Denali Revenues, Earnings Up
HOUSTON -- Denali Incorporated (NASDAQ:DNLI) today reported net income for the third quarter ended March 27, 1999, was $195,000, or $.04 per diluted share on revenues of $36.3 million. Denali Incorporated's net income was $476,000 or $.10 per diluted share, excluding an extraordinary loss associated with the unamortized debt origination costs in connection with the extinguishment of its prior credit facilities.
As compared to the same quarter the prior year, revenues increased 68% and earnings, before extraordinary charges, increased 250% to $476,000 from $135,000.
For the nine months ended March 27, 1999, as compared to the nine months ended March 28, 1998, revenues increased over 60% to $110.2 million from $68.5 million. For the same periods, net income increased 190% to $3,100,000 from $1,062,000, excluding the impact of non-recurring compensation and extraordinary charges in both years.
"Denali's revenues and earnings continue to show strong growth as a result of both operational improvements and acquisitions," stated Edward de Boer, president and chief executive officer. "Denali's fiberglass-reinforced plastic underground tank business is strong, resulting primarily from demand in new construction, and the order inquiry rate for corrosion-resistant products associated with the pulp and paper and power markets have shown nice growth in this quarter. Though impacting reported earnings, the new credit facility that we entered into in early January significantly increases Denali's acquisition capabilities and operational flexibility and will be instrumental in our future growth.
"In March, Denali announced the letter of intent under which Denali would purchase the outstanding shares of Welna N.V. (Amsterdam Stock Exchange). We have completed our due diligence work, financial commitments are in place, and anticipate closing in early July 1999."
Denali Incorporated is a provider of fluid handling products, specializing in corrosion-resistant applications in process industries. The company is a manufacturer of engineered fiberglass-composite products, including tanks, vessels, and piping systems, as well as steel, aboveground storage tanks. Denali Incorporated is headquartered in Houston, Texas, and markets its products nationally through its subsidiaries Containment Solutions (Houston), Ershigs (Bellingham, Wash.), Fibercast (Tulsa, Okla.), SEFCO (Tulsa, Okla.), Plasti-Fab (Tualatin, Ore.), and Belco (Belton, Texas).
Welna N.V., a 120-year-old company, operates through two divisions. Welna Kunststoffen B.V. designs, manufactures, and installs all forms of FRP pipe systems, vessels and other related equipment requiring high levels of corrosion resistance. Welna Handel B.V. is a trading firm that specializes in high quality products and engineered systems for power generation, water treatment, and paper and chemical processing industries. Welna N.V. is headquartered in Oldenzaal, The Netherlands, and markets its products through its subsidiaries in The Netherlands, Germany, United Kingdom, Belgium, Sweden, France, and Poland.
For more information on Denali Incorporated, please contact Mel Carter, vice president of business development, at 713/627-0933, or visit the Denali Incorporated Website at http://www.denaliincorporated.com .
NOTE: This news release contains certain forward-looking statements as such term is defined in the Private Securities Litigation Reform Act of 1995 and information relating to the company and its subsidiaries that are based on the beliefs of the company's management as well as assumptions made by and information currently available to the company management. When used in this report, the words, "anticipate", "believe", "estimate", "expect", and "intend" and words or phrases of similar import, as they relate to the company or its subsidiaries or company management, are intended to identify forward-looking statements. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein. Based upon changing conditions, should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended.