---------------------- multipart/alternative attachment List, The latest news. Bill Bremmer RPT Madison, Wisconsin Baldwin Piano Reports First Quarter Results MASON, Ohio, May 21 /PRNewswire/ -- Baldwin Piano & Organ Company (Nasdaq: <A HREF="aol://4785:BPAO"> BPAO</A>) today announced results for the first quarter ended March 31, 2001. First quarter sales were down 22 percent to $15.6 million, from $19.9 million for the same period a year ago. Lower sales were caused by higher than normal seasonal dealer inventories resulting from the overall economic slowdown during the fourth quarter 2000 and continuing throughout the first quarter. The Company incurred a net loss from continuing operations during the quarter of $4.8 million, or a net loss of $1.38 per share, compared to a net loss from continuing operations of $2.1 million, or a net loss of $0.60 per share in the first quarter of 2000. Excluding one-time charges taken during the first quarter 2001, the Company net loss was $2.3 million, or a net loss of $0.66 per share for the first quarter. One-time charges taken during the quarter previously disclosed in press releases and 8-K filings included a pre-tax charge of $2.5 million, or $0.47 per share to shutdown the Company's Greenwood, Mississippi facility and a pre- tax charge of $1.3 million, or $0.25 per share related to certain management contract severance payouts triggered by the sale of the Company's Contract Electronics division. These one-time charges are included in Other Operations (Expenses) Income, Net on the attached Consolidated Summary of Operations. Earnings from discontinued operations in 2000 of $0.34 per share included the gain on the sales of the Company's Retail Finance subsidiaries of $0.21 per share, and income during the 2000 first quarter for Retail Finance and Contract Electronics of $0.04 per share and $0.09 per share respectively. Operating results of Contract Electronics were breakeven prior to the sale of the division on January 25, 2001. Since the beginning of the year, Baldwin's business has experienced significant change with the sale of its Contract-Electronics division in January; the announced closure of its Greenwood, Mississippi facility in June; the sale of the Company's retail stores; and the appointments of Robert J. Jones as Chief Executive Officer and Kenneth W. Pavia, Sr. as Chairman of the Board. Newly appointed Chief Executive Officer, Robert J. Jones, said, "Despite limited time at Baldwin, our new management team is aggressively implementing its strategic plan to return the Company to profitability. While the first quarter results reflect the problems we have previously outlined, in addition to other legacy issues, we believe Baldwin, with the help of its dealer/partners and its committed workforce, will return to the prominent position as the leading piano manufacturer in the United States. "Management is currently reviewing all aspects of the Company's current and past operations practices, including past employee contracts, inventory, manufacturing synergies between plants, operational procedures as well as other areas in our organization," Jones added. "We have also begun implementing manufacturing alternatives that should lead to higher profit margins and increased quality of our product. While the Company's current liquidity remains a concern, we continue to work with our lending partner and seek alternative sources of financing. I am confident, that given the opportunity to implement our plan, management will demonstrate improved financial and operational performance within the near future." Baldwin Piano & Organ Company, the maker of America's best selling pianos, has marketed keyboard musical products for over 140 years. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuation in operating results and other risks detailed from time-to-time in the Company's filings with the Securities and Exchange Commission. BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES CONSOLIDATED SUMMARY OF OPERATIONS (In Thousands, except earnings per share) (Unaudited) Three Months Ended March 31, 2001 2000 Net sales $15,637 $19,861 Cost of goods sold 14,177 17,767 Gross profit 1,460 2,094 Other operating (expense) income, net (2,541) 167 Selling, general and administrative (4,763) (4,919) Interest expense (1,102) (700) Earnings (loss) before income taxes (6,946) (3,358) Income taxes (2,153) (1,264) Net earnings (loss) from continuing operations (4,793) (2,094) Discontinued operations: Income from operations, net of tax 0 461 Net loss on sales, net of tax 0 725 Net earnings (loss) $(4,793) $(908) Earning (loss) per share Basic Earnings (loss) from continuing operations $(1.38) $(0.60) Earnings from discontinued operations 0.00 0.34 Net earnings (loss) $(1.38) $(0.26) Diluted Earnings (loss) from continuing operations $(1.38) $(0.60) Earnings from discontinued operations 0.00 0.34 Net earnings (loss) $(1.38) $(0.26) Average number of shares outstanding 3,463 3,463 Diluted number of shares outstanding 3,463 3,463 CONSOLIDATED SUMMARY BALANCE SHEETS (In Thousands) March 31, March 31, December 31, 2001 2000 2000 (unaudited) (unaudited) Assets Receivables, net $11,217 $7,559 $9,375 Installment receivables retained 3,549 4,124 4,027 Inventories 39,524 34,199 43,567 Other current assets 15,673 12,859 15,839 Net assets of discontinued operations 0 15,407 8,700 Total current assets 69,963 74,148 81,508 Property, plant and equipment, net 15,993 18,486 17,525 Other assets 11,587 14,244 8,704 Total assets $97,543 $106,878 $107,737 Liabilities and Shareholders' Equity Current portion of long-term debt $4,101 $9,670 $4,416 Other liabilities 23,041 26,939 21,644 Total current liabilities 27,142 36,609 26,060 Long-term debt, less current portion 30,207 15,447 36,383 Other liabilities 1,928 2,051 1,975 Shareholders' equity 38,266 52,771 43,319 Total liabilities and shareholders' equity $97,543 $106,878 $107,737 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X57969901 SOURCE Baldwin Piano CO: Baldwin Piano & Organ Company ST: Ohio IN: MUS REA ENT SU: ERN 05/21/2001 16:53 EDT http://www.prnewswire.com ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... 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