Exhibit 99.1
Baldwin Reports Increased Sales, Income and EPS in Second Quarter
SHELTON, Conn.--(BUSINESS WIRE)--Jan. 29, 2004--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 second fiscal quarter ended
December 31, 2003.
Net income for the second quarter was $1,224,000 or $0.08 per
diluted share, up from $990,000 or $0.07 per diluted share for the
second quarter of the prior year, which included a $0.04 per share
gain from the sale of a discontinued operation. Net sales for the
quarter were $39,443,000, an increase from $35,288,000 for the quarter
ended December 31, 2002. Backlog as of the end of December 2003 was
approximately $56,800,000 up from $49,700,000 at June 30, 2003, and
$47,300,000 for the comparable quarter last year.
Net sales for the six months ended December 31, 2003 were
$73,954,000 compared to $68,092,000 for the comparable period in the
prior year. Year to date net income was $1,903,000 or $0.13 per
diluted shares compared to a loss of ($5,503,000) or ($0.37) per
diluted share for the six months ended December 31, 2002.
Vijay C. Tharani, Vice President and CFO, commented: "We have
indicated in previous conference calls that our accessories and
controls products seem to be doing well in the market, and our
quarterly results are reflective of that improved performance. In
addition to strong sales activity, our orders for the second quarter
were $43,126,000, including a favorable translation gain of about
$2,653,000. This level of order activity has led to a healthy backlog
of about $56,800,000 as we start the second half of the fiscal year."
Gerald A. Nathe, Chairman, President and CEO, commented: "We are
pleased to report continued improvement in our Company's performance.
Our employees around the world have been increasingly effective in
procuring, producing and delivering our products to the market. At the
same time, there have been improvements in the demand for our types of
printing equipment products in the retrofit, used and new equipment
marketplace. We expect that improving prospects in our major
geographic regions will help to achieve better margins and
profitability in the future."
Baldwin plans to review its second 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 web site and
either 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 Chief
Financial Officer, Vijay C. Tharani.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(Unaudited, in thousands, except per share data)
Quarter ended
December 31,
2003 2002
------- --------
Net Sales $39,443 $35,288
Cost of Goods Sold 26,646 23,806
------- --------
Gross Profit 12,797 11,482
Operating Expenses 11,290 10,475
Restructuring Charges 43 50
------- --------
Operating Income 1,464 957
Interest Expense 1,418 600
Interest (Income) (30) (65)
Other (Income), net (1,938) (453)
------- --------
Income from continuing operations before income taxes 2,014 875
Provision for income taxes 790 363
------- --------
Income from continuing operations 1,224 512
Discontinued operations:
(Loss) income for operations (net of applicable
income taxes of $0) 0 (65)
Gain on sale (net of applicable income taxes of $0) 0 543
------- --------
Net income $1,224 $990
======= ========
Net income per share - basic and diluted
Continuing operations $0.08 $0.03
Discontinued operations - income from operations 0.00 0.00
Discontinued operations - gain on sale 0.00 0.04
------- --------
Net income per share - basic and diluted $0.08 $0.07
======= ========
Weighted average shares outstanding - basic 15,015 15,015
======= ========
Weighted average shares outstanding - diluted 15,245 15,015
======= ========
Six Months ended
December 31,
----------------
2003 2002
------- --------
Net Sales $73,954 $68,092
Cost of Goods Sold 50,388 47,422
------- --------
Gross Profit 23,566 20,670
Operating Expenses 20,847 22,053
Restructuring Charges 425 3,337
------- --------
Operating Income (loss) 2,294 (4,720)
Interest Expense 2,355 1,318
Interest (Income) (56) (141)
Other (Income), net (3,181) (726)
------- --------
Income (loss) from continuing operations before income
taxes 3,176 (5,171)
Provision for income taxes 1,273 622
------- --------
Income (loss) from continuing operations 1,903 (5,793)
Discontinued operations:
Loss from operations (net of applicable income taxes
of $0) 0 (253)
Gain on sale (net of applicable income taxes of $0) 0 543
------- --------
Net income (loss) $1,903 $(5,503)
======= ========
Net income (loss) per share - basic and diluted
Continuing operations $0.13 $(0.39)
Discontinued operations - loss from operations 0.00 (0.02)
Discontinued operations - gain on sale 0.00 0.04
------- --------
Net income (loss) per share - basic and diluted $0.13 $(0.37)
======= ========
Weighted average shares outstanding - basic 15,015 15,015
======= ========
Weighted average shares outstanding - diluted 15,130 15,015
======= ========
Baldwin Technology Company, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December June
31, 30,
Assets 2003 2003
-------- --------
Cash and equivalents $12,678 $6,950
Trade Receivables 35,007 32,438
Inventory 25,404 22,769
Prepaid expenses and other 9,153 5,143
-------- --------
Total Current Assets 82,242 67,300
Property, plant and equipment, net 4,904 5,022
Intangible assets 13,474 12,364
Other assets 12,393 12,147
-------- --------
Total assets $113,013 $96,833
======== ========
Current liabilities
Loans payable $2,794 $3,301
Current portion of long-term debt 20,911 16,247
Other current liabilities 49,607 43,688
-------- --------
Total current liabilities 73,312 63,236
Long-term debt 2,367 521
Other long-term liabilities 7,111 6,795
-------- --------
Total liabilities 82,790 70,552
Shareholders' equity 30,223 26,281
-------- --------
Total liabilities and shareholders' equity $113,013 $96,833
======== ========
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, 2003.
CONTACT: Baldwin Technology Company, Inc.
Helen P. Oster, 203-402-1004