RONAN, Mont.--(BUSINESS WIRE)--Oct. 28, 1999--
Jore Corporation (Nasdaq:JORE) today reported its net revenues grew 36% to $14.4 million for the quarter ended Sept. 30, 1999, up from $10.5 million in the third quarter of 1998.
Net income for the quarter, on a pro forma basis, was $810,000, or $0.08 per share, excluding a one-time extraordinary charge relating to early repayment and termination of its former credit facility, compared to net income of $888,000, or $0.09 per share, in the same period last year. On an as reported basis, net income for the quarter, after taking into account a pro forma tax provision, including the extraordinary charge, was $182,000, or $0.02 per share.
Weighted average shares outstanding totaled 10,130,204 compared with 9,398,087 for the third quarter last year as a result of the Company's initial public offering of four million shares on September 23, 1999.
"We achieved our principal objectives during the third quarter, including completion of our initial public offering, which allowed us to significantly pay down debt, achieving record sales, and positioning the Company for the best fourth quarter in its history," said Matt Jore, President and Chief Executive Officer. "Our gross margin is continuing to improve as a result of further development of our highly automated manufacturing processes and through increased direct-to-retail sales of our drilling and driving accessories under the Stanley(R) JoreTech(TM) brand. As expected, our higher gross margin was offset in the third quarter by a significant increase in operating expenses related to system improvements, additions to senior management and an increase in sales and marketing efforts in anticipation of increasing growth."
Gross margin for the quarter increased to 35.4% from 30.0% in the corresponding quarter last year, primarily as a result of volume-related manufacturing efficiencies, vertical integration and a greater mix of direct-to-retail sales. Selling, general and administrative expenses for the quarter increased to 18.8% of net sales, compared with 13.0% a year ago. The increase in total operating expense was attributable primarily to preparation for the Company's initial public offering, including hiring key senior management, implementation of a comprehensive enterprise resource planning information system, and increased sales and marketing costs related to trade show participation and roll-out of new products. The Company expects operating expenses to decrease as a percentage of revenues in the fourth quarter and in 2000.
