Exhibit 19
PRESS RELEASE
INVESTOR CONTACT:
FREDERICK C. FLYNN, JR.
203/238-8847
FFLYNN@CUNO.COM
DECEMBER 15, 2003
FOR IMMEDIATE RELEASE
CUNO REPORTS RECORD FOURTH QUARTER AND FISCAL 2003 RESULTS
- Record fourth quarter Sales of $77.5 million (up 15%) and
record fiscal 2003 Sales of $288.2 million (up 12%)
- Record fourth quarter diluted Earnings Per Share (EPS) of
$0.44 (up 16%) and record fiscal 2003 diluted EPS of $1.58 (up
16%)
- Record fourth quarter and fiscal 2003 Operating Margin of
14.3% and 14.0%, respectively
- Record fourth quarter Orders of $75.9 million (up 11%)
Meriden, CT: CUNO Incorporated (Nasdaq:CUNO) today reported record results
for the fourth quarter ended October 31, 2003 including sales of $77.5 million,
up 15% from $67.5 million (up 9% in local currency) in the
same period in 2002. Net income for the fourth quarter increased by 19% to $7.6
million from $6.4 million reported in 2002. Diluted EPS for the period were a
record $0.44, up 16% compared to $0.38 in the prior year quarter.
Commenting on the Company's fourth quarter results, Mark G. Kachur,
Chairman and Chief Executive Officer, said "Our strong business mix and
international scope enabled us to achieve record financial results in the fourth
quarter despite sluggish conditions in certain Fluid Processing market segments
in the U.S. Our overall Sales increased 15% (up 9% in local currency), led by
strong growth in our Healthcare and Potable Water businesses. Particularly
strong growth was achieved in Europe and the Asia/Pacific region. In addition,
our New Products continued to be well received, generating $11.5 million or
approximately 15% of total sales and contributing to our strong performance in
the quarter."
For the full year, sales were a record $288.2 million, up 12% (up 7% in
local currency), and net income increased by 17% to $26.8 million from $23.0
million in the prior year. Diluted EPS were a record $1.58, up 16% from $1.36 in
2002.
Commenting on the fiscal 2004 outlook for CUNO, Mr. Kachur added, "Our business
model should enable us to continue to achieve superior financial results. Orders
were a record $75.9 million in the fourth quarter and our backlog remains
strong. As a result, we are optimistic about our prospects in fiscal 2004 and
expect to achieve diluted EPS in the range of $1.72 -$1.80.
A CONFERENCE CALL WILL BE HELD TUESDAY, DECEMBER 16 AT 10:00 A.M. (EST) TO
REVIEW THE COMPANY'S FOURTH QUARTER FINANCIAL RESULTS AND BUSINESS OUTLOOK. THE
CALL-IN NUMBER IS 1-888-273-9885 for interested analysts and investors.
Alternatively, 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: those items described in our reports filed with the
SEC as well as volumes of shipments of CUNO's products; changes in product mix
and product pricing; relationships with customers and suppliers; 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 and per-share amounts)
THREE MONTHS ENDED TWELVE MONTHS ENDED
OCTOBER 31, OCTOBER 31,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Net sales $ 77,524 $ 67,516 $ 288,231 $ 258,201
Less costs and expenses:
Cost of products sold 41,423 37,138 157,221 142,450
Selling, general and administrative 20,955 16,980 75,808 66,204
Research, development and engineering 4,080 3,812 14,977 14,662
------------ ------------ ------------ ------------
66,458 57,930 248,006 223,316
------------ ------------ ------------ ------------
Operating income 11,066 9,586 40,225 34,885
Nonoperating income (expense):
Interest expense (100) (82) (540) (417)
Interest and other income, net 101 73 462 302
------------ ------------ ------------ ------------
1 (9) (78) (115)
------------ ------------ ------------ ------------
Income before income taxes 11,067 9,577 40,147 34,770
Income taxes 3,430 3,183 13,351 11,814
------------ ------------ ------------ ------------
Net income $ 7,637 $ 6,394 $ 26,796 $ 22,956
============ ============ ============ ============
Basic earnings per common share $ 0.46 $ 0.39 $ 1.61 $ 1.39
Diluted earnings per common share $ 0.44 $ 0.38 $ 1.58 $ 1.36
Basic shares outstanding 16,780,762 16,554,246 16,661,101 16,477,637
Diluted shares outstanding 17,181,961 16,915,699 16,987,792 16,884,585
CUNO INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS
(dollars in thousands)
OCTOBER 31, OCTOBER 31,
2003 2002
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 57,603 $ 40,872
Accounts receivable, net 59,658 50,862
Inventories, net 31,058 26,173
Deferred income taxes 9,020 7,998
Prepaid expenses and other current assets 4,306 4,233
--------- ---------
Total current assets 161,645 130,138
Noncurrent assets
Deferred income taxes 1,340 1,482
Goodwill, net 28,489 26,995
Prepaid pension costs 7,923 --
Other noncurrent assets 3,551 3,505
Property, plant and equipment, net 85,060 74,759
--------- ---------
Total assets $ 288,008 $ 236,879
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 849 $ 714
Short-term bank loans 14,098 16,374
Accounts payable 18,556 16,256
Accrued payroll and related taxes 15,665 13,633
Other accrued expenses 12,234 10,093
Accrued income taxes 2,558 497
--------- ---------
Total current liabilities 63,960 57,567
Noncurrent liabilities
Long-term debt, less current portion 401 2,030
Deferred income taxes 9,862 5,924
Accrued pension liability 5,457 8,945
--------- ---------
Total noncurrent liabilities 15,720 16,899
STOCKHOLDERS' EQUITY
Preferred Stock -- --
Common Stock 17 17
Treasury Stock, at cost (57) (57)
Additional paid-in-capital 53,787 46,375
Unearned compensation (784) (551)
Accumulated other comprehensive income (loss) --
Foreign currency translation adjustments 3,282 (5,533)
Fair value of derivative financial instruments, net 13 (8)
Minimum pension liability, net (2,049) (5,153)
--------- ---------
1,246 (10,694)
Retained earnings 154,119 127,323
--------- ---------
Total stockholders' equity 208,328 162,413
--------- ---------
Total liabilities and stockholders' equity $ 288,008 $ 236,879
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