Exhibit 99.3
VIA FACSIMILE CONTACT: WALTER L. REESE
TOTAL PAGES - 4 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 454
SEATTLE, WASHINGTON...January 22, 2003...Todd Shipyards Corporation (the
"Company") announced financial results for the third quarter ended December
29, 2002. For the quarter, the Company reported net income of $0.3 million or
$0.05 per diluted share on revenue of $31.8 million. The results for the
third quarter were affected by performance difficulties the Company
encountered in completing two fixed priced repair and maintenance projects
during the quarter. The poor results on these two projects reduced the
quarter's pre-tax income by approximately $2.0 million. For the nine-month
period ended December 29, 2002, the Company reported net income of $4.6
million or $0.82 per diluted share on revenue of $121.7 million.
In announcing the results, Stephen G. Welch, Chief Executive Officer of Todd
stated "I am extremely disappointed by our third quarter results especially
after the strong first half we experienced this fiscal year. It is
unfortunate that our performance on these two projects had such a dramatic
effect on what would have been an otherwise favorable quarter. We have
identified the factors that caused the poor performance and are working to
correct the deficiencies identified on these projects."
In the prior year third quarter ending December 30, 2001, the Company reported
net income of $1.1 million or $0.21 per diluted share on revenue of $30.6
million. For the nine-month period then ended, the Company reported net
income of $5.9 million or $0.81 per diluted share on revenue of $92.8 million.
Per share calculations for the nine-month period ended December 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 third quarter revenue of $31.8 million reflects an increase of
$1.3 million (4%) from fiscal year 2002 third quarter levels. Fiscal year
2003 nine-month revenue of $121.7 million reflects an increase of $28.9
million (31%) from the comparable prior year period. The moderate revenue
increase for the third quarter is primarily due to the fluctuations in the
size and number of bidding opportunities available to the Company, as well as
the Company's bidding success. Revenue increases for the nine months ending
December 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 that occurred during the first and second quarters.
For the third quarter ending December 29, 2002, the Company reported an
operating loss of $8 thousand, its first in two years. As previously
mentioned, this loss was attributable to performance difficulties completing
two fixed priced repair projects during the quarter, which together reduced
operating income by approximately $2.0 million. During the comparable period
last fiscal year, the Company reported operating income of $1.4 million. For
the nine-month period ended December 29, 2002, the Company reported operating
income of $6.0 million, an increase of $0.6 million from operating income of
$5.4 million reported during the comparable prior year nine-month period.
This increase was primarily attributable to the significant increase in U.S.
Navy repair and overhaul volumes experienced during the first and second
quarters, offset by the performance difficulties reported in the third
quarter.
For the third quarter and nine months ending December 29, 2002, the Company
reported net gains on the sale of available-for-sale securities, investment
income and other income of $0.5 million and $1.1 million, respectively.
During the same periods ending December 30, 2001, the Company reported net
gains on the sale of available-for-sale securities, investment income and
other income of $0.4 million and $3.7 million, respectively. The decrease in
investment and other income for the first nine months of fiscal year 2003 from
the prior year level 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 third quarter and nine months ending December 29, 2002, the Company
recorded $0.2 million and $2.5 million, respectively, in federal income tax
expense. During the same periods ending December 30, 2001, the Company
recorded $0.6 million and $3.2 million respectively, in federal income tax
expense.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
Statements contained in this Release which are not historical facts or
information are "forward-looking statements." Words such as "believe,"
"expect," "intend," "will," "should," and other expressions that indicate
future events and trends identify such forward-looking statements. These
forward-looking statements involve risks and uncertainties, which could cause
the outcome to be materially different than stated. Such risks and
uncertainties include both general economic risks and uncertainties and
matters, which relate directly to the Company's operations and properties and
are discussed in the Company's filings with the Securities & Exchange
Commission. The Company cautions that any forward-looking statement reflects
only the belief of the Company or its management at the time the statement was
made. Although the Company believes such forward-looking statements are based
upon reasonable assumptions, such assumptions may ultimately prove to be
inaccurate or incomplete. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which the statement was made.
The results of operations are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Periods ended December 29, 2002 and December 30, 2001
(in thousands of dollars, except per share data)
Quarter Ended Nine Months Ended
12/29/02 12/30/01 12/29/02 12/30/01
Revenue $31,840 $30,556 $121,683 $92,815
Operating expenses:
Cost of revenue 24,685 22,003 87,020 64,862
Administrative and
manufacturing overhead
expenses 7,163 7,193 28,813 23,023
Provision for environmental reserve - - (125) (465)
Total operating expenses 31,848 29,196 115,708 87,420
Operating income (loss) (8) 1,360 5,975 5,395
Investment and other income 319 317 928 1,551
Gain on sales of
available-for-sale securities 134 63 165 2,172
Income before income taxes 445 1,740 7,068 9,118
Income tax expense (170) (616) (2,514) (3,221)
Net income $ 275 $ 1,124 $ 4,554 $ 5,897
Net income per common share: $ 0.05 $ 0.21 $ 0.82 $ 0.81
Diluted
Number of shares used in the
calculation of diluted
earnings per share (thousands) 5,554 5,388 5,557 7,279
A copy of the Company's financial statements for the quarter ended December
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
December 29, 2002 and March 31, 2002
(in thousands of dollars)
12/29/02 03/31/02
(Unaudited)
ASSETS
Cash and cash equivalents $ 13,944 $17,795
Securities available-for-sale 26,587 13,841
Accounts receivable, net 9,350 15,824
Other current assets 5,033 7,691
Total Current Assets 54,914 55,151
Property, plant and equipment, net 16,271 16,595
Deferred pension asset 30,523 30,823
Insurance receivable 28,129 26,798
Other long term assets 4,388 4,313
Total Assets $134,225 $133,680
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and
accruals including taxes payable $10,823 $14,908
Other current liabilities 2,519 2,864
Total Current Liabilities 13,342 17,772
Environmental and other reserves 29,977 28,467
Accrued postretirement benefits 16,954 17,404
Other non-current liabilities 3,968 4,040
Total Liabilities 64,241 67,683
Total stockholders' equity 69,984 65,997
Total liabilities and stockholders' equity $134,225 $133,680
A copy of the Company's financial statements for the quarter ended December
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.