Meadowcraft Inc. Fourth Quarter Pre-tax Income Advances 28%

Business Wire, Oct 14, 1998

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Oct. 14, 1998--Meadowcraft, Inc. (NYSE: MWI) today reports a 28% increase in Pre-tax Income for the quarter ended July 31, 1998, to $6.8 million from $5.3 million in the prior year.

Net Sales increased $9.5 million or 27% for the three months from $35.4 million in the prior year. The increase was due to sales increases in the Plantation Patterns, Meadowcraft and Garden Accessories product lines.

Gross Profit for the three months ended July 31, 1998 increased $2.6 million or 27% due to higher sales volume.

Selling Expense which includes commissions increased $.4 million due to the higher sales volume.

General and Administrative Expense increased $.6 million to $2.0 million for the quarter primarily due to higher salaries, benefits and professional fees.

Pro Forma net income for the quarter increased to $4.3 million or 30% from $3.3 million in the prior year.

Pro Forma Earnings Per Share for the quarter based on the shares outstanding at July 31, 1998 increased 29% to $.22 per share.

For the year, Net Sales increased $17.1 million, or an 11.8% increase, to $162.2 million from $145.1 million. The increase was due to higher sales of the Plantation Patterns and Garden Accessories product lines.

Pro Forma Net Income for the year, excluding the benefit related to a change in tax status, increased $2.3 million, or 14.1% to $19.0 million from $16.7 million. Pro Forma Earnings Per share for the year (excluding tax benefit) based on the number of shares outstanding at July 31, 1998 increased $.12 to $.97 from $.85, or 14.1% in the comparable period in the prior year.

Meadowcraft, Inc. is a leading domestic producer of casual outdoor furniture and is the largest manufacturer of wrought iron furniture in the United States. The Company designs, manufactures, and distributes a variety of consumer products, including outdoor and indoor furniture and accessories, outdoor cushions and umbrellas, and garden products.

In accordance with the safe harbor provisions of the Private Securities Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the company's actual results to differ materially from those projected include, among others, its customer concentration; seasonality; cyclicality; fluctuation of price of raw materials; risk of business interruption; dependence on key personnel; control by existing stockholders; government regulation; shares eligible for future sale; dilution; no prior market for common stock; and possible volatility of stock price. -0-

                           MEADOWCRAFT, INC.
              Unaudited Condensed Statement of Operations
                     Quarter Ended July 31, 1998/a

                     Three Months Ended           Year Ended
                   -----------------------  -----------------------
                      July 31,    July 31,     July 31,    July 31,
                        1997        1998         1997        1998
                   ----------- -----------  ----------- -----------

Net Sales          $   35,368  $   44,899   $  145,080  $  162,201

Gross Profit            9,436      11,995       45,103      49,946
                   ----------- -----------  ----------- -----------

Operating Expenses      2,959       3,945       13,373      15,336
                   ----------- -----------  ----------- -----------

Operating Income        6,477       8,050       31,730      34,610

Interest Expense        1,161       1,272        5,130       4,262
                   ----------- -----------  ----------- -----------

Pre-tax Income -
 Historical             5,316       6,778       26,600      30,348
Provision for
 Income Taxes               0       2,518            0       4,038
                   =========== ===========  =========== ===========
Net Income         $    5,316  $    4,260   $   26,600  $   26,310
                   =========== ===========  =========== ===========

Pro Forma Net
 Income Excluding
 Benefit Related
 to Change in
  Tax Status       $    3,338  $    4,260   $   16,705  $   19,059
                   =========== ===========  =========== ===========

Shares
 Outstanding at
 July 31, 1998     19,708,750  19,708,750   19,708,750  19,708,750
                   =========== ===========  =========== ===========

Pro Forma Earnings
 Per Share
 Excluding Benefit
 Related to Change
 in Tax Status
 Based on Shares
 Outstanding at
 July 31, 1998     $     0.17  $     0.22   $     0.85  $      0.97
                   =========== ===========  =========== ===========

a/In Thousands Except Share Data