Exhibit 99.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (In thousands, except per-share data, unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||
Net sales | $ | 96,109 | $ | 97,367 | $ | 355,870 | $ | 310,393 | ||||||||
Cost of goods sold | 67,863 | 61,246 | 234,238 | 202,710 | ||||||||||||
Gross profit | 28,246 | 36,121 | 121,632 | 107,683 | ||||||||||||
Marketing, engineering and | ||||||||||||||||
administrative expenses | 19,339 | 22,497 | 73,091 | 72,967 | ||||||||||||
Impairment charge | 3,670 | 0 | 3,670 | 0 | ||||||||||||
Earnings from operations | 5,237 | 13,624 | 44,871 | 34,716 | ||||||||||||
Interest expense | 346 | 410 | 1,475 | 1,719 | ||||||||||||
Other (income) expense, net | (887 | ) | 132 | (1,360 | ) | 968 | ||||||||||
Earnings before income taxes and noncontrolling interest | 5,778 | 13,082 | 44,756 | 32,029 | ||||||||||||
Income taxes | 4,407 | 5,416 | 18,446 | 13,064 | ||||||||||||
Net earnings | 1,371 | 7,666 | 26,310 | 18,965 | ||||||||||||
Less: Net earnings attributable to | ||||||||||||||||
noncontrolling interest, net of tax | (90 | ) | (74 | ) | (198 | ) | (135 | ) | ||||||||
Net earnings attributable to Twin Disc | $ | 1,281 | $ | 7,592 | $ | 26,112 | $ | 18,830 | ||||||||
Earnings per share data: | ||||||||||||||||
Basic earnings per share attributable to Twin Disc common shareholders | $ | 0.11 | $ | 0.67 | $ | 2.29 | $ | 1.66 | ||||||||
Diluted earnings per share attributable to Twin Disc common shareholders | $ | 0.11 | $ | 0.66 | $ | 2.26 | $ | 1.64 | ||||||||
Weighted average shares outstanding data: | ||||||||||||||||
Basic shares outstanding | 11,384 | 11,355 | 11,410 | 11,319 | ||||||||||||
Diluted shares outstanding | 11,534 | 11,510 | 11,556 | 11,463 | ||||||||||||
Dividends per share | $ | 0.09 | $ | 0.08 | $ | 0.34 | $ | 0.30 | ||||||||
Comprehensive income (loss): | ||||||||||||||||
Net earnings | $ | 1,371 | $ | 7,666 | $ | 26,310 | $ | 18,965 | ||||||||
Foreign currency translation adjustment | (5,446 | ) | 4,496 | (11,738 | ) | 19,272 | ||||||||||
Benefit plan adjustments, net | (12,993 | ) | 9,841 | (11,690 | ) | 11,506 | ||||||||||
Comprehensive income (loss) | (17,068 | ) | 22,003 | 2,882 | 49,743 | |||||||||||
Comprehensive earnings attributable to noncontrolling interest | (90 | ) | (74 | ) | (198 | ) | (135 | ) | ||||||||
Comprehensive income (loss) attributable to Twin Disc | $ | (17,158 | ) | $ | 21,929 | $ | 2,684 | $ | 49,608 |
Exhibit 99.1
RECONCILIATION OF CONSOLIDATED NET EARNINGS TO EBITDA (In thousands, unaudited) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||
Net earnings attributable to Twin Disc | $ | 1,281 | $ | 7,592 | $ | 26,112 | $ | 18,830 | ||||||||
Interest expense | 346 | 410 | 1,475 | 1,719 | ||||||||||||
Income taxes | 4,407 | 5,416 | 18,446 | 13,064 | ||||||||||||
Depreciation and amortization | 2,746 | 2,921 | 10,756 | 9,904 | ||||||||||||
Earnings before interest, taxes, depreciation and amortization | $ | 8,780 | $ | 16,339 | $ | 56,789 | $ | 43,517 |
Exhibit 99.1
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands, unaudited) | ||||||||
June 30, | June 30, | |||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 15,701 | $ | 20,167 | ||||
Trade accounts receivable, net | 63,438 | 61,007 | ||||||
Inventories, net | 103,178 | 99,139 | ||||||
Deferred income taxes | 3,745 | 3,346 | ||||||
Other | 11,099 | 11,509 | ||||||
Total current assets | 197,161 | 195,168 | ||||||
Property, plant and equipment, net | 66,356 | 65,791 | ||||||
Goodwill, net | 13,116 | 17,871 | ||||||
Deferred income taxes | 14,335 | 16,480 | ||||||
Intangible assets, net | 4,996 | 6,439 | ||||||
Other assets | 7,868 | 7,371 | ||||||
TOTAL ASSETS | $ | 303,832 | $ | 309,120 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings and current maturities of long-term debt | $ | 3,744 | $ | 3,915 | ||||
Accounts payable | 23,550 | 38,372 | ||||||
Accrued liabilities | 39,331 | 41,673 | ||||||
Total current liabilities | 66,625 | 83,960 | ||||||
Long-term debt | 28,401 | 25,784 | ||||||
Accrued retirement benefits | 64,009 | 50,063 | ||||||
Deferred income taxes | 3,340 | 4,170 | ||||||
Other long-term liabilities | 4,171 | 7,089 | ||||||
Total liabilities | 166,546 | 171,066 | ||||||
Twin Disc shareholders’ equity: Common shares authorized: 30,000,000; Issued: 13,099,468; no par value | 12,759 | 10,863 | ||||||
Retained earnings | 185,083 | 162,857 | ||||||
Accumulated other comprehensive loss | (34,797 | ) | (11,383 | ) | ||||
163,045 | 162,337 | |||||||
Less treasury stock, at cost (1,794,981 and 1,739,574 shares, respectively) | 26,781 | 25,252 | ||||||
Total Twin Disc shareholders' equity | 136,264 | 137,085 | ||||||
Noncontrolling interest | 1,022 | 969 | ||||||
Total equity | 137,286 | 138,054 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 303,832 | $ | 309,120 |
Exhibit 99.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands, unaudited) | ||||||||
Twelve Months Ended | ||||||||
June 30, 2012 | June 30, 2011 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net earnings | $ | 26,310 | $ | 18,965 | ||||
Adjustments to reconcile net earnings to net cash provided | ||||||||
by operating activities: | ||||||||
Depreciation and amortization | 10,756 | 9,904 | ||||||
Loss on sale of plant assets | 315 | 120 | ||||||
Impairment charge | 3,670 | - | ||||||
Stock compensation expense | 1,642 | 6,148 | ||||||
Provision for deferred income taxes | 7,486 | 1,354 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable, net | (5,982 | ) | (13,605 | ) | ||||
Inventories, net | (9,563 | ) | (17,258 | ) | ||||
Other assets | (915 | ) | (1,736 | ) | ||||
Accounts payable | (13,279 | ) | 11,839 | |||||
Accrued liabilities | (2,273 | ) | 6,713 | |||||
Accrued/prepaid retirement benefits | (3,723 | ) | (8,584 | ) | ||||
Net cash provided by operating activities | 14,444 | 13,860 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from sale of plant assets | 116 | 296 | ||||||
Acquisitions of plant assets | (13,733 | ) | (12,028 | ) | ||||
Other, net | (293 | ) | (293 | ) | ||||
Net cash used by investing activities | (13,910 | ) | (12,025 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from notes payable | 3 | 84 | ||||||
Payments of notes payable | (145 | ) | (83 | ) | ||||
Proceeds from (payments of) long-term debt | 2,590 | (1,405 | ) | |||||
Proceeds from exercise of stock options | 169 | 322 | ||||||
Acquisition of treasury stock | (2,425 | ) | - | |||||
Dividends paid to shareholders | (3,886 | ) | (3,411 | ) | ||||
Dividends paid to noncontrolling interest | (131 | ) | (138 | ) | ||||
Excess tax benefits from stock compensation | 535 | 317 | ||||||
Other | (184 | ) | 136 | |||||
Net cash used by financing activities | (3,474 | ) | (4,178 | ) | ||||
Effect of exchange rate changes on cash | (1,526 | ) | 3,488 | |||||
Net change in cash | (4,466 | ) | 1,145 | |||||
Cash: | ||||||||
Beginning of year | 20,167 | 19,022 | ||||||
End of year | $ | 15,701 | $ | 20,167 |
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