Exhibit 99.1
Investor Relations
+1 (937) 458-6600
+1 (937) 458-6600
ROBBINS & MYERS ANNOUNCES SECOND QUARTER 2009 RESULTS
Effective Execution in Difficult Conditions
DAYTON, OHIO, March 24, 2009...Robbins & Myers, Inc. (NYSE: RBN)today reported diluted net earnings per share (DEPS) of $0.46 for its fiscal second quarter ended February 28, 2009, as compared with $0.47 in the prior year second quarter. Current quarter results include benefits from a lower effective tax rate, and the prior year quarter includes benefits from a facility sale and favorable resolution of a tax matter.
Robbins & Myers’ sales in the second quarter of 2009 were $164 million, 11% lower than the comparable prior year results or 3% lower excluding the effects of currency translation. Orders of $128 million in the second quarter were 41% lower than the prior year comparable period. Excluding the impact from currency translation, orders decreased 35%.
Second quarter 2009 earnings before interest, taxes and minority interest (EBIT) were $21 million. The prior year second quarter EBIT of $26 million included a $1 million gain from the sale of a facility. The Company achieved EBIT margins of 12.7% in the current year quarter, slightly lower than the prior year comparable figure after adjusting for the facility sale gain.
“During the quarter we effectively met customer demand and achieved good profitability while carefully adjusting our cost structure to meet slowing global markets,” said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. “Employment reductions were initiated and will continue into the third quarter, and we plan to implement government-supported employee furlough programs in certain international locations. Discretionary spending was cut sharply, we re-prioritized our capital spending programs and increased our focus on working capital to support cash flow improvements in the second half of the year. We continue to work closely with suppliers to maintain an effective value proposition for our customers.”
“The market declines experienced during our first quarter continued into the second quarter. We experienced a significant reduction in orders as customers took the opportunity to adjust their requirements for future product shipments, and this resulted in a rise in order cancellations. Each of our product platforms experienced customer order weakness in the second quarter, causing us to lower our sales and profit expectations for the second half of the year. We will continue to hone our cost structure for the balance of the year while pursuing key sales and profit initiatives, supported by our ample cash and credit capacity.”
The Company revised its fiscal 2009 DEPS expectations from $1.80-$2.00 to $1.35-$1.65 and forecasted third quarter DEPS of $0.20-$0.30.
Second Quarter Results by Segment
All comparisons are made against the comparable year-ago quarterly period unless otherwise stated.
TheFluid Management segment reported sales of $72 million and orders of $56 million, lower than prior year period sales of $77 million and orders of $74 million as a result of broad market weakness. EBIT fell $1 million to $20 million on lower sales, and EBIT margins of 27.0% were 40 basis points lower.
Difficult market conditions also affected the Company’sProcess Solutions segment, which reported sales of $63 million in the second quarter and orders of $51 million, as compared with sales of $75 million and orders of $94 million in the second quarter of the prior year. The segment earned $5 million of EBIT in the second quarter of 2009, and EBIT margins decreased 260 basis points to 7.4% due to lower sales volume.
TheRomaco segment reported lower customer demand with second quarter sales of $28 million, compared with $33 million in the prior year period, and orders of $21 million versus $48 million in the prior year period. Lower sales resulted in lower profitability, with the Romaco segment reporting EBIT of $0.4 million as compared with $2.1 million in the prior year, which included a $1 million gain from the sale of a facility.
Conference Call to Be Held Tomorrow, March 25 at 2:00 PM (Eastern)
A conference call to discuss these results has been scheduled for 2:00 PM Eastern on Wednesday, March 25, 2009, which can be accessed at www.robn.com or by dialing 800-259-0251 (US/Canada) or +1-617-614-3671, using conference ID #67980695. Replays of the call can be accessed by dialing 888-286-8010 (U.S./Canada) or +1-617-801-6888, both using replay ID # 18245371.
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 on our Condensed Consolidated Income Statement.
In addition to historical information, this press release contains forward-looking statements identified 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; increases in competition; changes in the availability and cost of our raw materials; foreign exchange rate fluctuations; work stoppages related to union negotiations; customer order cancellations; business disruptions caused by the implementation of business computer systems; the possibility of product liability lawsuits that could harm our business; events or circumstances which result in an impairment of 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; 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, 2009 | August 31, 2008 | ||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 72,125 | $ | 123,405 | ||||
Accounts receivable | 130,411 | 153,648 | ||||||
Inventories | 113,095 | 109,797 | ||||||
Other current assets | 7,308 | 8,017 | ||||||
Deferred taxes | 12,389 | 13,476 | ||||||
Total Current Assets | 335,328 | 408,343 | ||||||
Goodwill & Other Intangible Assets | 257,447 | 285,759 | ||||||
Deferred Taxes | 21,398 | 21,969 | ||||||
Other Assets | 9,745 | 10,931 | ||||||
Property, Plant & Equipment | 126,307 | 137,715 | ||||||
$ | 750,225 | $ | 864,717 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 61,971 | $ | 86,012 | ||||
Accrued expenses | 80,894 | 102,876 | ||||||
Current portion of long-term debt | 762 | 3,192 | ||||||
Total Current Liabilities | 143,627 | 192,080 | ||||||
Long-Term Debt — Less Current Portion | 30,305 | 30,435 | ||||||
Deferred Taxes | 44,729 | 44,628 | ||||||
Other Long-Term Liabilities | 92,613 | 97,557 | ||||||
Shareholders’ Equity | 438,951 | 500,017 | ||||||
$ | 750,225 | $ | 864,717 | |||||
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
February 28, | February 29, | February 28, | February 29, | |||||||||||||
(in thousands, except per share data) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Sales | $ | 163,825 | $ | 184,932 | $ | 341,796 | $ | 358,468 | ||||||||
Cost of sales | 107,049 | 118,697 | 217,044 | 229,371 | ||||||||||||
Gross profit | 56,776 | 66,235 | 124,752 | 129,097 | ||||||||||||
SG&A expenses | 35,941 | 41,113 | 77,523 | 80,754 | ||||||||||||
Other income | 0 | (1,099 | ) | 0 | (1,099 | ) | ||||||||||
Income before interest and income taxes | 20,835 | 26,221 | 47,229 | 49,442 | ||||||||||||
Interest expense, net | 90 | 779 | 143 | 1,506 | ||||||||||||
Income before income taxes and minority interest | 20,745 | 25,442 | 47,086 | 47,936 | ||||||||||||
Income tax expense | 5,290 | 8,583 | 14,247 | 16,538 | ||||||||||||
Minority interest | 392 | 522 | 568 | 1,123 | ||||||||||||
Net income | $ | 15,063 | $ | 16,337 | $ | 32,271 | $ | 30,275 | ||||||||
Net Income Per Share: | ||||||||||||||||
Basic | $ | 0.46 | $ | 0.47 | $ | 0.96 | $ | 0.88 | ||||||||
Diluted | $ | 0.46 | $ | 0.47 | $ | 0.96 | $ | 0.88 | ||||||||
Weighted Average Common Shares Outstanding: | ||||||||||||||||
Basic | 32,802 | 34,488 | 33,620 | 34,429 | ||||||||||||
Diluted | 32,804 | 34,620 | 33,679 | 34,548 |
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||
February 28, | February 29, | February 28, | February 29, | |||||||||||||||
(in thousands) | 2009 | 2008 | 2009 | 2008 | ||||||||||||||
Sales | ||||||||||||||||||
Fluid Management | $ | 72,318 | $ | 76,509 | $ | 154,588 | $ | 148,864 | ||||||||||
Process Solutions | 63,056 | 74,952 | 135,340 | 145,801 | ||||||||||||||
Romaco | 28,451 | 33,471 | 51,868 | 63,803 | ||||||||||||||
Total | $ | 163,825 | $ | 184,932 | $ | 341,796 | $ | 358,468 | ||||||||||
Income (Loss) Before Interest and Income Taxes (EBIT) | ||||||||||||||||||
Fluid Management | $ | 19,553 | $ | 20,970 | $ | 44,193 | $ | 39,418 | ||||||||||
Process Solutions | 4,667 | 7,474 | 11,536 | 15,430 | ||||||||||||||
Romaco | 442 | 2,106 | (1,001 | ) | 3,651 | |||||||||||||
Corporate and Eliminations | (3,827 | ) | (4,329 | ) | (7,499 | ) | (9,057 | ) | ||||||||||
Total | $ | 20,835 | $ | 26,221 | $ | 47,229 | $ | 49,442 | ||||||||||
Depreciation and Amortization | ||||||||||||||||||
Fluid Management | $ | 1,732 | $ | 1,531 | $ | 3,528 | $ | 3,184 | ||||||||||
Process Solutions | 1,691 | 1,686 | 3,376 | 3,355 | ||||||||||||||
Romaco | 500 | 430 | 982 | 882 | ||||||||||||||
Corporate and Eliminations | 132 | 127 | 262 | 349 | ||||||||||||||
Total | $ | 4,055 | $ | 3,774 | $ | 8,148 | $ | 7,770 | ||||||||||
Orders | ||||||||||||||||||
Fluid Management | $ | 55,831 | $ | 74,212 | $ | 140,258 | $ | 157,004 | ||||||||||
Process Solutions | 51,346 | 93,983 | 125,027 | 171,399 | ||||||||||||||
Romaco | 21,119 | 47,795 | 47,844 | 81,508 | ||||||||||||||
Total | $ | 128,296 | $ | 215,990 | $ | 313,129 | $ | 409,911 | ||||||||||
Backlog | ||||||||||||||||||
Fluid Management | $ | 44,086 | $ | 51,097 | $ | 44,086 | $ | 51,097 | ||||||||||
Process Solutions | 100,783 | 138,189 | 100,783 | 138,189 | ||||||||||||||
Romaco | 40,558 | 74,307 | 40,558 | 74,307 | ||||||||||||||
Total | $ | 185,427 | $ | 263,593 | $ | 185,427 | $ | 263,593 | ||||||||||
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 29, | February 28, | February 29, | |||||||||||||
(in thousands) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Operating activities: | ||||||||||||||||
Net income | $ | 15,063 | $ | 16,337 | $ | 32,271 | $ | 30,275 | ||||||||
Depreciation and amortization | 4,055 | 3,774 | 8,148 | 7,770 | ||||||||||||
Other, net | (13,895 | ) | 5,052 | (35,494 | ) | (19,244 | ) | |||||||||
Cash provided by operating activities | 5,223 | 25,163 | 4,925 | 18,801 | ||||||||||||
Investing activities: | ||||||||||||||||
Capital expenditures, net of nominal disposals | (3,667 | ) | (3,830 | ) | (7,044 | ) | (8,755 | ) | ||||||||
Proceeds from sale of facility | 0 | 3,996 | 0 | 3,996 | ||||||||||||
Acquisition of business, net of cash acquired | 0 | (5,061 | ) | 0 | (5,061 | ) | ||||||||||
Cash used by investing activities | (3,667 | ) | (4,895 | ) | (7,044 | ) | (9,820 | ) | ||||||||
Financing activities: | ||||||||||||||||
(Payments) Proceeds of long-term debt, net | (1,213 | ) | 1,897 | (2,195 | ) | 1,136 | ||||||||||
Share repurchases | 0 | 0 | (39,114 | ) | 0 | |||||||||||
Other, net | (1,026 | ) | (351 | ) | (1,757 | ) | 1,543 | |||||||||
Cash (used) provided by financing activities | (2,239 | ) | 1,546 | (43,066 | ) | 2,679 | ||||||||||
Exchange rate impact on cash | (1,529 | ) | 949 | (6,095 | ) | 3,004 | ||||||||||
(Decrease) Increase in cash | (2,212 | ) | 22,763 | (51,280 | ) | 14,664 | ||||||||||
Cash at beginning of period | 74,337 | 108,011 | 123,405 | 116,110 | ||||||||||||
Cash at end of period | $ | 72,125 | $ | 130,774 | $ | 72,125 | $ | 130,774 | ||||||||