EXHIBIT 99.1
BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands except per share data)
Three Months Ended Nine Months Ended
Unaudited Condensed Consolidated Statements of Earnings 9/30/99 9/30/98 9/30/99 9/30/98
Net sales $ 273,240 $ 282,636 $ 749,498 $ 784,694
Interest income 1,294 2,241 4,563 7,154
Other income 1,689 4,878 3,850 7,760
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276,223 289,755 757,911 799,608
Cost of products sold 170,122 173,499 458,648 482,239
Engineering, selling, administrative and other expenses 72,068 81,922 215,123 235,719
Interest expense 2,239 3,163 7,238 8,839
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244,429 258,584 681,009 726,797
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Earnings before income taxes 31,794 31,171 76,902 72,811
Income taxes 13,738 13,715 32,683 32,037
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Net earnings $ 18,056 $ 17,456 $ 44,219 $ 40,774
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Net earnings per share - Basic $ 0.83 $ 0.78 $ 2.02 $ 1.81
Net earnings per share - Diluted $ 0.82 $ 0.77 $ 2.01 $ 1.79
Cash dividends per share $ 0.285 $ 0.275 $ 0.855 $ 0.825
Depreciation included in expense $ 9,677 $ 10,778 $ 29,823 $ 30,148
Amortization included in expense $ 2,493 $ 2,035 $ 7,398 $ 6,475
Average shares outstanding - Basic 21,873 22,279 21,885 22,583
Average shares outstanding - Diluted 21,940 22,536 21,957 22,749
(In thousands)
Nine Months Ended
Unaudited Condensed Consolidated Statements of Cash Flows 9/30/99 9/30/98
Operating Activities
Net earnings $ 44,219 $ 40,774
Provision for depreciation and amortization 37,221 36,623
Increase (decrease) in operating assets and liabilities - net 3,302 (21,615)
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Net cash provided by operating activities 84,742 55,782
Investing Activities
Additions to property, plant and equipment (28,147) (32,177)
Purchases of investments (11,628) (20,941)
Maturities of investments 8,715 8,282
Payments for acquisitions of businesses (4,357) (5,105)
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Net cash used in investing activities (35,417) (49,941)
Financing Activities
Proceeds from short-term notes payable - 37,363
Principal payments on short-term notes payable and other long-term liabilities (7,125) (140,587)
Cash dividends (18,744) (18,551)
Purchases of Common Stock and Class A Common Stock (1,212) (28,234)
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Net cash used in financing activities (27,081) (150,009)
Effect of exchange rate changes on cash and cash equivalents (3,288) (1,306)
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Increase (decrease) in cash and cash equivalents 18,956 (145,474)
Cash and cash equivalents at beginning of year 37,912 196,400
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Cash and cash equivalents at end of period $ 56,868 $ 50,926
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BANDAG, INCORPORATED AND SUBSIDIARIES
(In thousands)
Sept. 30, Dec. 31,
Unaudited Condensed Consolidated Balance Sheets 1999 1998
ASSETS:
Cash and cash equivalents $ 56,868 $ 37,912
Investments 12,634 9,721
Accounts receivable - net 199,821 217,299
Inventories:
Finished products 101,246 96,889
Materials & work-in-process 17,275 14,845
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118,521 111,734
Other current assets 59,967 62,458
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Total current assets 447,811 439,124
Property, plant, and equipment 499,071 503,745
Less accumulated depreciation (296,184) (290,699)
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202,887 213,046
Other assets, net 98,694 103,559
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Total assets $ 749,392 $ 755,729
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LIABILITIES & STOCKHOLDERS' EQUITY:
Accounts payable $ 22,405 $ 38,286
Income taxes payable 28,816 13,704
Accrued employee compensation and benefits 26,150 27,498
Accrued marketing expenses 30,230 37,044
Other accrued expenses 46,600 46,880
Short-term notes payable and current portion of other obligations 4,868 11,497
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Total current liabilities 159,069 174,909
Long-term debt and other obligations 109,097 109,757
Deferred income tax liabilities 4,744 3,766
Stockholders' equity:
Common Stock; $1 par value; authorized - 21,500,000 shares;
Issued and outstanding - 9,085,595 shares in 1999; 9,083,797 in 1998 9,086 9,084
Class A Common Stock; $1 par value; authorized - 50,000,000 shares;
Issued and outstanding - 10,781,892 shares in 1999; 10,824,974 in 1998 10,782 10,825
Class B Common Stock; $1 par value; authorized - 8,500,000 shares;
Issued and outstanding - 2,045,697 shares in 1999; 2,046,577 in 1998 2,046 2,047
Additional paid-in capital 7,353 7,287
Retained earnings 476,602 452,274
Equity adjustment from foreign currency translation (29,387) (14,220)
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Total equity 476,482 467,297
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Total liabilities & stockholders' equity $ 749,392 $ 755,729
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