STEINWAY FIRST QUARTER RESULTS; EPS
$0.36 vs. $0.27
WALTHAM, Mass.--(BUSINESS WIRE)--April 29, 1997--Steinway Musical Instruments Inc. (NYSE:LVB) today announced results for the first quarter of 1997.
Net income more than doubled to $3.4 million or $0.36 per share versus $1.6 million or $0.27 per share in the first quarter of 1996. Net sales for the quarter increased 7 percent, operating profit increased 16 percent and pre-tax income climbed 85 percent over the prior year.
Commenting on the results, Dana D. Messina, chief executive officer stated, "Having achieved record results in 1996 we are obviously quite pleased to be starting 1997 in such a positive fashion. The first quarter was not only a financially successful one, but one in which Steinway achieved several major milestones. First, in January we acquired Emerson Musical Instruments to further expand our position in the flute and piccolo market. Second, in March, Steinway & Sons established a new subsidiary in Japan headed up by the former President of Yamaha Corp. of America to further expand our penetration of the Japanese consumer market. Finally, earlier this month we were the recipient of The Music Trades "Company of the Year" award. We take great pride in these accomplishments and remain optimistic about the remainder of 1997."
Net sales for Selmer Instruments jumped nearly 12 percent. This exceptional performance was fueled by a 5 percent increase in unit shipments and price increases of approximately 4 percent. Sales from the company's most recent acquisition, Emerson Musical Instruments, contributed approximately $0.7 million to the first quarter's growth.
Net sales for Steinway Pianos for the quarter increased slightly from the previous year. This improvement was achieved despite a $1.4 million decrease relating to the translation of foreign sales into U.S dollars. Unit volume in the U.S. was up in all major product lines resulting in an overall increase of more than 20 percent in the quarter. Foreign shipments were essentially unchanged from the first quarter of 1996. The Boston line was once again the key contributor to Steinway's overall volume growth with world-wide shipments up over 30 percent.
Company of the Year
In its April edition, The Music Trades - the music industry's leading publication - honored Steinway Musical Instruments with its first ever "Company of the Year" award. The magazine noted that against the backdrop of a lackluster year for the U.S piano market "Steinway's performance was...astounding." Strong brand name recognition, high quality products and a "straight forward and well executed marketing approach" were cited as the key factors in the
STEINWAY MUSICAL INSTRUMENTS INC. Statement of Operations Three Months Ended March 29 March 30 1997 1996 Net sales $73,726 $69,049 Cost of sales 50,105 47,329 Gross profit 23,621 21,720 Operating expenses 14,212 13,613 Earnings from operations 9,409 8,107 Other expense, net 3,039 4,660 Income before taxes 6,370 3,447 Provision for income taxes 2,932 1,866 Net income $ 3,438 $ 1,581 PER SHARE DATA Net income $0.36 $0.27 Weighted average common and common equivalent shares outstanding 9,422,937 5,957,127
Steinway Musical Instruments Inc. through its Steinway and Selmer subsidiaries is one of the world's leading manufacturers of musical instruments. Its notable products include Steinway & Sons pianos, Selmer saxophones, Bach trumpets and Ludwig snare drums. For more details on Steinway Musical Instruments Inc. contact Dennis M. Hanson at 617-894-9770.
"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, changes in general economic conditions, exchange rate fluctuations, availability of production capacity and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.