Exhibit 99(a)
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For: | | | | From: | | |
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| Ladish Co., Inc. | | Libby Communications |
| 5481 South Packard Avenue | | 1414 East Harbour Towne Circle |
| Cudahy, WI 53110 | | Muskegon, MI 49441 |
| Contact: | | Wayne E. Larsen | | Contact: | | William J. Libby |
| | | 414-747-2935 | | | | 231-755-4111 |
| | | 414-747-2602 Fax | | | | 231-755-4144 Fax |
Release date: 1 February 2010
Ladish Announces Fourth Quarter & Year-End Results
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| | Fourth Quarter | | | Year-End |
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| | • Sales were $83.2 million | | | • Sales were $350 million |
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| | • Net Income was $7.0 million, or $0.44 per share | | | • Net Income was $6.6 million, or $0.42 per share |
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| | • $10.0 million of Cash from Operations | | | • $58.3 million of Cash from Operations |
Cudahy, WI—Ladish Co., Inc. (www.ladishco.com) (Nasdaq: LDSH) today reported 2009 fourth quarter sales of $83.2 million in comparison to $112.5 million of sales in the fourth quarter of 2008. The Company had net earnings of $7.0 million, resulting in per share net income of $0.44 for the fourth quarter of 2009, compared to net income of $9.6 million, or $0.60 per share, in the same period of 2008.
“The 2009 fourth quarter results signal the early stages of a recovery from the lows we experienced in the third quarter of this year. A modest 9% Q3-to-Q4 revenue increase combined with improved operating efficiencies returned us to double digit gross profits as a percentage of sales,” said Gary J. Vroman, Ladish’s President and CEO. “Better performance from all of our domestic operating units enabled us to finish the fourth quarter with $3.3 million of pre-tax income. The Company also benefited in the fourth quarter from the reversal of a $5.3 million valuation allowance which contributed to a tax benefit of $3.7 million, resulting in $7.0 million of net income, or earnings of $0.44 per share on a fully diluted basis.”
“This was a difficult year, with sales down 25% from 2008 levels, but every Ladish division successfully managed through the myriad of economic challenges they faced. Cost control measures coupled with operational improvements helped us overcome the loss of incremental sales and still finish the year with positive earnings,” remarked Vroman. “The impact of these efforts is reflected in the fourth quarter results as well as the $58.3 million of positive cash from operations generated in 2009. Our order levels hit a low point in July, but we have recovered to end the year with a $504 million backlog.”
“Looking ahead to 2010, we are guardedly optimistic most of the inventory de-stocking is over,” observed Vroman. “As OEM build rates more closely reflect order levels, we can confidently say the worst is behind us. We anticipate relatively stable business conditions throughout the first half of the year. After a few months of moving ‘sideways,’ we believe the second half of 2010 can bring opportunities for growth. Our manufacturing facilities have available capacity, and our employees are poised to take care of our customers’ increasing demand.”
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| | | For the Three Months | | | For the Year | |
| | | Ended December 31 | | | Ended December 31 | |
| (Dollars in thousands, except per share data) | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Net sales | | $ | 83,216 | | | $ | 112,549 | | | $ | 349,832 | | | $ | 469,466 | |
| Cost of goods sold | | | 74,512 | | | | 101,767 | | | | 322,745 | | | | 410,163 | |
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| Gross profit | | | 8,704 | | | | 10,782 | | | | 27,087 | | | | 59,303 | |
| SG&A expense | | | 3,832 | | | | 4,444 | | | | 17,839 | | | | 19,765 | |
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| Operating income | | | 4,872 | | | | 6,338 | | | | 9,248 | | | | 39,538 | |
| Interest expense | | | (1,456 | ) | | | (953 | ) | | | (5,050 | ) | | | (1,971 | ) |
| Other | | | (97 | ) | | | 1,511 | | | | (1,062 | ) | | | 683 | |
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| Pretax income | | | 3,319 | | | | 6,896 | | | | 3,136 | | | | 38,250 | |
| Income tax provision (benefit) | | | (3,669 | ) | | | (2,778 | ) | | | (3,441 | ) | | | 5,876 | |
| Noncontrolling interest in subsidiary | | | (12 | ) | | | 106 | | | | (64 | ) | | | 169 | |
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| Net income | | $ | 7,000 | | | $ | 9,568 | | | $ | 6,641 | | | $ | 32,205 | |
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| Basic earnings per share | | $ | 0.44 | | | $ | 0.60 | | | $ | 0.42 | | | $ | 2.15 | |
| Basic weighted average shares outstanding | | | 15,903,004 | | | | 15,901,216 | | | | 15,901,833 | | | | 14,998,437 | |
| Diluted earnings per share | | $ | 0.44 | | | $ | 0.60 | | | $ | 0.42 | | | $ | 2.15 | |
| Diluted weighted average shares outstanding | | | 15,903,682 | | | | 15,902,647 | | | | 15,902,246 | | | | 15,000,844 | |
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| | | December 31 | | | December 31 | |
| (Dollars in thousands) | | 2009 | | | 2008 | |
| Cash and cash equivalents | | $ | 19,917 | | | $ | 4,903 | |
| Accounts receivable, net | | | 59,382 | | | | 78,673 | |
| Inventory | | | 92,697 | | | | 129,307 | |
| Net PP&E | | | 198,436 | | | | 199,269 | |
| Other | | | 99,629 | | | | 97,314 | |
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| Total assets | | $ | 470,061 | | | $ | 509,466 | |
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| Accounts payable | | $ | 24,971 | | | $ | 39,020 | |
| Accrued liabilities | | | 15,400 | | | | 23,388 | |
| Senior bank debt | | | — | | | | 28,900 | |
| Senior notes | | | 90,000 | | | | 90,000 | |
| Pensions | | | 79,343 | | | | 70,825 | |
| Postretirement benefits | | | 33,679 | | | | 33,256 | |
| Equity | | | 226,668 | | | | 224,077 | |
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| Total liabilities & equity | | $ | 470,061 | | | $ | 509,466 | |
Ladish will host a conference call on Tuesday, February 2, 2010 at 9:00 a.m. EST to discuss the fourth quarter and year-end performance for 2009. The telephone number to call to participate in the conference call is (866) 439-4712, then enter PIN Code 560018# when prompted.
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Ladish Co., Inc. is a leading producer of highly engineered, technically advanced metal components for the jet engine, aerospace and general industrial markets. Ladish is headquartered in Cudahy, Wisconsin with operations in Wisconsin, California, Connecticut, Oregon and Poland. Ladish common stock trades on Nasdaq under the symbol LDSH.
This release includes forward-looking statements that are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in them. These risks and uncertainties include, but are not limited to, uncertainties in the company’s major markets, the impact of competition, the effectiveness of operational changes expected to increase efficiency and productivity, worldwide economic and political conditions and the effect of foreign currency fluctuations.
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