Exhibit 99
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GORMAN-RUPP REPORTS THIRD QUARTER 2007 RESULTS, RECORD BACKLOG AND ANNOUNCES STOCK SPLIT AND CASH DIVIDEND INCREASE
Mansfield, Ohio — October 26, 2007 — The Gorman-Rupp Company (AMEX:GRC) reported record net sales of $228,737,000 for the nine months ending September 30, 2007 compared to $205,825,000 for the same period in 2006, an increase of 11.1%. Record net income for the nine months of 2007 was $17,105,000 compared to $16,649,000 in 2006, equal to earnings per share of $1.28 and $1.25, respectively.
Record third quarter 2007 net sales were $74,629,000 compared to $70,833,000 during the same period in 2006. Net income for the third quarter was $5,475,000 compared to $6,612,000 in 2006. Earnings per share for the quarter were $0.41 in 2007 compared to $0.50 in 2006.
The Company realized higher healthcare expense of $385,000 during the third quarter and $1,463,000 for the nine months of 2007 compared to the same periods in 2006, impacting earnings per share by $0.02 and $0.07, respectively.
The effective tax rate for the third quarter of 2007 was 35.1% compared to 24.6% for the same period in 2006. Income taxes during the third quarter 2006 were favorably impacted by reductions in state tax liability estimates and deferred research and development tax credits totaling approximately $1,018,000, equal to $0.08 per share.
Strong incoming orders during the quarter resulted in a record backlog of $123.7 million at September 30, 2007, a 46.6% increase from a year ago and 26.2% higher than the backlog of $98.0 million at June 30, 2007. Increased orders for fabricated components for the power generation market and increased demand arising from continued global focus on water, wastewater, flood control, fire protection and infrastructure improvement are major contributors to the record backlog.
The Company is proud to have again been named as one of Forbes Magazine’s “200 Best Small Companies” in the October, 2007 edition. In addition, the Company has been recognized in the 2007 edition ofAmerica’s Finest Companiesby the Staton Institute.
“We are extremely encouraged by the amount of new orders received during the quarter and pleased with the record sales and backlog for the third quarter and nine months,” reported Jeffrey Gorman, President and CEO. “Strong domestic sales growth combined with increased penetration in international markets have contributed to the Company’s performance. The record backlog at the end of the quarter favorably positions the Company for the coming months.”
At its October 25, 2007 meeting, the Board of Directors of the Company declared a five-for-four split of the Company’s Common Shares in the form of a distribution of one additional Common Share for each four Common Shares previously issued. The distribution will be made on December 10, 2007 to shareholders of record at the close of business on November 15, 2007.
Cash payments will be made to shareholders in settlement of fractional-share interests resulting from the distribution on the basis of the average of the high and low sales price of the Company’s Common Shares on the American Stock Exchange on the record date (or, if there are no sales on the record date, then on the first preceding day on which there were sales), adjusted to reflect the distribution.
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Exhibit 99
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National City Bank (Cleveland, Ohio), the Transfer Agent and Registrar for the Common Shares of the Company, will accept instructions from brokers and nominees regarding their requirements in respect to the distribution until December 3, 2007.
After giving effect to the issuance of the additional Common Shares in the distribution, the most recent quarterly cash dividend rate of $0.12 per Common Share would be equivalent to $0.096 per share.
In other action, the Board of Directors of the Company declared a quarterly cash dividend of $0.10 per share on the Common Stock of the Company, payable December 10, 2007, to shareholders of record November 15, 2007. The cash dividend is payable on post-split shares and represents a 4.2% increase over the equivalent post-split dividend paid during the previous quarter.
This marks the 231st consecutive dividend paid by the Company.
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Senior Vice President & CFO, Telephone (419) 755-1294.
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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Exhibit 99
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The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net sales | $ | 74,629 | $ | 70,833 | $ | 228,737 | $ | 205,825 | ||||||||
Cost of products sold | 58,362 | 54,243 | 178,306 | 158,698 | ||||||||||||
Gross Profit | 16,267 | 16,590 | 50,431 | 47,127 | ||||||||||||
Selling, general and administrative expenses | 8,342 | 8,179 | 25,068 | 23,928 | ||||||||||||
Operating Income | 7,925 | 8,411 | 25,363 | 23,199 | ||||||||||||
Other income (expense) — net | 507 | 361 | 1,550 | 1,004 | ||||||||||||
Income Before Income Taxes | 8,432 | 8,772 | 26,913 | 24,203 | ||||||||||||
Income taxes | 2,957 | 2,160 | 9,808 | 7,554 | ||||||||||||
Net Income | $ | 5,475 | $ | 6,612 | $ | 17,105 | $ | 16,649 | ||||||||
Basic and Diluted Earnings Per Share | $ | 0.41 | $ | 0.50 | $ | 1.28 | $ | 1.25 |
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Unaudited | ||||||||
September 30, | December 31, | |||||||
2007 | 2006 | |||||||
Assets | ||||||||
Cash and short-term investments | $ | 29,006 | $ | 16,855 | ||||
Accounts receivable — net | 47,121 | 45,135 | ||||||
Inventories — net | 50,230 | 50,299 | ||||||
Deferred income taxes and other current assets | 8,116 | 7,829 | ||||||
Total Current Assets | 134,473 | 120,118 | ||||||
Property, Plant and Equipment — Net | 56,290 | 52,351 | ||||||
Deferred income taxes and other assets | 18,035 | 15,071 | ||||||
Total Assets | $ | 208,798 | $ | 187,540 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Accounts payable | $ | 12,444 | $ | 10,417 | ||||
Accrued liabilities and expenses | 22,295 | 17,229 | ||||||
Total Current Liabilities | 34,739 | 27,646 | ||||||
Income Taxes Payable | 1,569 | — | ||||||
Retirement Benefits | 668 | 4,185 | ||||||
Postretirement Benefits | 28,547 | 27,567 | ||||||
Minority Interest | 523 | — | ||||||
Shareholders’ Equity | 142,752 | 128,142 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 208,798 | $ | 187,540 | ||||
Shares outstanding | 13,363,004 | 13,360,004 |
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