Exhibit 99
Page 1
GORMAN-RUPP REPORTS RECORD QUARTER NET INCOME UP 20.8%
Mansfield, Ohio — July 25, 2008 — The Gorman-Rupp Company (AMEX:GRC) reports record net sales and earnings for the second quarter and six months ended June 30, 2008.
Net income during the quarter was $7,895,000, an increase of 20.8% compared to $6,538,000 for the second quarter 2007. Net sales were $84,031,000 for the second quarter ended June 30, 2008 compared to $79,647,000 during the same period in 2007, an increase of 5.5%. Earnings per share for the quarter were $0.47 in 2008 compared to $0.39 in 2007.
Net income for the first six months of 2008 increased 29.4% to $15,047,000 compared to $11,630,000 during 2007. Net sales increased 7.4% to $165,465,000 for the six months ended June 30, 2008 compared to $154,108,000 for the same period in 2007. Earnings per share for the first six months of 2008 were $0.90 compared to $0.69 in 2007.
Record net sales for the quarter principally resulted from continued increases in the Company’s international sales. Sales of fire protection pumps and fabricated components by the Company’s subsidiary, Patterson Pump Company, more than replaced revenues from the sale of custom pumps for a flood control project recorded during 2007.
Increase in the Company’s second quarter earnings primarily resulted from improved operating leverage on additional sales, product sales mix, and a lower effective tax rate.
Continued growth in incoming orders during the quarter resulted in a backlog of $119.6 million at June 30, 2008, a 22.0% increase from the backlog of $98.0 million a year ago. Increased demand arising from the continuing global focus on water, wastewater, flood control, fire protection and infrastructure improvement, and additional orders for the power generation market are major contributors to the increased backlog.
Capital expenditures of $5,009,000 have been incurred as of June 30, 2008 related to the previously announced consolidation and expansion of the Mansfield, Ohio facilities, of which $2,650,000 has been incurred during 2008. The design and permitting process continues, with construction expected to begin in the third quarter.
President and CEO Jeffrey Gorman stated, “We are extremely pleased with once again having achieved the highest quarterly and six months sales and earnings results in the Company’s history. Given current economic concerns, the amount of new orders received during the first-half of 2008 is very encouraging and we look forward to a good second-half of the year.”
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, agricultural, fire protection, heating ventilating and air conditioning (HVAC), military and other liquid handling applications.
Exhibit 99
Page 2
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Net sales | $ | 84,031 | $ | 79,647 | $ | 165,465 | $ | 154,108 | ||||||||
Cost of products sold | 63,625 | 61,548 | 125,215 | 119,944 | ||||||||||||
Gross profit | 20,406 | 18,099 | 40,250 | 34,164 | ||||||||||||
Selling, general and administrative expenses | 9,356 | 8,286 | 18,855 | 16,726 | ||||||||||||
Operating income | 11,050 | 9,813 | 21,395 | 17,438 | ||||||||||||
Other income (expense) — net | 883 | 625 | 1,426 | 1,043 | ||||||||||||
Income before income taxes | 11,933 | 10,438 | 22,821 | 18,481 | ||||||||||||
Income taxes | 4,038 | 3,900 | 7,774 | 6,851 | ||||||||||||
Net income | $ | 7,895 | $ | 6,538 | $ | 15,047 | $ | 11,630 | ||||||||
Basic and diluted earnings per share | $ | 0.47 | $ | 0.39 | $ | 0.90 | $ | 0.69 |
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Unaudited | ||||||||
June 30, | December 31, | |||||||
2008 | 2007 | |||||||
Assets | ||||||||
Cash and short-term investments | $ | 37,083 | $ | 30,190 | ||||
Accounts receivable — net | 46,503 | 47,256 | ||||||
Inventories | 54,971 | 53,223 | ||||||
Deferred income taxes and other current assets | 2,550 | 4,619 | ||||||
Total current assets | 141,107 | 135,288 | ||||||
Property, plant and equipment — net | 61,651 | 59,970 | ||||||
Deferred income taxes and other assets | 19,309 | 16,276 | ||||||
Total assets | $ | 222,067 | $ | 211,534 | ||||
Liabilities and shareholders’ equity | ||||||||
Accounts payable | $ | 11,101 | $ | 14,162 | ||||
Accrued liabilities and expenses | 20,674 | 19,319 | ||||||
Total current liabilities | 31,775 | 33,481 | ||||||
Deferred and other long-term income taxes | 1,259 | 1,432 | ||||||
Postretirement benefits | 27,387 | 26,661 | ||||||
Minority interest | 632 | 520 | ||||||
Shareholders’ equity | 161,014 | 149,440 | ||||||
Total liabilities and shareholders’ equity | $ | 222,067 | $ | 211,534 | ||||
Shares outstanding | 16,703,035 | 16,703,035 |
Shares outstanding and per share data reflect the 5 for 4 stock split effective December 10, 2007.