Exhibit 99.1
For Immediate Release
Monday, March 15, 2010
For further information contact
Richard J. Jarosinski
President and Chief Executive Officer
Portec Rail Products, Inc.
(412) 782-6000, ext. 4230
Press Release
Portec Rail Products, Inc. Reports 2009 Fourth Quarter and Annual Operating
Results (unaudited)
PITTSBURGH, PA - Monday, March 15, 2010 - Portec Rail Products, Inc. (NASDAQ
Global Market -"PRPX") today announced unaudited net income of $1,443,000 or
$0.15 per share for the fourth quarter ended December 31, 2009, and unaudited
net income of $6,805,000 or $0.71 per share for the year ended December 31,
2009. These amounts compare to unaudited net income of $1,515,000 or $0.16 per
share for the fourth quarter ended December 31, 2008 and unaudited net income of
$7,779,000 or $0.81 per share for the year ended December 31, 2008. Per share
values are shown as average basic and diluted shares outstanding of 9.6 million
for all periods. Net sales during the fourth quarter 2009 were $19.2 million,
compared to $24.3 million during the fourth quarter 2008. Net sales for the year
ended December 31, 2009 were $92.2 million compared to net sales of $109.0
million for the year ended December 31, 2008.
Richard J. Jarosinski, President and Chief Executive Officer, said, "We believe
that our financial results for the fourth quarter and full year 2009 are
respectable, considering that we continued to operate in a very challenging
economy. During 2009, we succeeded in significantly reducing inventory levels
and generated good operational cash flow. During the fourth quarter, we also
recognized income tax benefits of $0.02 per share related primarily to the
recapture of research and development credits from prior years, and we continued
to benefit from a lower interest rate environment. We also developed new product
and service features for further expansion of our friction management product
group and positioned the company in new markets like China."
Portec Rail Products, Inc., headquartered in Pittsburgh, Pennsylvania,
manufactures, supplies and distributes a broad range of railroad products,
including rail joints, rail anchors and spikes, railway friction management
products, railway wayside data collection and data management systems and load
securement systems. The Company's largest business unit, the Railway Maintenance
Products Division, operates a manufacturing and assembly plant in Huntington,
West Virginia, an engineering and assembly facility in Dublin, Ohio (Salient
Systems), and is also headquartered in Pittsburgh, Pennsylvania. The Company
also has two Canadian subsidiaries, one of which is headquartered near Montreal
with a manufacturing operation in St. Jean, Quebec and the other headquartered
in Vancouver, British Columbia that is a technology and manufacturing facility
(Kelsan Technologies). In addition, the Company sells load securement systems to
the railroad freight car market through its Shipping Systems Division located
near Chicago, Illinois. The Company manufactures railway products and material
handling equipment in the United Kingdom with operations in Leicester, England
and Sheffield, England. Portec Rail Products, Inc.'s web site address is
www.portecrail.com.
The foregoing information contains forward-looking statements. The Company
cautions that such statements are subject to a number of uncertainties. The
Company identifies below important factors that could affect the Company's
financial performance and could cause the Company's actual results for future
periods to differ materially from any opinions or statements expressed with
respect to future periods in any current statements. In particular, the
Company's future results could be affected by a variety of factors, such as
customer demand for our products; competitive dynamics in the North American and
worldwide railroad and railway supply industries; capital expenditures by the
railway industry in North America and worldwide; the development and retention
of sales representation and distribution agreements with third parties;
fluctuations in the cost and availability of raw materials and supplies;
currency rate fluctuations; and exposure to pension liabilities. Additional
cautions regarding forward-looking statements are provided in the Company's Form
10-K for the year ended December 31, 2008 and Form 10-Q for the period ended
September 30, 2009 under the heading "Cautionary Statement Relevant to
Forward-looking Statements." Unaudited information at and for the year ended
December 31, 2009 is subject to adjustment as a result of the year-end audit.
The Company does not undertake, and specifically disclaims, any obligation to
update or revise any forward-looking statement, whether written or oral, that
may be made from time to time by or on behalf of the Company.
Portec Rail Products, Inc.
Consolidated Statements of Income
(In thousands, except share and per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------------------------------------------
2009 2008 2009 2008
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(Unaudited) (Unaudited) (Audited)
Net sales $ 19,242 $ 24,336 $ 92,221 $ 109,017
Cost of sales 12,197 16,305 60,871 73,445
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Gross profit 7,045 8,031 31,350 35,572
Selling, general and administrative 5,355 5,368 21,626 22,635
Amortization expense 310 308 1,116 1,199
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Operating income 1,380 2,355 8,608 11,738
Interest expense 81 165 298 805
Other (income) expense, net (108) (10) (191) (87)
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Income before income taxes 1,407 2,200 8,501 11,020
Provision (benefit) for income taxes (36) 685 1,696 3,241
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Net income $ 1,443 $ 1,515 $ 6,805 $ 7,779
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Earnings per share
Basic and diluted $ 0.15 $ 0.16 $ 0.71 $ 0.81
Average basic and diluted shares outstanding 9,602,029 9,602,029 9,602,029 9,601,928
Consolidated Condensed Balance Sheets
(In thousands)
December 31, December 31,
2009 2008
-------------------- -------------------
(Unaudited) (Audited)
Assets
Current assets $ 48,267 $ 44,638
Property, plant and equipment, net 10,260 10,203
Goodwill and other intangibles, net 42,970 41,145
Other assets 1,045 837
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Total assets $ 102,542 $ 96,823
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Liabilities and Shareholders' Equity
Current liabilities $ 19,157 $ 20,832
Other liabilities and long-term debt obligations 17,637 17,815
Shareholders' equity 65,748 58,176
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Total liabilities and shareholders' equity $ 102,542 $ 96,823
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