Exhibit 99.1
Baldwin Reports Fourth Quarter and Year-End Results; Quarter Reflects
Increased Sales and Cash Flow and Reduced Losses
SHELTON, Conn.--(BUSINESS WIRE)--Sept. 26, 2003--Baldwin
Technology Company, Inc. (ASE:BLD) announced today that net sales for
the fourth quarter ended June 30, 2003 were $35,055,000 compared to
$30,532,000 for the fourth quarter in the prior year, representing a
14.8% increase. Orders for the quarter ended June 30, 2003 were
$34,900,000 compared to $34,600,000 for the quarter ended June 30,
2002. Backlog at June 30, 2003 was $49,700,000, up from $48,700,000 at
June 30, 2002. For comparison purposes, all order and backlog amounts
have been adjusted to reflect the disposition of the inserter business
in October of 2002. The Company attained a positive operating cash
flow for the fourth quarter ended June 30, 2003 of approximately
$1,400,000.
The net loss for Baldwin's fiscal fourth quarter ended June 30,
2003 narrowed to $4,506,000 or $0.30 per diluted share, compared to a
loss of $16,065,000 or $1.07 per diluted share for the same quarter in
the prior fiscal year. Results for the fourth quarter ended June 30,
2003 were negatively impacted by certain one-time charges, including
the establishment of a $1,300,000 reserve for the settlement of a
customer dispute related to a business unit that was divested in
fiscal 2000, and additional expenses of $1,400,000 associated with the
Company's pursuit of various financing and other strategic
alternatives. The customer settlement requires Baldwin to provide
product in lieu of cash over two years, and the amount of the charge
principally represents the estimated market value of these products.
Vijay Tharani, Vice President and CFO commented: "While we are
disappointed with our results for the fiscal year, we are pleased with
the progress we have made on our restructuring initiatives and our
refinancing efforts. Our fourth quarter results have started to
reflect the benefits of our actions, with improved gross margins and
lower operating expenses. Based on our current backlog of about
$54,500,000, plus our ongoing order rates, we anticipate that sales
for the first half of Fiscal 2004 will be in the $68,000,000 to
$69,000,000 range, and we expect the Company to be profitable on an
operating basis."
Gerald Nathe, Chairman, President and CEO added: "As previously
reported, throughout Fiscal 2003, Baldwin focused its attention on
supporting its customers, on consolidating its operations, on reducing
its operating expenses, and on seeking alternative financing to its
existing lenders. Now, as we start Fiscal 2004, Baldwin is in the
process of concluding multi-year agreements with several major OEM
press manufacturers, which provide for the Company to deliver product
to the OEMs either on an exclusive basis or as a preferred supplier.
Simultaneously, we are aggressively pursuing direct sales with
printers and publishers, while further upgrading the level of our
service and parts support. As a result of these activities, we expect
an improved Company performance in Fiscal 2004."
Log on to the Company's web site at www.baldwintech.com to hear
the live teleconference call on September 26th at 11:00 a.m. Eastern
Time.
Baldwin Technology Company, Inc. is a leading international
manufacturer of controls and accessories for the printing industry.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended June 30,
------------------------
2003 2002
------------------------
Net sales $35,055 $30,532
Cost of goods sold 23,409 23,128
------------------------
Gross profit 11,646 7,404
Operating expenses 10,700 11,810
Restructuring charges 201 (174)
Settlement and other charges 1,205 0
------------------------
Operating loss (460) (4,232)
Interest expense 594 513
Interest income (82) (74)
Other expense (income), net 1,191 (385)
------------------------
Loss from continuing operations before
income taxes (2,163) (4,286)
Provision for income taxes 2,343 6,367
------------------------
Loss from continuing operations (4,506) (10,653)
Discontinued operations:
(Loss) from operations (net of applicable
incomes taxes of $0 0 (5,412)
------------------------
Net loss $(4,506) $(16,065)
========================
(Loss) income per share - basic and diluted
Continuing operations $(0.30) $(0.71)
Discontinued operations 0.00 (0.36)
------------------------
Net loss per share - basic and diluted $(0.30) $(1.07)
========================
Weighted average shares outstanding - basic
and diluted 15,015 15,015
========================
Year ended June 30,
-------------------------
2003 2002
-------------------------
Net sales $134,208 $140,091
Cost of goods sold 93,788 98,814
-------------------------
Gross profit 40,420 41,277
Operating expenses 43,101 46,078
Restructuring charges 3,605 621
Settlement and other charges 1,205 (86)
-------------------------
Operating loss (7,491) (5,336)
Interest expense 2,411 1,792
Interest income (281) (288)
Other income, net (783) (3,215)
-------------------------
Loss from continuing operations before
income taxes (8,838) (3,625)
Provision for income taxes 2,578 6,684
-------------------------
Loss from continuing operations (11,416) (10,309)
Discontinued operations:
Loss from operations (net of applicable
incomes taxes
of $0 (253) (5,675)
Gain on sale (net of applicable income
taxes of $0) 543 0
-------------------------
Net loss $(11,126) $(15,984)
=========================
(Loss) income per share - basic and diluted
Continuing operations $(0.76) $(0.69)
Discontinued operations (0.02) (0.38)
Discontinued operations - gain on sale 0.04 0.00
-------------------------
Net loss per share - basic and diluted $(0.74) $(1.07)
=========================
Weighted average shares outstanding - basic
and diluted 15,015 14,915
=========================
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
June 30, June 30,
Assets 2003 2002
------------------------
Cash and equivalents $6,950 $4,679
Trade Receivables 32,438 40,652
Inventory 22,769 24,928
Prepaid expenses and other 5,143 7,474
------------------------
Total Current Assets 67,300 77,733
Property, plant and equipment, net 5,022 6,344
Intangible assets 12,364 11,679
Other assets 12,147 12,732
------------------------
Total assets $96,833 108,488
========================
Current liabilities
Loans payable $3,301 $5,372
Current portion of long-term debt 16,247 5,416
Other current liabilities 43,688 44,626
------------------------
Total current liabilities 63,236 55,414
Long-term debt 521 11,873
Other long-term liabilities 6,795 7,447
------------------------
Total liabilities 70,552 74,734
Shareholders equity 26,281 33,754
------------------------
Total liabilities and shareholders equity $96,833 $108,488
========================
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., Shelton
Helen P. Oster, 203-402-1004