Exhibit 99.1
Investor Relations
+1 (937) 458-6600
+1 (937) 458-6600
ROBBINS & MYERS ANNOUNCES SECOND QUARTER 2010 RESULTS
Order Levels Continue to Improve;
Cash Generation Remains Strong
Cash Generation Remains Strong
DAYTON, OHIO, March 24, 2010...Robbins & Myers, Inc. (NYSE: RBN)today reported diluted net earnings per share (DEPS) of $0.13 for its fiscal second quarter ended February 28, 2010 as compared with $0.46 in the comparable prior year period. The Company also reported that second quarter orders of $156 million were 21% higher than the second quarter of 2009 and 13% higher than the first quarter of 2010, with growth noted in each of the Company’s segments.
Second quarter sales of $130 million were 21% lower than the second quarter of 2009. Lower sales volumes, combined with difficult pricing conditions in certain markets, contributed to lower earnings before interest and taxes (EBIT) of $7 million in the second quarter of 2010.
“We are encouraged by the growth in order levels, especially in energy markets,” said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. “Offsetting some of the benefit from this growth are pricing pressures within our Process Solutions Group. We are actively addressing the cost structure in this business, having cut over $2 million of annualized costs in the first half of this year and implementing another restructuring initiative later this month to cut an additional $3 million of annualized costs. Our attention to operating improvements throughout Robbins & Myers also contributed to improved cash flow in the quarter.”
$18 million of cash was generated from operating activities in the second quarter of 2010, substantially higher than the $5 million in the prior year quarter. The Company’s cash balances grew to $132 million. Robbins & Myers has $31 million of debt, including $30 million of senior notes which mature on May 3, 2010. The Company’s $150 million revolving credit agreement remains undrawn.
Mr. Wallace said, “Continued customer order growth supports our projections for strengthening financial performance in the second half of fiscal 2010.” The Company initiated its third quarter DEPS forecast of $0.13-$0.23, excluding the cost of restructuring actions which are expected to be approximately $2 million. Robbins & Myers affirmed its full year 2010 DEPS forecast of $0.80-$1.00, excluding the cost of restructuring actions.
Second Quarter Results by Segment
In January, the Company announced a realignment of its businesses that included moving its Chemineer US and Asian operations from the Process Solutions Group to the Fluid Management Group. All results included in this press release have been adjusted to reflect the new operating and reporting structure. A recasting of quarterly segment
results for fiscal 2007 through 2009 can be viewed in the “Investor Relations” section of the Company’s website, www.robn.com.
The Company’sFluid Management segment orders of $80 million represent a 20% increase over the prior year second quarter and a 17% sequential increase from the first quarter of 2010, driven primarily from strengthening energy markets. Sales of $67 million are 23% lower than the comparable prior year period, and EBIT fell 39% to $14 million.
TheProcess Solutions segment reported orders of $45 million, 11% higher than the prior year second quarter or 5% excluding currency translation effects. Sales of $40 million were 18% lower than the comparable prior year period or 23% excluding currency translation effects. The segment incurred an EBIT loss of $3 million in the second quarter of 2010 as a result of lower sales and pricing pressures. In the second quarter of 2009, the segment had EBIT income of $2 million.
Romaco segment orders of $31 million were 46% higher than the comparable prior year quarter or 32% excluding currency translation effects. Segment backlog also included a $9 million reduction to reflect the cancellation of an order originally booked in fiscal 2006. Sales in the quarter were $23 million, 19% less than the second quarter of 2009. Romaco EBIT of $0.3 million was similar to the amount earned in the prior year second quarter.
Conference Call to Be Held Today, March 24 at 1:30 PM (Eastern)
A conference call to discuss these results has been scheduled for 1:30 PM Eastern on Wednesday, March 24, 2010, which can be accessed at www.robn.com or by dialing 1-866-700-7477 (US/Canada) or +1-617-213-8840, using conference ID #58160159. Replays of the call can be accessed by dialing 1-888-286-8010 (U.S./Canada) or +1-617-801-6888, using replay ID #33481357.
About Robbins & Myers
Robbins & Myers, Inc. is a leading supplier of engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets.
In this release the Company refers to EBIT, a non-GAAP measure. The Company uses this measure to evaluate its performance and believes this measure is helpful to investors in assessing its performance. A reconciliation of this measure to net income is included in our Condensed Consolidated Income Statement. EBIT is not a measure of cash available for use by the Company.
In addition to historical information, this press release contains forward-looking statementsidentified by use of words such as “expects,” “anticipates,” “believes,” and similar expressions. These statements reflect management’s current expectations and involve known and unknown risks, uncertainties, contingencies and other factors that could cause actual results, performance or achievements to differ materially from those stated. The most significant of these risks and uncertainties are described in our Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission and include, but are not limited to: the cyclical nature of some of our markets; a significant decline in capital expenditures in our primary markets; a major decline in oil and natural gas prices; reduced demand due to the general worldwide economic downturn and general credit market crises; our ability to realize the benefits of our restructuring programs; increases in competition; changes in the availability and cost of our raw materials; foreign exchange rate fluctuations as well as economic or political instability in international markets and the performance of our business in hyperinflationary environments, such as Venezuela; work stoppages related to union negotiations; customer order cancellations; the possibility of product liability lawsuits that could harm our business; events or circumstances which result in an impairment of, or valuation against, assets; the potential impact of U.S. and foreign legislation, government regulations, and other governmental action, including those relating to export and import of products and materials, and changes in the interpretation and application of such laws and regulations; the outcome of audit, compliance, administrative or investigatory reviews; proposed changes in U.S. tax law which could impact our future tax expense and cash flow; and decline in the market value of our pension plans’ investment portfolios affecting our financial condition and results of operations. Except as otherwise required by law, we do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date hereof.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
| (in thousands) | February 28, 2010 | August 31, 2009 | ||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 132,420 | $ | 108,169 | ||||
Accounts receivable | 104,655 | 114,191 | ||||||
Inventories | 103,929 | 105,772 | ||||||
Other current assets | 14,619 | 11,573 | ||||||
Deferred taxes | 11,304 | 12,519 | ||||||
Total Current Assets | 366,927 | 352,224 | ||||||
Goodwill & Other Intangible Assets | 269,737 | 273,476 | ||||||
Deferred Taxes | 25,698 | 26,477 | ||||||
Other Assets | 8,985 | 9,490 | ||||||
Property, Plant & Equipment | 127,966 | 135,187 | ||||||
| $ | 799,313 | $ | 796,854 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 46,658 | $ | 55,918 | ||||
Accrued expenses | 77,054 | 68,059 | ||||||
Current portion of long-term debt | 30,853 | 30,194 | ||||||
Total Current Liabilities | 154,565 | 154,171 | ||||||
Long-Term Debt — Less Current Portion | 176 | 265 | ||||||
Deferred Taxes | 44,106 | 44,194 | ||||||
Other Long-Term Liabilities | 114,411 | 115,113 | ||||||
Shareholders’ Equity | 486,055 | 483,111 | ||||||
| $ | 799,313 | $ | 796,854 | |||||
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| February 28, | February 28, | February 28, | February 28, | |||||||||||||
| (in thousands, except per share data) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Sales | $ | 129,919 | $ | 163,825 | $ | 259,332 | $ | 341,796 | ||||||||
Cost of sales | 87,989 | 107,049 | 174,368 | 217,044 | ||||||||||||
Gross profit | 41,930 | 56,776 | 84,964 | 124,752 | ||||||||||||
SG&A expenses | 35,384 | 35,941 | 68,682 | 77,523 | ||||||||||||
Income before interest and income taxes | 6,546 | 20,835 | 16,282 | 47,229 | ||||||||||||
Interest expense, net | 161 | 90 | 304 | 143 | ||||||||||||
Income before income taxes | 6,385 | 20,745 | 15,978 | 47,086 | ||||||||||||
Income tax expense | 1,932 | 5,290 | 5,299 | 14,247 | ||||||||||||
Net income including noncontrolling interest | 4,453 | 15,455 | 10,679 | 32,839 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 260 | 392 | 456 | 568 | ||||||||||||
Net income attributable to Robbins & Myers, Inc. | $ | 4,193 | $ | 15,063 | $ | 10,223 | $ | 32,271 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.13 | $ | 0.46 | $ | 0.31 | $ | 0.96 | ||||||||
Diluted | $ | 0.13 | $ | 0.46 | $ | 0.31 | $ | 0.96 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 32,927 | 32,802 | 32,899 | 33,620 | ||||||||||||
Diluted | 32,966 | 32,804 | 32,949 | 33,679 | ||||||||||||
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| February 28, | February 28, | February 28, | February 28, | |||||||||||||
| (in thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Customer Sales | ||||||||||||||||
Fluid Management | $ | 66,970 | $ | 86,871 | $ | 135,158 | $ | 187,401 | ||||||||
Process Solutions | 39,867 | 48,503 | 83,400 | 102,527 | ||||||||||||
Romaco | 23,082 | 28,451 | 40,774 | 51,868 | ||||||||||||
Total | $ | 129,919 | $ | 163,825 | $ | 259,332 | $ | 341,796 | ||||||||
Income Before Interest and Income Taxes (EBIT) | ||||||||||||||||
Fluid Management | $ | 13,633 | $ | 22,283 | $ | 30,367 | $ | 50,507 | ||||||||
Process Solutions | (2,538 | ) | 1,937 | (4,189 | ) | 5,222 | ||||||||||
Romaco | 340 | 442 | (418 | ) | (1,001 | ) | ||||||||||
Corporate and Eliminations | (4,889 | ) | (3,827 | ) | (9,478 | ) | (7,499 | ) | ||||||||
Total | $ | 6,546 | $ | 20,835 | $ | 16,282 | $ | 47,229 | ||||||||
Depreciation and Amortization | ||||||||||||||||
Fluid Management | $ | 1,969 | $ | 2,023 | $ | 4,016 | $ | 4,086 | ||||||||
Process Solutions | 1,419 | 1,400 | 2,902 | 2,818 | ||||||||||||
Romaco | 572 | 500 | 1,150 | 982 | ||||||||||||
Corporate and Eliminations | 71 | 132 | 157 | 262 | ||||||||||||
Total | $ | 4,031 | $ | 4,055 | $ | 8,225 | $ | 8,148 | ||||||||
Orders | ||||||||||||||||
Fluid Management | $ | 79,860 | $ | 66,688 | $ | 147,967 | $ | 167,018 | ||||||||
Process Solutions | 44,800 | 40,489 | 86,714 | 98,267 | ||||||||||||
Romaco | 30,843 | 21,119 | 57,977 | 47,844 | ||||||||||||
Total | $ | 155,503 | $ | 128,296 | $ | 292,658 | $ | 313,129 | ||||||||
Backlog | ||||||||||||||||
Fluid Management | $ | 46,937 | $ | 66,441 | $ | 46,937 | $ | 66,441 | ||||||||
Process Solutions | 63,013 | 78,428 | 63,013 | 78,428 | ||||||||||||
Romaco | 43,879 | 40,558 | 43,879 | 40,558 | ||||||||||||
Total | $ | 153,829 | $ | 185,427 | $ | 153,829 | $ | 185,427 | ||||||||
Note: EBIT is a non-GAAP measure. The Company uses this measure to evaluate its performance and believes this measure is helpful to investors in assessing its performance. A reconciliation of this measure to net income is included in our Condensed Consolidated Income Statement. EBIT is not a measure of cash available for use by the Company.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| February 28, | February 28, | February 28, | February 28, | |||||||||||||
| (in thousands) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Operating activities: | ||||||||||||||||
Net income including noncontrolling interest | $ | 4,453 | $ | 15,455 | $ | 10,679 | $ | 32,839 | ||||||||
Depreciation and amortization | 4,031 | 4,055 | 8,225 | 8,148 | ||||||||||||
Other, net | 9,729 | (14,287 | ) | 10,599 | (36,062 | ) | ||||||||||
Cash provided by operating activities | 18,213 | 5,223 | 29,503 | 4,925 | ||||||||||||
Investing activities: | ||||||||||||||||
Capital expenditures | (1,265 | ) | (3,667 | ) | (3,447 | ) | (7,044 | ) | ||||||||
Proceeds from asset sales | 1,094 | — | 1,094 | — | ||||||||||||
Cash used by investing activities | (171 | ) | (3,667 | ) | (2,353 | ) | (7,044 | ) | ||||||||
Financing activities: | ||||||||||||||||
(Payments) proceeds of long-term debt, net | (716 | ) | (1,213 | ) | 570 | (2,195 | ) | |||||||||
Share buyback program | — | — | — | (39,114 | ) | |||||||||||
Dividends paid | (1,399 | ) | (1,314 | ) | (2,713 | ) | (2,616 | ) | ||||||||
Other, net | 255 | 288 | 366 | 859 | ||||||||||||
Cash used by financing activities | (1,860 | ) | (2,239 | ) | (1,777 | ) | (43,066 | ) | ||||||||
Exchange rate impact on cash | (2,872 | ) | (1,529 | ) | (1,122 | ) | (6,095 | ) | ||||||||
Increase (decrease) in cash | 13,310 | (2,212 | ) | 24,251 | (51,280 | ) | ||||||||||
Cash at beginning of period | 119,110 | 74,337 | 108,169 | 123,405 | ||||||||||||
Cash at end of period | $ | 132,420 | $ | 72,125 | $ | 132,420 | $ | 72,125 | ||||||||