Exhibit 19
INVESTOR CONTACT:
FREDERICK C. FLYNN, JR.
203/238-8847
FFLYNN@CUNO.COM
FEBRUARY 19, 2003
FOR IMMEDIATE RELEASE
CUNO REPORTS RECORD FIRST QUARTER RESULTS
- Record first quarter Sales of $66.4 million (up 13%)
- Record first quarter diluted EPS of $0.32 (up 19%)
- Record first quarter Operating Margin of 12.5%
- Record first quarter Orders of $67.4 million
Meriden, CT: CUNO Incorporated (Nasdaq:CUNO) today reported record first
quarter results for the period ended January 31, 2003. Sales were $66.4 million,
up 13% versus the same period in 2002 and up 11% in local currency. Net income
for the first quarter increased by 19% to $5.4 million from $4.5 million
reported in the same period in 2002. Diluted earnings per share for the period
were a first quarter record $0.32, up 19% compared to $0.27 in the prior year
period.
Commenting on the Company's first quarter results, Mark G. Kachur,
Chairman and Chief Executive Officer, said "Our record first quarter results
reflect the strength and resilience of our business model, particularly
considering the current business environment. We achieved double-digit sales
growth in all three of our businesses - Potable Water, Healthcare and Fluid
Processing - and also benefited from our ongoing
cost management initiatives. In addition, the Company's geographic diversity
contributed to our strong results, as international sales increased by 21% (up
15% in local currency), led by strong growth in Europe and the Asia/Pacific
region."
Commenting on business conditions and the outlook for CUNO, Mr. Kachur
added, "Our incoming orders were a first quarter record $67.4 million and our
backlog remains strong. As a result, despite the likelihood of continued weak
business conditions in the U.S. and Japan, we expect to achieve strong financial
results in fiscal 2003, and remain comfortable with our previous EPS guidance in
the $1.50-$1.56 range for the year." A conference call will be held THURSDAY,
FEBRUARY 20 AT 10:00 A.M. (EST) to review the Company's first quarter financial
results and business outlook. The call-in number is 1/888/273-9890 for
interested analysts and investors. Alternatively, visit us at
www.cuno.com/investors for a live webcast of our conference call. Also, visit us
at www.cuno.com for additional information about the Company.
CUNO is a world leader in the design, manufacture and marketing of a
comprehensive line of filtration products for the separation, clarification and
purification of liquids and gases. CUNO's products, which include proprietary
depth filters and semi-permeable membrane filters, are used in the potable
water, healthcare, and fluid processing markets.
CUNO wants to provide shareowners and prospective investors with more
meaningful and useful information and, therefore, this press release includes
various comments regarding business conditions and the outlook for CUNO, which
reflect currently available information. These forward-looking statements are
subject to risks and uncertainties which could cause performance or actual
results to differ materially from those expressed herein. Such risks and
uncertainties include, among other things: volumes of shipments of CUNO's
products; changes in product mix and product pricing; costs of raw materials;
the rate of economic and industry growth in the U.S. and the other countries in
which CUNO conducts business; economic and political conditions in the foreign
countries in which CUNO conducts a substantial part of its operations and other
risks associated with international operations including exchange rate
fluctuations; CUNO's ability to protect its technology, proprietary products and
manufacturing techniques; changes in technology; changes in legislative,
regulatory or industrial requirements and risks generally associated with new
product introductions and
applications; and domestic and international competition in CUNO's global
markets. CUNO assumes no obligation to update the information contained in this
press release.
CUNO INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except share amounts)
THREE MONTHS ENDED
JANUARY 31,
2003 2002
--------------- ---------------
Net sales $ 66,437 $ 58,637
Less costs and expenses:
Cost of products sold 36,683 32,467
Selling, general and administrative expenses 17,789 15,888
Research, development and engineering 3,670 3,425
--------------- ---------------
58,142 51,780
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Operating income 8,295 6,857
Nonoperating income (expense):
Interest expense (147) (130)
Other income, net 91 171
--------------- ---------------
(56) 41
--------------- ---------------
Income before income taxes 8,239 6,898
Provision for income taxes 2,851 2,379
--------------- ---------------
Net income $ 5,388 $ 4,519
=============== ===============
Basic earnings per common share $ 0.33 $ 0.28
Diluted earnings per common share $ 0.32 $ 0.27
Basic shares outstanding 16,563,423 16,350,394
Diluted shares outstanding 16,941,155 16,795,713
CUNO INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in thousands)
JANUARY 31, OCTOBER 31,
2003 2002
--------------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 34,762 $ 40,872
Accounts receivable, net 52,029 50,862
Inventories 28,068 26,173
Deferred income taxes 7,870 7,998
Prepaid expenses and other current assets 5,260 4,233
--------------- ------------
Total current assets 127,989 130,138
Noncurrent assets
Deferred income taxes 1,515 1,482
Intangible assets, net 29,686 28,758
Prepaid pension costs 2,498 -
Other noncurrent assets 1,149 1,742
Property, plant and equipment, net 76,696 74,759
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Total assets $ 239,533 $ 236,879
--------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Bank loans $ 14,897 $ 16,374
Accounts payable 16,362 16,256
Accrued payroll and related taxes 9,588 13,633
Other accrued expenses 10,771 10,093
Accrued income taxes 2,246 497
Current portion of long-term debt 715 714
--------------- ------------
Total current liabilities 54,579 57,567
Noncurrent liabilities
Long-term debt, less current portion 2,112 2,030
Deferred income taxes 5,848 5,924
Retirement benefits 5,533 8,945
--------------- ------------
Total noncurrent liabilities 13,493 16,899
STOCKHOLDERS' EQUITY
Preferred Stock - -
Common Stock 17 17
Treasury Stock, at cost (57) (57)
Additional paid-in-capital 48,036 46,375
Unearned compensation (702) (551)
Accumulated other comprehensive loss:
Foreign currency translation adjustments (3,314) (5,533)
Minimum pension liability (5,153) (5,153)
Change in fair value of derivative financial instruments (77) (8)
--------------- ------------
(8,544) (10,694)
Retained earnings 132,711 127,323
--------------- ------------
Total stockholders' equity 171,461 162,413
--------------- ------------
Total liabilities and stockholders' equity $ 239,533 $ 236,879
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