Exhibit 99.1
UNOVA Announces Fourth Quarter and Full Year 2004 Results
EVERETT, Wash.--(BUSINESS WIRE)--Feb. 7, 2005--UNOVA, Inc.
(NYSE:UNA):
-- UNOVA Q4 and FY 2004 EPS of $0.42 and $0.84, from Continuing
Operations
-- Intermec product and service revenues increased by 27%, driven
by Systems and Solutions growth of 35% over prior-year quarter
-- Intermec Operating profit of $29.0 million, up 121% over
prior-year quarter
-- IAS segment reclassified as Discontinued Operations
UNOVA, Inc. (NYSE:UNA) today announced financial results for its
fourth quarter and fiscal year which ended December 31, 2004. The
Company also announced that a plan was initiated to offer its
Industrial Automation Systems (IAS) businesses for sale. The results
of operations for the IAS segment have been classified as
"discontinued operations" for all quarters and years referred to in
this release.
UNOVA reported 2004 fourth quarter revenues of $236.9 million and
earnings from continuing operations of $26.4 million, or $0.42 per
diluted share, compared to 2003 fourth quarter revenues of $185.9
million and earnings from continuing operations of $3.1 million, or
$0.05 per diluted share. Including the impact of discontinued
operations, net losses for the fourth quarter of 2004 and 2003 were
($71.2) million, or ($1.14) per diluted share and ($2.2) million, or
($0.04) per diluted share, respectively.
"We ended 2004 with strong profit growth and robust demand for
Intermec products, especially from our core Systems and Solutions
product lines," said Larry D. Brady, Chairman and CEO. "Investment in
R&D activities throughout the year has allowed us to close the year's
final quarter with double digit operating margins and significant
revenue growth. We believe this momentum coupled with recent advances
in RFID standards provides a strong foundation for our growth
prospects in 2005."
Fiscal year 2004 revenues were $811.3 million and earnings from
continuing operations were $52.2 million, or $0.84 per diluted share,
compared to 2003 revenues of $706.6 million and earnings from
continuing operations of $8.1 million, or $0.13 per diluted share.
Including the impact of discontinued operations, net losses for fiscal
2004 and 2003 were ($49.1) million, or ($0.79) per diluted share and
($19.3) million, or ($0.32) per diluted share, respectively. Revenues
for fiscal years 2004 and 2003 include settlements for intellectual
property (IP) disputes regarding its smart battery patents in the
amount of $19.7 million and $18.7 million, respectively. The related
operating profit from the IP settlements for fiscal years 2004 and
2003 were $15.6 million and $12.5 million, respectively.
Corporate and other expenditures of $7.7 million for the fourth
quarter included incremental spending for outside resources and
independent audit fees related to compliance with the internal control
provisions of Sarbanes-Oxley Section 404.
The Company recorded a tax benefit from continuing operations of
$9.0 million in the fourth quarter of 2004 which primarily reflects
the recognition of earned tax credits and the benefit of net operating
losses resulting from foreign legal entity restructuring.
In connection with the planned disposition of its IAS business
segment, the Company has received expressions of interest in both the
group as a whole and for the Cincinnati Lamb and Landis Grinding
businesses as separate transactions. The Company has committed to a
formal process to sell these businesses, resulting in the
reclassification to discontinued operations for financial statement
purposes. The loss from discontinued operations totaled ($97.7)
million and ($101.3) million, for the fourth quarter and fiscal year
2004, respectively. The losses for both periods were net of an $8.1
million tax benefit. The loss from discontinued operations included a
fourth quarter non-cash charge of ($103.2) million, net of a $0.9
million tax benefit, reflecting the write-down of the net assets of
the Cincinnati Lamb division to estimated fair value. The comparable
loss from discontinued operations, net of tax totaled ($5.3) million
and ($27.4) million for the 2003 fourth quarter and fiscal year,
respectively. Fiscal year 2003 loss from discontinued operations
included an after tax loss of ($2.0) million from the sale of the
Company's Lamb Body & Assembly Systems division.
The Company's cash and cash equivalent position, including the $50
million classified as restricted cash, increased $56.5 million during
the fourth quarter to $267.9 million as of December 31, 2004. This
represents the highest level in UNOVA's seven-year history. The
restricted cash is required by the Company's credit facility until the
Company retires its bonds due in March 2005. Total debt remained
unchanged at $208.5 million.
Automated Data Systems (ADS)
In the fourth quarter of 2004, revenues at the Company's ADS
segment, comprising Intermec Technologies, were $236.9 million,
representing a 27 percent increase in revenues over the comparable
prior-year quarter.
The ADS segment achieved a $29.0 million operating profit for the
fourth quarter of 2004, representing a 121 percent increase compared
to an operating profit of $13.1 million, for the fourth quarter of
2003. Operating margins for ADS product and service revenues were 12.3
percent in the fourth quarter of 2004, compared to 7.7 percent for the
prior-year quarter.
All major product and service revenue categories achieved double
digit growth over the comparable 2003 quarter. This was primarily led
by Systems and Solutions revenue growth of 35 percent, Services growth
of 14 percent and Printer and Media growth of 11 percent over the
comparable prior-year period.
Geographically, North America revenues achieved an increase of 16
percent over the comparable prior-year period. Revenues in EMEA
increased 44 percent, Latin America revenues increased 43 percent and
revenues in Asia Pacific decreased 11 percent.
About UNOVA
UNOVA is a leader in global supply chain solutions and in the
development, manufacture and integration of wired and wireless
automated data collection, Intellitag(R) RFID (radio frequency
identification), mobile computing systems, bar code printers and label
media. The company's products and services are used by customers in
many industries to improve productivity, quality and responsiveness of
business operations, from supply chain management and enterprise
resource planning to field sales and service. www.unova.com
(Forward-looking Statement)
Certain forward-looking statements in this release (as defined by
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934) relate to matters that are not
historical facts. They include, but are not limited to, statements
about the Company's ability to continue to improve profit of its
business segments, reduce expenses, improve efficiency, leverage its
research and development investment to drive significant future
revenue, complete its divestiture of its IAS businesses and the
ability to continue operational improvement and year over year growth.
Such forward-looking statements involve and are dependent upon certain
risks and uncertainties. These include, but are not limited to, other
risks and uncertainties described more fully in the Company's filings
on Form 10-K and 10-Q with the Securities and Exchange Commission.
UNOVA, INC.
FOURTH QUARTER FISCAL YEAR 2004 -- EARNINGS CONFERENCE CALL
UNOVA, Inc. will hold a conference call on February 7, 2005 at 5
p.m. Eastern (2 p.m. Pacific) to review financial results from its
fourth fiscal quarter and fiscal year 2004. The call will be hosted by
UNOVA Chief Executive Officer, Larry D. Brady; Chief Financial
Officer, Michael E. Keane; Intermec President, Thomas O. Miller,
Industrial Automation Systems President, Robert T. Smith and Kevin
McCarty, UNOVA Director of Investor Relations. The dial-in number for
participants is 888-462-1974 (US); 1-517-308-9002 (International)
(Pass code is "UNOVA").
The call also will be broadcast live on the Internet under the
investor information section of the UNOVA web site at www.unova.com.
UNOVA, INC.
(Unaudited, amounts in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
2004 2003 2004 2003
-------- -------- --------- --------
CONSOLIDATED STATEMENTS OF OPERATIONS (Preliminary)
Sales and Service Revenues $236,919 $185,940 $ 811,317 $706,583
-------- -------- --------- --------
Costs and Expenses
Cost of sales and service 138,257 112,606 465,430 416,623
Selling, general and
administrative 77,324 64,880 279,868 245,633
Special charges 191 849 1,306 1,662
-------- -------- --------- --------
Total Costs and Expenses 215,772 178,335 746,604 663,918
-------- -------- --------- --------
Operating Profit From
Continuing Operations 21,147 7,605 64,713 42,665
Other Income (Expense)
Interest, net (2,918) (2,913) (12,361) (13,085)
Foreign currency exchange,
net (763) 3,024 (1,675) 1,242
-------- -------- --------- --------
Total Other Income (Expense) (3,681) 111 (14,036) (11,843)
-------- -------- --------- --------
Earnings from Continuing
Operations before Income
Taxes 17,466 7,716 50,677 30,822
Provision (Benefit) for
income taxes (8,980) 4,664 (1,504) 22,735
-------- -------- --------- --------
Earnings from Continuing
Operations 26,446 3,052 52,181 8,087
Loss from discontinued
operations, net of tax (97,663) (5,301) (101,310) (27,354)
-------- -------- --------- --------
Net Loss $(71,217) $ (2,249) $ (49,129) $(19,267)
======== ======== ========= ========
Basic Earnings (Loss) per
Share
Continuing operations $ 0.44 $ 0.05 $ 0.86 $ 0.14
Discontinued operations (1.61) (0.09) (1.67) $ (0.47)
-------- -------- --------- --------
Net loss per share $ (1.17) $ (0.04) $ (0.81) $ (0.33)
======== ======== ========= ========
Diluted Earnings (Loss) per
Share
Continuing operations $ 0.42 $ 0.05 $ 0.84 $ 0.13
Discontinued operations (1.56) (0.09) (1.63) (0.45)
-------- -------- --------- --------
Net loss per share $ (1.14) $ (0.04) $ (0.79) $ (0.32)
======== ======== ========= ========
Shares Used in Computing
Earnings (Loss) per Share
Basic 60,780 59,454 60,502 58,828
Diluted 62,374 61,428 62,154 60,234
SELECTED SEGMENT INFORMATION (Preliminary)
Revenues from Continuing
Operations
Product Related Revenues $199,129 $152,873 $ 654,867 $561,362
Service and Service Related
Revenues 37,790 33,067 136,800 126,553
Intellectual Property
Settlements 19,650 18,668
--------- --------- --------- --------
Total Revenues $236,919 $185,940 $ 811,317 $706,583
======== ======== ========= ========
Operating Profit (Loss) From
Continuing Operations
Automated Data System
Operating Profit $ 29,011 $ 13,107 $ 89,740 $ 65,781
Corporate and Other (7,673) (4,653) (23,721) (21,454)
Special Charges (191) (849) (1,306) (1,662)
-------- -------- --------- --------
Operating Profit From
Continuing Operations $ 21,147 $ 7,605 $ 64,713 $ 42,665
======== ======== ========= ========
UNOVA, INC.
CONSOLIDATED BALANCE SHEETS (Preliminary)
(Unaudited, amounts in thousands)
December 31, December 31,
2004 2003
---------- ----------
Assets
Current Assets
Cash and cash equivalents $ 217,899 $ 238,447
Restricted cash 50,000 -
Accounts receivable, net 157,833 140,798
Inventories 80,854 73,171
Net deferred tax assets 81,769 71,229
Assets held for sale 19,748 23,840
Assets of discontinued operations 211,116 196,860
Other current assets 8,831 16,602
---------- ----------
Total Current Assets 828,050 760,947
Property, Plant and Equipment, Net 30,375 30,231
Other Intangibles, Net 4,072 4,336
Net Deferred Tax Assets 134,978 111,820
Long Term Assets of Discontinued Operations 21,238 119,224
Other Assets 53,964 64,259
---------- ----------
Total Assets $1,072,677 $1,090,817
========== ==========
Liabilities and Shareholders' Investment
Current Liabilities
Accounts payable and accrued expenses $ 160,001 $ 152,542
Payroll and related expenses 30,077 33,271
Current portion of long-term obligations 108,500 -
Current liabilities of discontinued
operations 130,257 134,706
---------- ----------
Total Current Liabilities 428,835 320,519
Long-term Obligations 100,000 208,500
Other Long-term Liabilities 86,220 78,862
Long Term Liabilities of Discontinued
Operations 61,118 52,108
Shareholders' Investment
Common stock 613 605
Additional paid-in capital 703,414 690,745
Accumulated deficit (306,695) (257,566)
Accumulated other comprehensive loss (828) (2,956)
---------- ----------
Total Shareholders' Investment 396,504 430,828
---------- ----------
Total Liabilities and Shareholders'
Investment $1,072,677 $1,090,817
========== ==========
UNOVA, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Preliminary)
(Unaudited, amounts in thousands)
Year Ended December 31, 2004
Cash and Cash Equivalents at Beginning of Period $238,447
Cash Flows from Operating Activities:
Net earnings from continuing operations 52,181
Adjustments to reconcile net earnings to net cash provided
in operating activities:
Depreciation and amortization 10,847
Changes in working capital and other operating
activities (17,227)
--------
Net Cash Provided by Operating Activities of Continuing
Operations 45,801
--------
Cash Flows from Investing Activities:
Capital expenditures (10,284)
Other investing activities (225)
--------
Net Cash Used in Investing Activities of Continuing
Operations (10,509)
--------
Cash Flows from Financing Activities:
Cash restricted for repayment of debt (50,000)
Stock options exercised 5,683
Other financing activities 211
--------
Net Cash Used in Financing Activities of Continuing
Operations (44,106)
--------
Net Cash Used in Continuing Operations (8,814)
Net Cash Used in Operating Activities of Discontinued
Operations (14,316)
Net Cash Provided by Investing Activities of Discontinued
Operations 2,582
--------
Resulting Decrease in Cash and Cash Equivalents (20,548)
--------
Cash and Cash Equivalents at End of Period $217,899
========
CONTACT: UNOVA, Inc.
Michael E. Keane, 425-265-2402
Chief Financial Officer
mkeane@unova.com
or
UNOVA, Inc.
Kevin P. McCarty, 425-265-2472
Director of Investor Relations
kmccarty@unova.com