Exhibit 99.1
[BALDWIN LOGO]
Baldwin Technology Company, Inc.
2 Trap Falls Rd.
Shelton, CT 06484
Baldwin Reports Results for Q3 of FY'07
Shelton, CT, April 26, 2007 -- Baldwin Technology Company, Inc. (AMEX: BLD), a
leading global manufacturer of printing press accessories and control equipment
reported today net sales of $53,211,000 for the third fiscal quarter ended March
31, 2007, compared with net sales of $45,447,000 for the third quarter last
year, an increase of $7,764,000 or 17%. The increase in net sales was
attributable to the acquisition of Oxy-Dry Corporation and the favorable impact
of currency translation of $1,911,000.
Net income for the third quarter was $10 ,296,000 or $0.09 per basic share and
$0.08 per diluted share, compared to net income of $1,745,000, or $0.12 per
basic and $0.11 per diluted share for the comparable period a year earlier.
Organizational restructuring expenses and increased interest expense due to
higher debt levels as well as a higher tax rate than in the prior year's
comparable quarter, offset somewhat by favorable currency effects, were the
primary causes of the difference.
Net sales for the nine months ended March 31, 2007 were $144,586,000, compared
to $131,918,000 for the prior year's nine month period. The favorable impact of
currency translation for the nine months was $4,479,000.
Net income for the nine months ended March 31, 2007 was $3,024,000 or $0.20 per
basic and $0.19 per diluted share, compared to $4,321,000 or $0.29 and $0.28 per
basic and diluted share, respectively, for the same period in 2006. The
difference in net income between the two periods arose from a slight decrease in
gross margin for the current period, combined with costs incurred for
organizational restructuring and increased interest expense associated with
higher debt levels.
The Company's backlog at March 31, 2007 was $63,930,000, compared to $58,614,000
at December 31, 2006. Orders placed in the third quarter were $58,527,000,
compared to $45,908,000 for the previous quarter, an increase of 27%.
Vice President and CFO John P. Jordan commented, "Overall, we are pleased with
our performance on the top line this quarter and with the potential of the
newly-acquired Oxy-Dry entities. Although operating expenses increased by
$2,132,000 over last year's third quarter due primarily to the addition of
Oxy-Dry, the effect of strong currencies abroad, and the transition April 26,
2007
Page 2 of 4
undertaken with both the Company's CFO position and its public accounting firm,
we will remain vigilant in controlling operating costs to maximize the return
from good top line performance." Jordan further commented, "Working capital
increased with the addition of Oxy-Dry, and the Baldwin Operations Team has
instituted processes to manage working capital to best-practice levels."
President and COO Karl Puehringer commented, "The integration of the Oxy-Dry
companies acquired in November 2006 is proceeding on plan, and we fully expect
to realize the savings and synergies we originally anticipated. We are also
very pleased with the continuing positive response from our customers."
Puehringer added, "In addition, during the fourth quarter, we were pleased to
report that, based on a successful alliance started in March of 2005, we
acquired Swiss-based Hildebrand Systeme. This acquisition adds web cleaning
technology to our product portfolio and further strengthens Baldwin's position
as the market leader in cleaning applications, with well-established interfaces
at essentially every major press manufacturer in the world."
Baldwin will review its third quarter results and discuss its business outlook
during a conference call today beginning at 11 a.m. EDT. To participate, call
(888) 655-9181. The toll dial-in number is (210) 839-8504. The passcode is
"Baldwin Q3." Interested investors are encouraged to log onto
http://www.vcall.com/IC/CEPage.asp?ID=115978, and either participate in the call
or access the webcast and replay of the call. The replay will be available from
one hour after the call through Thursday, May 3, 2007, toll free at (866)
443-1213 and toll (203) 369-1091.
About Baldwin
Baldwin Technology Company, Inc. is a leading global manufacturer of press
accessories and controls for the commercial and newspaper printing industries.
Baldwin offers its customers a broad range of market-leading technologies,
products and systems that enhance the quality of printed products and improve
the economic and environmental efficiency of printing presses. Headquartered in
Shelton, Ct., the company has sales and service centers, product development and
manufacturing operations in the Americas, Asia and Europe. Baldwin's technology
and products include cleaning systems, fluid management and ink control systems,
web press protection systems and drying systems. For more information, visit
http://www.baldwintech.com.
Investors may contact Frank Hawkins or Julie Marshall at (305) 451-1888 or
e-mail info@hawkassociates.com. For an online investor relations kit, visit
http://www.hawkassociates.com. An investor profile about Baldwin Technology may
be found at http://www.hawkassociates.com/bldprofile.aspx.
April 26, 2007 Page 3 of 4
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(Unaudited, in thousands, except per share data)
Quarter ended March 31
2007 2006
---------- ----------
Net sales $ 53,211 $ 45,447
Cost of goods sold 35,774 30,384
Gross profit 17,437 15,063
Operating expenses 14,275 12,143
Restructuring charges --- ---
---------- ----------
Operating income 3,162 2,920
Interest expense 749 256
Interest (income) (44) (31)
Other (income), net 220 (43)
---------- ----------
Income before income taxes 2,237 2,738
Provision for income taxes 941 993
---------- ----------
Net income 1,296 1,745
========== ==========
Net income per share - basic $ 0.09 $ 0.12
========== ==========
Net income per share - diluted $ 0.08 $ 0.11
========== ==========
Weighted average shares outstanding - basic 15,203 14,966
========== ==========
Weighted average shares outstanding - diluted 15,697 15,806
========== ==========
Nine Months ended March 31
2007 2006
---------- ----------
Net sales $ 144,586 $ 131,918
Cost of goods sold 97,269 88,013
---------- ----------
Gross profit 47,317 43,905
Operating expenses 39,335 36,466
Restructuring charges 994 ---
---------- ----------
Operating income 6,988 7,439
Interest expense 1,532 803
Interest (income) (132) (92)
Other (income), net 169 (164)
---------- ----------
Income before income taxes 5,419 6,892
Provision for income taxes 2,395 2,571
---------- ----------
Net income 3,024 4,321
========== ==========
Net income per share - basic $ 0.20 $ 0.29
========== ==========
Net income per share - diluted $ 0.19 $ 0.28
========== ==========
Weighted average shares outstanding - basic 15,100 14,947
========== ==========
Weighted average shares outstanding - diluted 15,705 15,649
========== ==========
April 26, 2007 Page 4 of 4
Baldwin Technology Company, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
March 31, June 30,
Current assets: 2007(1) 2006
---------- ----------
Cash and equivalents $ 15,278 $ 14,986
Trade receivables 49,154 39,862
Inventory 30,669 22,657
Prepaid expenses and other 6,809 5,274
---------- ----------
Total current assets 101,910 82,779
Property, plant and equipment, net 5,533 3,617
Intangible assets 30,274 13,749
Other assets 14,106 12,618
---------- ----------
Total assets 151,823 112,763
========== ==========
Current liabilities:
Loans payable $ 3,394 $ 2,622
Current portion of long-term debt 2,224 853
Other current liabilities 63,068 49,539
---------- ----------
Total current liabilities 68,686 53,014
Long-term debt 25,610 7,080
Other long-term liabilities 6,924 6,736
---------- ----------
Total liabilities 101,220 66,830
Shareholders' equity 50,603 45,933
---------- ----------
Total liabilities and shareholders' equity $ 151,823 $ 112,763
========== ==========
(1) = includes preliminary allocation of purchase price paid for the Oxy-Dry
group of companies acquired November 21, 2006.
Cautionary Statement: This release may contain statements regarding expected
future order, backlog and sales rates, operating margins and profitability or
other statements, which may constitute "forward-looking" information as defined
in the Private Securities Litigation Reform Act of 1995 or by the Securities and
Exchange Commission. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and actual results may
differ. See Item 1A "Risk Factors" and Exhibit 99 to the company's Report on
Form 10-K for the fiscal year ended June 30, 2006.