CPAC, Inc. Comments on Fiscal Second Quarter Earnings;
Declares Dividend of $0.07
LEICESTER, NY... October 14, 2002 - CPAC, Inc. (Nasdaq: CPAK) today declared a dividend and issued guidance for its second quarter results, which are expected to be released in early November.
The Company reported that consolidated net sales for the fiscal second quarter ended September 30, 2002 are expected to be in the range of $23.0 - $24.0 million, as compared to $26.0 million for the same period in 2001 and $24.6 million for the first quarter of fiscal '03. Earnings for the quarter are projected to be in the range of $0.09 - $0.11 per diluted share, as compared to pro forma diluted earnings per share of $0.23 for the second quarter last year, and $0.14 for the first quarter of fiscal '03. The pro forma figure of $0.23 per share includes an additional $0.02 of income over reported earnings of $0.21 per share because, under SFAS No. 142, which the Company adopted in the first quarter of fiscal '03, goodwill is no longer being amortized.
At its regular meeting on October 7, 2002 CPAC's Board of Directors declared a quarterly cash dividend in the amount of $0.07 per share, payable on December 12, 2002 to shareholders of record at the close of business on November 22, 2002. This dividend is equivalent to an annualized rate of $0.28 per share and represents a 5.0% yield based on Friday's closing price of $5.59.
Management stated that Imaging segment sales are down approximately 13% from prior year due to sustained weakness in the global economy. Sales in the Fuller Brands segment are down approximately 8% due to a continuation of the trends noted in fiscal first quarter, namely slowdowns in both the Stanley Home Products direct selling business and the CTG commercial cleaning division.
CPAC, Inc. CEO Thomas N. Hendrickson said, "Unfavorable global economic conditions continue to impact both segments of our business and we cannot predict when these conditions will improve. It is likely to be an ongoing challenge for the balance of the fiscal year."
Established in 1969, CPAC, Inc. (cpac.com) manages holdings in two industries. CPAC's Global Imaging Group develops and markets innovative imaging chemicals, equipment, and supplies at eight business units worldwide. The Fuller Brands segment manufactures commercial, industrial, and household cleaning products, as well as custom brushes and personal care lines. Stock is traded under the symbol: CPAK.
Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties, which may affect CPAC's business and prospects, including economic, competitive, governmental, technological and other factors discussed in CPAC's filings with the Securities and Exchange Commission.
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