Exhibit 99.1
For Immediate Release
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Thursday, May 6, 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 2010 First Quarter Operating Results
(unaudited)
Pittsburgh, PA, - Thursday May 6, 2010 - Portec Rail Products, Inc. (NASDAQ
Global Market -"PRPX") today announced unaudited net income of $457,000 or $0.05
per share for the three months ended March 31, 2010, compared to unaudited net
income of $1,136,000 or $0.12 per share for the three months ended March 31,
2009. First quarter 2010 results include a charge of $0.10 per share for
transaction costs associated with the merger agreement with L.B. Foster Company,
which was announced on February 17, 2010. Net sales increased 5% to $23.3
million for the first quarter 2010, compared to $22.2 million for the first
quarter 2009. Per share values are shown as average basic and diluted shares
outstanding of 9.6 million for all periods.
Richard J. Jarosinski, President and Chief Executive Officer said, "Excluding
merger-related costs incurred during the quarter, our financial results were
driven by solid performances from our track component, friction management and
load securement product groups. Our Shipping Systems Division, in particular,
which offers our load securement product group, has experienced a significant
turnaround for the quarter. This has been mostly due to the increasing use by
the Class 1 railroads of revenue-ready railcars being put back into service to
meet the higher car loading demands over the last few months. We are pleased
with our backlog and order bookings for Salient Systems, and the positioning of
our wayside data management product group going forward. Our United Kingdom
material handling business, which had a very challenging year in 2009 due mostly
to the economic conditions in the UK in general, is off to a good start in 2010
and has had very good quoting activity."
Mr. Jarosinski concluded, "While our industry conditions in 2010 are not yet
what they were prior to the beginning of the economic downturn in late 2008, we
are seeing some positive signs for North American freight car loading and
intermodal traffic increases as well as international market desire for many of
our friction management and wayside detection products and services. In
addition, we are happy to see the increased level of order activity for our UK
material handling business. These signs are beginning to look very promising for
our business units."
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. 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 also 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, 2009 under the heading "Cautionary
Statement Relevant to Forward-looking Statements." 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
March 31
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2010 2009
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(Unaudited)
Net sales $ 23,327 $ 22,164
Cost of sales 14,828 14,891
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Gross profit 8,499 7,273
Selling, general and administrative 6,909 5,380
Amortization expense 310 253
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Operating income 1,280 1,640
Interest expense 64 74
Other expense, net 473 15
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Income before income taxes 743 1,551
Provision for income taxes 286 415
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Net income $ 457 $ 1,136
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Earnings per share - basic and diluted $ 0.05 $ 0.12
Average shares outstanding - basic 9,602,029 9,602,029
Average shares outstanding - diluted 9,609,267 9,602,029
Consolidated Condensed Balance Sheets
(In thousands)
March 31 December 31
2010 2009
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(Unaudited) (Audited)
Assets
Current assets $ 54,030 $ 48,267
Property, plant and equipment, net 10,132 10,260
Goodwill and other intangibles, net 42,898 42,970
Other assets 1,126 1,045
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Total assets $ 108,186 $ 102,542
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Liabilities and Shareholders' Equity
Current liabilities $ 24,278 $ 19,157
Other liabilities and long-term debt obligations 17,527 17,637
Shareholders' equity 66,381 65,748
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Total liabilities and shareholders' equity $ 108,186 $ 102,542
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