Exhibit 99.1
Baldwin Reports First Quarter Results
SHELTON, Conn.--(BUSINESS WIRE)--Oct. 28, 2004--Baldwin Technology
Company, Inc. (ASE:BLD) announced today that net sales for the first
quarter ended September 30, 2004 were $39,997,000 compared to
$34,511,000 for the first quarter in the prior year, representing an
increase of approximately sixteen (16%) percent. Of this increase,
$2,593,000 was due to the favorable effects of currency translation.
Baldwin also reported net income for the first quarter ended
September 30, 2004 of $719,000 or $0.05 per fully diluted share,
compared to $679,000 or $0.05 per fully diluted share for the same
quarter in the prior fiscal year. Net income for the first quarter was
positively impacted by $75,000 due to favorable currency exchange
rates. Furthermore, the prior year's first quarter income from
operations before tax included approximately $500,000 of a favorable
impact from foreign exchange gains primarily associated with the
Company's then outstanding debt.
Orders for the quarter ended September 30, 2004 were $43,083,000
compared to $39,900,000 for the quarter ended September 30, 2003.
Backlog was at $48,009,000 on September 30, 2004, up from $44,923,000
at June 30, 2004.
Gerald Nathe, Chairman and President commented: "Since the
completion of the drupa exhibition in May, an international graphic
arts exhibition held every four years in Dusseldorf, Germany, we have
witnessed an increased level of business activity. In fact, strong
customer interest has continued at other graphic arts trade shows such
as JGAS in Asia, Graph Expo in the Americas, and IFRA in Europe. We
believe a strengthening global economy combined with a vigorous
graphic arts printing market will help sustain continuing improvement
in Baldwin's performance."
Vijay Tharani, Vice President and CFO added: "We are pleased to
see continued sales growth this quarter, as well as an increase in our
backlog levels. During the quarter, we also entered into an amendment
to our credit facility with Maple Bank. The new arrangement increased
the size of the facility, lowered interest rates and fees and extended
the maturity of the loan to October, 2008. This amendment will result
in annualized cash savings of approximately $1.3 million."
Log on to the Company's web site at www.baldwintech.com to hear
the live teleconference call on October 28th at 11:00 a.m. Eastern
Time.
Baldwin Technology Company, Inc. is a leading international
manufacturer of accessories and controls for the printing and
publishing industry.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended September
30,
------------------------
2004 2003
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Net sales $39,997 $34,511
Cost of goods sold 27,906 23,742
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Gross profit 12,091 10,769
Operating expenses 10,691 9,557
Restructuring charges -- 382
------------ -----------
Operating income 1,400 830
Interest expense 952 937
Interest income (23) (26)
Other expense (income), net (767) (1,243)
------------ -----------
Income from operations before income taxes 1,238 1,162
Provision for income taxes 519 483
------------ -----------
Net income $719 $679
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Income per share:
Income per share - basic $0.05 $0.05
Income per share - diluted $0.05 0.05
------------ -----------
Weighted average shares outstanding - basic 14,873 $15,015
============ ===========
Weighted average shares outstanding - diluted 15,351 15,015
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Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September 30, June 30,
Assets 2004 2004
------------ -----------
Cash and equivalents $11,256 $12,008
Trade receivables 38,129 37,725
Inventory 27,750 24,998
Prepaid expenses and other 5,268 5,921
------------ -----------
Total current assets 82,403 80,652
Property, plant and equipment, net 4,514 4,540
Intangible assets 13,516 13,363
Other assets 16,929 16,716
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Total assets 117,362 115,271
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Current liabilities
Loans payable 2,727 2,757
Current portion of long-term debt 1,050 20,523
Other current liabilities 50,146 48,998
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Total current liabilities 53,923 72,278
Long-term debt 21,538 1,794
Other long-term liabilities 6,486 6,732
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Total liabilities 81,947 80,804
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Shareholders equity $35,415 $34,467
------------ -----------
Total liabilities and shareholders equity $117,362 $115,271
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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, 2004.
CONTACT: Baldwin Technology Company, Inc.
Helen Oster, 203-402-1004