EXHIBIT 99.1
(PEERLESS MFG. CO. LOGO)
FOR IMMEDIATE RELEASE
PEERLESS MFG. CO. REPORTS FISCAL YEAR ENDED JUNE 30, 2003 RESULTS
Dallas, Texas - September 18, 2003 -- Peerless Mfg. Co., (Nasdaq: PMFG), today
reported its operating results for the fiscal fourth quarter and year ended June
30, 2003.
The Company reported fourth quarter revenues of approximately $20.4 million, a
decrease of $8.4 million, or 29% percent, compared to approximately $28.8
million for the fourth quarter of fiscal 2002. The lower revenues were primarily
due to a decrease in the demand for new power plant construction, a weak
economic environment and delays and rescheduling of awarded projects. The
Company recorded a net income of approximately $1.4 million, or $.45 per diluted
share for the fourth quarter, compared to net income of approximately $1.5
million, or $.48 per diluted share for the comparable period in fiscal 2002.
Included in the operational results, for the quarter, was a $475,000 gain on the
sale of property, which contributed approximately $.10 to our net earnings per
diluted share.
The Company reported revenues of approximately $69.1 million for fiscal 2003,
compared to approximately $109.5 million for fiscal 2002. For the year, the
Company recorded a net loss of approximately $400,000, or $.13 per diluted
share, compared to net income of approximately $4.4 million, or $1.43 per
diluted share for fiscal 2002.
Mr. Sherrill Stone, Chairman and Chief Executive Officer of Peerless, stated,
"We are extremely pleased with the results of our fourth quarter. We believe
that the initiatives undertaken during fiscal year 2003 are beginning to have a
positive impact on our operational performance. While our revenues were lower in
the fourth quarter of 2003, our operational performance improved as a percentage
of sales, and was only slightly lower on an earnings per share basis. In light
of the challenging market conditions, we are also encouraged by the relative
stability of our backlog, which has increased by approximately $4 million to $40
million at June 30, 2003 compared to $36 million at June 30, 2002."
ABOUT PEERLESS MFG. CO.
Peerless Mfg. Co. is engaged in the business of designing, engineering,
manufacturing and selling highly specialized products used for the abatement of
air pollution and products for the separation and filtration of contaminants
from gases and liquids. The Company, headquartered in Dallas, Texas, markets its
products worldwide.
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements contained in this press release that are not historical facts
are forward-looking statements that involve a number of known and unknown risks,
uncertainties and other factors that could cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievement expressed or implied by such forward-looking
statements. The words "anticipate," "preliminary," "expect," "believe," "intend"
and similar expressions identify forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides a "safe harbor" for such
forward-looking statements. In order to comply with the terms of the safe
harbor, the Company notes that a variety of factors could cause actual results
and experience to differ materially from the anticipated results or other
expectations expressed in such forward-looking statements. The risks and
uncertainties that may affect the operations, performance, development and
results of the Company include, but are not limited to: the growth rate of the
Company's revenue and market share, the consummation of new, and the
non-termination of, existing contracts; the Company's ability to effectively
manage its business functions while growing its business in a rapidly changing
environment, the Company's ability to adapt and expand its services in such an
environment; the quality of the Company's plans and strategies; and the
Company's ability to execute such plans and strategies. Other important
information regarding factors that may affect the Company's future performance
is included in the public reports that the Company files with the Securities and
Exchange Commission. The Company undertakes no obligation to revise any
forward-looking statements or to update them to reflect events or circumstances
occurring after the date of this release, or to reflect the occurrence of
unanticipated events. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
inclusion of any statement in this release does not constitute an admission by
the Company or any other person that the events or circumstances described in
such statement are material.
For Further Information Contact:
Mr. Sherrill Stone, Chairman and Chief Executive Officer
Mr. Richard L. Travis, Vice President and Chief Financial Officer
Peerless Mfg. Co.
2819 Walnut Hill Lane
Dallas, Texas 75229
Phone: (214) 353-5590
Fax: (214) 351-4172
www.peerlessmfg.com
PEERLESS MFG. CO.
CONDENSED FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
OPERATING RESULTS
<Table>
<Caption>
THREE MONTHS ENDED TWELVE MONTHS ENDED
JUNE 30, JUNE 30,
2003 2002 2003 2002
------------- ------------- ------------- -------------
Revenues $ 20,410 $ 28,816 $ 69,170 $ 109,456
Cost of revenue 14,745 19,762 52,514 78,531
------------- ------------- ------------- -------------
Gross margin 5,665 9,054 16,656 30,925
Operating expenses 4,297 7,103 18,148 24,657
------------- ------------- ------------- -------------
Operating income (loss) 1,368 1,951 (1,492) 6,268
Other income (expense) 683 181 774 472
Taxes 686 646 (339) 2,351
------------- ------------- ------------- -------------
Net income (loss) $ 1,365 $ 1,486 $ (379) $ 4,389
============= ============= ============= =============
Basic and diluted earnings (loss) per
share
Basic $ 0.46 $ 0.49 $ (.13) $ 1.47
Diluted $ 0.45 $ 0.48 $ (.13) $ 1.43
Weighted average shares outstanding
Basic 2,999 2,985 2,996 2,978
Diluted 3,034 3,054 2,996 3,080
</Table>
CONDENSED BALANCE SHEET INFORMATION
<Table>
<Caption>
JUNE 30, 2003 JUNE 30, 2002
------------- -------------
Current assets $ 38,012 $ 41,746
Total assets $ 42,552 $ 46,506
Total current liabilities $ 20,241 $ 23,991
Long-term liabilities $ -- $ --
Shareholders' equity $ 22,311 $ 22,515
</Table>