Exhibit 99.3
VIA FACSIMILE CONTACT: WALTER L. REESE
TOTAL PAGES-4 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 454
SEATTLE, WASHINGTON...October 23, 2002...Todd Shipyards Corporation (the
"Company") announced financial results for the second quarter ended September
29, 2002. For the quarter, the Company reported net income of $2.0 million or
$0.36 per diluted share on revenue of $40.6 million. For the six month period
then ended, the Company reported net income of $4.3 million or $0.77 per
diluted share on revenue of $89.8 million. In the prior year second quarter
ending September 30, 2001, the Company reported net income of $3.0 million or
$0.43 per diluted share on revenue of $31.0 million. For the six month period
then ended, the Company reported net income of $4.8 million or $0.58 per
diluted share on revenue of $62.3 million. Per share calculations for the
second quarter and first six month period ended September 29, 2002 were
impacted favorably by the Company's Dutch Auction share repurchase of 4.1
million shares of its common stock during the second quarter of the prior
fiscal year.
The Company's second quarter revenue of $40.6 million reflects an increase of
$9.6 million (31%) from fiscal year 2002 second quarter levels. Fiscal year
2003 six month revenue of $89.8 million reflects an increase of $27.5 million
(44%) from the comparable prior year period. Revenue increases for the second
quarter and first six months ending September 29, 2002 are primarily due to
the simultaneous execution of repair and overhaul work under the Company's
three U.S. Navy phased maintenance contracts.
For the second quarter ending September 29, 2002, the Company reported
operating income of $2.7 million, an increase of 27% from operating income of
$2.2 million reported during the comparable prior year period. For the six
month period then ended, the Company reported operating income of $6.0
million, an increase of 48% from operating income of $4.0 million reported
during the comparable prior year six month period. Increases in operating
income from levels reported in the second quarter and first six months of
fiscal year 2002, are primarily attributable to the significant increase in
U.S. Navy repair and overhaul volumes experienced during the first quarter and
to a lesser extent during the second quarter of fiscal year 2003.
For the second quarter and first six months ending September 29, 2002, the
Company reported net gains on the sale of available-for-sale securities,
investment income and other income of $0.3 million and $0.6 million,
respectively. During the same periods ending September 30, 2001, the Company
reported net gains on the sale of available-for-sale securities, investment
income and other income of $2.4 million and $3.3 million, respectively. The
decrease in fiscal year 2003 investment and other income from prior year
levels primarily reflects the reduction in funds available for investment
purposes following the above mentioned Dutch Auction share repurchase, as well
as lower investment yields generally available in the market.
In the second quarter and first six months ending September 29, 2002, the
Company recorded $1.1 million and $2.3 million, respectively, in federal
income tax expense. During the same periods ending September 30, 2001, the
Company recorded $1.6 million and $2.6 million respectively, in federal income
tax expense.
Subsequent to the close of the second quarter, the Puget Sound Metal Trades
Council (the bargaining umbrella for all unions at Todd Pacific Shipyards) and
Todd Pacific Shipyards reached an agreement on a new collective bargaining
agreement. The Todd Pacific Shipyards eligible workforce ratified the
agreement on October 22, 2002. The parties had been operating under an
extension of the old agreement, which expired on July 31, 2002. The new three
year agreement, effective retroactively to August 1, 2002, includes an annual
3.5% wage and fringe benefit increase.
The Company also announced that subsequent to the second quarter, the Board of
Directors approved a new plan authorizing the repurchase of up to 500,000
shares of the Company's common stock from time to time in open market or
negotiated transactions. Under this plan to date, the Company has repurchased
an aggregate of 10,000 shares in open market purchases.
The results of operations are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Periods ended September 29, 2002 and September 30, 2001
(in thousands of dollars, except per share data)
Quarter Ended Six Months Ended
09/29/02 09/30/01 09/29/02 09/30/01
Revenue $ 40,583 $31,017 $89,843 $62,259
Operating expenses:
Cost of revenue 28,542 21,720 62,335 42,859
Administrative and manufacturing
overhead expenses 9,298 7,595 21,650 15,830
Provision for environmental
reserve - (465) (125) (465)
Total operating expenses 37,840 28,850 83,860 58,224
Operating income 2,743 2,167 5,983 4,035
Investment and other income 312 333 609 1,234
Gain on sales of
available-for-sale securities 2 2,089 31 2,109
Income before income taxes 3,057 4,589 6,623 7,378
Income tax expense (1,084) (1,618) (2,344) (2,605)
Net income $1,973 $2,971 $4,279 $4,773
Net income per common share: $0.36 $0.43 $0.77 $0.58
Diluted
Number of shares used in the
calculation of diluted earnings
per share (thousands) 5,556 6,964 5,559 8,240
A copy of the Company's financial statements for the quarter ended September
29, 2002 will be filed with the Securities & Exchange Commission as part of
its quarterly report on Form 10-Q. The Company's Form 10-Q should be read in
conjunction with this earnings report.
TODD SHIPYARDS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
September 29, 2002 and March 31, 2002
(in thousands of dollars)
09/29/02 03/31/02
(Unaudited)
ASSETS
Cash and cash equivalents $ 7,553 $17,795
Securities available-for-sale 26,917 13,841
Accounts receivable, net 15,335 15,824
Other current assets 7,810 7,691
Total Current Assets 57,615 55,151
Property, plant and equipment, net 16,127 16,595
Deferred pension asset 30,623 30,823
Insurance receivable 28,736 26,798
Other long term assets 4,369 4,313
Total Assets $137,470 $133,680
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and
accruals including taxes payable $12,508 $14,908
Other current liabilities 3,700 2,864
Total Current Liabilities 16,208 17,772
Environmental and other reserves 30,053 28,467
Accrued postretirement benefits 17,104 17,404
Other non-current liabilities 4,156 4,040
Total Liabilities 67,521 67,683
Total stockholders' equity 69,949 65,997
Total liabilities and
stockholders' equity $137,470 $133,680
A copy of the Company's financial statements for the quarter ended September
29, 2002 will be filed with the Securities & Exchange Commission as part of
its quarterly report on Form 10-Q. The Company's Form 10-Q should be read in
conjunction with this earnings report.