Exhibit 99.1
Baldwin Reports Increase in Sales and Income Before Taxes for FY05
SHELTON, Conn.--(BUSINESS WIRE)--Aug. 11, 2005--Baldwin Technology
Company, Inc. (ASE:BLD), a global leader in accessories and controls
technology for the printing industry, announced today that net sales
for the fiscal fourth quarter ending June 30, 2005 were $48.3 million
compared to $41.4 million for the fourth quarter in the prior year,
representing an increase of almost 17%. For the fiscal year, net sales
rose nearly 10% to $173.2 million compared with $158.1 million for the
year ended June 30, 2004.
Income before taxes for the fourth quarter was $3.8 million, a
five-fold increase over the prior year's $756,000. For the full year,
income before taxes was $8.7 million, up over 60% from the prior year.
Fourth quarter net income was $2.0 million or $0.13 per diluted
share compared to net income of $4.4 million or $0.28 per diluted
share for the comparable quarter in the prior fiscal year. Included in
the prior year's net income figures for the quarter and the full year
were certain favorable tax adjustments, primarily relating to a
release of a tax valuation reserve, of approximately $3.9 million. For
the full year, Baldwin recorded net income of $5.0 million or $0.33
per diluted share, compared to $7.0 million or $0.46 per diluted share
for the prior year.
Orders for the fiscal fourth quarter were $38.9 million. Backlog
as of June 30, 2005 was $48.1 million, up from $44.9 million a year
earlier. Strong orders received subsequent to year-end have further
improved current backlog to approximately $50 million.
Baldwin Vice President and CFO Vijay Tharani said, "We had a year
in which we saw improvement in the international economic/business
climate, some strengthening of the global market for printing and
printing related products, and an outstanding business performance by
Baldwin. Sales, operating income and profit before taxes were
significantly higher for the quarter and the year. Our earnings,
coupled with effective management of working capital, enabled us to
generate operating cash flows of over $14 million in fiscal 2005 and
end the year with virtually no net debt which we define as total debt
less cash on hand."
Chairman and CEO Gerald Nathe commented, "Customers have responded
positively to our focus on their needs and our commitment to
innovation. We believe that by adhering to our core strategies and
technologies that we can continue to deliver strong results and create
additional shareholder value."
"As part of the process of transforming Baldwin and maintaining
our momentum in the global printing industry, the Company has recently
made several organizational changes. Of particular note is the
appointment of Karl S. Puehringer, formerly responsible for the
Company's European operations, to the position of President and Chief
Operating Officer, effective July 1, 2005. Supporting Karl in his new
role as head of Baldwin's global operations will be a fine group of
Baldwin employees. Their dedication and commitment during fiscal 2005
contributed significantly to Baldwin's impressive performance."
The company will host a conference call to discuss the financial
results and business outlook today, August 11 at 11 a.m. Eastern. 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 and Chief Executive Officer, Gerald A.
Nathe, its President and Chief Operating Officer, Karl S. Puehringer,
and its Vice President and Chief Financial Officer, Vijay C. Tharani.
Baldwin Technology Company, Inc. is a leading international
manufacturer of accessories and controls technology for the printing
industry. With a widely recognized reputation for advanced pressroom
technology, Baldwin has more than 100 patents as well as several GATF
Intertech awards and Fogra certifications. The company has offices and
manufacturing facilities in 10 countries in North and South America,
Europe, Asia and Australia.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended June 30,
----------------------
2005 2004
----------- ----------
Net sales $ 48,283 $ 41,386
Cost of goods sold 30,285 28,297
---------- ----------
Gross profit 17,998 13,089
Operating expenses 13,727 11,265
Restructuring charges 0 22
---------- ----------
Operating income 4,271 1,802
Interest expense 427 1,247
Interest (Income) (26) (29)
Other expense (income), net 108 (172)
---------- ----------
Income before income taxes 3,762 756
Income tax provision (benefit) 1,743 (3,622)
---------- ----------
Net income $ 2,019 $ 4,378
========== ==========
Net income per share - basic $ 0.14 $ 0.29
========== ==========
Net income per share - diluted $ 0.13 $ 0.28
========== ==========
Weighted average shares outstanding - basic 14,911 14,961
========== ==========
Weighted average shares outstanding - diluted 15,278 15,457
========== ==========
Year ended June 30,
------------------------
2005 2004
------------- ----------
Net sales $ 173,185 $ 158,110
Cost of goods sold 115,948 108,074
------------ ----------
Gross profit 57,237 50,036
Operating expenses 48,209 43,329
Restructuring charges (338) 448
------------ ----------
Operating Income 9,366 6,259
Interest Expense 2,412 4,985
Interest (Income) (105) (119)
Other (Income), net (1,660) (3,920)
------------ ----------
Income before income taxes 8,719 5,313
Income tax provision (benefit) 3,684 (1,673)
------------ ----------
Net income $ 5,035 $ 6,986
============ ==========
Net income per share - basic $ 0.34 $ 0.47
============ ==========
Net income per share - diluted $ 0.33 $ 0.46
============ ==========
Weighted average shares outstanding - basic 14,899 15,001
============ ==========
Weighted average shares outstanding - diluted 15,305 15,286
============ ==========
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
June 30, June 30,
Assets 2005 2004
---------- ----------
Cash and equivalents $ 15,443 $ 12,008
Trade Receivables 35,250 37,725
Inventory 22,755 24,998
Prepaid expenses and other 3,548 5,921
---------- ----------
Total Current Assets 76,996 80,652
Property, plant and equipment, net 3,415 4,540
Intangible assets 13,483 13,363
Other assets 15,457 16,716
---------- ----------
Total assets 109,351 $ 115,271
========== ==========
Current liabilities
Loans payable $ 2,705 $ 2,757
Current portion of long-term debt 1,033 20,523
Other current liabilities 47,759 48,998
---------- ----------
Total current liabilities 51,497 72,278
Long-term debt 12,223 1,794
Other long-term liabilities 6,400 6,732
---------- ----------
Total liabilities 70,120 80,804
Shareholders equity 39,231 34,467
---------- ----------
Total liabilities and shareholders equity $ 109,351 $ 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 P. Oster, 203-402-1004