Todd Shipyards Corporation Announces Quarterly Financial Results for October 3, 2004
VIA FACSIMILE CONTACT: SUMMER O'CONNOR
TOTAL PAGES - 3 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 106
SEATTLE, WASHINGTON...November 4, 2004...Todd Shipyards Corporation (the "Company") announced financial results for the second quarter ended October 3, 2004. In accordance with the Company's policy of ending its fiscal year on the Sunday nearest March 31, the Company's fiscal year 2005 will end on April 3, 2005 and include 53 weeks. Accordingly, the Company's quarter ending October 3, 2004 contains 14 weeks rather than the 13 week duration of the prior quarterly periods to which this year's second quarter results are compared.
For the quarter, the Company reported net income of $2.4 million or $0.43 per diluted share on revenue of $36.6 million. For the six month period then ended, the Company reported net income of $3.7 million or $0.65 per diluted share on revenue of $68.7 million. For the prior year second quarter ended September 28, 2003, the Company reported net income of $2.0 million or $0.35 per diluted share on revenue of $44.4 million. For the six month period then ended, the Company reported a net loss of $0.2 million or ($0.05) per diluted share on revenue of $65.6 million.
The Company's second quarter revenue of $36.6 million reflects a decrease of $7.8 million (17.6%) from the same period last fiscal year. The quarter-to-quarter decrease is primarily attributable to lower Navy volumes related to the transfer of AOE work to MSC, partially offset by increases in other Navy work, and lower volumes of US Coast Guard and commercial ship repair activity. Revenues for the first six months of fiscal year 2005 of $68.7 million reflect an increase of $3.1 million (4.8%) from fiscal year 2004 comparable periods. The increase in the first six months of fiscal year 2005 is attributable tohigher Navy work volumes, partially offset by lower volumes of US Coast Guard and commercial ship repair activity.
For the quarter ended October 3, 2004, the Company reported operating income of $3.2 million. In the prior year quarter ended September 28, 2003, the Company reported operating income of $2.6 million. The increase in operating income for the second quarter of fiscal year 2005 from the second quarter of fiscal year 2004 is attributable to an increase in work for the Navy.
For the six month period then ended, the Company reported operating income of $4.9 million, an increase of $6.0 million from operating income reported during the comparable prior six month period. As previously reported, the increase in operating income during the first six months of fiscal year 2005 is attributable to two factors. First, the above mentioned increase in Navy work volumes. Second, the $2.5 million charge that was recorded in the first quarter of fiscal year 2004 related to the unanticipated bankruptcy of one of the Company's former workers compensation carriers.
For the second quarter and six month periods ending October 3, 2004, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $0.2 million and $0.4 million, respectively. During the same periods ending September 28, 2003, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $0.4 million and $0.7 million, respectively.
For the quarter ended October 3, 2004, the Company recorded $1.0 million in federal income tax expense. During the six month period then ended, the Company recorded $1.7 million in federal income tax expense. During the same periods ended September 28, 2003, the Company recorded $1.0 million in federal income tax expense and a $0.1 million in federal income tax benefit, respectively.
The results of operations are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Periods ended October 3, 2004 and September 28, 2003
(in thousands of dollars, except per share data)
| Quarter Ended | | Six Months Ended |
| 10/03/04 | | 09/28/03 | | 10/03/04 | | 09/28/03 |
| | | | | | | |
Revenues | $36,620 | | $44,433 | | $68,715 | | $65,571 |
| | | | | | | |
Operating expenses: | | | | | | | |
Cost of revenues | 23,978 | | 31,092 | | 45,364 | | 48,700 |
Administrative and manufacturing | | | | | | | |
overhead expenses | 9,323 | | 10,758 | | 18,339 | | 18,176 |
Environmental reserve provision | 125 | | 0 | | 125 | | 0 |
Other - insurance settlements | (38) | | (36) | | (54) | | (204) |
Total operating expenses | 33,388 | | 41,814 | | 63,774 | | 66,672 |
| | | | | | | |
Operating income (loss) | 3,232 | | 2,619 | | 4,941 | | (1,101) |
| | | | | | | |
Investment and other income | 220 | | 234 | | 406 | | 549 |
Gain on sales of | | | | | | | |
available-for-sale securities | (8) | | 168 | | (8) | | 186 |
| | | | | | | |
Income (loss) before income taxes | 3,444 | | 3,021 | | 5,339 | | (366) |
Income tax (expense) benefit | (1,014) | | (1,041) | | (1,687) | | 126 |
| | | | | | | |
Net income (loss) | $2,430 | | $1,980 | | $3,652 | | ($240) |
| | | | | | | |
Net income (loss) per Common Share: | | | | | | | |
Diluted | $0.43 | | $0.35 | | $0.65 | | ($0.05) |
| | | | | | | |
Number of shares used in the | | | | | | | |
calculation of earnings per share | | | | | | | |
(thousands) | 5,626 | | 5,586 | | 5,632 | | 5,286 |
A copy of the Company's financial statements for the quarter and six-months ended October 3, 2004 will be filed with the Securities & Exchange Commission as part of its quarterly report on Form 10-Q. This earnings report should be read in conjunction with the Company's Form 10-Q .
TODD SHIPYARDS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
October 3, 2004 and March 28, 2004
(in thousands of dollars)
| 10/03/04 | | 03/28/04 |
| (Unaudited) | | (Audited) |
ASSETS | | | |
Cash and cash equivalents | $5,542 | | $1,328 |
Securities available-for-sale | 30,255 | | 30,682 |
Accounts receivable, net | 11,180 | | 7,630 |
Insurance receivable - current | 14,433 | | 13,500 |
Other current assets | 11,142 | | 17,690 |
Total Current Assets | 72,552 | | 70,830 |
| | | |
Property, plant and equipment, net | 27,255 | | 28,244 |
Deferred pension asset | 28,642 | | 28,725 |
Insurance receivable | 14,215 | | 15,748 |
Other long-term assets | 3,771 | | 4,355 |
Total Assets | $146,435 | | $147,902 |
| | | |
LIABILITIES AND | | | |
STOCKHOLDERS' EQUITY | | | |
Accounts payable and | | | |
accruals including taxes payable | $13,386 | | $17,012 |
Environmental and other reserves - current | 14,433 | | 13,500 |
Other current liabilities | 3,416 | | 3,956 |
Total Current Liabilities | 31,235 | | 34,468 |
| | | |
Environmental and other reserves | 17,046 | | 18,511 |
Accrued post retirement benefits | 15,545 | | 15,791 |
Other non-current liabilities | 8,669 | | 7,761 |
Total Liabilities | 72,495 | | 76,531 |
| | | |
Total Stockholders' Equity | 73,940 | | 71,371 |
Total Liabilities and | | | |
Stockholders' Equity | $146,435 | | $147,902 |
A copy of the Company's financial statements for the quarter and six-months ended October 3, 2004 will be filed with the Securities & Exchange Commission as part of its quarterly report on Form 10-Q. This earnings report should be read in conjunction with the Company's Form 10-Q ..
