EX-99 2 0002.txt August 16, 2000 FOR IMMEDIATE RELEASE HARMAN INTERNATIONAL INDUSTRIES, INC. REPORTS RECORD FOURTH QUARTER AND YEAR END RESULTS Washington, D.C. -- Harman International (HAR:NYSE) today announced record results for the fourth quarter and fiscal year ended June 30, 2000. For the year, sales increased 12 percent to a record $1.678 billion. Excluding currency effects, sales increased 17 percent. Net income for the year was a record $72.8 million, equal to $4.13 per share. Last year, after a restructuring charge of $66.4 million ($45.9 million after tax), recorded in the second quarter, the Company reported net income of $11.7 million, equal to $.65 per share. Excluding the restructuring charge, last year's net income was $57.6 million. This year's net income of $72.8 million in the same period represents a 26 percent increase. The fourth quarter produced record results in sales, net income and earnings per share. Fourth quarter sales increased 6 percent over the same period in the prior year to $446.4 million. Excluding currency effects, sales increased 12 percent. Net income increased 11 percent to $23.3 million. Diluted earnings per share increased 13 percent to $1.32 per share. Last year's fourth quarter sales and earnings included a gain of $5.9 million pretax on a one-time $11.0 million sale of broadcast software. For the year, Consumer Systems Group sales increased 13 percent to $1.2 billion. Sales to automobile manufacturers reflected strong growth with Toyota and the Mercedes Benz division of Daimler Chrysler. Sales to personal computer manufacturers were more than double last year's level, driven primarily by higher shipments of Harman Kardon systems to Apple and Dell. Sales to consumer electronics dealers and distributors approximated last year's levels, reflecting higher sales in North America offset by lower sales in Europe as a result of the Company's inventory reduction program. New loudspeaker lines from JBL and Infinity and new product introductions from Harman Kardon, including a new range of audio/video receivers, a five-disc DVD changer and a CD recorder, contributed to the growth in North American sales. 5 August 16, 2000 Page Two The Professional Group, manufacturers of audio systems for concert hall, recording, broadcast and cinema applications, reported higher sales for the fourth quarter and the year. For the year, Professional Group sales increased 10 percent to $476 million. JBL Professional, AKG, The Harman Music Group and Lexicon all reported strong operating results. Crown International, a professional amplifier manufacturer acquired in March 2000, also contributed to the growth. Broadcast electronics manufacturer Orban was sold in the fourth quarter. Commenting on the results, Dr. Sidney Harman, Chairman, stated: "The Company produced record sales, earnings and cash flows for the year despite unfavorable currency fluctuations. We posted significant reductions in working capital and debt even after acquisitions and the repurchase of 778,600 shares. We are pleased with the results of fiscal 2000 and look forward to an exciting year ahead." Bernard Girod, Chief Executive Officer, said: "While posting excellent current operating results, we are investing in the engineering and manufacturing infrastructure necessary to realize the substantial opportunities of the years ahead. These include broadband applications in the home and car, improved audio for personal computers and cellular telephones, digitally controlled audio systems for the professional markets and potent new consumer products that provide high quality audio and video performance plus full internet access." In a separate press release, the Company reported a two-for-one stock split and the repurchase of 625,000 shares in July 2000. Harman International Industries, Incorporated (www.harman.com) is a leading manufacturer of high-quality, high-fidelity audio and video products for the consumer and professional markets. The Company's stock is traded on the New York Stock Exchange under the symbol: HAR. Note: Except for historical information contained herein, the matters discussed are forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to the effect of economic conditions, product demand, currency exchange rates, labor disputes, competitive products and other risks detailed in the Company's Securities and Exchange Commission filings. 6 HARMAN INTERNATIONAL INDUSTRIES, INC. FINANCIAL RESULTS FOR THE THREE AND TWELVE MONTHS ENDED JUNE 30, 2000 AND 1999 (000's omitted except per share amounts)
Three Months Ended June 30 Twelve Months Ended June 30 2000 1999 2000 1999 ------------ ------------ ------------ ------------ Net sales $ 446,409 $ 421,817 $ 1,677,939 $ 1,500,135 Income before Taxes $ 32,202 $ 28,375 $ 102,829 $ 14,447 a) Income Tax Expense 8,882 7,398 29,991 2,724 ------------ ------------ ------------ ------------ Net Income $ 23,320 $ 20,977 $ 72,838 $ 11,723 Basic EPS $1.37 $1.18 $4.23 $0.66 Diluted EPS $1.32 $1.17 $4.13 $0.65 Shares Outstanding - basic 17,072 17,725 17,226 17,897 Shares Outstanding - diluted 17,667 17,930 17,650 18,061
SELECTED BALANCE SHEET & CASH FLOW INFORMATION (000'S omitted)
June 30, 2000 June 30, 1999 ----------------- ----------------- Current assets $ 671,026 $ 646,609 Total Assets $1,137,505 $1,065,755 Current Liabilities $ 361,381 $ 286,821 Shareholders' Equity $ 486,333 $ 468,187 Total Short-term and Long-term Debt $ 277,324 $ 311,575 Capital Expenditures $ 82,000 $ 67,830 Depreciation and Amortization $ 65,000 $ 66,780 Cost of Share Repurchase $ 36,000 $ 33,977 Payment for Purchase of Companies $ 49,700 $ 568 a) After restructuring charge of $66,446
7 HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE TWELVE MONTHS ENDED June 30, 2000 (000s omitted except per share amounts)
Year Ended June 30, 2000 ------------ Net sales $ 1,677,939 Cost of sales 1,208,603 ------------ Gross profit 469,336 Selling, general and administrative expenses 347,614 ------------ Operating income 121,722 Other expense (income): Interest expense 18,507 Miscellaneous, net 386 ------------ Income before income taxes 102,829 Income tax expense and minority interest 29,991 ------------ Net income $ 72,838 ============ Basic EPS $ 4.23 Diluted EPS $ 4.13 Shares outstanding - basic 17,226 Shares outstanding - diluted 17,650 8 HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2000 (000s omitted)
June 30, 2000 ------------- ASSETS Current assets Cash and cash equivalents $ 4,365 Accounts receivable 306,596 Inventories 298,273 Other current assets 61,792 ------------- Total current assets 671,026 ------------- Property, plant and equipment 251,737 Excess of cost over fair value of assets acquired 166,647 Other assets 48,095 ------------- Total assets $ 1,137,505 ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings $ 14,969 Current portion of long-term debt 7,537 Accounts payable and accrued liabilities 338,875 ------------- Total current liabilities 361,381 ------------- Long-term debt 254,818 Other non-current liabilities 33,918 Minority interest 1,055 Total shareholders' equity 486,333 ------------- Total liabilities and shareholders' equity $ 1,137,505 =============
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