Exhibit 99
FOR IMMEDIATE RELEASE
FOR: | QUIXOTE CORPORATION |
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CONTACT: | Daniel P. Gorey |
| Investor Relations: | |
| Chief Financial Officer |
| Christine Mohrmann/Lindsay Hatton | |
| Joan R. Riley |
| Financial Dynamics | |
| Director of Investor Relations |
| (212) 850-5600 | |
| (312) 467-6755 |
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QUIXOTE CORPORATION REPORTS FISCAL 2003 FOURTH QUARTER AND
YEAR-END RESULTS
• Record fourth quarter sales of $38.8 million, a 42% increase from last year
• Fourth quarter EPS of $0.56, exceeding Company’s expectations
• International sales for the quarter increased 43% to $3.4 million
• Record fiscal 2003 cash flow from operations of $16 million
• First quarter earnings guidance: $0.24 to $0.27 per diluted share
CHICAGO, IL, August 12, 2003 — Quixote Corporation (Nasdaq: QUIX) today reported results for its fourth quarter and fiscal year ended June 30, 2003.
Net sales for the fourth quarter of fiscal 2003 increased 42% to $38,838,000, compared with $27,415,000 for the fourth quarter of fiscal 2002. The acquisition of U.S. Traffic Corporation in May 2003 contributed net sales of $6 million for the fourth quarter and was not part of prior year results. Operating profit increased 22% to $7,175,000, compared with $5,877,000 for the fourth quarter of fiscal 2002. Net earnings for the fourth quarter were $4,583,000, or $0.56 per diluted share, compared with $4,379,000, or $0.54 per diluted share, for the same period last year. Net earnings for the fourth quarter of fiscal 2002 included a gain of $735,000, or $0.09 per diluted share, from discontinued operations.
Net sales for the full fiscal year of 2003 increased 27% to $114,310,000, compared with $89,694,000 for fiscal 2002. Operating profit increased 60% to $15,154,000, compared with $9,489,000 for fiscal 2002. Net earnings were $9,472,000, or $1.17 per diluted share, compared with $6,824,000, or $0.84 per diluted share, for the same period last year. Net earnings for fiscal 2002 included gains from discontinued operations of $927,000, or $0.11 per diluted share.
Leslie J. Jezuit, Chairman and Chief Executive Officer, commented, “We are extremely pleased to report that our fourth quarter results were above expectations, contributing to a very strong overall performance in fiscal 2003.
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Our record fourth quarter sales were driven by strong top-line growth in both our Protect and Direct Group and our Inform Group. In the fourth quarter, Protect and Direct Group sales increased 12% as a result of particularly strong sales of our truck-mounted attenuator products.�� Inform Group sales increased 44% organically as a result of top-line improvements throughout most of the group, in addition to an incremental revenue contribution of $6.0 million from U.S. Traffic Corporation, a company acquired during the quarter. International sales continued to be an important contributor to growth as our products gain acceptance in the European and Asian markets. International sales grew 43% in the fourth quarter to $3.4 million.”
Mr. Jezuit continued, “Throughout the fourth quarter and fiscal year 2003, we continued to strengthen and position our Company for future growth and profitability. We are particularly pleased to have generated operating cash flow of $16 million for the year, a record level for Quixote. We have entered fiscal 2004 in a position of strength, with a strong balance sheet and a record backlog of $28 million, which includes $15 million in backlog from the U.S. Traffic acquisition. That acquisition, our largest to date, will allow us to use our new product synergies in the traffic control area to expand our customer base into the important municipal and county markets, while simultaneously leveraging our existing weather forecasting, sensing and display technologies.”
Mr. Jezuit concluded, “Despite our strong fourth quarter performance, we continue to operate in an environment with many challenges, including state funding uncertainties and the tenuous condition of the overall economy. In addition, the expiration of the current federal highway funding bill in late September makes the near- and medium-term funding levels difficult to forecast. Therefore, we continue to have a cautious outlook and expect earnings for the first quarter to be in the range of $0.24 to $0.27 per diluted share.”
Quixote Corporation will be hosting a telephone conference call at 10 a.m. EST today, August 12, 2003, to further discuss its quarterly results and corporate developments. This conference call will be broadcast simultaneously over the Internet at www.quixotecorp.com and may be accessed and listened to by clicking the icon on the Company’s homepage.
Quixote Corporation, (www.quixotecorp.com), through its wholly-owned subsidiary, Quixote
Transportation Safety, Inc., is the world’s leading manufacturer of energy-absorbing highway crash cushions, electronic wireless measuring and sensing devices, weather forecasting stations, computerized highway advisory radio transmitting systems, intelligent intersection control systems, mobile and permanent variable electronic message signs, flexible post delineators and other highway safety products.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and
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uncertainties discussed in the Company’s Form 10-Q for its third quarter ended March 31, 2003,, under the caption “Forward-Looking Statements” in Management’s Discussion and Analysis of Financial Condition and Results of Operations, which discussion is incorporated herein by this reference. Other factors may be described from time to time in the Company’s public filings with the Securities and Exchange Commission, news releases and other communications. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
(2 Tables to Follow)
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Quixote Corporation
Earnings Summary
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| Three Months Ended |
| Year ended |
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| June 30, |
| June 30, |
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| 2003 |
| 2002 |
| 2003 |
| 2002 |
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Net sales |
| $ | 38,838,000 |
| $ | 27,415,000 |
| $ | 114,310,000 |
| $ | 89,694,000 |
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Cost of sales |
| 23,106,000 |
| 13,743,000 |
| 68,070,000 |
| 53,762,000 |
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Gross profit |
| 15,732,000 |
| 13,672,000 |
| 46,240,000 |
| 35,932,000 |
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Operating expenses: |
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Selling & administrative |
| 7,744,000 |
| 6,888,000 |
| 28,730,000 |
| 23,975,000 |
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Research & development |
| 813,000 |
| 907,000 |
| 2,356,000 |
| 2,468,000 |
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| 8,557,000 |
| 7,795,000 |
| 31,086,000 |
| 26,443,000 |
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Operating profit |
| 7,175,000 |
| 5,877,000 |
| 15,154,000 |
| 9,489,000 |
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Other income (expense) |
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Interest income |
| 38,000 |
| 51,000 |
| 104,000 |
| 78,000 |
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Interest expense |
| (269,000 | ) | (235,000 | ) | (906,000 | ) | (1,184,000 | ) | ||||
Other |
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| 830,000 |
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| (231,000 | ) | (184,000 | ) | (802,000 | ) | (276,000 | ) | ||||
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Earnings before income taxes |
| 6,944,000 |
| 5,693,000 |
| 14,352,000 |
| 9,213,000 |
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Provision for income taxes |
| 2,361,000 |
| 2,049,000 |
| 4,880,000 |
| 3,316,000 |
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Earnings from continuing operations |
| 4,583,000 |
| 3,644,000 |
| 9,472,000 |
| 5,897,000 |
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Earnings from discontinued operations, net of income taxes |
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| 735,000 |
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| 927,000 |
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Net earnings |
| $ | 4,583,000 |
| $ | 4,379,000 |
| $ | 9,472,000 |
| $ | 6,824,000 |
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Per share data - basic: |
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Earnings from continuing operations |
| $ | 0.57 |
| $ | 0.47 |
| $ | 1.21 |
| $ | 0.77 |
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Net earnings |
| $ | 0.57 |
| $ | 0.57 |
| $ | 1.21 |
| $ | 0.89 |
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Average common shares outstanding |
| 7,978,871 |
| 7,742,995 |
| 7,847,169 |
| 7,682,706 |
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Per share data - diluted: |
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Earnings from continuing operations |
| $ | 0.56 |
| $ | 0.45 |
| $ | 1.17 |
| $ | 0.73 |
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Net earnings |
| $ | 0.56 |
| $ | 0.54 |
| $ | 1.17 |
| $ | 0.84 |
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Average common shares outstanding |
| 8,238,996 |
| 8,052,412 |
| 8,062,397 |
| 8,121,621 |
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Quixote Corporation
Balance Sheet
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| As of June 30, |
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| 2003 |
| 2002 |
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Assets |
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Current assets |
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Cash and cash equivalents |
| $ | 3,753,000 |
| $ | 1,798,000 |
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Accounts receivable, net |
| 36,835,000 |
| 24,448,000 |
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Inventories, net |
| 22,967,000 |
| 11,890,000 |
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Other current assets |
| 3,533,000 |
| 4,958,000 |
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| 67,088,000 |
| 43,094,000 |
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Property, plant and equipment, net |
| 26,237,000 |
| 21,959,000 |
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Intangible assets and other, net |
| 57,500,000 |
| 34,991,000 |
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| $ | 150,825,000 |
| $ | 100,044,000 |
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Liabilities and Shareholders' Equity |
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Current liabilities |
| $ | 30,999,000 |
| $ | 12,171,000 |
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Long-term debt, net |
| 39,789,000 |
| 24,772,000 |
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Other long-term liabilities |
| 4,482,000 |
| 3,875,000 |
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Shareholder's equity |
| 75,555,000 |
| 59,226,000 |
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| $ | 150,825,000 |
| $ | 100,044,000 |
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