SOURCE: Flanders Corporation

July 18, 2005 15:43 ET

Flanders Q2 Earnings $0.13 per Share

ST. PETERSBURG, FL -- (MARKET WIRE) -- July 18, 2005 -- Flanders Corporation (NASDAQ: FLDR), today announced its results for the second quarter ended June 30, 2005. Earnings from operations were $3.5 million or $0.13 per share, up 66.7% from $2.1 million, or $0.08 per share, from the second quarter ended June 30, 2004. Revenues for the second quarter were $55.5 million up 17.8% from $47.1 million for the second quarter 2004.

Steve Clark, President and C.E.O., commented, "We are pleased with our quarterly performance. We continued to see revenue growth amongst all product lines. We benefited from controlling operating expenses for the quarter, thus enabling us to exceed our operating budget. We expect to improve our results going forward."

Robert Amerson, Chairman of the Board, commented "Our results are a testament to the success of our integration and product expansion. We continue to see a tremendous amount of interest in our high-end containment products for government and commercial settings. We are working to acquire contracts in this area, and believe that this could have a major impact on our operations. This is a developing market, and we have a competitive advantage with these customers, given our long experience in what was, historically, a niche specialty manufacturing area. We are also continuing the process to implement Flanders CSD (Flanders Complete Service Division), which continues our plan of using vertical markets and leveraging our success."

Conference Call

The Company has scheduled a conference call for Tuesday, July 19, 2005 at 9:00 EST. People wishing to participate in the conference call should dial 1-877-691-0877 ten minutes prior to the call.

Selected Operations Data
 (all but per share data in Millions)
                                               Q2 2005          Q2 2004
                                            ---------------  -------------

Net sales                                     $      55.5      $      47.1
Gross profit                                         13.6             11.9
Operating expenses                                    8.4              8.4
Operating income                                      5.2              3.5
Earnings before income taxes                          5.1              3.4
Net earnings                                  $       3.5      $       2.1
Net earnings per share:
     Basic                                    $      0.13      $      0.08
     Diluted                                  $      0.12      $      0.08
Common shares outstanding:
     Basic                                           26.3             26.2
     Diluted                                         27.7             27.1


Selected Balance Sheet Data (in Millions)     6/30/2005       12/31/2004
                                            ---------------  -------------

Working capital                               $      64.2       $     54.2
Total assets                                        171.3            159.7
Long-term obligations,
 including current maturities                        30.2             23.1
Total shareholders’ equity                           98.9             93.2

Flanders is a leading air filtration products manufacturer. Flanders' products are utilized by many industries, including those associated with commercial and residential heating, ventilation and air conditioning systems, semiconductor manufacturing, ultra-pure materials, biotechnology, pharmaceuticals, synthetics, nuclear power and nuclear materials processing.

This press release contains forward-looking statements that are inherently subject to risk. These forward-looking statements are not intended to be promises or predictions of the future and may be affected by a number of factors that may change the currently anticipated outcome. These factors include market acceptance of Flanders' products, competition in the marketplace for Flanders' products, the success of retailers and distributors through which Flanders sells its products, Flanders' ability to contain costs and maintain production and efficiency with a reduced workforce, a determination by potential Flanders customers that the higher cost of its high-end filtration systems can be justified for general application, Flanders' ability to successfully retrofit existing buildings with effective sophisticated filtering and air handling systems, the ability to increase its high end containment products for commercial and governmental settings, the success of Flanders CSD (Flanders Complete Services Division), the ability to continue implementation of vertical integration of our raw material supplies and the development of increased demand for its high-end products. Many of these factors are not within Flanders' control. These factors, and others, are discussed in Flanders' periodic reports filed with the Securities and Exchange Commission and should be reviewed by the reader of this press release.

For further information on Flanders and its products, visit its web site at http://www.flanderscorp.com/ or contact Steven Clark at (727) 822-4411.

Contact Information

  • Contact:
    Steven Clark
    Chief Executive Officer
    Flanders Corporation
    (727) 822-4411