Exhibit 99.1
Baldwin Reports Third Quarter Results
SHELTON, Conn.--(BUSINESS WIRE)--May 7, 2003--Baldwin Technology
Company, Inc. (ASE:BLD), a leading international manufacturer of
accessory and control equipment for the printing industry, today
reported financial results for its fiscal quarter ended March 31,
2003.
Net sales for the quarter were $31,061,000 compared to $37,867,000
for the quarter ended March 31, 2002. The Company reported a net loss
for the quarter of $1,117,000 or $0.07 per diluted share, versus net
income of $1,038,000 or $0.07 per diluted share for the third quarter
of the prior year. Cash flow from operations for the three months
ended March 31, 2003 was $316,000 including $1.1 million of cash
payments for restructuring. Backlog at March 31, 2003 was
approximately $49,868,000 up from $47,348,000 at December 31, 2002.
Gerald A. Nathe, Chairman, President and CEO, commented: "We had
noted during our second quarter comments that it was difficult to
forecast the timing of shipments on a month to month basis, and that
shipments could be delayed from one quarter to the next, depending
upon customer requirements. Regrettably, some delays did occur, and
our third quarter shipments were lower than expected. However, as
previously indicated, we continue to expect our fourth quarter sales
to be approximately at the same level as sales were during the quarter
ended December 31, 2002. In the months ahead, we believe that the
demand for print will continue to improve, but that the printing
equipment market will remain challenging. As a result, we continue to
be aggressive in our pursuit of both new and retrofit business
opportunities, and in our efforts to actively reduce our manufacturing
costs and operating expenses. During the last quarter, we continued to
adjust our employee base, decreasing it to 544, down a further 5% from
December 31, 2002."
Vijay C. Tharani, Vice President and CFO, added: "We are pleased
to report that the Company has received a waiver from its banks in
connection with certain financial covenants related to the third
quarter that are contained in the Company's credit agreements. The
Company has also discussed the possibility of an extension of the July
1, 2003 maturity of its loans with the banks, though there can be no
assurance that such discussions will lead to an extension being
granted. Furthermore, we are in active discussions with several
parties regarding possible transactions, any of which, if successfully
executed, would provide longer-term solutions to the Company's current
short-term financing needs."
Mr. Nathe concluded: "The Company and its Board are working
diligently and aggressively in the best interests of its shareholders,
customers, vendors and employees to address Baldwin's needs."
Baldwin plans to review its third quarter results and discuss its
business outlook during a conference call today beginning at 11:00
a.m. EST. Call in information is available on the Company's web site
at www.baldwintech.com under the Investor Relations section.
Interested investors are encouraged to log onto the website and
participate in the call, or access the webcast of the call.
Participating in the call will be Baldwin's Chairman, President and
Chief Executive Officer, Gerald A. Nathe, as well as its Vice
President and Chief Financial Officer, Vijay C. Tharani.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended March 31,
----------------------
2003 2002
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Net Sales $31,061 $37,867
Cost of Goods Sold 22,957 25,884
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Gross Profit 8,104 11,983
Operating Expenses 10,348 10,955
Restructuring Charges 67 289
------ -------
Operating (Loss) Income (2,311) 739
Interest Expense 499 419
Interest Income (58) (67)
Other Income, net (1,248) (1,200)
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(Loss) income from continuing operations before
income taxes (1,504) 1,587
(Benefit) provision for income taxes (387) 513
------- -------
(Loss) income from continuing operations (1,117) 1,074
Discontinued operations:
(Loss) from operations (net of applicable income
taxes of $0) 0 (36)
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Net (loss) income $(1,117) $ 1,038
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Net (loss) income per share - basic and diluted
Continuing operations $ (0.07) $ 0.07
Discontinued operations - loss from operations 0.00 0.00
-------- --------
Net (loss) income per share -- basic and diluted $ (0.07) $ 0.07
======== ========
Weighted average shares outstanding -- basic and
diluted 15,015 15,016
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Nine Months ended March 31,
---------------------------
2003 2002
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Net Sales $99,153 $109,559
Cost of Goods Sold 70,379 75,686
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Gross Profit 28,774 33,873
Operating Expenses 32,401 34,182
Restructuring Charges 3,404 795
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Operating Loss (7,031) (1,104)
Interest Expense 1,817 1,279
Interest Income (199) (214)
Other Income, net (1,974) (2,830)
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(Loss) income from continuing operations before
income taxes (6,675) 661
Provision for income taxes 235 317
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(Loss) income from continuing operations (6,910) 344
Discontinued operations:
Loss from operations (net of applicable income
taxes of $0) (253) (263)
Gain on sale (net of applicable income taxes of
$0) 543 0
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Net (loss) income $(6,620) $ 81
======= ======
Net (loss) income per share - basic and diluted
Continuing operations $ (0.46) $ 0.02
Discontinued operations - loss from operations (0.02) (0.01)
Discontinued operations - gain on sale 0.04 0.00
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Net (loss) income per share -- basic and diluted $ (0.44) $ 0.01
======= =======
Weighted average shares outstanding -- basic and
diluted 15,015 14,882
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Condensed Consolidated Balance Sheets
(In thousands, unaudited)
March 31, June 30,
2003 2002
-------- ---------
Assets
Cash and Equivalents $ 4,028 $ 4,679
Trade Receivables 34,742 40,652
Inventory 23,267 24,928
Prepaid Expenses and Other 5,036 7,474
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Total Current Assets 67,073 77,733
Property, Plant & Equipment, net 5,047 6,344
Intangibles, net 12,055 11,679
Other Assets 12,751 12,732
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Total Assets $96,926 $108,488
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Current Liabilities
Loans Payable $ 4,983 $ 5,372
Current Portion of Long-Term debt 12,646 5,416
Other Current Liabilities 42,929 44,626
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Total Current Liabilities 60,558 55,414
Long-Term Debt 535 11,873
Other Long-Term Liabilities 6,634 7,447
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Total Liabilities 67,727 74,734
Shareholders' Equity 29,199 33,754
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Total Liabilities and Shareholders' Equity $96,926 $108,488
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CAUTIONARY STATEMENT--This Release may contain statements
regarding expected future order, backlog and sales rates, operating
margins and profitability or other statements, which may constitute
"forward-looking" information as defined in the Private Securities
Litigation Reform Act of 1995 or by the Securities and Exchange
Commission. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and actual results
may differ. See Exhibit 99 to the Company's Form 10-K Report for the
fiscal year ended June 30, 2002.
CONTACT: Baldwin Technology Company, Inc.
Helen P. Oster, 203/402-1004