Exhibit 99
--
Maytag Announces Second Quarter 2005 Results
NEWTON, Iowa, July 22 /PRNewswire-FirstCall/ -- Maytag Corporation (NYSE: MYG) today reported second quarter consolidated sales of $1.23 billion, up 6.7 percent from sales of $1.15 billion in the same period last year.
Reported net income for the second quarter was $3.5 million or 4 cents per share, compared with a net loss of $41.1 million, or 52 cents per share, a year earlier. Diluted earnings per share for the second quarter included the following:
|
| Three Months Ended |
| ||||
|
|
| |||||
|
| July 2 |
| July 3 |
| ||
|
|
|
| ||||
Diluted Earnings (Loss) Per Share |
| $ | 0.04 |
| $ | (0.52 | ) |
|
|
|
| ||||
Included in diluted earnings (loss) per share (net of tax) were the following items: |
|
|
|
|
|
|
|
Restructuring and related charges - Galesburg |
|
| 0.01 |
|
| 0.13 |
|
Restructuring and related charges - reorganization |
|
| 0.02 |
|
| 0.11 |
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 0.12 |
|
Front-load washer litigation |
|
| — |
|
| 0.16 |
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 0.09 |
|
Second quarter sales were up year-over-year in all major categories of the home appliances segment -- refrigeration, laundry, cooking, dishwashing and floor care. Sales of Commercial Products declined versus a year ago, a result of continued weakness in the vending industry.
Maytag Chairman and CEO Ralph Hake said that sales of major appliances showed solid improvement during the quarter with refrigeration and cooking product sales up appreciably. “Sales of our French-Door bottom-freezers under the Jenn-Air, Maytag and Amana brand names are strong. In cooking, all Jenn- Air products, including cook tops and wall ovens generated positive gains for the company. Also, Jenn-Air stainless steel dishwashers and Maytag’s new Neptune front-load washers have generated encouraging consumer interest this quarter.”
Hake noted that all floor care categories sold under the Hoover brand experienced significant year-over-year growth with market share gains in upright vacuums as the primary sales driver.
Maytag Services and Maytag International continued to produce strong revenue growth compared to the second quarter of 2004.
“Compared to last year, operations benefited from sales growth, a positive mix in major appliances, and savings from our ‘One Company’ restructuring and the Galesburg plant closing,” said Hake. “However, these improvements were offset by rising raw material costs including steel and resins, higher fuel and transportation costs and lower floor care pricing.”
Sales were up sequentially from the first quarter of 2005, benefiting from refrigeration sales beyond normal seasonal increases. Operating income was down sequentially from the first quarter of 2005, due to planned national advertising expenditure increases, which more than offset the benefit from increased sales.
During the quarter, the company signed a commitment letter for a $500 million five-year, senior secured revolving credit facility. The new credit facility would be fully underwritten by J.P. Morgan Chase Bank, N.A. and Citigroup Global Markets, Inc. and secured by accounts receivable and inventory of certain Maytag subsidiaries. The company also announced that it has amended its current $300 million revolving credit facility, due March 2007. The current $300 million credit facility would be replaced upon the issuance of the $500 million credit facility.
Six-Month Performance
Maytag’s sales in the first six months of 2005 were $2.40 billion, up one percent from sales of $2.37 billion in the first six months of 2004. Operating income was $43.8 million, up from $30.2 million reported in the year-earlier period.
Reported net income for the first six months of 2005 was $11.2 million, or 14 cents per share. In the first six months of 2004, Maytag reported a net loss of $2.4 million, or 3 cents per share.
For the first six months of 2005, cash flow used by operations was $47.4 million, approximately the same as the first six months of 2004. The use of cash flow in both periods is due primarily to seasonal increases in working capital. Cash flow was also impacted by lower pension contributions in the first half of 2005 compared to the same period in 2004. As of the end of the second quarter, cash and cash equivalents increased by $61.5 million to $69 million, compared to the same period in the prior year, and total debt levels declined by $118 million to $977 million.
The earnings (loss) per share for the first six months of 2005 and 2004 included the following items:
|
| Six Months Ended |
| ||||
|
|
| |||||
|
| July 2 |
| July 3 |
| ||
|
|
|
| ||||
Diluted Earnings (Loss) Per Share |
| $ | 0.14 |
| $ | (0.03 | ) |
|
|
|
| ||||
Included in diluted earnings (loss) per share (net of tax) were the following items: |
|
|
|
|
|
|
|
Restructuring and related charges - Galesburg |
|
| 0.02 |
|
| 0.20 |
|
Restructuring and related charges - reorganization |
|
| 0.05 |
|
| 0.11 |
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 0.12 |
|
Front-load washer litigation |
|
| — |
|
| 0.16 |
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 0.09 |
|
Full-Year Projections
Maytag reaffirmed that its earnings per share estimate for the full year 2005 are expected to be in the range of 45 to 55 cents, including approximately 10 cents in restructuring charges.
About Maytag
Maytag Corporation is a leading producer of home and commercial appliances. Its products are sold to customers throughout North America and in international markets. The corporation’s principal brands include Maytag(R), Hoover(R), Jenn-Air(R), Amana(R), Dixie-Narco(R) and Jade(R).
Quarterly Conference Call
Maytag will host a conference call for members of the financial community today at 8:30 a.m. CT (9:30 a.m. ET) to comment on its performance. Chairman & CEO Ralph Hake and CFO George Moore will participate in the call. The company will not conduct a question-and-answer session for this conference call.
Persons wishing to listen should telephone 888-489-9488 at 8:20 a.m. CT (international participants should dial 415-537-1945). The conference call will be recorded and available by telephone from 10:30 a.m. CT July 22 until 10:30 a.m. CT July 26. Persons interested in listening to the conference call tape should call 800-633-8284 (or internationally 402-977-9140) and use access code number 21251588.
Additionally, Maytag’s conference call will be distributed live over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN’s individual investor center at http://www.fulldisclosure.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via CCBN’s password-protected event management site, StreetEvents ( http://www.streetevents.com ). The audio webcast can also be accessed through Maytag’s Web site, http://www.maytagcorp.com , by clicking on the “Corporate News Center” and then “Conference Calls.” Replays will be available on both the Maytag and CCBN Web sites.
Forward-Looking Statements
This document includes statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include statements regarding benefits of the proposed transactions, expected cost savings and anticipated future financial operating performance and results, including estimates of growth. These statements are based on the current expectations of management of Maytag. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this document. For example, with respect to the transaction with a group led by Ripplewood Holdings L.L.C. (1) Maytag may be unable to obtain shareholder approval required for the transaction; (2) Maytag may be unable to obtain regulatory approvals required for the transaction, or required regulatory approvals may delay the transaction or result in the imposition of conditions that could have a material adverse effect on Maytag or cause the parties to abandon the transaction; (3) conditions to the closing of the transaction may not be satisfied or the merger agreement may be terminated prior to closing; (4) Maytag may be unable to achieve cost-cutting goals or it may take longer than expected to achieve those goals; (5) the transaction may involve unexpected costs or unexpected liabilities; (6) the credit ratings of Maytag or its subsidiaries may be different from what the parties expect; (7) the businesses of Maytag may suffer as a result of uncertainty surrounding the transaction; (8) the industry may be subject to future regulatory or legislative actions that could adversely affect Maytag; and (9) Maytag may be adversely affected by other economic, business, and/or competitive factors. Additional factors that may affect the future results of Maytag are set forth in its filings with the Securities and Exchange Commission (“SEC”), which are available at www.maytagcorp.com. Maytag undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Additional Information and Where to Find It
In connection with the proposed transaction with an investor group led by private equity firm Ripplewood Holdings L.L.C., Maytag has filed a definitive proxy statement and may file other relevant documents concerning the proposed merger with SEC. WE URGE INVESTORS TO READ THE DEFINITIVE PROXY STATEMENT AND THE OTHER RELEVANT DOCUMENTS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT MAYTAG AND THE PROPOSED TRANSACTION. Investors can obtain free copies of the definitive proxy statement as well as other filed documents containing information about Maytag at http://www.sec.gov, SEC’s Web site. Free copies of Maytag’s SEC filings are also available on Maytag’s Web site at http://www.maytagcorp.com .
Participants in the Solicitation
Maytag and its executive officers and directors and Ripplewood Holdings L.L.C., Triton Acquisition Holding and Triton Acquisition and their respective affiliates, executive officers and directors may be deemed, under SEC rules, to be participants in the solicitation of proxies from Maytag’s stockholders with respect to the proposed transaction. Information regarding the officers and directors of Maytag is included in its definitive proxy statement for its 2005 annual meeting filed with SEC on April 4, 2005. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, is set forth in the proxy statement and other materials filed or to be filed with SEC in connection with the proposed transaction.
| Media Contact: | John Daggett |
|
| Maytag Corporate Communications |
|
| (641) 787-7711 |
|
| john.daggett@maytag.com |
SECOND QUARTER SALES AND EARNINGS COMPARISON (UNAUDITED)
NET SALES (in thousands)
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Home Appliances |
| $ | 1,163,259 |
| $ | 1,077,643 |
|
| 7.9 |
|
Commercial Products |
|
| 66,459 |
|
| 74,586 |
|
| (10.9 | ) |
|
|
|
|
| ||||||
Consolidated |
| $ | 1,229,718 |
| $ | 1,152,229 |
|
| 6.7 |
|
|
|
|
|
| ||||||
OPERATING INCOME (LOSS) (in thousands)
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Home Appliances |
| $ | 21,029 |
| $ | (23,741 | ) |
| 188.6 |
|
Commercial Products |
|
| (1,354 | ) |
| (9,697 | ) |
| 86.0 |
|
|
|
|
|
|
|
| ||||
Reported |
| $ | 19,675 |
| $ | (33,438 | ) |
| 158.8 |
|
|
|
|
|
|
|
| ||||
Included in operating income (loss) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges-Home Appliances |
| $ | 3,156 |
| $ | 27,783 |
|
|
|
|
Front-load washer litigation-Home Appliances |
|
| — |
|
| 18,500 |
|
|
|
|
Restructuring and related charges-Commercial Products |
|
| 224 |
|
| 69 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 9,600 |
|
|
|
|
NET INCOME (LOSS) (in thousands)
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Reported |
| $ | 3,481 |
| $ | (41,084 | ) |
| 108.5 |
|
|
|
|
|
|
|
| ||||
Included in net income (loss) (net of tax) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges |
| $ | 2,092 |
| $ | 18,879 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 9,600 |
|
|
|
|
Front-load washer litigation |
|
| — |
|
| 12,488 |
|
|
|
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 7,091 |
|
|
|
|
BASIC EARNINGS (LOSS) PER SHARE
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Reported |
| $ | 0.04 |
| $ | (0.52 | ) |
| 108.4 |
|
|
|
|
|
|
|
| ||||
Included in basic earnings (loss) per share (net of tax) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges |
| $ | 0.03 |
| $ | 0.24 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 0.12 |
|
|
|
|
Front-load washer litigation |
|
| — |
|
| 0.16 |
|
|
|
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 0.09 |
|
|
|
|
Basic weighted-average shares outstanding (thousands) |
|
| 79,818 |
|
| 79,012 |
|
|
|
|
DILUTED EARNINGS (LOSS) PER SHARE
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Reported |
| $ | 0.04 |
| $ | (0.52 | ) |
| 108.4 |
|
|
|
|
|
|
|
| ||||
Included in diluted earnings (loss) per share (net of tax) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges |
| $ | 0.03 |
| $ | 0.24 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 0.12 |
|
|
|
|
Front-load washer litigation |
|
| — |
|
| 0.16 |
|
|
|
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 0.09 |
|
|
|
|
Diluted weighted-average shares outstanding (thousands) |
|
| 79,818 |
|
| 79,012 |
|
|
|
|
FIRST HALF SALES AND EARNINGS COMPARISON
NET SALES (in thousands)
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Home Appliances |
| $ | 2,276,446 |
| $ | 2,222,429 |
|
| 2.4 |
|
Commercial Products |
|
| 121,111 |
|
| 148,744 |
|
| (18.6 | ) |
|
|
|
|
|
|
| ||||
Consolidated |
| $ | 2,397,557 |
| $ | 2,371,173 |
|
| 1.1 |
|
|
|
|
|
|
|
| ||||
OPERATING INCOME (LOSS) (in thousands)
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Home Appliances |
| $ | 47,664 |
| $ | 36,604 |
|
| 30.2 |
|
Commercial Products |
|
| (3,903 | ) |
| (6,410 | ) |
| 39.1 |
|
|
|
|
|
|
|
| ||||
Reported |
| $ | 43,761 |
| $ | 30,194 |
|
| 44.9 |
|
|
|
|
|
|
|
| ||||
Included in operating income (loss) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges-Home Appliances |
| $ | 7,872 |
| $ | 35,778 |
|
|
|
|
Front-load washer litigation-Home Appliances |
|
| — |
|
| 18,500 |
|
|
|
|
Restructuring and related charges-Commercial Products |
|
| 362 |
|
| 69 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 9,600 |
|
|
|
|
NET INCOME (LOSS) (in thousands)
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Reported |
| $ | 11,213 |
| $ | (2,360 | ) |
| 575.1 |
|
|
|
|
|
|
|
| ||||
Included in net income (loss) (net of tax) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges |
| $ | 5,393 |
| $ | 24,196 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 9,600 |
|
|
|
|
Front-load washer litigation |
|
| — |
|
| 12,488 |
|
|
|
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 7,091 |
|
|
|
|
BASIC EARNINGS (LOSS) PER SHARE
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Reported |
| $ | 0.14 |
| $ | (0.03 | ) |
| 570.6 |
|
|
|
|
|
|
|
| ||||
Included in basic earnings (loss) per share (net of tax) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges |
| $ | 0.07 |
| $ | 0.31 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 0.12 |
|
|
|
|
Front-load washer litigation |
|
| — |
|
| 0.16 |
|
|
|
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 0.09 |
|
|
|
|
Basic weighted-average shares outstanding (thousands) |
|
| 79,690 |
|
| 78,929 |
|
|
|
|
DILUTED EARNINGS (LOSS) PER SHARE
|
| 2005 |
| 2004 |
| % Change |
| |||
|
|
|
|
| ||||||
Reported |
| $ | 0.14 |
| $ | (0.03 | ) |
| 570.6 |
|
|
|
|
|
|
|
| ||||
Included in diluted earnings (loss) per share (net of tax) |
|
|
|
|
|
|
|
|
|
|
Restructuring and related charges |
|
| 0.07 |
| $ | 0.31 |
|
|
|
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 0.12 |
|
|
|
|
Front-load washer litigation |
|
| — |
|
| 0.16 |
|
|
|
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| 0.09 |
|
|
|
|
Diluted weighted-average shares outstanding (thousands) |
|
| 79,690 |
|
| 78,929 |
|
|
|
|
MAYTAG CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except per share data)
|
| Second Quarter Ended |
| Six Months Ended |
| ||||||||
|
|
|
| ||||||||||
|
| July 2 |
| July 3 |
| July 2 |
| July 3 |
| ||||
|
|
|
|
|
| ||||||||
Net sales |
| $ | 1,229,718 |
| $ | 1,152,229 |
| $ | 2,397,557 |
| $ | 2,371,173 |
|
Cost of sales |
|
| 1,093,858 |
|
| 1,003,726 |
|
| 2,132,627 |
|
| 2,011,549 |
|
|
|
|
|
|
| ||||||||
Gross profit |
|
| 135,860 |
|
| 148,503 |
|
| 264,930 |
|
| 359,624 |
|
Selling, general and administrative expenses |
|
| 112,805 |
|
| 125,989 |
|
| 212,935 |
|
| 265,483 |
|
Restructuring and related charges |
|
| 3,380 |
|
| 27,852 |
|
| 8,234 |
|
| 35,847 |
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 9,600 |
|
| — |
|
| 9,600 |
|
Front-load washer litigation |
|
| — |
|
| 18,500 |
|
| — |
|
| 18,500 |
|
|
|
|
|
|
| ||||||||
Operating income (loss) |
|
| 19,675 |
|
| (33,438 | ) |
| 43,761 |
|
| 30,194 |
|
Interest expense |
|
| (16,278 | ) |
| (13,215 | ) |
| (32,053 | ) |
| (26,106 | ) |
Adverse judgment on pre-acquisition distributor lawsuit |
|
| — |
|
| (10,505 | ) |
| — |
|
| (10,505 | ) |
Other-Net |
|
| 815 |
|
| 55 |
|
| 3,243 |
|
| 2,921 |
|
|
|
|
|
|
| ||||||||
Income (loss) before income taxes |
|
| 4,212 |
|
| (57,103 | ) |
| 14,951 |
|
| (3,496 | ) |
Income tax expense (benefit) |
|
| 731 |
|
| (16,019 | ) |
| 3,738 |
|
| (1,136 | ) |
|
|
|
|
|
| ||||||||
Net income (loss) |
| $ | 3,481 |
| $ | (41,084 | ) | $ | 11,213 |
| $ | (2,360 | ) |
|
|
|
|
|
| ||||||||
Basic earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 0.04 |
| $ | (0.52 | ) | $ | 0.14 |
| $ | (0.03 | ) |
Basic weighted-average shares outstanding |
|
| 79,818 |
|
| 79,012 |
|
| 79,690 |
|
| 78,929 |
|
Diluted earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 0.04 |
| $ | (0.52 | ) | $ | 0.14 |
| $ | (0.03 | ) |
Diluted weighted-average shares outstanding |
|
| 79,818 |
|
| 79,012 |
|
| 79,690 |
|
| 78,929 |
|
MAYTAG CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
| July 2 |
| January 1 |
| July 3 |
| |||
|
|
|
|
| ||||||
|
| (Unaudited) |
|
|
|
| (Unaudited) |
| ||
ASSETS |
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 69,015 |
| $ | 164,276 |
| $ | 7,492 |
|
Accounts receivable - net |
|
| 724,544 |
|
| 629,901 |
|
| 636,929 |
|
Inventories |
|
| 604,383 |
|
| 515,321 |
|
| 591,588 |
|
Deferred income taxes |
|
| 52,973 |
|
| 55,862 |
|
| 61,335 |
|
Other current assets |
|
| 45,419 |
|
| 80,137 |
|
| 89,329 |
|
Discontinued current assets |
|
| — |
|
| — |
|
| 69,941 |
|
|
|
|
|
| ||||||
Total current assets |
|
| 1,496,334 |
|
| 1,445,497 |
|
| 1,456,614 |
|
Noncurrent assets |
|
| 653,626 |
|
| 653,365 |
|
| 574,949 |
|
Discontinued noncurrent assets |
|
| — |
|
| — |
|
| 61,069 |
|
|
|
|
|
| ||||||
Total noncurrent assets |
|
| 653,626 |
|
| 653,365 |
|
| 636,018 |
|
Property, plant and equipment |
|
| 869,157 |
|
| 921,162 |
|
| 991,443 |
|
|
|
|
|
| ||||||
Total assets |
| $ | 3,019,117 |
| $ | 3,020,024 |
| $ | 3,084,075 |
|
|
|
|
|
| ||||||
LIABILITIES AND SHAREOWNERS’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 553,169 |
| $ | 545,901 |
| $ | 423,950 |
|
Accrued liabilities |
|
| 356,623 |
|
| 358,119 |
|
| 334,507 |
|
Notes payable and current portion of long-term debt |
|
| 188,977 |
|
| 6,043 |
|
| 223,982 |
|
Discontinued current liabilities |
|
| — |
|
| — |
|
| 100,962 |
|
|
|
|
|
| ||||||
Total current liabilities |
|
| 1,098,769 |
|
| 910,063 |
|
| 1,083,401 |
|
Long-term debt, less current portion |
|
| 787,839 |
|
| 972,568 |
|
| 870,546 |
|
Postretirement benefit liability |
|
| 528,436 |
|
| 531,995 |
|
| 541,380 |
|
Accrued pension cost |
|
| 504,133 |
|
| 496,480 |
|
| 337,407 |
|
Other noncurrent liabilities |
|
| 177,418 |
|
| 183,942 |
|
| 188,888 |
|
Total discontinued noncurrent liabilities |
|
| — |
|
| — |
|
| 18,766 |
|
Shareowners’ equity (deficit) |
|
| (77,478 | ) |
| (75,024 | ) |
| 43,687 |
|
|
|
|
|
| ||||||
Total liabilities and shareowners’ equity (deficit) |
| $ | 3,019,117 |
| $ | 3,020,024 |
| $ | 3,084,075 |
|
|
|
|
|
| ||||||
MAYTAG CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
|
| Six Months Ended |
| ||||
|
|
| |||||
| July 2 |
| July 3 |
| |||
|
|
|
| ||||
| Operating activities |
|
|
|
|
|
|
|
Net income (loss) |
| $ | 11,213 |
| $ | (2,360 | ) |
Depreciation and amortization |
|
| 82,842 |
|
| 84,066 |
|
Deferred income taxes |
|
| (8,707 | ) |
| 21,903 |
|
Restructuring and related charges, net of cash |
|
| (14,735 | ) |
| 29,032 |
|
Goodwill impairment-Commercial Products |
|
| — |
|
| 9,600 |
|
Front-load washer litigation, net of cash paid |
|
| (4,292 | ) |
| 18,500 |
|
Adverse judgment on pre-acquisition distributor lawsuit |
|
| (12,250 | ) |
| 10,505 |
|
Change in working capital |
|
| (178,445 | ) |
| (207,738 | ) |
Pension expense |
|
| 35,509 |
|
| 31,866 |
|
Pension contributions |
|
| (27,849 | ) |
| (92,744 | ) |
Postretirement benefit liability |
|
| (3,559 | ) |
| 3,275 |
|
Other |
|
| 72,849 |
|
| 45,133 |
|
|
|
|
| ||||
Net cash used in operating activities |
|
| (47,424 | ) |
| (48,962 | ) |
Investing activities |
|
|
|
|
|
|
|
Proceeds from business disposition, net of transaction costs |
|
| 11,123 |
|
| — |
|
Capital expenditures |
|
| (35,601 | ) |
| (48,872 | ) |
|
|
|
| ||||
Investing activities |
|
| (24,478 | ) |
| (48,872 | ) |
Financing activities |
|
|
|
|
|
|
|
Net proceeds of notes payable |
|
| — |
|
| 129,484 |
|
Dividends on common stock |
|
| (21,490 | ) |
| (28,395 | ) |
Repayment of long-term debt |
|
| (2,518 | ) |
| (4,020 | ) |
Stock options and employee stock |
|
| 1,722 |
|
| 1,975 |
|
Other |
|
| (1,025 | ) |
| (276 | ) |
|
|
|
| ||||
Financing activities |
|
| (23,311 | ) |
| 98,768 |
|
Effect of exchange rates |
|
| (48 | ) |
| (198 | ) |
|
|
|
| ||||
Increase (decrease) in cash and cash equivalents |
|
| (95,261 | ) |
| 736 |
|
Cash and cash equivalents at beginning of period |
|
| 164,276 |
|
| 6,756 |
|
|
|
|
| ||||
Cash and cash equivalents at end of period |
| $ | 69,015 |
| $ | 7,492 |
|
|
|
|
| ||||
/CONTACT: John Daggett, Maytag Corporate Communications, +1-641-787-7711,
john.daggett@maytag.com /Photo: http://www.newscom.com/cgi-bin/prnh/20000505/MYGLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com /
/Web site: http://www.maytagcorp.com /
