EXHIBIT 99.1
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
Dec. 31, Dec. 31,
Unaudited Condensed Consolidated Balance Sheets 1999 1998
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ASSETS:
Cash and cash equivalents $ 50,633 $ 37,912
Investments 9,461 9,721
Accounts receivable - net 199,710 217,299
Inventories:
Finished products 93,696 96,889
Materials & work-in-process 16,826 14,845
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110,522 111,734
Other current assets 57,792 62,458
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Total current assets 428,118 439,124
Property, plant, and equipment 502,787 503,745
Less accumulated depreciation (304,802) (290,699)
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197,985 213,046
Other assets, net 96,318 103,559
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Total assets $ 722,421 $ 755,729
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LIABILITIES & STOCKHOLDERS' EQUITY:
Accounts payable $ 33,472 $ 38,286
Income taxes payable 18,998 13,704
Accrued employee compensation and benefits 25,530 27,498
Accrued marketing expenses 27,190 37,044
Other accrued expenses 45,823 46,880
Short-term notes payable and current portion of other obligations 3,040 11,497
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Total current liabilities 154,053 174,909
Long-term debt and other obligations 111,151 109,757
Deferred income tax liabilities 3,142 3,766
Stockholders' equity:
Common Stock; $1 par value; authorized - 21,500,000 shares;
Issued and outstanding - 9,088,403 shares in 1999; 9,083,797 in 1998 9,088 9,084
Class A Common Stock; $1 par value; authorized - 50,000,000 shares;
Issued and outstanding - 9,637,187 shares in 1999; 10,824,974 in 1998 9,637 10,825
Class B Common Stock; $1 par value; authorized - 8,500,000 shares;
Issued and outstanding - 2,045,251 shares in 1999; 2,046,577 in 1998 2,045 2,047
Additional paid-in capital 7,476 7,287
Retained earnings 456,247 452,274
Equity adjustment from foreign currency translation (30,418) (14,220)
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Total equity 454,075 467,297
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Total liabilities & stockholders' equity $ 722,421 $ 755,729
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BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands except per share data)
Three Months Ended Twelve Months Ended
Unaudited Condensed Consolidated Statements of Earnings 12/31/99 12/31/98 12/31/99 12/31/98
Net sales $ 263,167 $ 274,975 $1,012,665 $1,059,669
Interest income 1,535 1,807 6,098 8,961
Other income 5,265 3,108 9,115 10,868
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269,967 279,890 1,027,878 1,079,498
Cost of products sold 161,278 171,062 619,926 653,301
Engineering, selling, administrative and other expenses 77,512 80,193 292,635 311,707
Non-recurring charges 13,500 -- 13,500 4,205
Interest expense 2,489 1,933 9,727 10,772
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254,779 253,188 935,788 979,985
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Earnings before income taxes 15,188 26,702 92,090 99,513
Income taxes 7,077 8,157 39,760 40,194
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Net earnings $ 8,111 $ 18,545 $ 52,330 $ 59,319
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Net earnings per share - Basic $ 0.38 $ 0.84 $ 2.41 $ 2.64
Net earnings per share - Diluted $ 0.38 $ 0.84 $ 2.40 $ 2.63
Cash dividends per share $ 0.295 $ 0.285 $ 1.150 $ 1.110
Depreciation included in expense $ 14,027 $ 12,621 $ 43,850 $ 42,769
Amortization included in expense $ 2,516 $ 2,166 $ 9,914 $ 8,641
Average shares outstanding - Basic 21,302 21,906 21,707 22,471
Average shares outstanding - Diluted 21,342 22,008 21,764 22,559
(In thousands)
Twelve Months Ended
Unaudited Condensed Consolidated Statements of Cash Flows 12/31/99 12/31/98
Operating Activities
Net earnings $ 52,330 $ 59,319
Provision for depreciation and amortization 53,764 51,410
Increase (decrease) in operating assets and liabilities - net 6,325 (24,121)
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Net cash provided by operating activities 112,419 86,608
Investing Activities
Additions to property, plant and equipment (41,903) (65,375)
Proceeds from dispositions of property, plant, and equipment 3,503 4,128
Purchases of investments (11,784) (20,941)
Maturities of investments 12,044 12,795
Payments for acquisitions of businesses (6,899) (17,542)
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Net cash used in investing activities (45,039) (86,935)
Financing Activities
Proceeds from short-term notes payable 538 48,590
Principal payments on short-term notes payable
and other long-term liabilities (2,717) (151,328)
Cash dividends (25,001) (24,867)
Purchases of Common Stock and Class A Common Stock (25,082) (29,353)
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Net cash used in financing activities (52,262) (156,958)
Effect of exchange rate changes on cash and cash equivalents (2,397) (1,203)
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Increase (decrease) in cash and cash equivalents 12,721 (158,488)
Cash and cash equivalents at beginning of year 37,912 196,400
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Cash and cash equivalents at end of year $ 50,633 $ 37,912
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