
0.17
$
0.45
$
(0.52)
Extraordinary item
(0.01)
(0.01)
Net income (loss) per common share assuming dilution:
$
$
$
$
Net income (loss) per common share assuming dilution and excluding
non-recurring compensation expense associated with the exchange
of certain employee stock options in fiscal year 1998 and the
salary continuation agreement in fiscal year 1999.
Income (loss) before extraordinary item
$
0.28
$
0.17
$
0.54
$
0.31
Extraordinary item
(0.01)
(0.01)
Net income (loss) per common share assuming dilution.
$
$
$
$
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