Denali news & news releases
August 16, 1999 Denali reports record earnings and sales. Houston - Denali Incorporated (Nasdaq: DNLI) today announced record net
income, earnings per diluted share, and revenues for the fiscal
fourth quarter and its fiscal year 1999 ending July 3, 1999. For the fiscal fourth quarter and relative to the same period
last year, the Company reported an increase of 27% in net income,
25% in earnings per diluted share, and 23% in revenues. For the
fiscal 1999 fourth quarter, net income was $1.7 million, or $.35
per diluted share on $38.5 million in revenue. Net income for
the fourth quarter fiscal year 1998 was $1.4 million, or $.28
per diluted share, on $31.4 million in revenue. For fiscal year 1999 and relative to fiscal year 1998, the Company
reported an increase of 99% in net income, 60% in earnings per
diluted share, and 49% in revenues, excluding the impact of non-recurring
charges and extraordinary items. For fiscal year 1999, net income increased 99% from the prior
year to $4.8 million, excluding non-recurring compensation expense
associated with a salary continuation agreement of $682,000, or
$.09 per diluted share, and an extraordinary loss from the early
retirement of debt of $281,000, or $.06 per diluted share. Fiscal
year 1998 net income was $2.4 million, excluding non-recurring
compensation expense of $2.3 million, or $.60 per diluted share,
and an extraordinary gain of $219,000, or $.06 per diluted share. Earnings per diluted share rose 60% to $.99 in fiscal year 1999
as compared to $.62 in the prior fiscal year, excluding non-recurring
charges and extraordinary items. Revenues for fiscal year 1999
increased 49% to $148.8 million compared to $99.9 million from
the prior fiscal year. The Company’s operating income more than
doubled to $10.6 million as compared to $4.8 million in the prior
year, excluding the non-recurring compensation expense. Earnings
before interest expense, taxes, depreciation, amortization and
non-recurring expense, or EBITDA, more than doubled to $14.5 million
compared to $7.1 million in the prior fiscal year. The record
financial results can be attributed to the Company’s strong internal
revenue growth, operational improvements, and the success of its
acquisition program. "Continuing to execute our strategic plan to become the leading
provider of fluid handling products and solutions has resulted
in significant growth in revenues, operating margins and earnings
per share," stated Edward de Boer, president and chief executive
officer. "We are particularly pleased with our operational improvements.
Gross margins made impressive gains over the fiscal year increasing
from 22.6% to 25.4% of revenues, and operating income grew from
4.8% to 7.1% of revenue." "Denali Incorporated has continued to produce exceptional operational
and financial results. Over the last four years, the Company has
grown revenues and net income at over 40% compounded annually.
During the fiscal year, in addition to our operational improvements
and internal revenue growth, we completed three significant acquisitions,
including Welna, N.V. on July 1, 1999. Based in The Netherlands,
Welna is Europe’s leading supplier of engineered fiberglass-reinforced
plastic ("FRP") products for process industries and has manufacturing
facilities in key technology centers in The Netherlands, Germany,
France, the United Kingdom, Poland, and Thailand," noted Mr. de
Boer. "The combination of Denali and Welna creates the world’s largest
manufacturer of specialty-engineered, corrosion-resistant FRP
products serving the chemical, petrochemical, water/wastewater,
power generation, pulp and paper, and other process industries.
Pro forma revenues of the Company are approximately $230 million,
with over 35% generated outside of the United States," said Mr.
de Boer. "The acquisition of Welna and the expansion into international
markets was a key step toward achieving our goal of becoming the
world’s leading provider of fluid handling products and solutions.
Also, we believe the fragmented nature of the fluids handling
industry, which is comprised of many companies with limited product
ranges or geographic areas served, will continue to create acquisition
opportunities that compliment our existing businesses." Denali Incorporated is a provider of fluid handling products,
specializing in corrosion-resistant applications in process industries.
The company is a manufacturer of engineered fiberglass-composite
products, including tanks, vessels, and piping systems, as well
as steel, aboveground storage tanks. The company also distributes
a wide range of engineered products and systems. Denali Incorporated
is headquartered in Houston, Texas, and markets its products worldwide
through its subsidiaries Containment Solutions (Houston); the
Specialty Solutions companies (headquartered in Tulsa) of Ershigs,
Fibercast, Belco, and SEFCO; and the Welna companies of Plasticon
and Welna Trade (The Netherlands and Germany), Metalchem (Poland),
Garlway (The United Kingdom), and Sovap (France). 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. (A) Year ended July 3, 1999 and June 27, 1998, operating and net
income values include the impact of a non-recurring compensation
expense of approximately $682,000 and $2.3 million, respectively,
associated with a salary continuation agreement and the exchange
of certain employee stock options. (B) Extraordinary item associated with early retirement of debt. (C) Earnings per diluted share for the year ended July 3, 1999
and June 27, 1998, was $.99 and $.62, respectively, excluding
the above-mentioned non-recurring was $.99 and $.62, respectively,
excluding the above-mentioned non-recurring compensation expense
and extraordinary item. (D) The Company uses a 52- or 53-week year end ending on the Saturday
closest to June 30. The fiscal year ended July 3, 1999 was a 53-week
year.
July 30, 1999 Denali announces annual meeting. Houston - Denali Incorporated (Nasdaq: DNLI) today announced that their
annual shareholders’ meeting will be held at 1:00 p.m., October
25, 1999, at the DoubleTree Hotel at 2001 Post Oak Boulevard,
Houston, Texas. The Company also announced that it has set the
record date for the annual meeting at the close of business on
August 31, 1999. Denali Incorporated is a provider of fluid handling products,
specializing in corrosion-resistant applications in process industries.
The company is a manufacturer of engineered fiberglass-composite
products, including tanks, vessels, and piping systems, as well
as steel, aboveground storage tanks. The company also distributes
a wide range engineered products and systems. Denali Incorporated
is headquartered in Houston, Texas, and markets it products worldwide
through its subsidiaries Containment Solutions (Houston); the
Specialty Solutions companies (headquartered in Tulsa) of Ershigs,
Fibercast, Belco, and SEFCO; and the Welna companies of Plasticon
and Welna Trade (The Netherlands), Metalchem (Poland), Garlway
(The United Kingdom), and Sovap (France). 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.
Denali completes Welna acquisition. Houston - Denali Incorporated (Nasdaq: DNLI) announced today that it
has completed the acquisition of Welna N.V. (Amsterdam Stock Exchange:
Welna). Welna is a 120-year-old company that operates through two divisions.
Welna Synthetics designs, manufactures, and installs all forms
of FRP pipe systems, vessels and other related equipment requiring
high levels of corrosion resistance. Welna Trade 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 is headquartered in Oldenzaal, The
Netherlands, and markets its products globally through its subsidiaries
in The Netherlands, Germany, United Kingdom, Belgium, Sweden,
France, Poland, and Thailand. This transaction creates the world’s largest engineered fiberglass-reinforced
plastics (FRP) company dedicated to providing corrosion-resistant
products and services to process industries, including chemical
processing, microelectronics, pulp and paper, power and others. "Combining North America’s and Europe’s leading FRP products companies
forms an excellent base to create value for our customers, suppliers,
employees, and shareholders," commented Edward de Boer, president
and chief executive officer of Denali Incorporated. "We are looking
forward to continuing to build our engineering and technology
base with Welna and integrating our capabilities to provide more
complete solutions to our customers’ needs." Denali Incorporated is a provider of fluid handling products,
specializing in corrosion-resistant applications in process industries.
The company is a manufacturer of engineered fiberglass-composite
products, including tanks, vessels, and piping systems, 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.
Three Months Ended
Year Ended
July 3,
June 27,
July 3,
June 27,
1999
1998
1999
1998
(D)
(In Thousands, except for per share amounts)
Revenues
$ 38,544
$ 31,417
$ 148,760
$ 99,897
Gross Margin
10,236
7,768
37,803
22,624
% of Revenue
26.6%
24.7%
25.4%
22.6%
Operating Income
(A)
3,563
2,153
9,877
2,469
% of Revenue
9.2%
6.9%
6.6%
2.5%
Extraordinary Item
(B)
-
-
(281)
219
Net Income
(A)
1,724
1,360
4,120
329
% of Revenue
4.5%
4.3%
2.8%
0.3%
Earnings per Share:
(C)
Basic
$ 0.35
$ 0.28
$0.84
$ 0.08
Diluted
$ 0.35
$ 0.28
$0.84
$ 0.08
Average Shares Outstanding:
Basic
4,943
4,823
4,886
3,736
Diluted
4,944
4,870
4,888
3,875
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