Exhibit 99.1
Portland, Oregon
March 25, 2013
FOR IMMEDIATE RELEASE
CASCADE CORPORATION ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED JANUARY 31, 2013
Cascade Corporation (NYSE: CASC) today reported its financial results for the fourth quarter ended January 31, 2013.
Fourth Quarter Fiscal 2013 Summary
| • | Summary financial results are outlined below (in thousands, except earnings per share): |
Three Months Ended January 31 | 2013 | 2012 | % Change | |||||||||
Net sales | $ | 123,570 | $ | 125,924 | (2 | %) | ||||||
Gross profit | 34,926 | 36,420 | (4 | %) | ||||||||
Gross profit % | 28 | % | 29 | % | ||||||||
SG&A | 22,551 | 20,759 | 9 | % | ||||||||
Environmental | 4,000 | — | — | |||||||||
Australia flood proceeds, net | — | (2,871 | ) | — | ||||||||
Operating income | 8,375 | 18,532 | (55 | %) | ||||||||
Operating income % | 7 | % | 15 | % | ||||||||
Interest expense (income), net | (36 | ) | 65 | — | ||||||||
Foreign currency loss, net | 55 | 16 | — | |||||||||
Income before taxes | 8,356 | 18,451 | (55 | %) | ||||||||
Provision for income taxes | 2,642 | 5,255 | (50 | %) | ||||||||
Effective tax rate | 32 | % | 28 | % | ||||||||
Net income | $ | 5,714 | $ | 13,196 | (57 | %) | ||||||
Diluted earnings per share | $ | 0.50 | $ | 1.16 | (57 | %) | ||||||
| • | Consolidated net sales during the fourth quarter of fiscal 2013 decreased compared to the fourth quarter of fiscal 2012, excluding the impact of foreign currency changes, primarily due to lower sales volumes in Europe. Details of the net sales decrease over the prior year fourth quarter follow (in thousands): |
| 2013 | Change % | |||||||
Net sales change | $ | (2,176 | ) | (2 | %) | |||
Foreign currency change | (178 | ) | 0 | % | ||||
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Total | $ | (2,354 | ) | (2 | %) | |||
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Cascade Corporation
March 25, 2013
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| • | Our consolidated gross profit percentage was slightly lower during the fourth quarter of fiscal 2013 compared to fiscal 2012 primarily as a result of decreased sales volumes. |
| • | Selling and administrative expense increased during the fourth quarter of fiscal 2013 due to additional costs related to the pending acquisition by Toyota Industries Corporation ($0.8 million) and other costs in the Americas and China. |
| • | During the fourth quarter of fiscal 2013, we recorded a $4.0 million charge related to the expansion of our existing long-term environmental remediation plans at our Fairview, Oregon and Springfield, Ohio locations. |
| • | Our facility in Australia was significantly damaged by flooding in January 2011. During the fourth quarter of fiscal 2012, we received net flood insurance proceeds of $2.9 million. The after tax impact of the proceeds was $2.0 million ($.18 per diluted share). |
| • | The effective income tax rate was higher primarily due to a larger reduction in the valuation allowance on The Netherlands deferred tax assets in fiscal 2012. |
Market Conditions
| • | Percentage changes in lift truck industry shipments and orders, by region, as compared to the prior year are outlined below. Although lift truck unit data provides an indicator of the general health of the industry and our business over a six to twelve month period, they do not necessarily correlate directly with the demand for our products on a quarterly basis. |
| Shipments | Orders | |||||||
| Q4 FY13 vs Q4 FY12 | Q4 FY13 vs Q4 FY12 | |||||||
Americas | (1 | %) | 5 | % | ||||
Europe | (8 | %) | (12 | %) | ||||
Asia Pacific | (2 | %) | (7 | %) | ||||
China | (8 | %) | 6 | % | ||||
Global | (5 | %) | (2 | %) | ||||
Cascade Corporation
March 25, 2013
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Fiscal Year Ended January 31, 2013 Summary
| • | Summary financial results for the fiscal years ended January 31, 2013 and 2012 are as follows (in thousands, except earnings per share): |
Year Ended January 31 | 2013 | 2012 | % Change | |||||||||
Net sales | $ | 538,408 | $ | 535,767 | — | |||||||
Gross profit | 162,368 | 169,287 | (4 | %) | ||||||||
Gross profit % | 30 | % | 32 | % | ||||||||
SG&A | 90,833 | 85,009 | 7 | % | ||||||||
Environmental | 4,000 | — | — | |||||||||
Australia flood proceeds, net | — | (3,137 | ) | — | ||||||||
Operating income | 67,535 | 87,415 | (23 | %) | ||||||||
Operating income % | 13 | % | 16 | % | ||||||||
Interest expense, net | 119 | 542 | (78 | %) | ||||||||
Foreign currency loss, net | 312 | 1,053 | (70 | %) | ||||||||
Income before taxes | 67,104 | 85,820 | (22 | %) | ||||||||
Provision for income taxes | 20,252 | 22,774 | (11 | %) | ||||||||
Effective tax rate | 30 | % | 27 | % | ||||||||
Net income | $ | 46,852 | $ | 63,046 | (26 | %) | ||||||
Diluted earnings per share | $ | 4.10 | $ | 5.58 | (27 | %) | ||||||
| • | SG&A expenses in fiscal 2013 were 9% higher, excluding the impact of currency changes, primarily due to costs related to the pending acquisition by Toyota Industries Corporation ($2.7 million), our new subsidiary in Brazil and increased personnel, insurance and consulting costs. |
| • | The effective income tax rate was higher primarily due to a larger reduction in the valuation allowance on The Netherlands deferred tax assets in fiscal 2012. |
Forward Looking Statements:
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that a number of factors could cause our actual results to differ materially from results expressed or implied by forward-looking statements in this release or in any other forward-looking statements made by us, or on our behalf. These factors include among others, the affects of general economic conditions, interest rates, demand for materials handling products and construction equipment, performance of our manufacturing facilities and the cyclical nature of the materials handling and construction equipment industries, and any failure to satisfy the conditions to the completion of our transaction with TICO or otherwise complete the transaction. Further, historical information should not be considered an indicator of future performance. Additional considerations and important risk factors are described in our reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission.
Cascade Corporation
March 25, 2013
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About Cascade Corporation:
Cascade Corporation, headquartered in Fairview, Oregon, is a leading international manufacturer of materials handling products used primarily on lift trucks. Additional information on Cascade is available on its website,www.cascorp.com.
Contact
Joseph G. Pointer
Chief Financial Officer
Cascade Corporation
Phone (503) 669-6300
Cascade Corporation
March 25, 2013
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CASCADE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited — in thousands, except per share amounts)
| Three Months Ended January 31 | Twelve Months Ended January 31 | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales | $ | 123,570 | $ | 125,924 | $ | 538,408 | $ | 535,767 | ||||||||
Cost of goods sold | 88,644 | 89,504 | 376,040 | 366,480 | ||||||||||||
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Gross profit | 34,926 | 36,420 | 162,368 | 169,287 | ||||||||||||
Selling and administrative expenses | 22,551 | 20,759 | 90,833 | 85,009 | ||||||||||||
Environmental | 4,000 | — | 4,000 | — | ||||||||||||
Australia flood proceeds, net | — | (2,871 | ) | — | (3,137 | ) | ||||||||||
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Operating income | 8,375 | 18,532 | 67,535 | 87,415 | ||||||||||||
Interest expense (income), net | (36 | ) | 65 | 119 | 542 | |||||||||||
Foreign currency loss, net | 55 | 16 | 312 | 1,053 | ||||||||||||
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Income before provision for income taxes | 8,356 | 18,451 | 67,104 | 85,820 | ||||||||||||
Provision for income taxes | 2,642 | 5,255 | 20,252 | 22,774 | ||||||||||||
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Net income | $ | 5,714 | $ | 13,196 | $ | 46,852 | $ | 63,046 | ||||||||
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Basic earnings per share | $ | 0.51 | $ | 1.20 | $ | 4.22 | $ | 5.74 | ||||||||
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Diluted earnings per share | $ | 0.50 | $ | 1.16 | $ | 4.10 | $ | 5.58 | ||||||||
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Basic weighted average shares outstanding | 11,126 | 11,017 | 11,099 | 10,988 | ||||||||||||
Diluted weighted average shares outstanding | 11,486 | 11,329 | 11,419 | 11,293 | ||||||||||||
Cash dividends per share | $ | .35 | $ | .25 | $ | 1.40 | $ | .90 | ||||||||
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Cascade Corporation
March 25, 2013
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CASCADE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
| January 31, | ||||||||
| 2013 | 2012 | |||||||
| ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 46,543 | $ | 24,928 | ||||
Accounts receivable, less allowance for doubtful accounts of $1,159 and $1,211 | 75,962 | 77,752 | ||||||
Inventories | 88,297 | 86,660 | ||||||
Deferred income taxes | 5,292 | 3,822 | ||||||
Assets available for sale | — | 7,572 | ||||||
Prepaid expenses and other | 12,814 | 11,353 | ||||||
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Total current assets | 228,908 | 212,087 | ||||||
Property, plant and equipment, net | 80,220 | 71,439 | ||||||
Goodwill | 88,906 | 88,174 | ||||||
Deferred income taxes | 22,764 | 18,964 | ||||||
Other assets | 4,874 | 3,895 | ||||||
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Total assets | $ | 425,672 | $ | 394,559 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Notes payable to banks and current portion of long-term debt | $ | — | $ | 689 | ||||
Accounts payable | 24,582 | 28,280 | ||||||
Accrued payroll and payroll taxes | 9,171 | 9,473 | ||||||
Accrued incentive pay | 1,307 | 2,496 | ||||||
Other accrued expenses | 14,991 | 15,580 | ||||||
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Total current liabilities | 50,051 | 56,518 | ||||||
Long-term debt, net of current portion | 3,500 | 4,950 | ||||||
Accrued environmental expenses | 4,976 | 2,279 | ||||||
Deferred income taxes and other tax liabilities | 9,931 | 8,626 | ||||||
Employee benefit obligations | 8,087 | 8,228 | ||||||
Other liabilities | 2,624 | 3,231 | ||||||
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Total liabilities | 79,169 | 83,832 | ||||||
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Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Common stock, $.50 par value, 40,000 authorized shares; 11,199 and 11,088 shares issued and outstanding | 5,600 | 5,544 | ||||||
Additional paid-in capital | 18,526 | 13,252 | ||||||
Retained earnings | 282,494 | 251,280 | ||||||
Accumulated other comprehensive income | 39,883 | 40,651 | ||||||
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Total shareholders’ equity | 346,503 | 310,727 | ||||||
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Total liabilities and shareholders’ equity | $ | 425,672 | $ | 394,559 | ||||
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Cascade Corporation
March 25, 2013
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CASCADE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - in thousands)
| Three Months Ended January 31 | Twelve Months Ended January 31 | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 5,714 | $ | 13,196 | $ | 46,852 | $ | 63,046 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 2,923 | 2,474 | 10,802 | 9,982 | ||||||||||||
Share-based compensation | 758 | 570 | 2,899 | 2,486 | ||||||||||||
Deferred income taxes | (1,165 | ) | (472 | ) | (5,148 | ) | (1,917 | ) | ||||||||
Tax effect on share-based compensation | (16 | ) | (432 | ) | (1,590 | ) | (693 | ) | ||||||||
Loss (gain) on disposition of assets, net | 20 | 6 | (16 | ) | (140 | ) | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 8,477 | 6,759 | 81 | (11,035 | ) | |||||||||||
Inventories | 1,683 | (2,758 | ) | (491 | ) | (19,661 | ) | |||||||||
Prepaid expenses and other | 2,256 | 6,628 | 476 | (91 | ) | |||||||||||
Accounts payable and accrued expenses | (2,447 | ) | (2,497 | ) | (3,381 | ) | 6,182 | |||||||||
Income taxes payable and receivable | (1,297 | ) | 596 | (2,596 | ) | 2,684 | ||||||||||
Environmental liability | 3,701 | (81 | ) | 2,697 | (832 | ) | ||||||||||
Other assets and liabilities | (2,272 | ) | 1,285 | 586 | 4,208 | |||||||||||
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Net cash provided by operating activities | 18,335 | 25,274 | 51,171 | 54,219 | ||||||||||||
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Cash flows from investing activities: | ||||||||||||||||
Capital expenditures | (3,027 | ) | (4,227 | ) | (12,388 | ) | (13,417 | ) | ||||||||
Proceeds from disposition of assets | 131 | 278 | 287 | 1,452 | ||||||||||||
Business acquisitions | — | (1,450 | ) | (1,266 | ) | (1,450 | ) | |||||||||
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Net cash used in investing activities | (2,896 | ) | (5,399 | ) | (13,367 | ) | (13,415 | ) | ||||||||
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Cash flows from financing activities: | ||||||||||||||||
Cash dividends paid | (3,920 | ) | (2,770 | ) | (15,638 | ) | (9,960 | ) | ||||||||
Payments on long-term debt | (14,450 | ) | (31,146 | ) | (131,344 | ) | (108,569 | ) | ||||||||
Proceeds from long-term debt | 14,800 | 14,500 | 129,500 | 71,500 | ||||||||||||
Notes payable to banks, net | — | (533 | ) | (98 | ) | 102 | ||||||||||
Common stock issued under share-based compensation plans | — | 68 | 842 | 877 | ||||||||||||
Tax effect on share-based compensation | 16 | 432 | 1,590 | 693 | ||||||||||||
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Net cash used in financing activities | (3,554 | ) | (19,449 | ) | (15,148 | ) | (45,357 | ) | ||||||||
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Effect of exchange rate changes | (590 | ) | 4,707 | (1,041 | ) | 4,444 | ||||||||||
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Change in cash and cash equivalents | 11,295 | 5,133 | 21,615 | (109 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 35,248 | 19,795 | 24,928 | 25,037 | ||||||||||||
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Cash and cash equivalents at end of period | $ | 46,543 | $ | 24,928 | $ | 46,543 | $ | 24,928 | ||||||||
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