EXHIBIT 99, Page 1
GORMAN-RUPP REPORTS THIRD QUARTER 2004 RESULTS
Mansfield, Ohio - October 22, 2004 - The Gorman-Rupp Company (AMEX: GRC) reports
net sales for the third quarter ended September 30, 2004 were $52,392,000
compared to $53,500,000 for the third quarter 2003. Net income during the
quarter was $2,056,000 compared to $2,555,000 in 2003. Earnings per share for
the third quarter 2004 and 2003, stated to reflect the five-for-four stock split
effective September 10, 2004, equaled $0.19 and $0.24, respectively.
Third quarter net sales, while slightly lower than the quarter a year ago,
marked the third consecutive quarter of increased sales for the Company during
2004 and reflect positive signs of general economic and business improvement.
Sales increases, principally in the industrial, construction and international
markets, are credited for the improvement while sales in the municipal market
decreased from a year ago.
Margins on sales during the quarter were slightly lower, principally due to
higher cost of materials, product mix factors and excess capacity at some
divisions. Increases in operating costs related to the introduction of a new
product line of pumping systems, health care, and compliance with the
requirements of the Sarbanes-Oxley Act of 2002 also effected margins.
Net sales for the first nine months of 2004 were $152,627,000 compared to
$146,667,000 in 2003, an increase of 4.1%. Net income during the same period was
$6,712,000 compared to $6,324,000 in 2003, an increase of 6.1%, equal to
post-split earnings per share of $0.63 and $0.59, respectively.
The Company's backlog of orders at September 30, 2004 was $65.9 million compared
to $58.4 million at December 31, 2003, an increase of 12.8%, principally
reflecting increased orders at Patterson Pump Company.
The Company continues to be financially well positioned with positive cash flow
and no debt contributing to its balance sheet strength.
Company President and Chief Executive Officer, Jeffrey S. Gorman stated,
"Although the pace of the economic upturn seems to have slowed somewhat, we
remain confident that a general economic improvement is in place and should
result in improved spending in the capital goods sector."
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Sr. Vice President & CFO, Tel
(419) 755-1294.
The Gorman-Rupp Company is a manufacturer of pumps and related equipment for
water, wastewater, construction, industrial, petroleum, original equipment,
agricultural, fire and government applications.
EXHIBIT 99, Page 2
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(in thousands of dollars, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2004 2003 2004 2003
-------- -------- -------- --------
Net sales $ 52,392 $ 53,500 $152,627 $146,667
Cost of products sold 41,497 42,236 120,744 115,696
-------- -------- -------- --------
Gross profit 10,895 11,264 31,883 30,971
Selling, general &
administrative expenses 7,584 7,379 21,545 21,337
-------- -------- -------- --------
Operating income 3,311 3,885 10,338 9,634
Other income (expense), net (48) 229 316 567
-------- -------- -------- --------
Income before income taxes 3,263 4,114 10,654 10,201
Income taxes 1,207 1,559 3,942 3,877
-------- -------- -------- --------
Net income $ 2,056 $ 2,555 $ 6,712 $ 6,324
======== ======== ======== ========
Basic & diluted earnings
per share $ 0.19 $ 0.24 $ 0.63 $ 0.59
Per share data reflects the 5 for 4 stock split effective September 10, 2004.
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands of dollars)
September 30, December 31,
2004 2003
----------- -----------
Assets
Cash & cash equivalents $ 23,370 $ 17,446
Accounts receivable - net 35,344 32,148
Inventories 35,629 38,062
Other current assets & deferred
income taxes 7,290 6,606
----------- -----------
Total Current Assets 101,633 94,262
Property, plant & equipment - net 52,408 54,338
Other assets 12,116 12,339
----------- -----------
Total Assets $ 166,157 $ 160,939
=========== ===========
Liabilities and Shareholders' Equity
Accounts payable $ 6,362 $ 6,163
Accrued liabilities & expenses 15,134 13,203
Income taxes 2,657 2,542
----------- -----------
Total Current Liabilities 24,153 21,908
Postretirement benefits 23,033 22,569
Shareholders' Equity 118,971 116,462
----------- -----------
Total Liabilities & Shareholders' Equity $ 166,157 $ 160,939
=========== ===========
Shares outstanding 10,682,697 10,678,947
Shares reflect the 5 for 4 split effective September 10, 2004.