Exhibit 19
PRESS RELEASE
INVESTOR CONTACT:
FREDERICK C. FLYNN, JR.
203/238-8847
FFLYNN@CUNO.COM
FEBRUARY 19, 2004
FOR IMMEDIATE RELEASE
CUNO REPORTS RECORD FIRST QUARTER RESULTS
- Record first quarter Sales of $75.4 million (up 14%)
- Record first quarter diluted EPS of $0.41 (up 28%)
- Record first quarter Operating Margin of 13.8%
- Record first quarter Orders of $76.5 million
Meriden, CT: CUNO Incorporated (Nasdaq:CUNO) today reported record first
quarter results for the period ended January 31, 2004. Sales were $75.4 million,
up 14% versus the same period in 2003 and up 6% in local currency. Net income
for the first quarter increased by 30% to $7.0 million from $5.4 million
reported in the same period in 2003. Diluted earnings per
share for the period were a first quarter record $0.41, up 28% compared to $0.32
in the prior year period and up approximately 16% on a currency-adjusted basis.
Commenting on the Company's first quarter results, Mark G. Kachur,
Chairman and Chief Executive Officer, said "Our strong first quarter results
reflect the effectiveness of our business model. We achieved double-digit sales
growth in all three of our primary markets - potable water, healthcare and fluid
processing - and also benefited from our ongoing cost management initiatives.
Furthermore, the Company's international scope and geographic diversity
contributed significantly to our overall results, as international sales
increased by 23% (up 6% in local currency), led by strong growth in Europe,
Latin America and Japan."
Commenting on business conditions and the outlook for CUNO, Mr. Kachur
added, "Our incoming orders were a first quarter record $76.5 million and our
backlog remains strong. As a result, we expect to achieve strong financial
results in fiscal 2004, and we remain comfortable with our previous EPS guidance
in the $1.72 - $1.80 range for the year."
A conference call will be held FRIDAY, 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 1-888-273-9885 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 - UNAUDITED
(dollars in thousands, except share and per-share amounts)
THREE MONTHS ENDED
JANUARY 31,
2004 2003
------------ ------------
Net sales $ 75,409 $ 66,437
Less costs and expenses:
Cost of products sold 40,553 36,683
Selling, general and administrative 20,238
17,789
Research, development and engineering 4,189 3,670
------------ ------------
64,980 58,142
------------ ------------
Operating income 10,429 8,295
Nonoperating income (expense):
Interest expense (83) (147)
Interest and other income, net 150 91
------------ ------------
67 (56)
------------ ------------
Income before income taxes 10,496 8,239
Income taxes 3,491 2,851
------------ ------------
Net income $ 7,005 $ 5,388
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Basic earnings per common share $ 0.42 $ 0.33
Diluted earnings per common share $ 0.41 $ 0.32
Basic shares outstanding 16,687,240 16,563,423
Diluted shares outstanding 17,215,135 16,941,155
CUNO INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED
(dollars in thousands)
JANUARY 31, OCTOBER 31,
2004 2003
--------- ---------
ASSETS
Current assets
Cash and cash equivalents $ 60,854 $ 57,603
Accounts receivable, net 61,457 59,658
Inventories, net 33,078 31,058
Deferred income taxes 8,965 9,020
Prepaid expenses and other current assets 5,425 4,306
--------- ---------
Total current assets 169,779 161,645
Noncurrent assets
Deferred income taxes 1,393 1,340
Goodwill, net 29,494 28,489
Prepaid pension costs 7,894 7,923
Other noncurrent assets 4,252 3,551
Property, plant and equipment, net 87,339 85,060
--------- ---------
Total assets $ 300,151 $ 288,008
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 951 $ 849
Short-term bank loans 12,362 11,804
Accounts payable 23,696 20,850
Accrued payroll and related taxes 13,042 15,665
Other accrued expenses 10,114 12,234
Accrued income taxes 3,862 2,558
--------- ---------
Total current liabilities 64,027 63,960
Noncurrent liabilities
Long-term debt, less current portion 564 401
Deferred income taxes 9,848 9,862
Accrued pension liability 5,687 5,457
Other long term liabilities 381 --
--------- ---------
Total noncurrent liabilities 16,480 15,720
STOCKHOLDERS' EQUITY
Preferred Stock -- --
Common Stock 17 17
Treasury Stock, at cost (57) (57)
Additional paid-in-capital 55,895 53,787
Unearned compensation (1,972) (784)
Accumulated other comprehensive income (loss) --
Foreign currency translation adjustments 6,917 3,282
Fair value of derivative financial instruments, net (231) 13
Minimum pension liability, net (2,049) (2,049)
--------- ---------
4,637 1,246
Retained earnings 161,124 154,119
--------- ---------
Total stockholders' equity 219,644 208,328
--------- ---------
Total liabilities and stockholders' equity $ 300,151 $ 288,008
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