Exhibit 99.3
TODD SHIPYARDS CORPORATION ANNOUNCES ANNUAL FINANCIAL RESULTS FOR MARCH 30,
2003 AND QUARTERLY DIVIDEND DECLARATION
VIA FACSIMILE CONTACT: DACIA RICHARDSON
TOTAL PAGES - 4 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 106
SEATTLE, WASHINGTON...June 10, 2003...Todd Shipyards Corporation (the
"Company") announced financial results for the fiscal year and fourth quarter
ended March 30, 2003. The Company also announced that at a meeting conducted
on June 6, 2003, its Board of Directors declared a dividend of ten cents
($0.10) per share to be paid quarterly. The Company had previously announced
a dividend of ten cents ($0.10) per share payable on June 23, 2003, to
shareholders of record as of June 2, 2003. The next scheduled dividend of ten
cents ($0.10) per share will be payable on September 23, 2003 to all
shareholders of record as of September 8, 2003 and quarterly thereafter.
For the fiscal year, the Company reported net income of $4.1 million or $0.74
per diluted share on revenue of $151.8 million. For the quarter ended March
30, 2003, the Company reported a net loss of $52 thousand or $0.01 per diluted
share on revenue of $30.1 million. The results for the fourth quarter were
affected by difficulties the Company encountered in completing a fixed priced
project that began late in the third quarter. The unfavorable results on
completing this project reduced pre-tax income for the quarter by
approximately $1.7 million. In addition, fourth quarter results were impacted
unfavorably by a $0.6 million net environmental remediation expense.
In announcing the results, Stephen G. Welch, Chief Executive Officer of Todd
stated "For the second straight quarter, we performed poorly in completing
fixed priced projects. We are working to correct these deficiencies."
In the prior fiscal year ended March 31, 2002, the Company reported net income
of $7.0 million or $1.03 per diluted share on revenue of $121.9 million. For
the quarter ended March 31, 2002, the Company reported net income of $1.1
million or $0.21 per diluted share on revenue of $29.1 million. Per share
calculations for the fiscal year ended March 30, 2003 were impacted favorably
by the Company's share repurchase of 4.1 million shares of its common stock
that occurred during the second quarter of the prior fiscal year.
For the fiscal year ended March 30, 2003 the Company reported income before
income taxes of $6.3 million. For the quarter ended March 30, 2003, the
Company reported a loss before income taxes of $0.1 million. For the fiscal
year and fourth quarter ended March 31, 2002, the Company reported income
before income taxes of $10.9 million and $1.8 million, respectively. The
decrease in income before income taxes for both the fiscal year and fourth
quarter ended March 30, 2003 was primarily attributable to higher than planned
direct costs on several fixed priced projects that began in the third quarter.
The impact of these cost increases, which had no corresponding revenue
associated with them, reduced income before income taxes by $3.7 million and
$1.7 million, respectively, for the fiscal year and quarter ended March 30,
2003. As previously mentioned, the net environmental remediation expense
reduced income before income taxes by $0.6 million for both the fiscal year
and quarter then ending. Also contributing to the full year decrease in
income before income taxes was a non-recurring, non-cash charge of $0.8
million arising from the settlement of a portion of the Company's pension
liabilities. The Company previously reported this pension settlement in its
third quarter results.
The Company's fiscal year 2003 revenue of $151.8 million reflects an increase
of $29.9 million, or 24% from fiscal year 2002 levels, while fourth quarter
revenue of $30.1 million reflects a moderate increase of $1.0 million, or 3%
when compared to fiscal year 2002 fourth quarter results. Revenue increased
for the full year 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. The moderate revenue
increase experienced in the fourth quarter of fiscal year 2003 is primarily
due to the fluctuations in the size and number of bidding opportunities
available to the Company.
For the fiscal year ended March 30, 2003, the Company reported operating
income of $5.1 million. For the quarter then ended, the Company reported an
operating loss of $0.3 million. For the preceding fiscal year and quarter
ended March 31, 2002, the Company reported operating income of $6.9 million
and $1.5 million, respectively. The decline in operating income, as
previously mentioned, was primarily attributable to unplanned increases in
direct costs on several fixed priced projects, the net environmental
remediation expense and the non-cash charge arising from the settlement of a
portion of the Company's pension liabilities.
The Company reported investment and other income of $1.2 million, as well as a
slight net loss on the sale of available-for-sale securities of $9 thousand
for the fiscal year ended March 30, 2003. For the quarter then ended, the
Company had investment and other income of $0.3 million, partially offset by a
net loss on the sale of available-for-sale securities of $0.2 million. In the
prior year period ended March 31, 2002, the Company had investment and other
income, and net gains on the sale of available-for-sale securities of $4.0
million for the fiscal year, and $0.3 million for the fourth quarter. The
decrease in investment and other income, and net gains on the sale of
available-for-sale securities reported for the fiscal year and quarter ended
March 30, 2003 from prior year levels primarily reflects the reduction in
average funds available for investment purposes following the share repurchase
in fiscal year 2002, as well as lower investment yields generally available in
the market.
For the fiscal year ended March 30, 2003 the Company recorded federal income
tax expense of $2.2 million. For the quarter then ended, the Company recorded
a federal income tax benefit of $0.1 million. In the preceding fiscal year
and fourth quarter ended March 31, 2002 the Company recorded $3.9 million and
$0.7 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 March 30, 2003 and March 31, 2002
(in thousands of dollars, except per share data)
Quarter Ended Year Ended
3/30/03 3/31/02 3/30/03 3/31/02
Revenue $ 30,128 29,130 $151,811 $121,945
Operating expenses:
Cost of revenue 21,781 19,925 109,406 84,787
Administrative and manufacturing
overhead expenses 8,019 7,698 36,832 30,721
Provision for environmental reserve 600 - 600 -
Other - Insurance settlements - - (125) (465)
Total operating expenses 30,400 27,623 146,713 115,043
Operating income (loss) (272) 1,507 5,098 6,902
Investment and other income 312 265 1,240 1,816
Gain (loss) on sales of
available-for-sale securities (174) 44 (9) 2,216
Income (loss) before income taxes (134) 1,816 6,329 10,934
Income tax expense (benefit) (82) 695 2,219 3,916
Net income (loss) $(52) $1,121 $4,110 $7,018
Net income (loss) per common share:
Diluted $(0.01) $0.21 $0.74 $1.03
Number of shares used in the
calculation of earnings per share
(thousands) 5,277 5,463 5,553 6,827
A copy of the Company's financial statements for the year ended March 30, 2003
will be filed with the Securities & Exchange Commission as part of its Annual
Report on Form 10-K. The Company's Form 10-K should be read in conjunction
with this earnings report.
TODD SHIPYARDS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Periods ended March 30, 2003 and March 31, 2002
(in thousands of dollars)
Year Ended
3/30/03 3/31/02
ASSETS
Cash and cash equivalents $ 9,053 $17,545
Securities available-for-sale 32,126 13,841
Accounts receivable, net 8,250 15,824
Other 8,953 7,691
Total Current Assets 58,382 54,901
Property, plant and equipment, net 16,634 16,595
Deferred pension asset 29,709 30,823
Insurance receivable 32,427 26,798
Other long term assets 4,428 4,563
Total Assets $141,580 $133,680
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and
accruals including taxes payable $14,667 $14,908
Other 1,357 2,864
Total Current Liabilities 16,024 17,772
Environmental and other reserves 35,055 28,467
Accrued postretirement benefits 16,588 17,404
Other non-current 4,379 4,040
Total Liabilities 72,046 67,683
Total stockholders' equity 69,534 65,997
Total liabilities and stockholders' equity $141,580 $133,680
A copy of the Company's financial statements for the year ended March 30, 2003
will be filed with the Securities & Exchange Commission as part of its Annual
Report on Form 10-K. The Company's Form 10-K should be read in conjunction
with this balance sheet information.