SANTA FE SPRINGS, Calif., March 31 /PRNewswire-FirstCall/ -- Reinhold Industries, Inc. of Santa Fe Springs, California, today announced results for the fourth quarter and full year 2005. Comparative 2004 results are presented to reflect the Samuel Bingham Enterprises, Inc. ("Bingham") and NP Aerospace Ltd. ("NPA") subsidiaries separately from continuing operations. Bingham was sold in December 2004 and NPA was sold in November 2005.
Fourth quarter 2005 revenues from continuing operations were $9.6 million, down $0.4 million (4%) from fourth quarter 2004. Sales in the Aerospace business unit decreased by $1.5 million due to the completion of a unique Space Shuttle related program in 2004. Sales for the Seating products business unit increased by $1.0 million due to the addition of a new customer and improving conditions in the aircraft seating marketplace. Sales in the Commercial business unit increased by $0.1 million due primarily to higher selling prices.
For the full year 2005, revenues from continuing operations were $32.6 million, up $0.3 million (1%) compared to 2004. Sales in the Aerospace business unit decreased by $1.4 million (6%), sales in the Seating products business unit increased by $1.5 million (32%), and sales in the Commercial business unit increased by $0.2 million (8%) due primarily to the reasons described above.
Income from continuing operations before income taxes for the full year 2005 was $4.3 million, down $1.3 million (24%) compared to 2004 due to unfavorable product mix, increased compensation costs and higher audit and tax compliance fees. The effective tax rate for the full year 2005 was 28% compared to 58% in 2004 due primarily to the utilization of foreign tax credits.
Income from discontinued operations for the full year 2005 was $30.3 million compared to a loss of $1.3 million in 2004 due primarily to the net gain on the sale of NP Aerospace to The Carlyle Group on November 21, 2005.
Net income for the full year 2005 was $33.3 million, or $10.20 per diluted share, compared to net income of $1.1 million, or $0.35 per diluted share in 2004.
"We are pleased with the increased revenues associated with our seating products business unit in the second half of 2005," said Michael T. Furry, President and CEO of Reinhold. "We expect to substantially improve this business units' financial performance in 2006."
This news release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties, and Reinhold's actual experience may differ materially from that anticipated in such statements. Factors that might cause such a difference include those discussed in Reinhold's filings with the Securities and Exchange Commission, including but not limited to its most recent proxy statement, Form 10-K and Form 10-Q.
Reinhold Industries, Inc. is a manufacturer of advanced custom composite components and sheet molding compounds for a variety of applications in the United States and Europe.
Reinhold Industries, Inc.
(Amounts in Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Year Ended
12/31/05 12/31/04 12/31/05 12/31/04
Sales $9,585 $9,952 $32,559 $32,231
Income from continuing
operations before
income taxes 1,597 2,363 4,281 5,628
Income from continuing
operations $3,634 $397 $3,077 $2,361
Income (loss) from
discontinued operations $25,543 $19 $30,256 ($1,251)
Net income $29,177 $416 $33,333 $1,110
Diluted EPS -
continuing operations $1.11 $0.13 $0.94 $0.75
Diluted EPS $8.93 $0.13 $10.20 $0.35
