VIA FACSIMILE
CONTACT: CAROL LOUIE DRUXMAN
SHAREHOLDER RELATIONS
(206)623-1635 Ext.106
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SEATTLE, WASHINGTON...October 28, 1999...Todd Shipyards Corporation (the
"Company") announced financial results for the second quarter ended October
3, 1999. For the quarter, the Company reported net income of $2.7 million or
$0.27 per diluted share on revenue of $33.1 million. For the six month period
then ended, the Company reported net income of $4.5 million or $0.45 per
diluted share on revenue of $62.9 million. In the prior year second quarter
ending September 27, 1998, the Company reported net income of $0.4 million or
$0.04 per diluted share. For the six month period then ended, the Company
reported net income of $0.1 million or $0.01 per diluted share on revenue of
$46.5 million.
The Company's second quarter revenue of $33.1 million reflects an increase of
$13.6 million (70%) from 1999 fiscal year second quarter levels. Fiscal year
2000 six month revenue of $62.9 million reflects an increase of $16.4 million
(35%) from last year. Revenue increases for both the second quarter and year
to date reflect the Company's continued emphasis on commercial and government
repair and overhaul activities. During the second quarter and first six
months, the Company's revenues from commercial and government repair and
overhaul activities increased $16.8 million and 24.9 million, respectively,
while new construction revenue decreased $3.2 million and 8.5 million,
respectively from the comparable prior year periods.
For the second quarter ending October 3, 1999, the Company reported operating
income of $2.1 million. For the six month period then ended, the Company
reported operating income of $3.3 million. In the prior year periods ending
September 27, 1998, the Company reported an operating loss of $0.1 million for
the second quarter and a six month operating loss of $1.0 million. Operating
income results for the second quarter and first six months ending October 3,
1999, are primarily attributable to improved margins on commercial and
government repair and overhaul activities. Operating income results for the
same periods ending September 27, 1998 were due primarily to lower margins
experienced in completing the Jumbo Mark II program.
For the second quarter and first six months ending October 3, 1999, the
Company reported net gains on the sale of available for sale securities,
investment income and other income of $0.7 million and $1.2 million,
respectively. During the same periods ending September 27, 1998, 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.
In the second quarter and first six months ending October 3, 1999, the Company
recorded $40,000 and $80,000, respectively, in federal income tax expense
after applying available business tax credits. During the same periods last
fiscal year the Company did not report taxable income. Accordingly, the
Company did not recognize income tax expense during these periods.
During the quarter ended October 3, the Navy awarded the Company approximately
$25 million in work options on several previously awarded contracts.
Approximately $16 million in awarded work options will be performed on the USS
Carl Vinson at the Puget Sound Naval Shipyard located in Bremerton,
Washington, with the remaining $9 million in work options being performed on
the USS Rainier at the Company's facilities in Seattle.
The results of operations and balance sheet are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Periods ended October 3, 1999 and September 27, 1998
(in thousands of dollars, except per share data)
Quarter Ended Six Months Ended
10/3/99 9/27/98 10/3/99 9/27/98
Revenue $33,136 $19,485 $62,883 $46,481
Operating expenses:
Cost of Revenue 25,174 16,811 47,154 38,401
Administrative and manufacturing
overhead expense 6,687 5,525 14,188 13,510
Contract Reserve (785) (2,795) (1,778) (4,412)
Total operating expenses 31,076 19,541 59,564 47,499
Operating income (loss) 2,060 (56) 3,319 (1,018)
Investment and other income 658 170 1,110 820
Gain on sales
of available-for-sale security 1 315 126 315
Income before income taxes 2,719 429 4,555 117
Income tax expense 40 - 80 -
Net income $2,679 $ 429 $4,475 $ 117
Income per common share: $ 0.27 $0.04 $ 0.45 $0.01
Diluted
Number of shares used in the
calculation of earnings per share
(thousands) 9,810 9,910 9,894 9,910
A copy of the Company's financial statements for the quarter ended October 3,
1999 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
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
Periods ended October 3, 1999 and March 28, 1999
(in thousands of dollars)
Period Ended
10/3/99 3/28/99
ASSETS
Cash and cash equivalents $ 8,619 $ 17,839
Securities available-for-sale 45,201 23,823
Accounts receivable, net 9,866 33,348
Other 13,101 5,806
Total Current Assets 76,787 80,816
Property, plant and equipment, net 17,900 19,026
Deferred pension asset 25,982 24,782
Other 4,862 4,832
Total Assets $125,531 $129,456
LIABILITIES AND
STOCKHOLDERS EQUITY
Accounts payable and accruals
including tax $ 14,042 $ 17,489
Other 2,878 5,771
Total Current Liabilities 16,920 23,260
Environmental reserves 14,122 14,416
Accrued postretirement benefits 20,392 20,692
Total Liabilities 51,434 58,368
Total stockholders equity 74,097 71,088
Total liabilities and
stockholders equity $125,531 $129,456
A copy of the Company's financial statements for the quarter ended October 3,
1999 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.