Exhibit 99.1
FOR IMMEDIATE RELEASE
PEERLESS MFG. CO. REPORTS FIRST QUARTER FISCAL YEAR 2004 RESULTS
Dallas, Texas - November 10, 2003 -- Peerless Mfg. Co. (the "Company"), (Nasdaq:
PMFG), today reported its operating results for the first quarter ended
September 30, 2003.
The Company reported first quarter revenues from continuing operations of
approximately $16.8 million, an increase of approximately $3.5 million, or
26.3%, compared to revenues from continuing operations of approximately $13.3
million for the first quarter of fiscal 2003. The higher revenues were primarily
due to an increase in revenues from the Environmental Systems business unit. The
Company recorded net earnings from continuing operations of approximately
$740,000, or $.24 per diluted share for the quarter, compared to a net loss from
continuing operations of approximately $1.1 million, or $.35 per diluted share
for the comparable period last year. Earnings from discontinued operations
during the period were $65,000, or $.02 per diluted share, compared to a loss of
$288,000, or $.10 per diluted share for the same period last year. Net earnings
for the period were approximately $805,000, or $.26 per diluted share, compared
to a net loss of approximately $1.3 million, or $.45 per diluted share for the
same period last year.
Mr. Sherrill Stone, Chairman and Chief Executive Officer of the Company, stated,
"We are extremely pleased with the results of our first quarter. The excellent
results during this quarter follow the strong results achieved by the Company
during the fourth quarter of fiscal year 2003. We believe that we are beginning
to see the positive operational impact of our restructuring initiatives
undertaken during the last fiscal year. We continue to be encouraged by the
relative stability of our backlog, which was $38 million at September 30, 2003.
We are also encouraged by a recent increase in the number of inquiries for our
nuclear, marine and environmental products. We do however continue to operate in
a challenging market environment, and as such may experience softness in our
revenues from quarter-to-quarter. During the quarter, we also sold our boiler
operations. While the net gain on the sale added only $.03 to our diluted share
earnings, we believe the real long-term benefit will arise from our focus on our
core operational units: Environmental Systems and Separation & Filtration
Systems."
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 INFORMATION
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<Table>
<Caption>
THREE MONTHS ENDED
SEPTEMBER 30,
2003 2002
-------- --------
OPERATING RESULTS
Continuing Operations
Revenues $ 16,807 $ 13,276
Cost of goods sold 12,001 10,003
-------- --------
Gross profit 4,806 3,273
Operating expenses 3,655 4,926
-------- --------
Operating income (loss) 1,151 (1,653)
Other expense 30 22
Income tax expense (benefit) 381 (620)
-------- --------
Net earnings (loss) from continuing operations 740 (1,055)
Earnings (loss) from discontinued operations,
(including gain on disposal of $140 and $0
in 2003 and 2002, respectively), net of taxes 65 (288)
-------- --------
Net earnings (loss) $ 805 $ (1,343)
======== ========
EARNINGS (LOSS) PER SHARE
Basic - continuing operations $ 0.25 $ (0.35)
Basic - discontinued operations 0.02 (0.10)
-------- --------
$ 0.27 $ (0.45)
======== ========
Diluted - continuing operations $ 0.24 $ (0.35)
Diluted - discontinued operations 0.02 (0.10)
-------- --------
$ 0.26 $ (0.45)
======== ========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 2,999 2,992
Diluted 3,037 2,992
</Table>
<Table>
<Caption>
SEPTEMBER 30, JUNE 30,
2003 2003
-------- --------
CONDENSED BALANCE SHEET INFORMATION
Current assets
Continuing Operations $ 39,112 $ 35,252
Discontinued Operations 2,264 2,760
-------- --------
Total $ 41,376 $ 38,012
======== ========
Total Assets
Continuing Operations $ 43,449 $ 39,762
Discontinued Operations 2,292 2,790
-------- --------
Total $ 45,741 $ 42,552
======== ========
Current Liabilities
Continuing Operations $ 22,008 $ 19,377
Discontinued Operations 583 864
-------- --------
Total $ 22,591 $ 20,241
======== ========
Shareholders' equity $ 23,150 $ 22,311
======== ========
</Table>