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Business Services Industry

Coastcast Reports Second-Quarter Results

Business Wire, July 18, 2000

Business Editors

RANCHO DOMINGUEZ, Calif.--(BUSINESS WIRE)--July 18, 2000

Coastcast Corp. (NYSE:PAR) reported financial results for the second quarter ended June 30, 2000.

For the second quarter of 2000 as compared to the same period in 1999, sales were $46,705,000 vs. $33,582,000, net income was $4,132,000 vs. $3,362,000, and diluted earnings per share were $0.52 vs. $0.42.

For the six months ended June 30, 2000, as compared to the same period in 1999, sales were $83,935,000 vs. $60,673,000, net income was $7,084,000 vs. $5,668,000, and diluted earnings per share were $0.90 vs. $0.71.

Commenting on the quarter, Hans Buehler, chairman and CEO, stated: "The increase in sales for the quarter and first half of the year was mainly due to improved conditions in the golf industry. We do not anticipate that the revenue flow for the second half of 2000 will be as strong as the first half of 2000.

"We announced in May that the company had engaged an investment banking firm to advise the board of directors on strategic alternatives in connection with unsolicited acquisition inquiries from unrelated third parties. We explored, among other issues, whether the company could be sold for a price significantly higher than the prevailing market price per share.

"Following discussions with several potential acquirors, the company did not receive any proposal for an acquisition of the company at a price which the board of directors considered to be attractive. The board will continue to consider and evaluate all strategic alternatives, as they arise, in an effort to enhance shareholder value."

Coastcast, a leading manufacturer of golf clubheads, produces metal woods, irons and putters in a variety of metals, including stainless steel and titanium. Customers include Callaway, Cleveland, Cobra, Odyssey, Taylor Made and Titleist. The company also manufactures a variety of investment-cast orthopedic implants and surgical tools and other specialty products that are made to customers' specifications.

Except for the historical information, other statements in this release are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, including, but not limited to, industry conditions, economic conditions, competitive factors and pricing pressures, and shifts in market demand, as well as other risks detailed in the company's Securities and Exchange Commission filings.

                            Coastcast Corp.
                   Financial Highlights - Quarterly
                    ($ in 000s, except share data)

Income Statement Summary (Unaudited)

Quarter Ended June 30,                             2000        1999

Sales                                            $ 46,705    $ 33,582
Cost of sales                                      37,867      25,946
Gross profit                                        8,838       7,636
Selling, general & administrative expense           2,324       2,169
Income from operations                              6,514       5,467
Other income, net                                     538         329
Income before provision for income taxes            7,052       5,796
Provision for income taxes                          2,920       2,434
Net income                                       $  4,132    $  3,362
Net income per share - basic                     $   0.54    $   0.43
Weighted average shares outstanding - basic     7,707,245   7,893,338
Net income per share - diluted                   $   0.52    $   0.42
Weighted average shares outstanding - diluted   7,969,591   7,921,391


Six Months Ended June 30,                          2000        1999

Sales                                            $ 83,935    $ 60,673
Cost of sales                                      68,616      47,188
Gross profit                                       15,319      13,485
Selling, general & administrative expense           4,259       4,381
Income from operations                             11,060       9,104
Other income, net                                   1,067         668
Income before provision for income taxes           12,127       9,772
Provision for income taxes                          5,043       4,104
Net income                                       $  7,084    $  5,668
Net income per share - basic                     $   0.92    $   0.71
Weighted average shares outstanding - basic     7,704,408   7,932,912
Net income per share - diluted                   $   0.90    $   0.71
Weighted average shares outstanding - diluted   7,907,715   7,949,499


                            Coastcast Corp.
                         Financial Highlights
                              ($ in 000s)

Condensed Balance Sheet Summary
                                                06/30/2000
                                                (Unaudited) 12/31/1999

Assets

Cash and cash equivalents                       $  42,940   $  42,740
Accounts receivable - net                          17,858       9,179
Inventories                                        11,951      11,059
Prepaid expenses and other current assets           3,246       3,662
     Total current assets                          75,995      66,640
Property, plant & equipment - net                  23,901      24,170
Other assets                                        1,617       1,506
     Total assets                               $ 101,513   $  92,316


Liabilities and Shareholders' Equity

Total current liabilities                       $   9,900   $   8,485
Deferred compensation                                 684         541
Shareholders' equity                               90,929      83,290
     Total liabilities & shareholders' equity   $ 101,513   $  92,316

Business Services Industry

Coastcast Reports Second-Quarter Results

Business Wire, July 18, 2000

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