EXHIBIT 99.1
ROBBINS & MYERS REPORTS FISCAL 2004
SECOND QUARTER AND FIRST HALF RESULTS
DAYTON, OHIO, March 24, 2004. . . Robbins & Myers, Inc. (NYSE: RBN) today
reported sales and earnings for the second quarter and first six months of
fiscal 2004, ended February 29, 2004. Sales for the second quarter were $142.2
million compared with $134.2 million for the same period of fiscal 2003. Foreign
currency translation represented $12.4 million of the increase in sales. Net
income for the second quarter was $.3 million or $.02 per share versus $3.0
million or $.21 per share for the same period of fiscal 2003. Results for the
current period include pretax charges of $1.4 million ($.9 million net of tax,
or $.06 per share) related to the retirement of the Company's former CEO.
Sales for the first six months were $274.7 million versus $259.0 million for the
first half of fiscal 2003. Foreign currency translation accounted for an
increase in sales of $23.2 million compared with the prior year period. First
half earnings before interest and taxes ("EBIT") were $11.8 million versus $15.9
million for the same period last year. Net income for the six months was $2.5
million or $.17 per share compared with $5.0 million or $.35 per share in the
comparable 2003 period. EBIT, net income and earnings per share for the six
months were also reduced by the retirement costs.
"Earnings for the quarter were at the high end of our previously stated guidance
before the retirement costs," said Daniel W. Duval, President and Chief
Executive Officer of Robbins & Myers, Inc. "The decline in revenues, excluding
the foreign currency translation, was as anticipated. We entered the year with
low backlogs, the result of weakness in orders during the latter half of fiscal
2003, particularly, in the Pharmaceutical Segment. The erosion in profitability
was due to the lower volumes, aforementioned retirement costs, higher pension
and insurance costs, and a shift in sales mix as aftermarket activity
represented a lower percentage of revenues."
BUSINESS SEGMENT RESULTS
Revenues for the Pharmaceutical Segment reflected sequential improvement over
the first quarter primarily due to positive foreign currency translation. The
impact of the low starting backlog, coupled with long lead times, resulted in
the segment's weak operating performance in the second quarter. Profitability
was impacted due to the decrease in volume. On the positive side, during the
second quarter, the segment experienced another sequential improvement in orders
that should support higher profitability expectations in the second half of
fiscal 2004.
The Energy Segment's performance in the second quarter reflects strong growth
both over the prior year quarter and sequentially. Sales increased 17% over the
first quarter of fiscal 2004 and were 24% higher than in the comparable prior
year period. EBIT was up 20% sequentially and 40% over the prior year period.
Higher energy prices and accelerated global demand for oil and gas are beginning
to lead to increased rig counts and capital equipment spending.
In the Industrial Segment there was a decline in sales and EBIT from the second
quarter of fiscal 2003 and the first quarter of fiscal 2004, primarily due to
lower aftermarket activity at Moyno and Chemineer and, also, the continuing
depressed conditions in the Chemical Processing Industry.
EARNINGS GUIDANCE
Duval stated, "Market conditions during the latter half of calendar 2003 were
challenging, thus, producing relatively weak earnings in the first half of our
fiscal 2004. While a general economic recovery is broadly forecasted, we have
experienced only moderate growth in orders from our U.S. and western European
pharmaceutical and industrial customers. The growth in our pharmaceutical orders
is in new markets, such as, China and Eastern Europe. We expect the robust
market conditions in our Energy Segment to continue.
"Robbins & Myers is positioned to take advantage of strengthening markets as we
have focused on improving our cost structure, increasing organizational
capabilities and driving organic growth." Duval continued, "We believe that
based on our current backlog and order trends, we expect our fiscal 2004
earnings to be in the range of $.80 to $.90 per share. The fiscal 2004 earnings
estimates exclude the $.06 per share impact of retirement costs recorded in the
second quarter and, our third fiscal quarter earnings are expected to be between
$.23 and $.28 per share."
In this release the Company refers to various non-GAAP measures. Earnings and
earnings per share excluding special items are non-GAAP financial measures. The
Company believes these measures are helpful to investors in assessing the
Company's ongoing performance of its underlying businesses before the impact of
special items on its financial performance. In addition, these non-GAAP measures
provide a comparison to our previously announced earnings guidance which
excluded this special item. Earnings and earnings per share before the special
item reconciles to earnings presented according to GAAP as follows:
THREE MONTHS ENDED SIX MONTHS ENDED
---------------------------------------------------------------------
FEBRUARY 29, FEBRUARY 28, FEBRUARY 29, FEBRUARY 28,
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2004 2003 2004 2003
- ------------------------------------------------------------------- ----------------- ------------------ ----------------
NET INCOME $320 $3,043 $2,459 $5,033
PLUS SPECIAL ITEM, NET OF TAX:
CEO RETIREMENT COSTS 896 0 896 0
-------------- ----------------- ------------------ ----------------
NET INCOME BEFORE SPECIAL ITEM $1,216 $3,043 $3,355 $5,033
============== ================= ================== ================
DILUTED EARNINGS PER SHARE $0.02 $0.21 $0.17 $0.35
PLUS SPECIAL ITEM:
CEO RETIREMENT COSTS 0.06 0.00 0.06 0.00
-------------- ----------------- ------------------ ----------------
DILUTED EARNINGS PER SHARE BEFORE SPECIAL ITEM $0.08 $0.21 $0.23 $0.35
============== ================= ================== ================
OTHER
The Company has announced the retirement of Hugh E. Becker as Vice President,
Investor Relations. Investor Relations activities have been assumed by the
Finance Department under the direction of Kevin J. Brown, Vice President & Chief
Financial Officer. Interested parties should continue to contact the Investor
Relations office at 937-225-3335.
CONFERENCE CALL
Robbins & Myers, Inc. has scheduled a conference call and webcast for 2:00 p.m.,
EST on Thursday, March 25, 2004, to review the second quarter fiscal 2004 and
first half results. A copy of the Company's presentation will be available on
the Company's website at www.robbinsmyers.com at the commencement of the
conference call. Please contact the Company's Investor Relations to register for
the call. The call web cast is available at www.robbinsmyers.com
Robbins & Myers, Inc. is a leading global supplier of highly-engineered,
critical equipment and systems for the pharmaceutical, energy, and industrial
markets. Headquartered in Dayton, Ohio the Company maintains manufacturing
facilities in 15 countries.
In addition to historical information, this release contains forward-looking
statements, identified by use of words such as "expects," "anticipates,"
"estimates," and similar expressions. These statements reflect the Company's
expectations at the time this release was issued. Actual events and results may
differ materially from those described in the forward-looking statements. Among
the factors that could cause material differences are a
significant decline in capital expenditures in specialty chemical and
pharmaceutical industries, a major decline in oil and natural gas prices,
foreign exchange rate fluctuations, continued availability of acceptable
acquisition candidates and general economic conditions that can affect demand in
the process industries. The Company undertakes no obligation to update or revise
any forward-looking statement.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands) February 29, 2004 August 31, 2003
- ------------------------------------------------------------ ----------------------------- -------------------------
ASSETS
Current Assets:
Cash and cash equivalents $14,873 $12,347
Accounts receivable 122,309 117,896
Inventories 106,277 96,196
Other current assets 9,026 10,480
Deferred taxes 7,975 7,469
----------------------------- -------------------------
Total Current Assets 260,460 244,388
Goodwill & Other Intangible Assets 327,285 310,748
Other Assets 8,447 7,357
Property, Plant & Equipment 144,982 141,963
----------------------------- -------------------------
$741,174 $704,456
============================= =========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $50,907 $49,588
Accrued expenses 84,841 85,158
Current portion of long-term debt 17,418 7,319
----------------------------- -------------------------
Total Current Liabilities 153,166 142,065
Long-Term Debt - Less Current Portion 186,277 186,284
Deferred Taxes 8,303 7,860
Other Long-Term Liabilities 86,955 81,241
Shareholders' Equity 306,473 287,006
----------------------------- -------------------------
$741,174 $704,456
============================= =========================
Note: All known adjustments have been reflected in this report, but the
information is subject to annual audit and year-end adjustments which
are estimated to be insignificant.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
Three Months Ended Six Months Ended
--------------------------------- -------------------------------
February 29, February 28, February 29, February 28,
(in thousands, except per share data) 2004 2003 2004 2003
- ------------------------------------------------------ --------------- --------------- -------------- --------------
Sales $142,217 $134,155 $274,699 $258,983
Cost of sales 97,136 88,908 186,152 172,188
--------------- --------------- -------------- --------------
Gross profit 45,081 45,247 88,547 86,795
SG&A expenses 38,349 35,826 74,009 69,792
Amortization expense 696 571 1,317 1,110
Other 1,378 0 1,378 0
--------------- --------------- -------------- --------------
Income before interest and income taxes 4,658 8,850 11,843 15,893
Interest expense 3,642 3,852 7,340 7,710
--------------- --------------- -------------- --------------
Income before income taxes and minority interest 1,016 4,998 4,503 8,183
Income tax expense 356 1,675 1,576 2,742
Minority interest 340 280 468 408
--------------- --------------- -------------- --------------
Net income $320 $3,043 $2,459 $5,033
=============== =============== ============== ==============
Net Income Per Share:
Basic $0.02 $0.21 $0.17 $0.35
Diluted $0.02 $0.21 $0.17 $0.35
Weighted Average Common Shares Outstanding:
Basic 14,457 14,358 14,449 14,351
Diluted 16,260 16,643 16,264 16,604
Orders $160,194 $153,485 $302,895 $281,177
Backlog $141,610 $147,513 $141,610 $147,513
Note: All known adjustments have been reflected in this report, but the
information is subject to annual audit and year-end adjustments which
are estimated to be insignificant.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
Three Months Ended Six Months Ended
--------------------------------------- --------------------------------
February 29, February 28, February 29, February 28,
(in thousands) 2004 2003 2004 2003
- ----------------------------------------------------- ---------------- ----------------- ---------------- ----------------
Sales
Pharmaceutical $83,726 $80,362 $161,636 $155,308
Industrial 29,639 30,464 59,561 58,307
Energy 28,852 23,329 53,502 45,368
---------------- ----------------- ---------------- ----------------
Total $142,217 $134,155 $274,699 $258,983
================ ================= ================ ================
Income Before Interest and Income Taxes (EBIT)
Pharmaceutical $1,425 $4,391 $3,634 $8,113
Industrial 1,173 2,354 3,378 4,170
Energy 6,993 5,009 12,825 9,522
Corporate and Eliminations (4,933)(1) (2,904) (7,994)(1) (5,912)
---------------- ----------------- ---------------- ----------------
Total $4,658 $8,850 $11,843 $15,893
================ ================= ================ ================
Depreciation and Amortization
Pharmaceutical $2,650 $2,683 $5,257 $5,304
Industrial 939 1,227 2,201 2,475
Energy 1,327 1,401 2,664 2,784
Corporate and Eliminations 428 349 813 684
---------------- ----------------- ---------------- ----------------
Total $5,344 $5,660 $10,935 $11,247
================ ================= ================ ================
Orders
Pharmaceutical $96,873 $99,452 $182,706 $174,411
Industrial 32,291 30,982 62,871 61,506
Energy 31,030 23,051 57,318 45,260
---------------- ----------------- ---------------- ----------------
Total $160,194 $153,485 $302,895 $281,177
================ ================= ================ ================
Backlog
Pharmaceutical $109,931 $119,823 $109,931 $119,823
Industrial 25,278 24,472 25,278 24,472
Energy 6,401 3,218 6,401 3,218
---------------- ----------------- ---------------- ----------------
Total $141,610 $147,513 $141,610 $147,513
================ ================= ================ ================
(1) Includes costs of $1,378,000 related to the retirement of our former
President and CEO.
Note: All known adjustments have been reflected in this report, but the
information is subject to annual audit and year-end adjustments which
are estimated to be insignificant.