Exhibit 99.1
Financial Statements and Supplemental Schedule
Robbins & Myers, Inc. Savings Plan for Union Employees
December 31, 2001 and 2000 and for the Year Ended December 31, 2001
with Report of Independent Auditors
Robbins & Myers, Inc.
Savings Plan for Union Employees
Financial Statements and
Supplemental Schedule
December 31, 2001 and 2000 and
for the year ended December 31, 2001
TABLE OF CONTENTS
Report of Independent Auditors ................................................1
Audited Financial Statements
Statements of Net Assets Available for Benefits ...............................2
Statement of Changes in Net Assets Available for Benefits .....................3
Notes to Financial Statements .................................................4
Supplemental Schedule
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) ................8
Report of Independent Auditors
Corporate Benefits Committee
Robbins & Myers, Inc. Savings Plan for Union Employees
We have audited the accompanying statements of net assets available for benefits
of the Robbins & Myers, Inc. Savings Plan for Union Employees as of December 31,
2001 and 2000 and related statement of changes in net assets available for
benefits for the year ended December 31, 2001 as listed in the table of
contents. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 2001 and 2000 and the changes in its net assets available for
benefits for the year ended December 31, 2001, in conformity with accounting
principles generally accepted in the United States.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedule of assets
(held at end of year) as of December 31, 2001 is presented for purposes of
additional analysis and is not a required part of the financial statements but
is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to auditing
procedures applied in our audits of the financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/ Ernst & Young LLP
April 16, 2002
Dayton, Ohio
1
Robbins & Myers, Inc.
Savings Plan for Union Employees
Statements of Net Assets Available for Benefits
DECEMBER 31
2001 2000
---------- ----------
ASSETS
Investments at fair value $9,132,013 $8,326,133
Contributions receivable:
Employee 66,766 85,251
Employer 16,358 18,970
---------- ----------
Net assets available for benefits $9,215,137 $8,430,354
========== ==========
See Accompanying Notes.
2
Robbins & Myers, Inc.
Savings Plan for Union Employees
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2001
ADDITIONS
Employee contributions $ 980,257
Employer contributions 228,311
Dividend income - Robbins & Myers, Inc. common stock 4,968
Dividend and interest income 369,068
----------
Total additions 1,582,604
DEDUCTION
Net depreciation in fair value of investments 316,856
Benefits paid directly to participants 480,965
----------
Total deductions 797,821
Net increase 784,783
Net assets available for benefits, at beginning of year 8,430,354
----------
Net assets available for benefits, at end of year $9,215,137
==========
See Accompanying Notes.
3
Robbins & Myers, Inc.
Savings Plan for Union Employees
Notes to Financial Statements
December 31, 2001
1. DESCRIPTION OF THE PLAN
The Robbins & Myers, Inc. (the Company) Savings Plan for Union Employees (the
Plan) is a defined contribution plan, which covers hourly employees of Pfaudler,
Inc., Chemineer, Inc., and Moyno Industrial Products, who are covered by
collective bargaining agreements at their United States operations.
Each year, participants can make pre-tax and/or after-tax basis contributions up
to a maximum of 12 percent of annual compensation as defined in the Plan. For
Pfaudler employees, the plan sponsor contributes an additional 50 percent of the
first 6 percent of each participant's compensation that the participant elects
to contribute. For Moyno Industrial Products employees, the plan sponsor
contributes an additional 20 percent of the first 6 percent of each
participant's compensation. The plan sponsor does not make any matching
contributions for employees of Chemineer.
Participants are immediately vested in their contributions and any earnings on
these contributions. Employees of Pfaudler, Inc. are 100% vested in employer
matching contributions immediately. Matching contributions made by the Company
for Moyno Industrial Products employees become vested as follows:
VESTING
YEARS OF VESTING SERVICE PERCENTAGE
- -----------------------------------------------------------
Less than 1 year 0%
1 year but less than 2 years 20%
2 years but less than 3 years 40%
3 years but less than 4 years 60%
4 years but less than 5 years 80%
5 years or more 100%
Each participant's account is credited with the participant's contribution and
allocations of (a) the Company's contributions and (b) plan earnings. All
amounts in participant accounts are invested in the Plan's investment options as
directed by the participants. The benefit to which a participant is entitled is
the benefit that can be provided from the participant's account.
Brokerage fees and other direct costs of investments are paid by the fund to
which the costs are attributable. All other expenses are paid by the Company.
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Robbins & Myers, Inc.
Savings Plan for Union Employees
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
Although it has not expressed an intent to do so, the Company has the right to
discontinue its contributions at any time and terminate the Plan subject to the
provisions of ERISA. In the event of Plan termination, participants will become
100 percent vested in their accounts.
The foregoing description of the Plan provides only general information.
Additional information about the plan agreement is contained in the Summary Plan
Description. Copies are available from the Corporate Benefits Committee.
2. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Plan maintains its accounting records on the accrual basis of accounting.
VALUATION OF INVESTMENTS
The Plan's investments are stated at fair value. The shares of registered
investment companies are valued at quoted market prices which represent the net
asset values of shares held by the Plan at year-end. The units of the common
collective trust (Vanguard Retirement Savings Trust) are based on redemption
values on the last business day of the Plan year.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States, requires management to make estimates
that affect the amounts reported in the financial statements. Actual results
could differ from those estimates.
5
Robbins & Myers, Inc.
Savings Plan for Union Employees
Notes to Financial Statements (continued)
3. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated November 5, 1996, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the Code) and, therefore, the related trust is
exempt from taxation. Subsequent to this issuance of the determination letter,
the Plan was amended. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Corporate Benefits
Committee believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan, as amended, is
qualified and the related trust is tax exempt.
4. INVESTMENTS
The fair value of individual investments that represent 5 percent or more of the
Plan's fair value of assets available for benefits as of December 31 is as
follows:
2001 2000
-----------------------
Robbins & Myers, Inc. common stock $ 517,013 $ 479,344
The Vanguard Group, Inc.:
Prime Money Market Fund 794,838 591,793
Wellington Fund 2,241,885 1,995,965
Windsor II Fund 2,152,472 1,993,467
Retirement Savings Trust 1,926,873 1,676,007
Small Cap Index Fund 707,335 721,008
500 Index Fund 712,535 857,918
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Robbins & Myers, Inc.
Savings Plan for Union Employees
Notes to Financial Statements (continued)
4. INVESTMENTS (CONTINUED)
During the year ended December 31, 2001, the Plan's investments (including
investments purchased, sold as well as held during the year) appreciated
(depreciated) in fair value as determined by quoted market price as follows:
NET REALIZED AND
UNREALIZED APPRECIATION
(DEPRECIATION) IN FAIR
VALUE OF INVESTMENTS
--------------------------
Robbins & Myers, Inc. common stock $ (18,183)
=========
The Vanguard Group, Inc. (registered
investment companies):
Wellington Fund $ (73,842)
Windsor II Fund (130,175)
Small-Cap Index Fund 15,995
500 Index Fund (108,364)
Total Bond Market Index Fund (2,287)
---------
Total registered investment companies $(298,673)
=========
5. TRANSACTIONS WITH RELATED PARTIES
As of December 31, 2001 and 2000, the Plan held 22,085 and 19,869 shares,
respectively, of Robbins & Myers, Inc. common stock in a company stock fund.
During 2001, shares were purchased at a total cost of $194,764 and shares were
sold at a total selling price of $138,901.
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Supplemental Schedule
Robbins & Myers, Inc.
Savings Plan for Union Employees
Employer Identification Number 31-0424220/ Plan Number 012
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2001
DESCRIPTION OF INVESTMENTS
INCLUDING MATURITY DATE
IDENTITY OF ISSUE, BORROWER, RATE OF INTEREST, COLLATERAL, CURRENT
LESSOR OR SIMILAR PARTY PAR OR MATURING VALUE COST VALUE
- --------------------------------------------------------------------------------------------------------------------
Robbins & Myers, Inc. * 22,085 shares of Common
Stock ** $ 517,013
The Vanguard Group, Inc.:*
Wellington Fund 82,241 units of Registered
Investment Company ** 2,241,885
Windsor II Fund 84,114 units of Registered
Investment Company ** 2,152,472
Retirement Savings Trust 1,926,873 units of Common
Collective Trust ** 1,926,873
500 Index Fund 6,729 units of Registered
Investment Company ** 712,535
Prime Money Market Fund 794,838 units of Registered
Investment Company ** 794,838
Small Cap Index Fund 35,688 units of Registered
Investment Company ** 707,335
Total Bond Market Index Fund 7,797 units of Registered
Investment Company ** 79,062
-----------
$9,132,013
===========
* Party-in-interest to the Plan.
** Cost of asset is not required to be disclosed as investment is
participant-directed.
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