EXHIBIT 99.1
PRESS RELEASE
Contact: | Kenneth Smith | |
Chief Financial Officer
| ||
CIRCOR International, Inc. | ||
781-270-1200 |
CIRCOR Announces Fourth Quarter and Full Year 2004 Earnings
• | Net earnings of $0.01 per share posted for quarter includes $0.29 of charges |
• | Orders increased 19% and backlog rose 30%, reaching new records |
BURLINGTON, MA, February 15, 2005
CIRCOR International, Inc. [NYSE:CIR] a leading provider of valves and other fluid control devices for the instrumentation, aerospace, thermal fluid and energy markets, today announced results for the fourth quarter ending December 31, 2004. In describing its results, the Company referred to the financial guidance it provided in a press release on October 21, 2004, and updated through a press release on January 21, 2005.
Revenues for the 2004 fourth quarter were $106.8 million, an increase of 11% from $96.4 million for the fourth quarter 2003. Net income for the fourth quarter of 2004 was $0.1 million or $0.01 per diluted share, compared to $5.3 million, or $0.33 per diluted share for the 2003 fourth quarter.
Fourth quarter 2004 earnings included unusual charges of $0.29 per diluted share primarily related to the Company’s previously announced plan to dispose of slow moving inventory and consolidate facilities. In the fourth quarter 2003, the Company had recorded a net benefit of $0.03 per share primarily related to tax credits net of facility consolidation costs.
For the twelve months ended December 31, 2004, revenues were $381.8 million an increase of 6% from $359.5 million for 2003. Net income for 2004 was $11.8 million or $0.74 per diluted share and for 2003 was $17.9 million or $1.14 per diluted share.
During the fourth quarter 2004, the Company generated $7.7 million of free cash flow (defined as net cash from operating activities, less capital expenditures and dividends paid) and, for the full year, the Company generated $21.7 million of free cash flow. At December 31, 2004, the Company remained in a positive net cash position (defined as cash, plus cash equivalents and investments less total debt).
The Company received orders totaling $122.4 million during the fourth quarter 2004, representing an increase of 19% over the $103.2 million in orders recorded during the same
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period of 2003. For the year, orders were $408.6 million, an increase of 9% over 2003. Total order backlog at the end of 2004 was $115.7 million, an increase of 30% over the backlog at the end of 2003. Both orders and backlog were at record highs at the end of the quarter.
CIRCOR’s Chairman and Chief Executive Officer, David A. Bloss, Sr. commented on the Company’s performance stating “Oil and gas project activity continues to be very healthy, particularly in areas where we have strong market positions such as the Middle and Far East regions. Our Pibiviesse business unit in Italy continues to build on its reputation for high-quality, severe-service valves for natural gas pipelines and offshore platforms as well as gathering and compression systems and applications. We also experienced solid growth within our Thermal Fluid Controls’ European businesses which specializes in high temperature steam applications where activity has been particularly strong. The strength of these markets, together with the benefit from our recent acquisitions has resulted in our record backlog at year end.”
Mr. Bloss further stated, “From an operations standpoint, we are taking action to further reduce our inventories and consolidate our facilities as demonstrated by the non-cash charge taken during the fourth quarter of 2004. Excluding unusual gains and charges, our earnings performance for the quarter was consistent with our guidance and equivalent to last year’s fourth quarter on the same basis despite the impact of higher raw material costs and expenses related to the new Sarbanes-Oxley Section 404 requirements.”
CIRCOR’s Energy Products Segment (formerly the Petrochemical Products Segment) revenues increased 11% to $47.6 million from $42.8 million in the fourth quarter last year due to the timing of project shipments this quarter and the benefits from the acquisition of Mallard Control Company in April 2004. Incoming orders for the quarter were up 27% compared to the fourth quarter 2003 while backlog increased 46% compared to December 31, 2003. This segment’s adjusted operating margin, excluding unusual charges primarily related to the planned disposal of slow-moving inventory and special charges, was 10.6% for the fourth quarter 2004, down slightly from the 12.1% achieved in the fourth quarter 2003 but an increase from 7.8% reported in the third quarter 2004.
CIRCOR’s Instrumentation and Thermal Fluid Controls Products Segment revenues were up 11% to $59.2 million for the fourth quarter compared to $53.6 million for the same period last year and up 9% for the year. Incoming orders for this segment were up 11% compared to the fourth quarter last year and backlog at year end increased 8% versus last year. This segment’s adjusted operating margin, excluding unusual charges primarily related to the planned disposal of slow moving inventory and special charges, was 12.0% during the fourth quarter of 2004, compared to its adjusted operating margin of 9.5% for the fourth quarter of 2003.
CIRCOR provided guidance for its first quarter 2005 results, indicating that it expects earnings to be in the range of $0.27 to $0.31 per diluted share excluding special charges.
CIRCOR International has scheduled a conference call to review its results for the fourth quarter 2004 on Wednesday, February 16, 2005 at 9:00 a.m. ET. Interested parties may access the call by dialing (800) 289-0496 or (913) 981-5519. A replay of the call will be available from noon ET on February 16, 2005 through midnight February 22, 2005. To access the replay, interested parties should dial (888) 203-1112 or (719) 457-0820 and enter confirmation code #4068064
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when prompted. The presentation slides that will be discussed in the conference call are expected to be available on February 15, 2005, by 6:00pm ET. The presentation slides may be downloaded from the quarterly earnings page of the investor section on the CIRCOR website:http://www.CIRCOR.com. An audio recording of the conference call also is expected to be posted on the Company’s website by February 18, 2005.
CIRCOR International, Inc. is a leading provider of valves and fluid control products that allow customers around the world to use fluids safely and efficiently in the instrumentation, aerospace, thermal fluid, and energy markets. CIRCOR’s executive headquarters are located at 25 Corporate Drive, Burlington, MA 01803.
This press release contains certain statements that are “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995 (the “Act”) and releases issued by the Securities and Exchange Commission (SEC). The words “may,” “hope,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. We believe that it is important to communicate our future expectations to our stockholders, and we, therefore, make forward-looking statements in reliance upon the safe harbor provisions of the Act. However, there may be events in the future that we are not able to accurately predict or control, and our actual results, performance or achievements may differ materially from the expectations we describe in our forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the cyclicality and highly competitive nature of some of our end markets, changes in the price of and demand for oil and gas in both domestic and international markets, variability of raw material and component pricing, fluctuations in foreign currency exchange rates, and our ability to continue operating our manufacturing facilities at efficient levels and to successfully implement our acquisition strategy. We advise you to read further about these and other risk factors set forth under the caption “Certain Risk Factors That May Affect Future Results” in our SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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CIRCOR INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
UNAUDITED
December 31, 2004 | December 31, 2003 | |||||
ASSETS | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 58,653 | $ | 58,202 | ||
Investments | 4,155 | 7,840 | ||||
Trade accounts receivable, less allowance for doubtful accounts of $2,549 and $2,119, respectively | 64,521 | 64,830 | ||||
Inventories | 105,150 | 97,278 | ||||
Prepaid expenses and other current assets | 2,414 | 4,587 | ||||
Deferred income taxes | 6,953 | 6,303 | ||||
Assets held for sale | — | 3,884 | ||||
Total Current Assets | 241,846 | 242,924 | ||||
Property, Plant and Equipment, net | 59,302 | 61,737 | ||||
Other Assets: | ||||||
Goodwill | 120,307 | 111,448 | ||||
Intangibles, net | 1,424 | 1,587 | ||||
Other assets | 5,539 | 6,167 | ||||
Total Assets | $ | 428,418 | $ | 423,863 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current Liabilities: | ||||||
Accounts payable | $ | 38,023 | $ | 37,635 | ||
Accrued expenses and other current liabilities | 30,490 | 27,742 | ||||
Income taxes payable | 1,362 | 1,491 | ||||
Notes payable and current portion of long-term debt | 15,051 | 17,268 | ||||
Total Current Liabilities | 84,926 | 84,136 | ||||
Long-term Debt, net of current portion | 27,829 | 43,791 | ||||
Deferred Income Taxes | 6,932 | 6,303 | ||||
Other Noncurrent Liabilities | 10,646 | 9,820 | ||||
Minority Interest | 4,650 | 4,653 | ||||
Shareholders’ Equity: | ||||||
Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued and outstanding | — | — | ||||
Common stock, $.01 par value; 29,000,000 shares authorized; and 15,430,305 and 15,302,127 issued and outstanding, respectively | 154 | 153 | ||||
Additional paid-in capital | 208,392 | 206,160 | ||||
Retained earnings | 64,293 | 54,793 | ||||
Accumulated other comprehensive income | 20,596 | 14,054 | ||||
Total Shareholders’ Equity | 293,435 | 275,160 | ||||
Total Liabilities and Shareholders’ Equity | $ | 428,418 | $ | 423,863 | ||
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CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED
Three Months Ended | Year Ended | |||||||||||||||
December 31, 2004 | December 31, 2003 | December 31, 2004 | December 31, 2003 | |||||||||||||
Net revenues | $ | 106,825 | $ | 96,405 | $ | 381,834 | $ | 359,453 | ||||||||
Cost of revenues | 81,892 | 67,496 | 274,265 | 253,941 | ||||||||||||
GROSS PROFIT | 24,933 | 28,909 | 107,569 | 105,512 | ||||||||||||
Selling, general and administrative expenses | 23,659 | 20,617 | 85,332 | 74,162 | ||||||||||||
Special charges | — | 1,092 | 303 | 1,363 | ||||||||||||
OPERATING INCOME | 1,274 | 7,200 | 21,934 | 29,987 | ||||||||||||
Other (income) expense: | ||||||||||||||||
Interest income | (220 | ) | (280 | ) | (756 | ) | (775 | ) | ||||||||
Interest expense | 917 | 1,301 | 4,446 | 5,926 | ||||||||||||
Other income, net | 57 | 217 | (234 | ) | (837 | ) | ||||||||||
Total other expense | 754 | 1,238 | 3,456 | 4,314 | ||||||||||||
INCOME BEFORE INCOME TAXES | 520 | 5,962 | 18,478 | 25,673 | ||||||||||||
Provision for income taxes | 390 | 704 | 6,675 | 7,800 | ||||||||||||
NET INCOME | $ | 130 | $ | 5,258 | $ | 11,803 | $ | 17,873 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.34 | $ | 0.77 | $ | 1.18 | ||||||||
Diluted | $ | 0.01 | $ | 0.33 | $ | 0.74 | $ | 1.14 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 15,422 | 15,290 | 15,361 | 15,207 | ||||||||||||
Diluted | 15,932 | 15,919 | 15,877 | 15,675 |
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CIRCOR INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
UNAUDITED
Year Ended | ||||||||
December 31, 2004 | December 31, 2003 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 11,803 | $ | 17,873 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 9,664 | 9,564 | ||||||
Amortization | 192 | 298 | ||||||
Compensation expense of stock-based plans | 650 | 229 | ||||||
Deferred income taxes | 349 | 1,372 | ||||||
Loss on write-down of property, plant and equipment | — | 381 | ||||||
Loss (gain) on sale of property, plant and equipment | 704 | (21 | ) | |||||
Gain on sale of assets held for sale | (149 | ) | — | |||||
Gain on sale of marketable securities | — | (64 | ) | |||||
Inventory obsolescense provision | 6,558 | — | ||||||
Equity in undistributed earnings of affiliates | (113 | ) | — | |||||
Changes in operating assets and liabilities, net of effects from business acquisitions: | ||||||||
Trade accounts receivable | 4,960 | (2,586 | ) | |||||
Inventories | (8,322 | ) | 19,754 | |||||
Prepaid expenses and other assets | 3,079 | 1,788 | ||||||
Accounts payable, accrued expenses and other liabilities | (126 | ) | 10,058 | |||||
Net cash provided by operating activities | 29,249 | 58,646 | ||||||
INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (5,287 | ) | (6,823 | ) | ||||
Proceeds from sale of property, plant and equipment | 1,009 | 192 | ||||||
Proceeds from sale of assets held for sale | 4,038 | — | ||||||
Business acquisitions, net of cash acquired | (12,591 | ) | (9,619 | ) | ||||
Purchase price adjustment on previous acquisitions | (1,538 | ) | (1,029 | ) | ||||
Purchase of investments | (7,077 | ) | (7,857 | ) | ||||
Proceeds from sale of investments | 11,339 | 4,155 | ||||||
Net cash used in investing activities | (10,107 | ) | (20,981 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Proceeds from long-term borrowings | 322 | 1,593 | ||||||
Payments of long-term debt | (18,787 | ) | (20,097 | ) | ||||
Dividends paid | (2,303 | ) | (2,280 | ) | ||||
Proceeds from the exercise of stock options | 1,232 | 1,267 | ||||||
Net cash used in financing activities | (19,536 | ) | (19,517 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 845 | 1,672 | ||||||
INCREASE IN CASH AND CASH EQUIVALENTS | 451 | 19,820 | ||||||
Cash and cash equivalents at beginning of year | 58,202 | 38,382 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 58,653 | $ | 58,202 | ||||
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CIRCOR INTERNATIONAL, INC.
SUMMARY OF ORDERS AND BACKLOG
(in thousands)
UNAUDITED
Three Months Ended | Year Ended | |||||||||||
December 31, 2004 | December 31, 2003 | December 31, 2004 | December 31, 2003 | |||||||||
ORDERS | ||||||||||||
Instrumentation & Thermal Fluid Controls | $ | 58,594 | $ | 53,020 | $ | 221,535 | $ | 201,759 | ||||
Energy Products | 63,829 | 50,168 | 187,057 | 172,004 | ||||||||
Total orders | $ | 122,423 | $ | 103,188 | $ | 408,592 | $ | 373,763 | ||||
December 31, 2004 | December 31, 2003 | |||||
BACKLOG | ||||||
Instrumentation & Thermal Fluid Controls | $ | 39,819 | $ | 36,942 | ||
Energy Products | 75,923 | 52,042 | ||||
Total backlog | $ | 115,742 | $ | 88,984 | ||
Note: Backlog includes all unshipped customer orders.
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CIRCOR INTERNATIONAL, INC.
SUMMARY REPORT BY SEGMENT
(in thousands, except earnings per share)
UNAUDITED
2003 | ||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YEAR | ||||||||||||||||
NET REVENUES | ||||||||||||||||||||
Instrumentation & Thermal Fluid Controls (TFC) | $ | 49,119 | $ | 50,963 | $ | 47,132 | $ | 53,561 | $ | 200,775 | ||||||||||
Energy Products | 38,044 | 38,261 | 39,529 | 42,844 | 158,678 | |||||||||||||||
Total | 87,163 | 89,224 | 86,661 | 96,405 | 359,453 | |||||||||||||||
OPERATING MARGIN | ||||||||||||||||||||
Instrumentation & TFC | 12.2 | % | 12.5 | % | 11.9 | % | 9.5 | % | 11.5 | % | ||||||||||
Energy Products | 7.6 | % | 8.6 | % | 10.9 | % | 12.1 | % | 9.9 | % | ||||||||||
Segment operating margin | 10.2 | % | 10.8 | % | 11.5 | % | 10.7 | % | 10.8 | % | ||||||||||
Corporate expenses | -1.9 | % | -2.1 | % | -2.1 | % | -2.1 | % | -2.1 | % | ||||||||||
Special charges | 0.0 | % | 0.0 | % | -0.3 | % | -1.1 | % | -0.4 | % | ||||||||||
Total operating margin | 8.2 | % | 8.7 | % | 9.0 | % | 7.5 | % | 8.3 | % | ||||||||||
OPERATING INCOME | ||||||||||||||||||||
Instrumentation & TFC (excl. special charges) | 5,982 | 6,359 | 5,622 | 5,110 | 23,073 | |||||||||||||||
Energy Products (excl. special charges) | 2,876 | 3,303 | 4,309 | 5,171 | 15,659 | |||||||||||||||
Segment operating income (excl. special charges) | 8,858 | 9,662 | 9,931 | 10,281 | 38,732 | |||||||||||||||
Corporate expenses | (1,674 | ) | (1,860 | ) | (1,859 | ) | (1,989 | ) | (7,382 | ) | ||||||||||
Special charges | — | — | (271 | ) | (1,092 | ) | (1,363 | ) | ||||||||||||
Total operating income | 7,184 | 7,802 | 7,801 | 7,200 | 29,987 | |||||||||||||||
INTEREST EXPENSE, NET | (1,461 | ) | (1,349 | ) | (1,320 | ) | (1,021 | ) | (5,151 | ) | ||||||||||
OTHER (EXPENSE) INCOME, NET | 275 | 417 | 362 | (217 | ) | 837 | ||||||||||||||
PRETAX INCOME | 5,998 | 6,870 | 6,843 | 5,962 | 25,673 | |||||||||||||||
PROVISION FOR INCOME TAXES | (2,159 | ) | (2,473 | ) | (2,464 | ) | (704 | ) | (7,800 | ) | ||||||||||
EFFECTIVE TAX RATE | 36.0 | % | 36.0 | % | 36.0 | % | 11.8 | % | 30.4 | % | ||||||||||
NET INCOME | $ | 3,839 | $ | 4,397 | $ | 4,379 | $ | 5,258 | $ | 17,873 | ||||||||||
Weighted Average Common Shares Outstanding (Diluted) | 15,533 | 15,634 | 15,812 | 15,919 | 15,675 | |||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.25 | $ | 0.28 | $ | 0.28 | $ | 0.33 | $ | 1.14 | ||||||||||
EARNINGS PER COMMON SHARE (Diluted) excluding special charges | $ | 0.25 | $ | 0.28 | $ | 0.29 | $ | 0.37 | $ | 1.20 | ||||||||||
EBIT | $ | 7,459 | $ | 8,219 | $ | 8,163 | $ | 6,983 | $ | 30,824 | ||||||||||
Depreciation | 2,470 | 2,563 | 2,478 | 2,053 | 9,564 | |||||||||||||||
Amortization of intangibles | 74 | 75 | 74 | 75 | 298 | |||||||||||||||
EBITDA | $ | 10,003 | $ | 10,857 | $ | 10,715 | $ | 9,111 | $ | 40,686 | ||||||||||
EBITDA AS A PERCENT OF SALES | 11.5 | % | 12.2 | % | 12.4 | % | 9.5 | % | 11.3 | % | ||||||||||
CAPITAL EXPENDITURES | $ | 795 | $ | 1,058 | $ | 3,940 | $ | 1,030 | $ | 6,823 | ||||||||||
2004 | ||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YEAR | ||||||||||||||||
NET REVENUES | ||||||||||||||||||||
Instrumentation & Thermal Fluid Controls (TFC) | $ | 51,639 | $ | 54,864 | $ | 52,966 | $ | 59,187 | $ | 218,656 | ||||||||||
Energy Products | 39,058 | 39,688 | 36,794 | 47,638 | 163,178 | |||||||||||||||
Total | 90,697 | 94,552 | 89,760 | 106,825 | 381,834 | |||||||||||||||
OPERATING MARGIN | ||||||||||||||||||||
Instrumentation & TFC | 11.2 | % | 11.4 | % | 10.9 | % | 10.5 | % | 11.0 | % | ||||||||||
Energy Products | 10.9 | % | 7.7 | % | 7.8 | % | -2.3 | % | 5.6 | % | ||||||||||
Segment operating margin | 11.1 | % | 9.8 | % | 9.7 | % | 4.7 | % | 8.7 | % | ||||||||||
Corporate expenses | -2.5 | % | -2.3 | % | -2.9 | % | -3.6 | % | -2.8 | % | ||||||||||
Special charges | 0.0 | % | 0.0 | % | -0.3 | % | 0.0 | % | -0.1 | % | ||||||||||
Total operating margin | 8.5 | % | 7.5 | % | 6.5 | % | 1.2 | % | 5.7 | % | ||||||||||
OPERATING INCOME | ||||||||||||||||||||
Instrumentation & TFC (excl. special charges) | 5,776 | 6,239 | 5,786 | 6,188 | 23,989 | |||||||||||||||
Energy Products (excl. special charges) | 4,251 | 3,066 | 2,877 | (1,116 | ) | 9,078 | ||||||||||||||
Segment operating income (excl. special charges) | 10,027 | 9,305 | 8,663 | 5,072 | 33,067 | |||||||||||||||
Corporate expenses | (2,259 | ) | (2,188 | ) | (2,585 | ) | (3,798 | ) | (10,830 | ) | ||||||||||
Special charges | (38 | ) | — | (265 | ) | — | (303 | ) | ||||||||||||
Total operating income | 7,730 | 7,117 | 5,813 | 1,274 | 21,934 | |||||||||||||||
INTEREST EXPENSE, NET | (1,020 | ) | (972 | ) | (1,001 | ) | (697 | ) | (3,690 | ) | ||||||||||
OTHER (EXPENSE) INCOME, NET | (143 | ) | 193 | 241 | (57 | ) | 234 | |||||||||||||
PRETAX INCOME | 6,567 | 6,338 | 5,053 | 520 | 18,478 | |||||||||||||||
PROVISION FOR INCOME TAXES | (2,299 | ) | (2,216 | ) | (1,770 | ) | (390 | ) | (6,675 | ) | ||||||||||
EFFECTIVE TAX RATE | 35.0 | % | 35.0 | % | 35.0 | % | 75.0 | % | 36.1 | % | ||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | ||||||||||
Weighted Average Common Shares Outstanding (Diluted) | 16,001 | 15,908 | 15,825 | 15,932 | 15,877 | |||||||||||||||
EARNINGS PER COMMON SHARE (Diluted) | $ | 0.27 | $ | 0.26 | $ | 0.21 | $ | 0.01 | $ | 0.74 | ||||||||||
EARNINGS PER COMMON SHARE (Diluted) excluding special charges | $ | 0.27 | $ | 0.26 | $ | 0.22 | $ | 0.01 | $ | 0.76 | ||||||||||
EBIT | $ | 7,587 | $ | 7,310 | $ | 6,054 | $ | 1,217 | $ | 22,168 | ||||||||||
Depreciation | 2,680 | 2,353 | 2,528 | 2,103 | 9,664 | |||||||||||||||
Amortization of intangibles | 77 | 38 | 38 | 39 | 192 | |||||||||||||||
EBITDA | $ | 10,344 | $ | 9,701 | $ | 8,620 | $ | 3,359 | $ | 32,024 | ||||||||||
EBITDA AS A PERCENT OF SALES | 11.4 | % | 10.3 | % | 9.6 | % | 3.1 | % | 8.4 | % | ||||||||||
CAPITAL EXPENDITURES | $ | 1,294 | $ | 1,575 | $ | 757 | $ | 1,661 | $ | 5,287 | ||||||||||
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CIRCOR INTERNATIONAL, INC.
RECONCILIATION OF KEY PERFORMANCE MEASURES TO COMMONLY USED
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE TERMS
(in thousands)
UNAUDITED
2003 | ||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YEAR | ||||||||||||||||
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID] | $ | 14,533 | $ | 10,603 | $ | 7,439 | $ | 16,968 | $ | 49,543 | ||||||||||
ADD: Capital expenditures | 795 | 1,058 | 3,940 | 1,030 | 6,823 | |||||||||||||||
Dividends paid | 567 | 569 | 570 | 574 | 2,280 | |||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 15,895 | $ | 12,230 | $ | 11,949 | $ | 18,572 | $ | 58,646 | ||||||||||
NET (CASH) DEBT [TOTAL DEBT LESS CASH AND CASH EQUIVALENTS LESS INVESTMENTS] | $ | 20,209 | $ | 8,005 | $ | 254 | $ | (4,983 | ) | $ | (4,983 | ) | ||||||||
ADD: Cash and cash equivalents | 51,419 | 65,017 | 74,847 | 58,202 | 58,202 | |||||||||||||||
Investments | 4,072 | 1,464 | — | 7,840 | 7,840 | |||||||||||||||
TOTAL DEBT | $ | 75,700 | $ | 74,486 | $ | 75,101 | $ | 61,059 | $ | 61,059 | ||||||||||
NET DEBT AS % OF NET CAPITALIZATION | 7.5 | % | 3.0 | % | 0.1 | % | -1.8 | % | -1.8 | % | ||||||||||
NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH AND CASH EQUIVALENTS, LESS INVESTMENTS] | $ | 270,090 | $ | 266,529 | $ | 263,505 | $ | 270,177 | $ | 270,177 | ||||||||||
LESS: Total debt | (75,700 | ) | (74,486 | ) | (75,101 | ) | (61,059 | ) | (61,059 | ) | ||||||||||
ADD: Cash and cash equivalents | 51,419 | 65,017 | 74,847 | 58,202 | 58,202 | |||||||||||||||
Investments | 4,072 | 1,464 | — | 7,840 | 7,840 | |||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 249,881 | 258,524 | 263,251 | 275,160 | 275,160 | |||||||||||||||
ADD: Total debt | �� | 75,700 | 74,486 | 75,101 | 61,059 | 61,059 | ||||||||||||||
TOTAL CAPITAL | $ | 325,581 | $ | 333,010 | $ | 338,352 | $ | 336,219 | $ | 336,219 | ||||||||||
TOTAL DEBT / TOTAL CAPITAL | 23.3 | % | 22.4 | % | 22.2 | % | 18.2 | % | 18.2 | % | ||||||||||
EBIT [NET INCOME LESS INTEREST EXPENSE, NET] | $ | 7,459 | $ | 8,219 | $ | 8,163 | $ | 6,983 | $ | 30,824 | ||||||||||
LESS: Interest expense, net | (1,461 | ) | (1,349 | ) | (1,320 | ) | (1,021 | ) | (5,151 | ) | ||||||||||
Provision for income taxes | (2,159 | ) | (2,473 | ) | (2,464 | ) | (704 | ) | (7,800 | ) | ||||||||||
NET INCOME | $ | 3,839 | $ | 4,397 | $ | 4,379 | $ | 5,258 | 17,873 | |||||||||||
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET LESS DEPRECIATION LESS AMORTIZATION LESS TAXES] | $ | 10,003 | $ | 10,857 | $ | 10,715 | $ | 9,111 | $ | 40,686 | ||||||||||
LESS: | ||||||||||||||||||||
Interest expense, net | (1,461 | ) | (1,349 | ) | (1,320 | ) | (1,021 | ) | (5,151 | ) | ||||||||||
Depreciation | (2,470 | ) | (2,563 | ) | (2,478 | ) | (2,053 | ) | (9,564 | ) | ||||||||||
Amortization of intangibles | (74 | ) | (75 | ) | (74 | ) | (75 | ) | (298 | ) | ||||||||||
Provision for income taxes | (2,159 | ) | (2,473 | ) | (2,464 | ) | (704 | ) | (7,800 | ) | ||||||||||
NET INCOME | $ | 3,839 | $ | 4,397 | $ | 4,379 | $ | 5,258 | $ | 17,873 | ||||||||||
INCOME EXCLUDING SPECIAL CHARGES [NET INCOME LESS SPECIAL CHARGES, NET OF TAX] | $ | 3,839 | $ | 4,397 | $ | 4,552 | $ | 5,957 | $ | 18,822 | ||||||||||
LESS: Special charges, net of tax | — | — | (173 | ) | (699 | ) | (949 | ) | ||||||||||||
NET INCOME | $ | 3,839 | $ | 4,397 | $ | 4,379 | $ | 5,258 | $ | 17,873 | ||||||||||
2004 | ||||||||||||||||||||
1ST QTR | 2ND QTR | 3RD QTR | 4TH QTR | YTD | ||||||||||||||||
FREE CASH FLOW [NET CASH FLOW FROM OPERATING ACTIVITIES LESS CAPITAL EXPENDITURES LESS DIVIDENDS PAID] | $ | 2,254 | $ | 7,275 | $ | 4,438 | $ | 7,692 | $ | 21,659 | ||||||||||
ADD: Capital expenditures | 1,294 | 1,575 | 757 | 1,661 | 5,287 | |||||||||||||||
Dividends paid | 573 | 576 | 576 | 578 | 2,303 | |||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | $ | 4,121 | $ | 9,426 | $ | 5,771 | $ | 9,931 | $ | 29,249 | ||||||||||
NET (CASH) DEBT [TOTAL DEBT LESS CASH AND CASH EQUIVALENTS LESS INVESTMENTS] | $ | (8,706 | ) | $ | (4,054 | ) | $ | (9,918 | ) | $ | (19,928 | ) | $ | (19,928 | ) | |||||
ADD: Cash and cash equivalents | 59,963 | 54,527 | 60,055 | 58,653 | 58,653 | |||||||||||||||
Investments | 7,679 | 7,517 | 7,953 | 4,155 | 4,155 | |||||||||||||||
TOTAL DEBT | $ | 58,936 | $ | 57,990 | $ | 58,090 | $ | 42,880 | $ | 42,880 | ||||||||||
NET DEBT AS % OF NET CAPITALIZATION | -3.3 | % | -1.5 | % | -3.6 | % | -7.3 | % | -7.3 | % | ||||||||||
NET CAPITALIZATION [TOTAL DEBT PLUS SHAREHOLDERS’ EQUITY LESS CASH AND CASH EQUIVALENTS, LESS INVESTMENTS] | $ | 267,728 | $ | 276,260 | $ | 275,870 | $ | 273,507 | $ | 273,507 | ||||||||||
LESS: Total debt | (58,936 | ) | (57,990 | ) | (58,090 | ) | (42,880 | ) | (42,880 | ) | ||||||||||
ADD: Cash and cash equivalents | 59,963 | 54,527 | 60,055 | 58,653 | 58,653 | |||||||||||||||
Investments | 7,679 | 7,517 | 7,953 | 4,155 | 4,155 | |||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 276,434 | 280,314 | 285,788 | 293,435 | 293,435 | |||||||||||||||
ADD: Total debt | 58,936 | 57,990 | 58,090 | 42,880 | 42,880 | |||||||||||||||
TOTAL CAPITAL | $ | 335,370 | $ | 338,304 | $ | 343,878 | $ | 336,315 | $ | 336,315 | ||||||||||
TOTAL DEBT / TOTAL CAPITAL | 17.6 | % | 17.1 | % | 16.9 | % | 12.7 | % | 12.7 | % | ||||||||||
EBIT [NET INCOME LESS INTEREST EXPENSE, NET] | $ | 7,587 | $ | 7,310 | $ | 6,054 | $ | 1,217 | $ | 22,168 | ||||||||||
LESS: Interest expense, net | (1,020 | ) | (972 | ) | (1,001 | ) | (697 | ) | (3,690 | ) | ||||||||||
Provision for income taxes | (2,299 | ) | (2,216 | ) | (1,770 | ) | (390 | ) | (6,675 | ) | ||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | ||||||||||
EBITDA [NET INCOME LESS INTEREST EXPENSE, NET LESS DEPRECIATION LESS AMORTIZATION LESS TAXES] | $ | 10,344 | $ | 9,701 | $ | 8,620 | $ | 3,359 | $ | 32,024 | ||||||||||
LESS: | ||||||||||||||||||||
Interest expense, net | (1,020 | ) | (972 | ) | (1,001 | ) | (697 | ) | (3,690 | ) | ||||||||||
Depreciation | (2,680 | ) | (2,353 | ) | (2,528 | ) | (2,103 | ) | (9,664 | ) | ||||||||||
Amortization of intangibles | (77 | ) | (38 | ) | (38 | ) | (39 | ) | (192 | ) | ||||||||||
Provision for income taxes | (2,299 | ) | (2,216 | ) | (1,770 | ) | (390 | ) | (6,675 | ) | ||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | ||||||||||
INCOME EXCLUDING SPECIAL CHARGES [NET INCOME LESS SPECIAL CHARGES, NET OF TAX] | $ | 4,293 | $ | 4,122 | $ | 3,455 | $ | 130 | $ | 11,997 | ||||||||||
LESS: Special charges, net of tax | (25 | ) | — | (172 | ) | — | (194 | ) | ||||||||||||
NET INCOME | $ | 4,268 | $ | 4,122 | $ | 3,283 | $ | 130 | $ | 11,803 | ||||||||||
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