Exhibit 99.1
Ameron Reports Strong Third-Quarter Results
PASADENA, Calif.--(BUSINESS WIRE)--Sept. 26, 2005--Ameron
International Corporation (NYSE:AMN) earned $1.58 per diluted share on
sales of $193.0 million in the third quarter ended August 28, 2005. In
the third quarter of 2004, Ameron reported a loss of $1.05 per diluted
share on sales of $155.4 million. Prior year's results included the
costs of terminating two executive benefit plans. Excluding the plan
termination costs, Ameron would have earned $.72 per share in the
third quarter of 2004.
For the first nine months of 2005, Ameron earned $2.26 per diluted
share on sales of $508.1 million, compared to a loss of $.56 per share
on sales of $435.6 million in the first nine months of 2004. Excluding
the plan termination costs, Ameron would have earned $1.22 per share
in the first three quarters of 2004.
"Ameron's operating segments continued to perform very well in the
third quarter," commented James S. Marlen, Ameron's Chairman,
President and Chief Executive Officer. "The Water Transmission Group
had an outstanding quarter, and both the Infrastructure Products and
Fiberglass-Composite Pipe Groups operated at record levels.
Year-to-date 2005 sales and earnings also exceeded the normalized
results of the first nine months in 2004 because of the strength of
operations, in spite of higher legal costs and expenses in the second
quarter of 2005."
The Water Transmission Group's profits more than tripled in the
third quarter as sales were over 50% greater than in the third quarter
of 2004. The Water Transmission Group continued to benefit from the
relatively strong order backlog associated with two large projects in
California. While demand for Ameron's traditional water and wastewater
piping remains muted due to fiscal constraints and a cyclical downturn
in water infrastructure spending in Ameron's markets, interest in
Ameron's steel fabrication capabilities for the production of towers
for wind-powered electrical generation has increased. The long-term
forecast remains positive, given the need for water and energy
infrastructure; and the short-term outlook remains positive due to the
strong backlog.
The Fiberglass-Composite Pipe Group's profits rose in the third
quarter on higher sales. Sales continued to increase due to demand for
onshore oilfield piping and for marine piping supplied by Asian
operations, while sales by European operations into Europe and the
Middle East were lower due to weaker demand and competitive pressures.
The backlog for oilfield and marine tubing remains at record levels.
Ameron's new Malaysian plant is scheduled to begin operations in the
first quarter of 2006. The forecast for the Fiberglass-Composite Pipe
Group is positive based on the strength of the oil and marine
industries.
Compared to prior year, the Performance Coatings & Finishes
Group's third-quarter profits increased on higher sales. Sales of
heavy-duty industrial coatings in the U.S. increased in the third
quarter of 2005, compared to the same period in 2004. Corresponding
sales of lighter-duty product finishes in Australia and New Zealand
also increased. Profits rose $1.7 million on higher sales and included
a $1.4 million gain from the sale of excess land. Demand for
industrial and marine coatings in the U.S. continues to show signs of
improvement. Additionally, the Performance Coatings & Finishes Group
is expected to participate in the rebuilding of chemical, oil and
industrial infrastructure throughout the U.S. Gulf Coast.
The Infrastructure Products Group's sales and profits improved in
the third quarter of 2005, as both Pole and Hawaiian operations had
increased profits due to higher sales. Sales of steel and concrete
poles rose due to the continued strength of housing construction
throughout the U.S. Additionally, Ameron benefited from a major
pole-replacement program sponsored by a utility in Southern
California. Hawaiian quarry and ready-mix operations benefited from
strong construction levels in Hawaii. The forecast for the
Infrastructure Products Group remains favorable due to the level of
construction throughout the U.S.
TAMCO, Ameron's 50%-owned steel mini-mill in Southern California,
had higher sales but lower profits in the third quarter of 2005,
compared to the third quarter of 2004. Higher sales volumes were more
than offset by lower pricing and increased conversion costs. Steel
pricing remains firm but lower than at the same time last year. TAMCO
continues to forecast a strong performance for 2005.
James Marlen continued, "Ameron's businesses have performed well
throughout 2005. Unfortunately, several of our employees and their
families in the New Orleans area were dislocated by Hurricane Katrina;
but Ameron's operations were only minimally affected. We continue to
forecast that Ameron will achieve a solid performance in 2005."
Management measures the Company's financial performance based on
operating results without the impact of non-routine items, and
believes that non-GAAP earnings per share, excluding the non-routine
items described above, provides a more meaningful comparison of
year-over-year operating results. Non-GAAP earnings and earnings per
share are calculated as follows:
Three Months Ended Nine Months Ended
---------------------- ----------------------
August 28, August 29, August 28, August 29,
2005 2004 2005 2004
---------- ---------- ---------- ----------
(In thousands, except share and per share data)
Net Income/(Loss) as
Reported $ 13,528 $ (8,775) $ 19,279 $ (4,655)
Plus: Pension Plan
Curtailment/Settlement,
Net of Taxes - 14,926 - 14,926
---------- ---------- ---------- ----------
Non-GAAP Net Income $ 13,528 $ 6,151 $ 19,279 $ 10,271
========== ========== ========== ==========
Weighted Average Shares
(Diluted) 8,553,247 8,507,129 8,524,644 8,438,795
Non-GAAP Earnings Per
Share (Diluted) $ 1.58 $ .72 $ 2.26 $ 1.22
========== ========== ========== ==========
Ameron International Corporation is a multinational manufacturer
of highly-engineered products and materials for the chemical,
industrial, energy, transportation and infrastructure markets. Traded
on the New York Stock Exchange (AMN), Ameron is a leading producer of
water transmission lines; high-performance coatings and finishes for
the protection of metals and structures; fiberglass-composite pipe for
transporting oil, chemicals and corrosive fluids and specialized
materials and products used in infrastructure projects. The Company
operates businesses in North America, South America, Europe,
Australasia and Asia. It also participates in several joint-venture
companies in the U.S., Saudi Arabia, Kuwait and Egypt.
Cautionary statement for purposes of the "Safe Harbor" provisions
of The Private Securities Litigation Reform Act of 1995: Any
statements in this report that refer to the forecasted, estimated or
anticipated future results of Ameron International Corporation
("Ameron" or the "Company") are forward-looking and reflect the
Company's current analysis of existing trends and information. Actual
results may differ from current expectations based on a number of
factors affecting Ameron's businesses, including competitive
conditions and changing market situations. Matters affecting the
economy generally, including the state of economies worldwide, can
affect Ameron's results. Forward-looking statements represent the
Company's judgment only as of the date of this report. Since actual
results could differ materially, the reader is cautioned not to rely
on these forward-looking statements. Moreover, Ameron disclaims any
intent or obligation to update these forward-looking statements.
Ameron International Corporation
Condensed Consolidated Statements of Income
Three Months Ended August 28, 2005 and August 29, 2004
(In thousands, except per share data)
(Unaudited)
2005 2004
--------- ---------
Sales $ 193,047 $ 155,413
Cost of Sales (140,395) (117,168)
--------- ---------
Gross Profit 52,652 38,245
Selling, General and Administrative Expenses (36,184) (35,414)
Pension Plan Curtailment/Settlement - (12,817)
Other Income 2,445 740
--------- ---------
Income/(Loss) before Interest, Income Taxes and
Equity in Earnings of Joint Venture 18,913 (9,246)
Interest Expense, Net (1,492) (1,193)
--------- ---------
Income/(Loss) before Income Taxes and Equity
in Earnings of Joint Venture 17,421 (10,439)
Provision for Income Taxes (7,012) (2,921)
--------- ---------
Income/(Loss) before Equity in Earnings
of Joint Venture 10,409 (13,360)
Equity in Earnings of Joint Venture, Net of Taxes 3,119 4,585
--------- ---------
Net Income/(Loss) $ 13,528 $ (8,775)
========= =========
Net Income/(Loss) Per Diluted Share $ 1.58 $ (1.05)
========= =========
Cash Dividends Paid Per Share $ .20 $ .20
========= =========
Ameron International Corporation
Condensed Consolidated Statements of Income
Nine Months Ended August 28, 2005 and August 29, 2004
(In thousands, except per share data)
(Unaudited)
2005 2004
----------- -----------
Sales $ 508,064 $ 435,597
Cost of Sales (377,582) (330,827)
----------- -----------
Gross Profit 130,482 104,770
Selling, General and Administrative Expenses (109,183) (100,360)
Pension Plan Curtailment/Settlement - (12,817)
Other Income 4,421 2,794
----------- -----------
Income/(Loss) before Interest, Income Taxes
and Equity in Earnings of Joint Venture 25,720 (5,613)
Interest Expense, Net (3,980) (4,462)
----------- -----------
Income/(Loss) before Income Taxes and Equity
in Earnings of Joint Venture 21,740 (10,075)
Provision for Income Taxes (8,696) (3,041)
----------- -----------
Income/(Loss) before Equity in Earnings
of Joint Venture 13,044 (13,116)
Equity in Earnings of Joint Venture, Net of
Taxes 6,235 8,461
----------- -----------
Net Income/(Loss) $ 19,279 $ (4,655)
=========== ===========
Net Income/(Loss) Per Diluted Share $ 2.26 $ (.56)
=========== ===========
Cash Dividends Paid Per Share $ .60 $ .60
=========== ===========
Ameron International Corporation
Condensed Consolidated Statements of Cash Flows
Nine Months Ended August 28, 2005 and August 29, 2004
(In thousands)
(Unaudited)
2005 2004
-------- --------
Operating Activities
Net (Loss)/Income $ 19,279 $ (4,655)
Adjustments to Reconcile Net (Loss)/Income
to Net Cash Provided by Operations 14,389 15,162
Changes in Operating Assets
and Liabilities (41,673) 9,524
-------- --------
Net Cash Provided by Operations (8,005) 20,031
Investing Activities
Proceeds from Sale of Assets 2,389 284
Additions to Property, Plant
and Equipment (17,402) (13,086)
-------- --------
Net Cash Used in Investing Activities (15,013) (12,802)
Financing Activities
Short and Long-Term Borrowings, Net 17,358 655
Debt Issuance Costs - (473)
Dividends on Common Stock (5,089) (5,015)
Issuance of Common Stock 1,834 3,220
Change in Treasury Stock (501) (251)
-------- --------
Net Cash Used in Financing Activities 13,602 (1,864)
Effect of Exchange Rate Changes on
Cash and Cash Equivalents (276) 153
-------- --------
Net Change in Cash and Cash Equivalents $ (9,692) $ 5,518
======== ========
Ameron International Corporation
Condensed Consolidated Balance Sheets
(In thousands)
August 28, November 30,
2005 2004
(Unaudited)
----------- -----------
ASSETS
Current Assets
Cash and Cash Equivalents $ 20,432 $ 30,124
Receivables, Net 188,898 162,636
Inventories 106,265 90,297
Deferred Income Taxes 15,527 15,526
Prepaid Expenses and Other Current Assets 12,861 11,032
----------- -----------
Total Current Assets 343,983 309,615
Investments in Joint Ventures
Equity Method 16,005 16,042
Cost Method 5,922 5,922
Property, Plant and Equipment, Net 153,838 153,651
Deferred Income Taxes 5,997 6,029
Goodwill and Intangible Assets 13,443 13,795
Other Assets 42,851 38,883
----------- -----------
Total Assets $ 582,039 $ 543,937
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current Portion of Long-Term Debt $ 18,333 $ 18,333
Trade Payables 51,489 49,156
Accrued Liabilities 60,095 53,221
Income Taxes Payable 5,711 8,092
----------- -----------
Total Current Liabilities 135,628 128,802
Long-Term Debt, Less Current Portion 92,569 75,349
Other Long-Term Liabilities 63,819 60,619
----------- -----------
Total Liabilities 292,016 264,770
Stockholders' Equity
Common Stock 28,084 27,745
Additional Paid-In Capital 24,885 21,903
Unearned Restricted Stock (2,544) (2,300)
Retained Earnings 315,203 301,013
Accumulated Other Comprehensive Loss (26,330) (20,420)
Treasury Stock (49,275) (48,774)
----------- -----------
Total Stockholders' Equity 290,023 279,167
----------- -----------
Total Liabilities and Stockholders' Equity $ 582,039 $ 543,937
=========== ===========
CONTACT: Ameron International Corporation
James S. Marlen, 626-683-4000
(Chairman, President and Chief Executive Officer)
Gary Wagner, 626-683-4000
(Senior Vice President, Chief Financial Officer)