Exhibit 99.1
UNOVA Announces First Quarter 2005 Results
EVERETT, Wash.--(BUSINESS WIRE)--May 4, 2005--UNOVA, Inc.
(NYSE:UNA);
-- Intermec Product and Service Revenues up 13.3% to $196.5
million, year-over-year
-- EPS $0.09, from continuing operations
-- Intermec Operating Profit from Product and Service Revenues of
$16.0 million up 31% over prior-year quarter
-- Intermec Product and Service Operating Margins increased 15.5%
over prior-year quarter
-- Sale of Cincinnati Lamb operations completed
UNOVA, Inc. (NYSE:UNA) today announced financial results for its
fiscal first quarter which ended April 3, 2005.
UNOVA reported first quarter revenues of $196.5 million and
earnings from continuing operations of $5.4 million, or $0.09 per
diluted share, compared to 2004 first quarter revenues of $193.0
million and earnings from continuing operations of $15.7 million, or
$0.25 per diluted share. The prior year's first quarter includes
Intellectual Property (IP) settlement revenue and operating profit of
$19.7 million and $15.8 million, respectively. Including the impact of
discontinued operations, the net income for the first quarter of 2005
was $3.5 million, or $0.06 per diluted share compared to net income of
$10.5 million, or $0.17 per diluted share in the prior year's first
quarter, respectively.
Intermec operating profits from product and service revenues
increased by 31 percent to $16.0 million for the first quarter of
2005, compared to $12.3 million for the same prior year period.
Operating margins for Intermec product and service revenues were 8.2
percent in the first quarter of 2005, compared to 7.1 percent for the
prior-year quarter.
"For nearly four years now, we have achieved or exceeded the
operating forecast for our Intermec operations that we provided at the
beginning of each quarter," said Larry Brady, Chairman and CEO. "We
are encouraged by this continuing strength and growth of our business,
along with our strategic progress in repositioning our company. These
results are particularly notable following the record level of
shipments in the fourth quarter."
All major Intermec product and service revenue categories achieved
double digit growth over the comparable 2004 quarter. This was
attributable to Systems and Solutions revenue growth of 11 percent,
Services growth of 12 percent and Printer and Media growth of 16
percent over the comparable prior-year period.
Geographically, North America revenues achieved an increase of 11
percent over the comparable prior-year period. Revenues in Europe,
Mid-East and Africa (EMEA) increased 11 percent, Latin America
revenues increased 34 percent and revenues in Asia Pacific increased
30 percent.
Corporate and other expenditures of $5.9 million for the first
quarter of 2005 included expense for outside resources and independent
audit fees of $1.3 million related to compliance with the internal
control provisions of Sarbanes-Oxley Section 404 and the year end
audit. Corporate and other expenditures for the first quarter of 2004
were $3.1 million and included the reversal of a $2.0 million legal
accrual due to a favorable ruling in an Intellectual Property dispute
during the quarter.
The sale of the Cincinnati Lamb operations was concluded at the
end of the first quarter of 2005. The loss from discontinued
operations, net of tax, for the quarter was ($1.9) million, compared
to ($5.2) million in the first quarter of 2004.
In March of 2005, the Company retired $100 million of its bonds
and thus removed the cash restriction of $50 million required under
the Company's credit agreements. The Company's cash and cash
equivalent position at the end of the first quarter was $155.2
million.
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.
First Quarter Fiscal Year 2005 -- Earnings Conference Call
UNOVA, Inc. will hold a conference call on May 4, 2005 at 5 p.m.
Eastern (2 p.m. Pacific) to review financial results from its first
quarter of fiscal year 2005. 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
888-889-1955 (US); 312-470-0046 (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)
Quarter Ended
-------------------
April 3, March 31,
2005 2004
-------- --------
CONSOLIDATED STATEMENTS OF OPERATIONS (Preliminary)
Revenues
Product and Service Revenues $196,495 $173,355
Intellectual Property Settlements - 19,650
-------- --------
Total Revenues 196,495 193,005
Costs and Expenses
Cost of product and service revenues 113,633 99,470
Cost of intellectual property settlements - 3,857
Selling, general and administrative 72,756 64,755
-------- --------
Total Costs and Expenses 186,389 168,082
-------- --------
Operating Profit From Continuing Operations 10,106 24,923
Other Income (Expense)
Interest, net (2,126) (3,068)
Foreign currency exchange, net (15) (420)
-------- --------
Total Other Income (Expense) (2,141) (3,488)
Earnings From Continuing Operations Before Taxes 7,965 21,435
Provision for income taxes 2,553 5,709
-------- --------
Earnings From Continuing Operations 5,412 15,726
Loss from discontinued operations, net of tax (1,932) (5,244)
-------- --------
Net Earnings $ 3,480 $ 10,482
======== ========
Basic Earnings (Loss) per Share
Continuing operations $ 0.09 $ 0.26
Discontinued operations (0.03) (0.09)
-------- --------
Net earnings per share $ 0.06 $ 0.17
======== ========
Diluted Earnings (Loss) per Share
Continuing operations $ 0.09 $ 0.25
Discontinued operations (0.03) (0.08)
-------- --------
Net earnings per share $ 0.06 $ 0.17
======== ========
Shares Used in Computing Earnings (Loss) per Share
Basic 61,093 60,188
Diluted 62,813 62,126
SELECTED SEGMENT INFORMATION (Preliminary)
Revenues from Continuing Operations
Product Related Revenues $161,943 $142,606
Service and Service Related Revenues 34,552 30,749
Intellectual Property Settlements 19,650
--------- --------
Total Revenues $196,495 $193,005
======== ========
Operating Profit (Loss) From Continuing Operations
Intermec Operating Profit $ 16,040 $ 28,046
Corporate and Other (5,934) (3,123)
-------- --------
Operating Profit From Continuing Operations $ 10,106 $ 24,923
======== ========
UNOVA, INC.
CONSOLIDATED BALANCE SHEETS (Preliminary)
(Unaudited, amounts in thousands)
April 3, Dec. 31,
2005 2004
--------- ----------
Assets
Current Assets:
Cash and cash equivalents $ 155,150 $ 217,899
Restricted cash 50,000
Accounts receivable, net 162,184 157,833
Inventories 93,165 80,854
Net deferred tax assets 58,730 81,769
Assets held for sale 14,196 19,748
Current assets of discontinued operations 52,214 211,116
Other current assets 9,987 8,831
--------- ----------
Total Current Assets 545,626 828,050
Property, Plant and Equipment, Net 30,462 30,375
Other Intangibles, Net 3,972 4,072
Net Deferred Tax Assets 192,127 134,978
Long Term Assets of Discontinued Operations 20,504 21,238
Other Assets 59,868 53,964
--------- ----------
Total Assets $ 852,559 $1,072,677
========= ==========
Liabilities and Shareholders' Investment
Current Liabilities:
Accounts payable and accrued expenses $ 176,902 $ 160,001
Payroll and related expenses 24,510 30,077
Current portion of long-term debt 8,500 108,500
Current liabilities of discontinued
operations 31,327 130,257
--------- ----------
Total Current Liabilities 241,239 428,835
Long-term Debt 100,000 100,000
Other Long-term Liabilities 86,751 86,220
Long Term Liabilities of Discontinued
Operations 12,112 46,388
Shareholders' Investment:
Common stock 611 611
Additional paid-in capital 706,235 703,416
Accumulated deficit (303,215) (306,695)
Accumulated other comprehensive loss 8,826 13,902
--------- ----------
Total Shareholders' Investment 412,457 411,234
--------- ----------
Total Liabilities and Shareholders' Investment $ 852,559 $1,072,677
========= ==========
UNOVA, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Preliminary)
(Unaudited, amounts in thousands)
Quarter Ended April 3, 2005
Cash and Cash Equivalents at Beginning of Period $ 217,899
Cash Flows from Operating Activities:
Net earnings from continuing operations 5,412
Adjustments to reconcile net earnings to net cash used in
operating activities:
Depreciation and amortization 2,313
Loss on sale of business 34,723
Change in net deferred tax asset (34,110)
Changes in working capital and other operating
activities (8,602)
---------
Net Cash Used in Operating Activities of Continuing
Operations (264)
---------
Cash Flows from Investing Activities:
Capital expenditures (2,624)
Other investing activities 6,152
---------
Net Cash Provided by Investing Activities of Continuing
Operations 3,528
---------
Cash Flows from Financing Activities:
Repayment of long-term obligations (100,000)
Decrease in restricted cash 50,000
Stock options exercised 1,269
Other financing activities (302)
---------
Net Cash Used in Financing Activities of Continuing
Operations (49,033)
---------
Net Cash Used in Continuing Operations (45,769)
Net Cash Used in Operating Activities of Discontinued
Operations (17,221)
Net Cash Provided by Investing Activities of Discontinued
Operations 241
---------
Resulting Decrease in Cash and Cash Equivalents (62,749)
---------
Cash and Cash Equivalents at End of Period $ 155,150
=========
CONTACT: UNOVA, Inc.
Chief Financial Officer
Michael E. Keane, 425-265-2402
mkeane@unova.com
or
UNOVA, Inc.
Director of Investor Relations
Kevin P. McCarty, 425-265-2472
kmccarty@unova.com