Genlyte owns many lighting manufacturing companies leading professional entertainment lighting brands such as Vari-Lite, Entertainment Technology and Strand Lighting,
Sales during the first nine months of 2007 increased 10.5% from $1.106 billion to $1.222 billion. Year-to-date earnings per share were $3.87 compared to $4.26 for the first nine months of 2006. Year-to-date net income was $112.5 million compared to $122.5 million last year. First quarter 2006 net income included a one-time tax provision benefit of $24.7 million, or $0.86 per share, related to a change in corporate tax structuring. In addition, the second quarter of 2006 included $7.2 million ($4.4 million after-tax) or $0.15 per share impact from foreign currency exchange gain related to return of capital from Canada. After excluding the combined $1.01 impact of these two items from the 2006 year-to-date earnings per share of $4.26, the first nine months 2007 earnings per share increased 19.1%.
Chairman, president and CEO Larry Powers said: "Once again, we are pleased to report that sales and net income for the third quarter were the highest for any third quarter in the company's history. This was a big challenge to exceed third quarter of last year when sales grew 26% and net income grew 74%. Nevertheless, we rose to the challenge and delivered another record quarter. Recent price increases and our focus on higher margin product lines helped us achieve higher gross profit margins, as well as higher net sales for the third quarter."
He continued: "The nonresidential markets including educational, offices, healthcare, hotels and restaurants are experiencing moderate growth. The overall cost of building materials and the recent tightening of credit seem to be dampening some of the momentum. Residential construction markets remain weak, although the rate of the slowdown seems to be flattening. We are seeing some softness in the stock and flow goods markets in geographic areas where residential construction had previously slowed. We continue to see strength in sales for major projects, including institutional and healthcare construction, as well as the theatrical and entertainment businesses.
"We are encouraged by the success of our new product development strategies which help to improve our margins. We had a tremendously positive reaction at our Lightfair event during May and we are gaining new sales momentum as a result of our new specification products."
(Jim Evans)
