Exhibit 99.1 BANDAG, INCORPORATED AND SUBSIDIARIES (In thousands except per share data) ------------------------------ ------------------------------ Three Months Ended Six Months Ended ------------------------------ ------------------------------ Unaudited Condensed Consolidated Statements of Earnings 6/30/00 6/30/99 6/30/00 6/30/99 Net sales $ 249,116 $ 252,120 $ 473,405 $ 476,258 Interest income 1,393 1,745 2,972 3,269 Other income 2,336 988 4,625 2,161 ------- ------- ------- ------- 252,845 254,853 481,002 481,688 Cost of products sold 154,151 153,328 290,992 288,526 Engineering, selling, administrative and other expenses 66,784 70,994 138,397 143,055 Interest expense 2,050 2,435 4,339 4,999 ------- ------- ------- ------- 222,985 226,757 433,728 436,580 ------- ------- ------- ------- Earnings before income taxes 29,860 28,096 47,274 45,108 Income taxes 12,218 11,970 19,619 18,945 ------- ------- ------- ------- Net earnings $ 17,642 $ 16,126 $ 27,655 $ 26,163 ======= ======= ======= ======= Net earnings per share - Basic $ 0.85 $ 0.74 $ 1.33 $ 1.20 Net earnings per share - Diluted $ 0.85 $ 0.73 $ 1.33 $ 1.19 Cash dividends per share $ 0.295 $ 0.285 $ 0.590 $ 0.570 Depreciation included in expense $ 9,325 $ 10,498 $ 19,217 $ 20,146 Amortization included in expense $ 2,618 $ 2,483 $ 5,128 $ 4,905 Average shares outstanding - Basic 20,735 21,873 20,734 21,890 Average shares outstanding - Diluted 20,796 21,941 20,787 21,964 Exhibit 99.1 (In thousands) --------------------------------- Six Months Ended --------------------------------- Unaudited Condensed Consolidated Statements of Cash Flows 6/30/00 6/30/99 Operating Activities Net earnings $ 27,655 $ 26,163 Provision for depreciation and amortization 24,345 25,051 Increase (decrease) in operating assets and liabilities - net (9,002) 13,992 -------- ------- Net cash provided by operating activities 42,998 65,206 Investing Activities Additions to property, plant and equipment (11,328) (18,153) Purchases of investments (7,835) (6,459) Maturities of investments 4,346 7,238 Payments for acquisitions of businesses (4,607) (1,698) -------- ------- Net cash used in investing activities (19,424) (19,072) Financing Activities Proceeds from issuance of long-term debt - 59 Principal payments on short-term notes payable and other long-term liabilities (503) (6,225) Cash dividends (12,255) (12,475) Purchases of Common Stock and Class A Common Stock (60) (1,196) -------- ------- Net cash used in financing activities (12,818) (19,837) Effect of exchange rate changes on cash and cash equivalents (1,024) (2,854) -------- ------- Increase in cash and cash equivalents 9,732 23,443 Cash and cash equivalents at beginning of year 50,633 37,912 -------- ------- Cash and cash equivalents at end of period $ 60,365 $ 61,355 ======== ======= Exhibit 99.1 BANDAG, INCORPORATED AND SUBSIDIARIES (In thousands) ----------------------------------- June 30, Dec. 31, ----------------------------------- Unaudited Condensed Consolidated Balance Sheets 2000 1999 ASSETS: Cash and cash equivalents $ 60,365 $ 50,633 Investments 12,950 9,461 Accounts receivable - net 181,268 199,710 Inventories: Finished products 105,454 94,278 Materials & work-in-process 16,490 16,244 -------- -------- 121,944 110,522 Other current assets 56,040 57,792 -------- -------- Total current assets 432,567 428,118 Property, plant, and equipment 508,787 502,787 Less accumulated depreciation (318,177) (304,802) -------- -------- 190,610 197,985 Other assets, net 98,289 96,318 -------- -------- Total assets $ 721,466 $ 722,421 ======== ======== LIABILITIES & STOCKHOLDERS' EQUITY: Accounts payable $ 24,967 $ 33,472 Income taxes payable 22,106 18,998 Accrued employee compensation and benefits 22,169 25,530 Accrued marketing expenses 24,882 27,190 Other accrued expenses 43,777 45,823 Short-term notes payable and current portion of other obligations 2,550 3,040 -------- -------- Total current liabilities 140,451 154,053 Long-term debt and other obligations 111,072 111,151 Deferred income tax liabilities 3,290 3,142 Stockholders' equity: Common Stock; $1 par value; authorized - 21,500,000 shares; Issued and outstanding - 9,091,426 shares in 2000; 9,088,403 in 1999 9,091 9,088 Class A Common Stock; $1 par value; authorized - 50,000,000 shares; Issued and outstanding - 9,637,324 shares in 2000; 9,637,187 in 1999 9,637 9,637 Class B Common Stock; $1 par value; authorized - 8,500,000 shares; Issued and outstanding - 2,042,375 shares in 2000; 2,045,251 in 1999 2,042 2,045 Additional paid-in capital 7,524 7,476 Retained earnings 471,591 456,247 Equity adjustment from foreign currency translation (33,232) (30,418) -------- -------- Total equity 466,653 454,075 -------- -------- Total liabilities & stockholders' equity $ 721,466 $ 722,421 ======== ========