Exhibit 99.1
1400 Union Meeting Road
Blue Bell, PA 19422
Phone: 215-619-2700
Stockholder Contacts:
Stephen E. Markert, Jr. of C&D: 215-619-7835
Joseph Crivelli of Gregory FCA, for C&D: 610-642-8253
For immediate release
C&D Technologies Reports Financial Results
for First Quarter Fiscal 2006
BLUE BELL, PA, June 7, 2005 -- C&D Technologies, Inc. (NYSE: CHP), a leading
North American producer and marketer of electrical power storage and conversion
products used in telecommunications and industrial applications, today announced
financial results for the first quarter ended April 30, 2005. For the quarter,
the company lost $1.7 million, or seven cents per share, including one time
costs for executive severance and associated chief executive officer search fees
which negatively impacted first quarter operating results by $2.4 million on a
pre-tax basis, or six cents per share. The one cent loss from operations fell
within the guidance provided by the company in March of this year. The loss for
the quarter compares to net income of $2.0 million, or eight cents per share, in
the prior year's first quarter. Net sales for the quarter were $122.8 million, a
43% increase from the prior year's first quarter sales of $85.8 million,
primarily attributable to companies acquired during fiscal 2005.
George MacKenzie, interim president and chief executive officer of the company,
said, "The entire C&D team continues to be intensely focused on addressing and
correcting the operational issues that contributed to our recent sub-par
financial performance. To that end, we are both ensuring we have necessary
staffing in place at key locations and evaluating the effectiveness of certain
internal processes. Additionally, we are dealing with increased lead costs
through both selective price increases and prudent hedging of a portion of our
future lead requirements."
C&D Technologies' fiscal 2006 first quarter operating results from its reporting
segments were as follows:
Standby Power - Sales were $60.5 million in the first quarter, down slightly
from $60.9 million in the prior year's first quarter. The government, cable TV
and mobility markets were strong during the first quarter, while the UPS,
telecom and control markets were modestly weaker than the prior year. Operating
income for the segment decreased to $2.2 million from $5.4 million in the first
quarter of fiscal 2005, reflecting higher raw material costs (principally lead)
of $2.3 million and increased G&A expense relating to the segment's share of
executive severance costs of $898,000 mentioned above.
Power Electronics - Sales increased 333% to $48.4 million from $11.2 million in
the prior year's first quarter. Companies acquired during fiscal 2005 (Celab,
Datel and CPS) contributed revenues of $37.5 million during the quarter. For the
legacy Power Electronics business, sales declined 2.9%, to $10.9 million, from
$11.2 million in the first quarter of fiscal 2005. The operating loss for this
segment during the first quarter of $918,000 included $709,000 of its portion of
executive severance costs mentioned above. This compares to an operating profit
of $291,000 in the first quarter of fiscal 2005.
Motive Power - Sales increased slightly in the first quarter to $13.9 million
from $13.7 million in the prior year's first quarter. Nonetheless, the
division's operating loss increased to $2.4 million, from $1.8 million in last
year's first quarter, primarily reflecting higher raw material costs of $506,000
and its allocated share of $471,000 for the executive severance costs.
In commenting on the outlook for the second quarter, Mr. MacKenzie indicated,
"our backlog improved in all three of our business segments. Most notably, the
Standby Power Division experienced increased orders from customers in UPS, cable
television as well as telecommunications markets. Company-wide, we are working
to improve overall customer satisfaction and continuing to emphasize better
execution in order to address those issues that hindered our recent financial
performance. As a result, the second quarter is anticipated to reflect a slight
improvement in sales, along with better bottom line results, and we believe that
second quarter earnings will be in the range of one to three cents per share,
assuming lead pricing remains stable during the quarter."
C&D Technologies will hold a conference call on Wednesday, June 8, 2005 at 8:30
AM Eastern Daylight Time to discuss these results. To participate, please call
706-679-4521 approximately five minutes before the conference call start time. A
replay of the conference call will be available at approximately 2:00 PM and
will remain available until midnight on Wednesday, June 22, 2005. Please call
800-642-1687 (706-645-9291 for international callers) and enter pin number
6894212 to access the replay.
A simultaneous webcast of the conference call may be accessed at the investor
relations section of our website at http://www.cdtechno.com. To listen to the
live call, please go to the web site at least 15 minutes early to register,
download and install any necessary audio software. An archive of the conference
call will be available approximately two hours after the conference call ends
and will remain available on the company's website until Wednesday, June 22,
2005.
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(In thousands, except for per share data)
(Unaudited)
Three months ended
April 30,
Summary of operations 2005 2004
---- ----
Net sales $122,821 $85,805
Gross profit 21,751 16,541
Selling, general and
administrative expenses 16,679 10,034
Research and development
expenses 6,213 2,669
Operating (loss) income (1,141) 3,838
(Loss) income before income taxes
and minority interest (3,459) 2,991
(Loss) income before minority
interest (1,808) 1,884
Net (loss) income (1,709) 2,004
Basic (loss) earnings per share (0.07) 0.08
Diluted (loss) earnings per share (0.07) 0.08
Weighted average shares
outstanding:
Basic 25,346 25,399
Diluted 25,346 25,585
Other financial data
Operating cash flow 2,673 2,628
Depreciation and amortization 6,098 5,517
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION (CONT.)
(Dollars in thousands)
(Unaudited)
Selected Balance April 30, January 31,
Sheet data 2005 2005
---- ----
Total cash $ 21,720 $ 26,855
Total assets 479,907 481,408
Total debt 134,839 136,878
Total equity 207,474 209,328