Exhibit 99.1
Baldwin Reports FY05 Second Quarter Results
Business Editors
SHELTON, Conn.--(BUSINESS WIRE)--Jan. 27, 2005--Baldwin Technology
Company, Inc. (AMEX:BLD) today reported financial results for its
second quarter and six months ended December 31, 2004.
Net sales for the second quarter were $41,232,000, an increase of
4.5% from $39,443,000 for the comparable quarter in the prior year.
Excluding the effects of currency translation, sales for the quarter
were essentially flat year over year. Net income for the second
quarter was $788,000 or $0.05 per diluted share, down from $1,224,000
or $0.08 per diluted share for the second quarter of last year.
However, the prior year's second quarter income before taxes of
$2,014,000 included approximately $1,100,000 of a favorable impact
from foreign exchange gains primarily associated with the company's
then outstanding debt.
Net sales for the six months ended December 31, 2004 of
$81,229,000 represented an increase of approximately 10% from
$73,954,000 for the comparable period in the prior year. Excluding the
effects of currency translation, net sales grew by about 4% for the
six-month period. Year to date net income was $1,507,000 or $0.10 per
diluted share compared to $1,903,000 or $0.13 per diluted share for
the six months ended December 31, 2003. The prior year's six months
income before taxes of $3,176,000 included approximately $1,600,000 of
the aforementioned favorable gain associated with the company's then
outstanding debt.
Vijay C. Tharani, Vice President and Chief Financial Officer,
commented: "While we were pleased with the orders, sales, and backlog
levels achieved in our second quarter and first half, we were not
pleased with other aspects of our performance such as operating
margins and inventory levels. These areas are being given significant
management time and attention as we go into the second half of our
fiscal year."
Gerald A. Nathe, Chairman, President and Chief Executive Officer,
added: "Baldwin's first half orders of $86,794,000 increased our
backlog to $50,488,000 on December 31, 2004, up from $44,923,000 on
June 30, 2004. While pricing and cost pressures have kept the
Company's markets competitive and challenging, particularly in the
Americas, our operations in Asia and Europe continue to perform well."
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,
2004 2003
---------- ----------
Net Sales $ 41,232 $ 39,443
Cost of Goods Sold 28,525 26,646
---------- ----------
Gross Profit 12,707 12,797
Operating Expenses 11,446 11,290
Restructuring Charges 0 43
---------- ----------
Operating Income 1,261 1,464
Interest Expense 571 1,418
Interest (Income) (30) (30)
Other (Income), net (626) (1,938)
---------- ----------
Income before income taxes 1,346 2,014
Provision for income taxes 558 790
---------- ----------
Net income $ 788 $ 1,224
========== ==========
Net income per share - basic and diluted $ 0.05 $ 0.08
========== ==========
Weighted average shares outstanding - basic 14,901 15,015
========== ==========
Weighted average shares outstanding - diluted 15,319 15,245
========== ==========
Six Months ended
December 31,
-----------------------
2004 2003
---------- ----------
Net Sales $ 81,229 $ 73,954
Cost of Goods Sold 56,431 50,388
---------- ----------
Gross Profit 24,798 23,566
Operating Expenses 22,137 20,847
Restructuring Charges 0 425
---------- ----------
Operating Income 2,661 2,294
Interest Expense 1,523 2,355
Interest (Income) (53) (56)
Other (Income), net (1,393) (3,181)
---------- ----------
Income before income taxes 2,584 3,176
Provision for income taxes 1,077 1,273
---------- ----------
Net income $ 1,507 $ 1,903
========== ==========
Net income per share - basic and diluted $ 0.10 $ 0.13
========== ==========
Weighted average shares outstanding - basic 14,887 15,015
========== ==========
Weighted average shares outstanding - diluted 15,335 15,130
========== ==========
Baldwin Technology Company, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December 31, June 30,
Assets 2004 2004
------------ ------------
Cash and equivalents $ 12,667 $ 12,008
Trade Receivables 38,713 37,725
Inventory 27,778 24,998
Prepaid expenses and other 5,689 5,921
------------ ------------
Total Current Assets 84,847 80,652
Property, plant and equipment, net 4,672 4,540
Intangible assets 14,387 13,363
Other assets 17,519 16,716
------------ ------------
Total assets 121,425 115,271
============ ============
Current liabilities
Loans payable 2,929 2,757
Current portion of long-term debt 1,131 20,523
Other current liabilities 49,841 48,998
------------ ------------
Total current liabilities 53,901 72,278
Long-term debt 22,947 1,794
Other long-term liabilities 7,242 6,732
------------ ------------
Total liabilities 84,090 80,804
------------ ------------
Shareholders' equity $ 37,335 $ 34,467
------------ ------------
Total liabilities and shareholders' equity $ 121,425 $ 115,271
============ ============
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