Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Applica Reports Q3 Financial Results
Nov 2, 2006
 Printable format
 Email this Article
 Search

Applica Incorporated announced that third-quarter sales for 2006 were U.S. $149.2 million compared to sales of $139.6 million in the same period in 2005. Sales for the 9 months ended Sept. 30, 2006 were $357.7 million compared to sales of $368.5 million in the same period in 2005. The increase in sales in the quarter was primarily driven by higher sales of Black & Decker(R) and Littermaid(R) products, which was partially offset by a decrease in the sale of professional personal care products. The decline in consolidated sales during the first 9 months of 2006 was primarily the result of a decrease in the sale of professional personal care products.

Applica’s gross profit in the third quarter of 2006 was $47.2 million, an increase of 40.4 percent compared to $33.6 million for the third quarter of 2005. Gross profit margin was 31.7 percent in the 3-month period ended Sept. 30, 2006 as compared to 24.1 percent for the same period in 2005. Gross margins in the third quarter increased primarily as the result of improvements in product mix and decreases in product returns and related expenses. In addition, gross margins in the third quarter of 2005 were negatively impacted by losses in the Mexico manufacturing operations of $5.5 million related to Applica’s transition from manufacturing to sourcing from third parties in China.

Applica reported a net profit for the third quarter of 2006 of $3.1 million, or $0.12 per diluted share, compared to a net loss of $8.2 million, or $0.34 per diluted share, for the 2005 third quarter. Applica reported a net loss for the 9 months ended Sept. 30, 2006 of $15.8 million, or $0.65 per diluted share, compared to a net loss of $49.6 million, or $2.06 per diluted share, for the 9 months ended Sept. 30, 2005.

As of Sept. 30, 2006, Applica had approximately $163.0 million in total debt outstanding and approximately $36.6 million of availability under its senior credit facility. As of Oct. 31, 2006, Applica had approximately $176.0 million in total debt outstanding and approximately $24.3 million of availability under its senior credit facility. Applica must maintain a minimum average monthly availability of $13 million and a minimum daily availability of $10 million pursuant to the terms of its senior credit facility.

In October 2006, Applica announced that it has entered into a definitive agreement with affiliates of Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P. (together, Harbinger Capital Partners) under which Harbinger Capital Partners will acquire all outstanding shares of Applica that it does not currently own for $6 per share in cash. Harbinger Capital Partners is Applica’s largest shareholder, with ownership of an aggregate of 9,830,800 shares or approximately 40 percent of the common stock of Applica. The signing of the definitive agreement follows the determination by Applica’s Board of Directors that the Harbinger Capital Partners offer was superior to the terms of Applica’s previous merger agreement with NACCO Industries, Inc. and HB-PS Holding Company, Inc., a wholly owned subsidiary of NACCO. Applica has terminated such merger agreement in accordance with its terms.

Back to Daily News

 

Daily News

...........................................................

Aug 28, 2014: LG Heat Pump Clothes Dryer Earns Emerging Technology Award

Aug 28, 2014: Early Snowthrower Demand Boosts Toro Sales

Aug 27, 2014: Sustainability Standard Launched for Household Portable and Floor Care Appliances

Aug 27, 2014: Electrolux Joins AllSeen Alliance to Develop Seamlessly Connected Appliances

Aug 27, 2014: HRAI Awards Industry Leaders at 46th Annual Meeting

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

March 2014: Market Research - 62nd Annual U.S. Appliance Industry Forecast
February 2014: Appliance Magazine Market Insight: December 2013
January 2014: Market Research - Appliance Historical Statistical Review: 1954-2012
January 2014: Appliance Magazine Market Insight: November 2013




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Pharmalive | Plastics Today | Powder Bulk Solids | Canon Trade Shows