Todd Shipyards Corporation Announces Quarterly Financial Results for January 2, 2005
VIA FACSIMILE CONTACT: SUMMER O'CONNOR
TOTAL PAGES - 3 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 106
SEATTLE, WASHINGTON...February 8, 2005...Todd Shipyards Corporation (the "Company") announced financial results for the third quarter ended January 2, 2005. 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, although the respective fiscal 2005 and 2004 third quarters were each comprised of 13 week periods, the 9 month period ended January 2, 2005 contained 40 weeks rather than the 39 weeks included in the prior year 9 month period ended December 28, 2003.
For the quarter, the Company reported net income of $1.3 million or $0.24 per diluted share on revenue of $21.4 million. For the nine month period then ended, the Company reported net income of $5.0 million or $0.90 per diluted share on revenue of $90.1 million. For the prior year third quarter ended December 28, 2003, the Company reported net income of $1.7 million or $0.31 per diluted share on revenue of $40.3 million. For the nine month period then ended, the Company reported net income of $1.5 million or $0.27 per diluted share on revenue of $105.9 million.
The Company's third quarter revenue of $21.4 million reflects a decrease of $19.0 million (47.0%) from the same period last fiscal year. The quarter-to-quarter decrease is primarily attributable to lower Navy volumes and less US Coast Guard and commercial ship repair activity. This volume decrease was partially offset by submarine work and high incentive performance fees awarded in the quarter. Revenues for the first nine months of fiscal year 2005 of $90.1 million reflect a decrease of $15.8 million (14.9%) from fiscal year 2004 comparable periods. The decrease in the first nine months of fiscal year 2005 is attributable to lower volumes of Navy, US Coast Guard and commercial ship repair activity partially offset by submarine work for Electric Boat Corporation.
For the quarter ended January 2, 2005 the Company reported operating income of $1.8 million. In the prior year quarter ended December 28, 2003, the Company reported operating income of $1.5 million. The increase in operating income for the third quarter of fiscal year 2005 from the third quarter of fiscal year 2004 is attributable to high incentive performance fees awarded in the quarter and higher margins in all areas of the Company's operations, offset by the overall decrease in volume.
For the nine month period then ended, the Company reported operating income of $6.7 million, an increase of $6.3 million from operating income reported during the comparable prior nine month period. The increase in operating income during the first nine months of fiscal year 2005 is attributable to two factors. First, the margin improvement and incentive performance fees as discussed above. Second, as previously reported, the first quarter of fiscal year 2004 included a $2.5 million charge related to the unanticipated bankruptcy of one of the Company's former workers compensation insurers.
For the third quarter and nine month periods ending January 2, 2005, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $0.2 million and $0.6 million, respectively. During the same periods ending December 28, 2003, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $1.2 million and $1.9 million, respectively.
For the quarter ended January 2, 2005, the Company recorded $0.7 million in federal income tax expense. During the nine month period then ended, the Company recorded $2.4 million in federal income tax expense. During the same periods ended December 28, 2003, the Company recorded $0.9 million and $0.8 million in federal income tax expense, respectively.
The results of operations are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Periods ended January 2, 2005 and December 28, 2003
(in thousands of dollars, except per share data)
| | Quarter Ended | Nine Months Ended |
| | 01/02/05 | | 12/28/03 | | 01/02/05 | | 12/28/03 | |
Revenues | $21,353 | | $40,305 | | $90,068 | | $105,876 | |
| | | | | | | | |
Operating expenses: | | | | | | | | |
Cost of revenues | 11,877 | | 27,937 | | 57,242 | | 76,637 | |
Administrative and manufacturing | | | | | | | | |
overhead expenses | 7,729 | | 10,872 | | 26,067 | | 29,048 | |
Environmental reserve provision | - | | - | | 125 | | - | |
Other - insurance settlements | (32 | ) | (22 | ) | (87 | ) | (226 | ) |
| --------- | | --------- | | --------- | | ---------- | |
Total operating expenses | 19,574 | | 38,787 | | 83,347 | | 105,459 | |
| | | | | | | | |
Operating income | 1,779 | | 1,518 | | 6,721 | | 417 | |
| | | | | | | | |
Investment and other income | 230 | | 952 | | 635 | | 1,501 | |
Gain on sales of | | | | | | | | |
available-for-sale securities | (1 | ) | 207 | | (8 | ) | 393 | |
| ------- | | ------- | | ------- | | ------- | |
Income before income taxes | 2,008 | | 2,677 | | 7,348 | | 2,311 | |
Income tax (expense) | (678 | ) | (941 | ) | (2,366 | ) | (815 | ) |
| -------- | | -------- | | -------- | | -------- | |
Net income | $1,330 | | $1,736 | | $4,982 | | $1,496 | |
| -------- | | -------- | | -------- | | -------- | |
Net income per Common Share: | | | | | | | | |
Diluted | $0.24 | | $0.31 | | $0.90 | | $0.27 | |
| ==== | | ==== | | ==== | | ==== | |
Number of shares used in the | | | | | | | | |
calculation of earnings per share | | | | | | | | |
(thousands) | 5,563 | | 5,624 | | 5,561 | | 5,580 | |
| ==== | | ==== | | ==== | | ==== | |
A copy of the Company's financial statements for the quarter and nine-months ended January 2, 2005 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
January 2, 2005 and March 28, 2004
(in thousands of dollars)
| | 01/02/05 | | 03/28/04 | |
| | (Unaudited | ) | (Audited | ) |
ASSETS | | | | |
Cash and cash equivalents: | $ 1,425 | | $ 1,328 | |
Securities available-for-sale | 33,904 | | 30,682 | |
Accounts receivable, net | 13,053 | | 7,630 | |
Insurance receivable - current | 12,145 | | 13,500 | |
Other current assets | 7,696 | | 17,690 | |
| --------- | | --------- | |
Total Current Assets | 68,223 | | 70,830 | |
| | | | | |
Property, plant and equipment, net | 27,181 | | 28,244 | |
Deferred pension asset | 28,601 | | 28,725 | |
Insurance receivable | 13,868 | | 15,748 | |
Other long-term assets | 3,803 | | 4,355 | |
| | ------------ | | ----------- | |
Total Assets | $141,676 | | $147,902 | |
| ======= | | ======= | |
| | | | | |
LIABILITIES AND | | | | |
STOCKHOLDERS' EQUITY | | | | |
Accounts payable and | | | | |
accruals including taxes payable | $ 9,262 | | $ 17,012 | |
Environmental and other reserves - current | 12,145 | | 13,500 | |
Other current liabilities | 4,445 | | 3,956 | |
| ------------ | | ----------- | |
Total Current Liabilities | 25,852 | | 34,468 | |
| | | | | |
Environmental and other reserves | 16,516 | | 18,511 | |
Accrued post retirement benefits | 15,404 | | 15,791 | |
Other non-current liabilities | 8,955 | | 7,761 | |
| ------------ | | ----------- | |
Total Liabilities | 66,727 | | 76,531 | |
| | | | | |
Total Stockholders' Equity | 74,949 | | 71,371 | |
Total Liabilities and | ------------ | | ----------- | |
Stockholders' Equity | $141,676 | | $147,902 | |
| ======= | | ======= | |
A copy of the Company's financial statements for the quarter and nine-months ended January 2, 2005 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 .
