Exhibit 99.1
ROBBINS & MYERS REPORTS FISCAL 2004
THIRD QUARTER RESULTS
DAYTON, OHIO, June 23, 2004. . . Robbins & Myers, Inc. (NYSE: RBN) today
reported sales and earnings for the third quarter and first nine months of
fiscal 2004, ended May 31, 2004. Sales for the third quarter were $152.5 million
compared with $144.9 million for the same period of fiscal 2003. Foreign
currency translation represented the majority of the increase in revenues. The
Company reported net income of $3.8 million or $0.26 per share compared with
$4.4 million or $0.30 per share for the same period a year ago.
Sales for the first nine months of fiscal 2004 were $427.2 million compared with
$403.9 million for the same period of fiscal 2003. Foreign currency translation
accounted for an increase in sales of $30.7 million. Year to date EBIT was $21.2
million and $27.3 million for the same period last year. Net income was $6.3
million or $0.43 per share compared with $9.4 million or $0.66 per share in
2003. The fiscal 2004 year to date EBIT, net income and earnings per share were
reduced by $1.4 million, $0.9 million and $0.06 per share, respectively, for
charges related to the retirement of the Company's former CEO in the second
quarter of fiscal 2004.
"Earnings for the quarter were well within our previously stated guidance and
substantially better than in the second quarter," 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 fiscal 2004 with low backlogs, the result of weakness in orders during
the second half of fiscal 2003, particularly, in the Pharmaceutical Segment.
This negatively impacted our first half of fiscal 2004 results; however, we are
now seeing the effect of improved orders in early
fiscal 2004 on our earnings. We continue to see some erosion in margins in the
Pharmaceutical and Industrial segments due to market pricing pressures, lower
volumes, higher health care and insurance costs, and a shift in sales mix toward
original equipment."
BUSINESS SEGMENT RESULTS
Quarterly sales for the Pharmaceutical Segment reflected sequential improvement,
excluding the exchange rate impact, over the previous quarter for the first time
this fiscal year. The low starting backlog combined with long lead times
resulted in the segment's weak performance in the first half of fiscal 2004.
Improving orders early in fiscal 2004 are resulting in increased sales volume.
The increasing order rate this segment experienced in the second quarter
continued in the third quarter. Profitability has been impacted by low volumes
and pricing pressure.
The Energy Segment results were substantially better than in the previous year
and continued to improve sequentially from a very strong second quarter. Sales
increased 31% over last year and 6% over the second quarter. Correspondingly,
EBIT was up 43% over the same period last year and slightly up over the
preceding quarter. Higher energy prices and accelerated global demand for oil
and gas are being reflected in increased rig count and capital equipment
spending. It is anticipated that these trends should continue at least through
the balance of our fiscal year and into our fiscal 2005.
The Industrial Segment saw slight decreases in sales and EBIT from the third
quarter, of the prior year, but sequentially sales, EBIT and orders saw
increases. This segment's profitability continues to be impacted by lower
aftermarket activity and increases in pension and health care costs. On a
positive note, the third quarter's orders were the highest in this segment in
three years and the U. S. CPI (Chemical Processing Industry) operating rate is
turning positive for the first time in several years.
EARNINGS GUIDANCE
Duval stated, "The weak market conditions during the last half of calendar 2003
in the U. S. and western European chemical and pharmaceutical markets led to our
relatively weak performance in the first half of fiscal 2004. As expected,
strengthening market conditions in early calendar 2004 and greater economic
activity in the developing regions of China and Eastern Europe have supported a
solid sequential improvement in our operating performance in the third quarter
of our fiscal 2004 and is expected to continue for our fourth quarter and into
fiscal 2005. We believe that our current backlog and order trends will support
earnings per share from operations for the fourth quarter of $0.28 to $0.33
making our earnings per share for fiscal 2004 $0.77 to $0.82, excluding the
retirement cost of $0.06 per share recorded in the second quarter."
Duval continued, "Robbins & Myers remains well positioned to take full advantage
of strengthening economies as we focus on improving our cost structure,
increasing organizational capabilities and driving organic growth. To drive
these initiatives we have made the following organizational realignments:
o Thomas Loftis appointed Chairman of the Board of Directors.
o Peter Wallace will assume President and CEO responsibility effective
July 12, 2004.
o Saeid Rahimian, currently President of the R&M Energy Systems
business, has been named Group Vice President and will have
responsibility for the Reactor Systems business as well as the Energy
Systems business.
o The Reactor Systems business unit will be realigned into a more
integrated global functional organization from its current geomarket
organization.
o Group Vice President Milton Hernandez maintains responsibility for the
Romaco business unit and will have additional responsibilities in the
business development and strategic planning areas.
o The management team of Romaco is exploring ways to realign their
business to streamline operations, reduce costs and better coordinate
sales and marketing efforts."
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 these special items. Earnings and earnings per share before special
items reconcile to earnings presented according to GAAP as follows (in
thousands, except per share data):
THREE MONTHS ENDED NINE MONTHS ENDED
-------------------------- --------------------------
MAY 31, MAY 31,
(IN THOUSANDS, EXCEPT PER SHARE DATA) 2004 2003 2004 2003
- -------------------------------------- -------------------------- --------------------------
NET INCOME $ 3,814 $ 4,411 $ 6,273 $ 9,444
PLUS SPECIAL ITEMS, NET OF TAX:
RETIREMENT CHARGES 0 0 896 0
--------- --------- --------- ---------
NET INCOME BEFORE SPECIAL ITEMS $ 3,814 $ 4,411 $ 7,169 $ 9,444
========= ========= ========= =========
DILUTED EARNINGS PER SHARE $ 0.26 $ 0.30 $ 0.43 $ 0.66
PLUS SPECIAL ITEMS:
RETIREMENT CHARGES 0.00 0.00 0.06 0.00
--------- --------- --------- ---------
DILUTED EARNINGS PER SHARE BEFORE SPECIAL ITEMS $ 0.26 $ 0.30 $ 0.49 $ 0.66
========= ========= ========= =========
CASH DIVIDEND
The Company also announced that its Board of Directors approved a regular
quarterly cash dividend of $.055 per share that is payable on July 30, 2004 to
shareholders of record as of July 9, 2004.
CONFERENCE CALL
Robbins & Myers, Inc. has scheduled a conference call and webcast for 10:00
a.m., EDT on Thursday, June 24, 2004 to review the third quarter and first nine
month results of fiscal 2004. A copy of the Company's presentation will be
available on the Company's website at www.robbinsmyers.com at the commencement
of the call. Please contact the Company's Investor Relations Department to
register for the call. The call web cast will also be available at
www.robbinsmyers.com
OTHER
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) MAY 31, 2004 AUGUST 31, 2003
- --------------------------------------------------- ------------ ---------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 8,469 $ 12,347
ACCOUNTS RECEIVABLE 135,094 117,896
INVENTORIES 105,613 96,196
OTHER CURRENT ASSETS 9,309 10,480
DEFERRED TAXES 8,016 7,469
-------- --------
TOTAL CURRENT ASSETS 266,501 244,388
GOODWILL & OTHER INTANGIBLE ASSETS 323,044 310,748
OTHER ASSETS 9,772 7,357
PROPERTY, PLANT & EQUIPMENT 141,660 141,963
-------- --------
$740,977 $704,456
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE $ 56,098 $ 49,588
ACCRUED EXPENSES 87,803 85,158
CURRENT PORTION OF LONG-TERM DEBT 4,994 7,319
-------- --------
TOTAL CURRENT LIABILITIES 148,895 142,065
LONG-TERM DEBT - LESS CURRENT PORTION 192,471 186,284
DEFERRED TAXES 8,397 7,860
OTHER LONG-TERM LIABILITIES 85,674 81,241
SHAREHOLDERS' EQUITY 305,540 287,006
-------- --------
$740,977 $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 Nine Months Ended
-------------------------- --------------------------
May 31, May 31, May 31, May 31,
(in thousands, except per share data) 2004 2003 2004 2003
- ------------------------------------------------------ -------- -------- -------- --------
SALES $152,464 $144,921 $427,163 $403,904
Cost of sales 101,529 95,782 287,681 267,970
-------- -------- -------- --------
Gross profit 50,935 49,139 139,482 135,934
SG&A expenses 40,929 37,146 114,938 106,938
Amortization expense 601 554 1,918 1,664
Other 0 0 1,378 0
-------- -------- -------- --------
Income before interest and income taxes 9,405 11,439 21,248 27,332
Interest expense 3,521 4,000 10,861 11,710
-------- -------- -------- --------
Income before income taxes and minority interest 5,884 7,439 10,387 15,622
Income tax expense 2,060 2,488 3,636 5,230
Minority interest 10 540 478 948
-------- -------- -------- --------
Net income $ 3,814 $ 4,411 $ 6,273 $ 9,444
======== ======== ======== ========
NET INCOME PER SHARE:
Basic $ 0.26 $ 0.31 $ 0.43 $ 0.66
Diluted $ 0.26 $ 0.30 $ 0.43 $ 0.66
Weighted Average Common Shares Outstanding:
Basic 14,496 14,373 14,465 14,358
Diluted 16,309 16,534 16,279 16,581
Orders $154,539 $137,792 $457,434 $418,969
Backlog $143,808 $141,513 $143,808 $141,513
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 NINE MONTHS ENDED
---------------------------- -------------------------------
May 31, May 31, May 31, May 31,
(in thousands) 2004 2003 2004 2003
- -------------------------------------------------- --------- --------- --------- ---------
SALES
Pharmaceutical $ 89,075 $ 88,028 $ 250,711 $ 243,336
Industrial 32,725 33,419 92,286 91,726
Energy 30,664 23,474 84,166 68,842
--------- --------- --------- ---------
Total $ 152,464 $ 144,921 $ 427,163 $ 403,904
========= ========= ========= =========
INCOME BEFORE INTEREST AND INCOME TAXES (EBIT)
PHARMACEUTICAL $ 3,875 $ 6,149 $ 7,509 $ 14,262
INDUSTRIAL 2,290 3,100 5,668 7,270
ENERGY 7,017 4,914 19,842 14,436
CORPORATE AND ELIMINATIONS (3,777) (2,724) (11,771)(1) (8,636)
--------- --------- --------- ---------
TOTAL $ 9,405 $ 11,439 $ 21,248 $ 27,332
========= ========= ========= =========
DEPRECIATION AND AMORTIZATION
PHARMACEUTICAL $ 2,512 $ 2,877 $ 7,769 $ 8,181
INDUSTRIAL 1,135 1,340 3,336 3,815
ENERGY 1,431 1,432 4,095 4,216
CORPORATE AND ELIMINATIONS 430 356 1,243 1,040
--------- --------- --------- ---------
TOTAL $ 5,508 $ 6,005 $ 16,443 $ 17,252
========= ========= ========= =========
ORDERS
PHARMACEUTICAL $ 90,469 $ 81,049 $ 273,175 $ 255,460
INDUSTRIAL 34,844 33,351 97,715 94,857
ENERGY 29,226 23,392 86,544 68,652
--------- --------- --------- ---------
TOTAL $ 154,539 $ 137,792 $ 457,434 $ 418,969
========= ========= ========= =========
BACKLOG
PHARMACEUTICAL $ 111,506 $ 113,972 $ 111,506 $ 113,972
INDUSTRIAL 27,602 24,405 27,602 24,405
ENERGY 4,700 3,136 4,700 3,136
--------- --------- --------- ---------
TOTAL $ 143,808 $ 141,513 $ 143,808 $ 141,513
========= ========= ========= =========
(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.