Exhibit 99.1
Baldwin Technology First Quarter Net Income up 66%
SHELTON, Conn.--(BUSINESS WIRE)--Oct. 27, 2005--Baldwin Technology Company,
Inc. (AMEX: BLD), a leading global manufacturer of printing press accessories
and control equipment, announced today that net sales for its first fiscal
quarter ended September 30, 2005 increased approximately 7% or $2,648,000 to
$42,645,000 compared to $39,997,000 for the first quarter in the prior year.
Currency translation had an unfavorable effect of $249,000 on sales. Excluding
the impact from a strengthening of the dollar versus the euro and the yen, sales
were up $2,897,000.
Net income for the quarter increased 66% to $1,193,000 or $0.08 per fully
diluted share, compared to $719,000 or $0.05 per fully diluted share for the
same quarter in the prior fiscal year. Currency impact on net income was
negligible. Orders for the quarter were $46,467,000 compared to $43,083,000 for
the quarter a year earlier. The order backlog was at $51,936,000 on September
30, 2005, up from $48,114,000 at June 30, 2005, and up from $48,009,000 at
September 30, 2004.
Vice President and Chief Financial Officer Vijay Tharani said, "We are
pleased that earnings improved more than 60% during the quarter, despite the
discontinuation of royalty income associated with the expiration of certain
patents. Gross margins were approximately 3% higher than in the same quarter
last year. We also benefited from reduced interest expense as a result of the
refinancing of our bank loan earlier this fiscal year with Maple Bank GmbH."
President and Chief Operating Officer Karl Puehringer said, "This was a
good quarter for Baldwin. We had a solid improvement in earnings and a healthy
growth in sales and order activity. This is indicative of a robust market and
strong levels of business activity for our products in the graphic arts
industry."
Puehringer added, "For example, Baldwin was recently selected as a major
supplier for ancillary equipment to be fitted on the new press lines ordered by
West Australian Newspapers. These newspaper press configurations will be
installed during 2006 and will be equipped with a broad range of Baldwin
products, including MAXIMA and WORLD spray dampening systems, IMPACT GLOBAL
cleaning systems and various other products. The Company has also benefited from
strong industry demand for its cooling and mixing products, web protection
products and blanket cleaning systems in the commercial printing marketplace."
Baldwin will host a conference call today, October 27th at 11 a.m. Eastern
Time to review the financial results, discuss its business outlook and conduct a
question-and-answer session. To participate, call (888) 889-1954 any time after
10:55 a.m. The toll dial-in number is +1 (773) 681-5826. The pass code for this
call is "Baldwin Q1." Participating in the call will be Baldwin's President and
Chief Operating Officer, Karl S. Puehringer, as well as its Chief Financial
Officer, Vijay C. Tharani.
A replay audiotape of the conference call, in its entirety, will be
available one hour after the end of the call, and until 9:59 pm (CT) November
3rd. To hear that replay in the U.S. call toll free 866.403.7109; outside the
U.S. call 203.369.0581.
A live and archived webcast will be available on the Internet for 90 days
at http://www.investorcalendar.com/IC/CEPage.asp?ID=96175. Viewers will need
Windows Media Player to listen to the broadcast.
In other news, the Company noted that it will hold its annual stockholders
meeting in the Boardroom on the 14th floor at the American Stock Exchange in New
York on Tuesday, November 8, 2005 at 10:00 a.m.
An investment profile about Baldwin Technology may be found at
http://www.hawkassociates.com/baldwin/profile.htm. For an online investment kit,
go to http://www.hawkassociates.com.
About Baldwin
Baldwin Technology Company, Inc. is a leading international manufacturer of
press accessories and controls for the commercial printing and newspaper
publishing industries. Baldwin offers a broad range of products focused on
improving the quality, safety, environmental compliance and productivity of the
printing process. Headquartered in Shelton, Connecticut, the company has sales
and service centers, product development and manufacturing operations
strategically located in major graphic arts markets worldwide. Baldwin's
products include cleaning systems, fluid management and ink control systems, web
press protection systems and drying systems. For more information, visit
www.baldwintech.com.
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, 2005.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended September 30,
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2005 2004
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Net sales $ 42,645 $ 39,997
Cost of goods sold 28,589 27,906
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Gross profit 14,056 12,091
Operating expenses 11,902 10,691
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Operating income 2,154 1,400
Interest expense 298 952
Interest income (28) (23)
Other expense (income), net (133) (767)
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Income from operations before income taxes 2,017 1,238
Provision for income taxes 824 519
----------- ------------
Net Income $ 1,193 $ 719
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Net Income per share -- basic $ 0.08 $ 0.05
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Net Income per share - diluted $ 0.08 $ 0.05
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Weighted average shares outstanding:
Basic 14,923 14,873
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Diluted 15,474 15,351
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Condensed Consolidated Balance Sheets
(In thousands, Unaudited)
September 30, June 30,
Current assets: 2005 2005
------------ ---------
Cash and equivalents $ 15,411 $ 15,443
Trade receivables 34,328 35,250
Inventory 23,152 22,755
Prepaid expenses and other 4,822 3,548
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Total current assets 77,713 76,996
Property, plant and equipment, net 3,354 3,415
Intangible assets 13,428 13,483
Other assets 15,026 15,457
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Total assets 109,521 109,351
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Current liabilities:
Loans payable $ 2,643 $ 2,705
Current portion of long-term debt 1,306 1,033
Other current liabilities 45,903 47,759
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Total current liabilities 49,852 51,497
Long-term debt 12,693 12,223
Other long-term liabilities 6,640 6,400
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Total liabilities 69,185 70,120
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Shareholders' equity 40,336 39,231
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Total liabilities and shareholders' equity $ 109,521 $ 109,351
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CONTACT: for Baldwin Technology Company, Inc.
Helen P. Oster, 203-402-1004