TODD SHIPYARDS CORPORATION ANNOUNCES QUARTERLY FINANCIAL RESULTS FOR JUNE 27,
2004
VIA FACSIMILE CONTACT: SUMMER O'CONNOR
TOTAL PAGES - 3 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 106
SEATTLE, WASHINGTON...July 26, 2004...Todd Shipyards Corporation (the
"Company") announced financial results for the first quarter ended June 27,
2004. For the quarter, the Company reported net income of $1.2 million or
$0.22 per diluted share on revenue of $32.1 million. For the prior year first
quarter ended June 29, 2003, the Company reported a net loss of $2.2 million
or $(0.42) per diluted share on revenue of $21.1 million.
The Company's first quarter revenue of $32.1 million reflects an increase of
$11.0 million (52%) from the same period of fiscal year 2004. The quarter-to-
quarter increase is primarily attributable to higher Navy work volumes. This
increase was partially offset by lower volumes of US Coast Guard work and
other commercial ship repair activity. Also, in the first quarter of fiscal
year 2005, the Company did a significant amount of work under the AOE contract
that was associated with the transfer of these vessels from active Navy
service. The end of these ships' active Navy role will ultimately result in
the discontinuation of the Company's work under the current AOE contract.
For the quarter ended June 27, 2004, the Company reported operating income of
$1.7 million. In the prior year quarter ended June 29, 2003, the Company
reported an operating loss of $3.7 million. The increase in operating income
for the first quarter of fiscal year 2005 from levels reported in the first
quarter of fiscal year 2004 is attributable to the above mentioned increase in
Navy work volumes, as well as the $2.5 million charge that was recorded in the
first quarter of fiscal year 2004 related to the unanticipated bankruptcy of
one of the Company's former workers compensation carriers.
The Company reported investment and other income of $0.2 million and $0.3
million for the quarters ended June 27, 2004 and June 29, 2003, respectively.
For the quarter ended June 27, 2004, the Company reported income before income
taxes of $1.9 million and recorded $0.7 million in federal income tax expense,
resulting in net income reported for the period of $1.2 million. In the prior
year period ended June 29, 2003, the Company reported a loss before income
taxes of $3.4 million and recorded $1.2 million federal income tax benefit,
resulting in a net loss for the period of $2.2 million.
In the first quarter of fiscal year 2005, the Company was awarded a new five
year contract with the United States Navy to provide long term maintenance on
the NIMITZ CLASS aircraft carriers (CVN) home ported in Puget Sound.
The results of operations are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Periods ended June 27, 2004 and June 29, 2003
(in thousands of dollars, except per share data)
Quarter Ended
06/27/04 06/29/03
Revenue $ 32,095 $21,138
Operating expenses:
Cost of revenue 21,387 17,608
Administrative and manufacturing
overhead expenses 9,016 7,418
Other - insurance settlements (17) (168)
Total operating expenses 30,386 24,858
Operating income (loss) 1,709 (3,720)
Investment and other income 186 315
Gain on sales of
available-for-sale securities - 18
Income (loss) before income taxes 1,895 (3,387)
Income tax (expense) benefit (673) 1,167
Net income (loss) $ 1,222 $ (2,220)
Income (loss) per common share:
Diluted $ 0.22 $ (0.42)
Number of shares used in the
calculation of earnings per share
(thousands) 5,638 5,268
A copy of the Company's financial statements for the quarter ended June 27,
2004 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.
06/27/04 03/28/04
(Unaudited)
ASSETS
Cash and cash equivalents $ 2,713 $ 1,328
Securities available-for-sale 30,170 30,682
Accounts receivable, net 9,140 7,630
Insurance Receivable - current 13,500 13,500
Other current assets 12,909 17,690
Total Current Assets 68,432 70,830
Property, plant and equipment, net 28,546 28,244
Deferred pension asset 28,683 28,725
Insurance receivable 15,595 15,748
Other long term assets 3,899 4,355
Total Assets $145,155 $147,902
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and
accruals including taxes payable $13,548 $17,012
Environmental and other reserves -
Current 13,500 13,500
Other current liabilities 4,279 3,956
Total Current Liabilities 31,327 34,468
Environmental and other reserves 18,232 18,511
Accrued postretirement benefits 15,685 15,791
Other non-current liabilities 7,994 7,761
Total Liabilities 73,238 76,531
Total stockholders' equity 71,917 71,371
Total liabilities and
stockholders' equity $145,155 $147,902
A copy of the Company's financial statements for the quarter ended June 27,
2004 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.