EXHIBIT 99.1
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
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Dec. 31, Dec. 31,
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Unaudited Condensed Consolidated Balance Sheets 1998 1997
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ASSETS
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Cash and cash equivalents $ 37,912 $ 196,400
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Investments 9,721 1,575
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Accounts receivable - net 217,299 231,648
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Inventories:
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Finished products 96,889 90,228
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Materials & work-in-process 14,845 17,295
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111,734 107,523
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Other current assets 62,458 61,848
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Total current assets 439,124 598,994
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Property, plant, and equipment 503,745 459,446
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Less accumulated depreciation (290,699) (261,846)
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213,046 197,600
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Other assets, net 103,559 103,310
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Total assets $ 755,729 $ 899,904
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LIABILITIES & STOCKHOLDERS' EQUITY:
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Accounts payable $ 38,286 $ 52,100
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Income taxes payable 13,704 20,039
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Accrued employee compensation and benefits 27,498 28,874
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Accrued marketing expenses 37,044 32,608
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Other accrued expenses 46,880 73,195
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Short-term notes payable and current portion of other obligations 11,497 99,726
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Total current liabilities 174,909 306,542
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Long-term debt and other obligations 109,757 123,195
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Deferred income tax liabilities 3,766 6,753
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Stockholders' equity:
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Common stock; $1 par value; authorized - 21,500,000 shares;
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Issued and outstanding - 9,083,797 shares in 1998; 9,751,063 in 1997 9,084 9,751
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Class A Common stock; $1 par value; authorized - 50,000,000 shares;
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Issued and outstanding - 10,824,974 shares in 1998; 11,013,561 in 1997 10,825 11,014
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Class B Common stock; $1 par value; authorized - 8,500,000 shares;
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Issued and outstanding - 2,046,577 shares in 1998; 2,048,785 in 1997 2,047 2,049
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Additional paid-in capital 7,287 6,052
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Retained earnings 452,274 445,887
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Equity adjustment from foreign currency translation (14,220) (11,339)
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Total equity 467,297 463,414
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Total liabilities & stockholders' equity $ 755,729 $ 899,904
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0 0
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands except per share data)
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Three Months Ended Twelve Months Ended
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Unaudited Condensed Consolidated Statements of Earnings 12/31/98 12/31/97 12/31/98 12/31/97
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Net sales $ 274,975 $ 256,015 $1,059,669 $ 822,523
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Gain on sale of marketable equity securities - 95,087 - 95,087
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Other income 4,915 4,781 19,829 14,092
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279,890 355,883 1,079,498 931,702
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Cost of products sold 171,062 150,524 648,366 482,387
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Engineering, selling, administrative and other expenses 80,193 89,921 320,847 243,060
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Interest expense 1,933 2,161 10,772 3,339
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253,188 242,606 979,985 728,786
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Earnings before income taxes 26,702 113,277 99,513 202,916
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Income taxes 8,157 46,377 40,194 80,922
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Net earnings $ 18,545 $ 66,900 $ 59,319 $ 121,994
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Net earnings per share - Basic $ 0.84 $ 2.94 $ 2.64 $ 5.35
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Net earnings per share - Diluted $ 0.84 $ 2.92 $ 2.63 $ 5.33
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Cash dividends per share $ 0.285 $ 0.275 $ 1.110 $ 1.025
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Depreciation included in expense $ 12,621 $ 9,827 $ 42,769 $ 34,576
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Amortization included in expense $ 2,166 $ 1,533 $ 8,641 $ 2,281
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Average shares outstanding - Basic 21,906 22,762 22,471 22,786
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Average shares outstanding - Diluted 22,008 22,893 22,559 22,908
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BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
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Twelve Months Ended
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Unaudited Condensed Consolidated Statements of Cash Flows 12/31/98 12/31/97
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Operating Activities
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Net earnings $ 59,319 $ 121,994
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Depreciation and amortization 51,410 36,857
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Gain on sale of marketable equity securities - (95,087)
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Other (13,903) (23,055)
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Increase (decrease) in operating assets and liabilities - net (12,057) 30,593
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Net cash provided by operating activities 84,769 71,302
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Investing Activities
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Additions to property, plant and equipment (65,375) (42,223)
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Proceeds from the dispositions of property, plant, and equipment 4,128 4,117
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Purchases of investments (20,941) (3,645)
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Maturities of investments 12,795 4,159
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Sale of marketable equity securities - 119,558
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Payments for acquisitions of businesses (17,542) (47,659)
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Net cash provided by (used in) investing activities (86,935) 34,307
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Financing Activities
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Proceeds from short-term notes payable 48,590 11,491
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Proceeds from issuance of long-term debt and other long-term obligations 3,784 100,000
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Principal payments on short-term notes payable and other liabilities (153,273) (18,422)
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Cash dividends (24,867) (23,395)
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Purchases of Common Stock (29,353) (8,643)
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Net cash provided by (used in) financing activities (155,119) 61,031
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Effect of exchange rate changes on cash and cash equivalents (1,203) (1,693)
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Increase (decrease) in cash and cash equivalents (158,488) 164,947
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Cash and cash equivalents at beginning of year 196,400 31,453
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Cash and cash equivalents at end of year $ 37,912 $ 196,400
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