Exhibit 99.1
Todd Shipyards Corporation Announces Quarterly Financial Results for December
28, 2003
VIA FACSIMILE CONTACT: DACIA RICHARDSON
TOTAL PAGES - 3 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 106
SEATTLE, WASHINGTON...January 27, 2004...Todd Shipyards Corporation (the
"Company") announced financial results for the third quarter ended December
28, 2003. For the quarter, 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 ended, the Company reported net income of $1.5 million or $0.27 per
diluted share on revenue of $105.9 million. In the prior year third quarter
ended December 29, 2002, the Company reported a net loss of $0.1 million or
($0.02) per diluted share on revenue of $31.8 million. For the nine month
period ended December 29, 2002, the Company reported net income of $4.2
million or $0.75 per diluted share on revenue of $121.7 million.
The Company's third quarter revenue of $40.3 million reflects an increase of
$8.5 million (27%) from the same period last fiscal year. The quarter to
quarter increase is primarily attributable to the relative volumes of Navy
repair and overhaul projects. Revenues for the first nine months of fiscal
year 2004 of $105.9 million reflect a decrease of $15.8 million (13%) from the
comparable fiscal year 2003 period. The decrease in the first nine months of
fiscal year 2004 is primarily attributable to the postponement of scheduled
Navy work during the first quarter due to the deployment of ships in support
of the military operations in Iraq. As the affected Navy ships returned from
active duty, the volume of repair projects for the Navy increased during the
second and third quarters of fiscal year 2004, however aggregate volumes were
lower than the comparable nine month period of fiscal year 2003.
For the quarter ended December 28, 2003, the Company reported operating income
of $1.5 million, an increase of $2.1 million from the prior year period.
Operating income for the third quarter of fiscal year 2004 was unfavorably
impacted by increased dry dock repair and maintenance costs of approximately
$1.5 million. For the third quarter of fiscal year 2003, operating income was
impacted unfavorably by unplanned increases in direct costs associated with
the completion of two fixed price repair and maintenance projects, as well as
a non-recurring charge resulting from the settlement of a portion of the
Company's pension liabilities.
For the nine month period ended December 28, 2003, the Company reported
operating income of $0.4 million, a decrease of $5.0 million from operating
income reported during the comparable prior year period. The decrease in
operating income during the first nine months of fiscal year 2004 from the
prior year is attributable to delays in anticipated Navy repair work which
resulted in lower work volumes for fiscal year 2004, an increase in dry dock
repair and maintenance costs, and a $2.5 million charge during the first
quarter of fiscal year 2004 related to the bankruptcy of one of the Company's
previous workers compensation insurance carriers.
For the three and nine month periods ended 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.
During the same periods 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. Increases
reported in fiscal year 2004 are primarily attributable to accelerated lease
payments received under terms of a lease buyout from one of the Company's
warehouse tenants.
The results of operations are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Periods ended December 28, 2003 and December 29, 2002
(in thousands, except per share data)
Quarter Ended Nine Months Ended
12/28/03 12/29/02 12/28/03 12/29/02
Revenue $40,305 $31,840 $105,876 $121,683
Operating expenses:
Cost of revenue 27,937 25,290 76,637 87,625
Administrative and
manufacturing overhead
expenses 10,872 7,163 29,048 28,813
Other - insurance settlements (22) - (226) (125)
Total operating expenses 38,787 32,453 105,459 116,313
Operating income (loss) 1,518 (613) 417 5,370
Investment and other income 952 319 1,501 928
Gain on sales of
available-for-sale securities 207 134 393 165
Income (loss) before income taxes 2,677 (160) 2,311 6,463
Income tax (expense) benefit (941) 43 (815) (2,301)
Net income (loss) $ 1,736 $ (117) $ 1,496 $ 4,162
Net income (loss) per common share:
Diluted $ 0.31 $ (0.02) $ 0.27 $ 0.75
Number of shares used in the
calculation of diluted
earnings per share (thousands) 5,624 5,281 5,580 5,557
A copy of the Company's financial statements for the quarter ended December
28, 2003 is being 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 28, 2003 and March 30, 2003
(in thousands)
12/28/03 03/30/03
ASSETS
Cash and cash equivalents $ 946 $ 9,053
Securities available-for-sale 32,751 32,126
Accounts receivable, net 11,410 8,250
Other current assets 18,678 8,953
Total Current Assets 63,785 58,382
Property, plant and equipment, net 25,094 16,634
Deferred pension asset 28,937 29,709
Insurance receivable 30,756 32,427
Other long term assets 4,383 4,428
Total Assets $152,955 $141,580
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and
accruals, including taxes payable $22,988 $14,500
Line of credit 3,993 -
Other current liabilities 1,803 1,357
Total Current Liabilities 28,784 15,857
Environmental and other reserves 33,432 35,055
Accrued postretirement benefits 15,988 16,588
Other non-current liabilities 5,323 4,546
Total Liabilities 83,527 72,046
Total stockholders' equity 69,428 69,534
Total liabilities and
stockholders' equity $152,955 $141,580
A copy of the Company's financial statements for the quarter ended December
28, 2003 is being 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.