Exhibit 99.1
Baldwin Reports Higher Sales and Earnings for Third Quarter
SHELTON, Conn.--(BUSINESS WIRE)--April 29, 2004--Baldwin
Technology Company, Inc. (ASE:BLD), a leading international
manufacturer of accessory and control equipment for the printing
industry reported higher net sales and net income for its third fiscal
quarter ended March 31, 2004.
Net sales for the third quarter were $42,770,000 compared to
$31,061,000 for the quarter ended March 31, 2003, an increase of about
38%. Net income was $705,000 or $0.05 per diluted share, in contrast
to a net loss of ($1,117,000) or ($0.07) per diluted share for the
third quarter of the prior year. Currency translation contributed
approximately $4,700,000 to the gain in net sales, with a minimal
affect on net income. Included in net income for the quarter were
one-time charges of approximately $600,000 reported as other
income/expense for costs incurred in connection with a Letter of
Intent the Company terminated in January.
Backlog at March 31, 2004 was down from the end of the prior
quarter, at $52,900,000 ($56,800,000 at December 31, 2003), but was up
over $3,000,000 from the levels at the beginning of the current fiscal
year. Orders for the current quarter were approximately $39,000,000.
Net sales for the nine months ended March 31, 2004 were
$116,724,000 compared to $99,153,000 for the comparable period in the
prior year, an increase of about 18%. Year to date net income was
$2,608,000 or $0.17 per diluted share compared to a loss of
($6,620,000) or ($0.44) per diluted share for the nine months ended
March 31, 2003.
Vijay C. Tharani, Vice President and CFO, commented: "Even after
taking into consideration the favorable currency impact, our net sales
increased by more than 22% over the comparable quarter in the prior
year. Furthermore, given the Company's improved results, we are
currently in discussions with our lenders to restructure our
performance-based credit facility."
Gerald A. Nathe, Chairman, President and CEO, added: "We are
pleased to report these favorable results. This is our third
profitable quarter in a row and the fourth successive quarter in which
the Company has posted positive operating cash flow. Since the January
timeframe, when Baldwin announced that it would not proceed with the
Letter of Intent, the Company has performed well. Baldwin is seeing
the benefits of stronger relationships between our global sales and
service teams and our customers. Improvement in the global economy has
also favorably impacted printing. More printers and publishers are
considering capital equipment purchases, including our equipment.
Baldwin's improved order activity supports our belief that printers
and publishers are continuing to invest in technology and products
that improve their productivity and environmental efficiency."
In other news, the Company noted that "drupa" the world's largest
print trade exhibition held once every four years, will run this year
from May 6 through 19 in Dusseldorf, Germany. In keeping with the
Company's theme at this show, "Setting New Standards", Baldwin will
unveil new pressroom proven and environmentally responsible products
and systems. "Baldwin is cautiously optimistic about sales
opportunities arising from drupa", concluded Mr. Nathe.
Baldwin plans to review its third quarter results and discuss its
business outlook during a conference call today beginning at 11:00
a.m. EDST. 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
(Unaudited, in thousands, except per share data)
Quarter ended
March 31,
2004 2003
--------------------
Net Sales $42,770 $31,061
Cost of Goods Sold 29,389 22,957
--------------------
Gross Profit 13,381 8,104
Operating Expenses 11,219 10,348
Restructuring Charges 0 67
--------------------
Operating Income (loss) 2,162 (2,311)
Interest Expense 1,383 499
Interest (Income) (34) (58)
Other (Income), net (569) (1,248)
--------------------
Income (loss) from continuing operations before
income taxes 1,382 (1,504)
Provision (benefit) for income taxes 677 (387)
--------------------
Income (loss) from continuing operations 705 (1,117)
Discontinued operations:
(Loss) income for operations (net of applicable
income taxes of $0) 0 0
Gain on sale (net of applicable income taxes of
$0) 0 0
--------------------
Net income (loss) $705 $(1,117)
====================
Net income (loss) per share - basic and diluted
Continuing operations $0.05 $(0.07)
Discontinued operations - income from operations 0.00 0.00
Discontinued operations - gain on sale 0.00 0.00
--------------------
Net income (loss) per share - basic and diluted $0.05 $(0.07)
====================
Weighted average shares outstanding - basic 15,015 15,015
====================
Weighted average shares outstanding - diluted 15,429 15,015
====================
Nine Months
ended March 31,
--------------------
2004 2003
--------------------
Net Sales $116,724 $99,153
Cost of Goods Sold 79,777 70,379
--------------------
Gross Profit 36,947 28,774
Operating Expenses 32,064 32,401
Restructuring Charges 426 3,404
--------------------
Operating Income (Loss) 4,457 (7,031)
Interest Expense 3,738 1,817
Interest (Income) (90) (199)
Other (Income), net (3,748) (1,974)
--------------------
Income (loss) from continuing operations before
income taxes 4,557 (6,675)
Provision for income taxes 1,949 235
--------------------
Income (loss) from continuing operations 2,608 (6,910)
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) $2,608 $(6,620)
====================
Net income (loss) per share - basic and diluted
Continuing operations $0.17 $(0.46)
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 $0.17 $(0.44)
====================
Weighted average shares outstanding - basic 15,015 15,015
====================
Weighted average shares outstanding - diluted 15,229 15,015
====================
Baldwin Technology Company, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
March 31, June 30,
2004 2003
Assets ----------------------
Cash and equivalents $12,364 $6,950
Trade Receivables 38,279 32,438
Inventory 25,348 22,769
Prepaid expenses and other 6,774 5,143
----------------------
Total Current Assets 82,765 67,300
----------------------
Property, plant and equipment, net 4,596 5,022
Intangible assets 13,622 12,364
Other assets 12,455 12,147
----------------------
Total assets $113,438 $96,833
======================
Current liabilities
Loans payable $2,875 $3,301
Current portion of long-term debt 19,807 16,247
Other current liabilities 50,088 43,688
----------------------
Total current liabilities 72,770 63,236
Long-term debt 2,365 521
Other long-term liabilities 7,091 6,795
----------------------
Total liabilities 82,226 70,552
Shareholders' equity 31,212 26,281
----------------------
Total liabilities and shareholders' equity $113,438 $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