Exhibit 99.1
UNOVA Announces Third Quarter 2005 Results
EVERETT, Wash.--(BUSINESS WIRE)--Nov. 1, 2005--UNOVA, Inc.
(NYSE:UNA):
-- Intermec Revenues increase 13% over the prior-year-quarter to
$219.8 million
-- Pre-tax Earnings from Continuing Operations increase 140% over
the prior-year-quarter to $12.9 million
-- Intermec signs 19 participants under the Rapid Start RFID IP
licensing program
-- UNOVA signs Definitive Agreement to sell its Landis Operations
UNOVA, Inc. (NYSE:UNA) today announced financial results for its
fiscal third quarter which ended October 2, 2005.
UNOVA reported third quarter revenues of $219.8 million and after
tax earnings from continuing operations of $11.3 million, or $0.18 per
diluted share, compared to 2004 third quarter revenues of $194.8
million and after tax earnings from continuing operations of $6.8
million, or $0.11 per diluted share. Including discontinued
operations, net earnings for the third quarter of 2005 was $4.6
million, or $0.07 per diluted share compared to net earnings of $5.9
million, or $0.10 per diluted share in the prior year's third quarter.
Intermec operating profits, including the impact of $5.7 million
of incremental legal expense, increased to $18.0 million for the third
quarter of 2005, compared to $17.1 million for the same prior year
period. The Company's pre-tax earnings from continuing operations
increased 140% in the current quarter to $12.9 million, compared to
$5.4 million in the prior year's third quarter.
"This third quarter performance reflects the continuing growth and
operating leverage that have characterized our business for some
time," said Larry D. Brady, Chairman and CEO. "Our ongoing efforts to
establish Intermec as the technology leader were bolstered this
quarter by the launch of our MEMS -- based laser scanning technology,
along with the success derived from our RFID Rapid Start licensing
program."
Intermec product revenue categories achieved double digit growth
over the comparable 2004 quarter. Systems and Solutions revenue
increased 12 percent and Printer and Media revenues increased 10
percent over the comparable prior-year period. Service revenue
increased 16 percent over the comparable prior-year period.
Geographically, North American revenues achieved an increase of 18
percent over the comparable prior-year period. Revenues in Europe,
Mid-East and Africa (EMEA) increased 7 percent, Latin America revenues
increased 8 percent and revenues in Asia Pacific decreased 6 percent.
Corporate and other expenditures were $4.4 million for the third
quarter of 2005, a reduction of $3.9 million compared to the $8.3
million in the prior-year-quarter.
The Company's discontinued operations recorded an after-tax loss
of ($6.7) million for the current quarter, including an after-tax
charge of approximately $6.5 million related to the settlement of a
legal dispute with Tower Automotive.
Subsequent to the quarter end, the Company reached an agreement to
sell its Landis Grinding Systems operations to Groupe Fives-Lille, a
leading industrial engineering group based in Montreuil-sous-Bois,
France. The anticipated transaction will fully complete UNOVA's stated
commitment to divest its Industrial Automation Systems businesses. The
transaction is subject to customary closing conditions and is expected
to be completed by the end of the year.
Under the terms of the agreement, Groupe Fives-Lille will purchase
the global operations of UNOVA's Landis Grinding Systems. The
consideration for the purchased assets consists of $69 million in
cash, a $10 million two-year note plus the assumption of certain
liabilities including pension and other post-retirement obligations.
The purchase price is subject to possible adjustments based on net
working assets at closing.
The Company's cash and cash equivalent position at the end of the
third quarter was $180 million, an increase of $7 million during the
third quarter. The increase in cash reflects the use of $8.5 million
for debt repayment, reducing the Company's total debt to $100 million.
The Company's net cash, defined as cash and cash equivalents less
total debt, increased approximately $15 million to a record $80
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.
THIRD QUARTER FISCAL YEAR 2005 -- EARNINGS CONFERENCE CALL
UNOVA will hold a conference call on November 1, 2005 at 5 p.m.
EST (2 p.m. PST) to review financial results from its third quarter of
fiscal year 2005. The call will be hosted by UNOVA Chief Executive
Officer, Larry D. Brady, Unova Acting Chief Financial Officer, Rick B.
Anderson, Intermec President and COO, Steven J. Winter, and Kevin P.
McCarty, UNOVA Director of Investor Relations. The dial-in number for
participants is 877-546-1566 (US); 1-773-681-5826 (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/investorinfo.asp.
UNOVA, INC.
(Unaudited, amounts in thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------ ------------------
Oct. 2, Sept. 30, Oct. 2, Sept. 30,
2005 2004 2005 2004
-------- -------- -------- --------
CONSOLIDATED STATEMENTS OF OPERATIONS (Preliminary)
Revenues:
Product $179,640 $160,054 $522,590 $475,301
Service 40,174 34,760 111,178 99,097
-------- -------- -------- --------
Total Revenues 219,814 194,814 633,768 574,398
Costs and Expenses:
Cost of product revenues 107,054 95,093 301,755 268,820
Cost of service revenues 25,083 20,345 67,053 58,353
Selling, general and
administrative 74,106 70,588 222,854 203,659
-------- -------- -------- --------
Total Costs and Expenses 206,243 186,026 591,662 530,832
-------- -------- -------- --------
Operating Profit From
Continuing Operations 13,571 8,788 42,106 43,566
Interest, net (665) (3,189) (3,911) (9,443)
Foreign currency exchange,
net (37) (246) 163 (912)
-------- -------- -------- --------
Earnings from Continuing
Operations before Income Taxes 12,869 5,353 38,358 33,211
Provision (Benefit) for
income taxes 1,601 (1,493) 9,823 7,476
-------- -------- -------- --------
Earnings from Continuing
Operations 11,268 6,846 28,535 25,735
Loss from discontinued
operations, net of tax (6,697) (943) (8,416) (3,647)
-------- -------- -------- --------
Net Earnings $ 4,571 $ 5,903 $ 20,119 $ 22,088
======== ======== ======== ========
Basic Earnings (Loss) per Share
Continuing operations $ 0.18 $ 0.11 $ 0.46 $ 0.43
Discontinued operations (0.11) (0.01) (0.13) (0.06)
-------- -------- -------- --------
Net earnings per share $ 0.07 $ 0.10 $ 0.33 $ 0.37
======== ======== ======== ========
Diluted Earnings (Loss) per
Share
Continuing operations $ 0.18 $ 0.11 $ 0.45 $ 0.42
Discontinued operations (0.11) (0.01) (0.13) (0.06)
-------- -------- -------- --------
Net earnings per share $ 0.07 $ 0.10 $ 0.32 $ 0.36
======== ======== ======== ========
Shares Used in Computing
Earnings (Loss) per Share
Basic 62,077 60,631 61,509 60,408
Diluted 63,635 62,098 63,071 62,079
SELECTED SEGMENT INFORMATION (Preliminary)
Operating Profit (Loss) From
Continuing Operations
Intermec Operating Profit $ 18,020 $ 17,084 $ 57,908 $ 60,729
Corporate and Other (4,449) (8,296) (15,802) (17,163)
-------- -------- -------- --------
Operating Profit From
Continuing Operations $ 13,571 $ 8,788 $ 42,106 $ 43,566
======== ======== ======== ========
UNOVA, INC.
CONSOLIDATED BALANCE SHEETS (Preliminary)
(Unaudited, amounts in thousands)
Oct. 2, Dec. 31,
2005 2004
--------- ----------
Assets
Current Assets:
Cash and cash equivalents $ 179,562 $ 217,899
Restricted cash - 50,000
Accounts receivable, net 177,919 157,833
Inventories 101,485 80,854
Net deferred tax assets 63,037 81,769
Assets held for sale 13,492 19,748
Current assets of discontinued operations 63,546 211,116
Other current assets 8,316 8,831
--------- ----------
Total Current Assets 607,357 828,050
Property, Plant and Equipment, Net 29,619 30,375
Other Intangibles, Net 3,772 4,072
Net Deferred Tax Assets 186,362 134,978
Long Term Assets of Discontinued Operations 19,192 21,238
Other Assets 60,381 53,964
--------- ----------
Total Assets $ 906,683 $1,072,677
========= ==========
Liabilities and Shareholders' Investment
Current Liabilities:
Accounts payable and accrued expenses $ 187,720 $ 160,001
Payroll and related expenses 25,848 30,077
Current portion of long-term debt - 108,500
Current liabilities of discontinued
operations 32,870 130,257
--------- ----------
Total Current Liabilities 246,438 428,835
Long-term Debt 100,000 100,000
Other Long-term Liabilities 105,176 86,220
Long-term Liabilities of Discontinued
Operations 11,773 46,388
Shareholders' Investment:
Common stock 625 611
Additional paid-in capital 729,200 703,416
Accumulated deficit (286,576) (306,695)
Accumulated other comprehensive income 47 13,902
--------- ----------
Total Shareholders' Investment 443,296 411,234
--------- ----------
Total Liabilities and Shareholders' Investment $ 906,683 $1,072,677
========= ==========
UNOVA, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Preliminary)
(Unaudited, amounts in thousands)
Nine Months Ended October 2, 2005
Cash and Cash Equivalents at Beginning of Period $ 217,899
Cash Flows from Operating Activities of Continuing
Operations:
Net earnings from continuing operations 28,535
Adjustments to reconcile net earnings to net cash
provided by operating activities of continuing
operations:
Depreciation and amortization 7,504
Change in net deferred tax asset 7,120
Changes in working capital and other operating
activities (4,503)
---------
Net Cash Provided by Operating Activities of
Continuing Operations 38,656
---------
Cash Flows from Investing Activities of Continuing
Operations:
Capital expenditures (7,159)
Decrease in restricted cash 50,000
Other investing activities 6,643
---------
Net Cash Provided by Investing Activities of
Continuing Operations 49,484
---------
Cash Flows from Financing Activities of Continuing
Operations:
Repayment of long-term obligations (108,500)
Stock options exercised 16,373
Other financing activities 1,118
---------
Net Cash Used in Financing Activities of Continuing
Operations (91,009)
---------
Net Cash Provided by Continuing Operations (2,869)
Net Cash Used in Operating Activities of Discontinued
Operations (34,662)
Net Cash Used in Investing Activities of Discontinued
Operations (806)
---------
Resulting Decrease in Cash and Cash Equivalents (38,337)
---------
Cash and Cash Equivalents at End of Period $ 179,562
=========
CONTACT: UNOVA, Inc.
Kevin P. McCarty, 425-265-2472
kmccarty@unova.com