Exhibit 99
GORMAN-RUPP REPORTS FOURTH QUARTER AND 2009 RESULTS
Mansfield, Ohio — February 11, 2010 — The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the fourth quarter and twelve months ended December 31, 2009.
Net sales during the fourth quarter ended December 31, 2009 were $62.2 million, 23.2% lower than the $81.0 million during the same period in 2008. Net income was $3.7 million, a decrease of 22.0% compared to $4.8 million in the fourth quarter 2008. Earnings per share were $0.22 and $0.29 for the comparable periods.
Net sales during the quarter continued to be negatively impacted by the global recession. The decline in shipments for the quarter was across most of the markets the Company serves, with the largest declines in the construction, industrial, municipal, fire protection and original equipment markets.
The decline in earnings for the quarter principally reflects decreased operating leverage on the lower volume of sales. Increased pension expense of $0.03 per share and depreciation expense of $0.02 per share was offset by a decrease in LIFO expense of $0.10 per share. Of this decrease in LIFO expense, $0.04 was due to the partial liquidation of LIFO quantities during the fourth quarter 2009 due to lower sales levels.
Net sales during 2009 were $266.2 million, 19.5% lower than the record $330.6 million during 2008. Net income was $18.3 million, a decrease of 32.8% from the $27.2 million in 2008. Earnings per share were $1.09 and $1.63 for the comparable periods. The decline in shipments for the year was also because most of the markets the Company serves experienced recessionary challenges throughout the year.
The Company’s backlog of orders was $93.7 million at December 31, 2009 compared to $107.8 million the year before, with the largest decline coming from the original equipment market. The backlog increased 10% during the fourth quarter from $85.2 million at September 30, 2009 as incoming orders for custom pumps for flood control projects and fire protection increased.
The Company’s balance sheet continues to remain strong through this period of reduced sales and earnings. The Company generated a record $49.6 million in operating cash flow during 2009, primarily due to lower inventory and accounts receivable balances. As a result, the Company has strong liquidity with $45.9 million cash and short-term investments at year end. The Mansfield Division’s manufacturing operations and offices moved into new state-of-the-art 460,500 square foot facilities during the fourth quarter. This expansion and consolidation of Mansfield Division operations positions the Company for long-term improved productivity and growth. During the quarter, $9.8 million of borrowings used to partially finance this construction project were paid back with the remaining $15.0 million planned to be paid back by the end of the third quarter 2010.
Jeffrey S. Gorman, President and CEO said, “This past year was a challenge for the Company as sales and earnings were reduced from our record performance in 2008. We anticipate a somewhat better, yet still challenging 2010. Capital spending in the domestic commercial markets is forecast to remain weak, while water and wastewater infrastructure and international markets should show modest growth compared to 2009. We are hopeful the economy will continue to stabilize and grow. However, we do not foresee a robust increase in capital spending, especially in the first half of this year.”
Released by David P. Emmens, Corporate Secretary, Telephone (419) 755-1477.
For additional information contact Wayne L. Knabel, Chief Financial Officer, Telephone (419) 755-1397.
The Gorman-Rupp company designs, manufactures and sells pumps and related equipment (pumps and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid handling applications.
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The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share data)
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales | $ | 62,203 | $ | 80,993 | $ | 266,242 | $ | 330,646 | ||||||||
Cost of products sold | 47,665 | 64,326 | 204,469 | 253,557 | ||||||||||||
Gross profit | 14,538 | 16,667 | 61,773 | 77,089 | ||||||||||||
Selling, general and administrative expenses | 9,229 | 10,106 | 35,380 | 38,101 | ||||||||||||
Operating income | 5,309 | 6,561 | 26,393 | 38,988 | ||||||||||||
Other income (expense) — net | 71 | (297 | ) | 862 | 1,506 | |||||||||||
Income before income taxes | 5,380 | 6,264 | 27,255 | 40,494 | ||||||||||||
Income taxes | 1,661 | 1,499 | 8,986 | 13,297 | ||||||||||||
Net income | $ | 3,719 | $ | 4,765 | $ | 18,269 | $ | 27,197 | ||||||||
Basic and diluted earnings per share | $ | 0.22 | $ | 0.29 | $ | 1.09 | $ | 1.63 |
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Condensed Consolidated Balance Sheets
(in thousands of dollars)
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
Assets | ||||||||
Cash and short-term investments | $ | 45,908 | $ | 23,793 | ||||
Accounts receivable — net | 37,239 | 48,200 | ||||||
Inventories | 40,506 | 56,881 | ||||||
Deferred income taxes and other current assets | 7,747 | 5,392 | ||||||
Total current assets | 131,400 | 134,266 | ||||||
Property, plant and equipment — net | 108,523 | 80,406 | ||||||
Deferred income taxes and other assets | 9,501 | 16,866 | ||||||
Total assets | $ | 249,424 | $ | 231,538 | ||||
Liabilities and shareholders’ equity | ||||||||
Accounts payable | $ | 8,972 | $ | 15,878 | ||||
Short-term debt | 15,000 | — | ||||||
Accrued liabilities and expenses | 19,203 | 19,691 | ||||||
Total current liabilities | 43,175 | 35,569 | ||||||
Deferred and other income taxes | 1,323 | 1,322 | ||||||
Retirement benefits | 5,044 | 11,421 | ||||||
Postretirement benefits | 22,270 | 24,020 | ||||||
The Gorman-Rupp Company shareholders’ equity | 176,905 | 158,588 | ||||||
Noncontrolling interest | 707 | 618 | ||||||
Total shareholders’ equity | 177,612 | 159,206 | ||||||
Total liabilities and shareholders’ equity | $ | 249,424 | $ | 231,538 | ||||
Shares outstanding | 16,710,535 | 16,707,535 |
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