Exhibit 99.1
Baldwin Technology Q2 Net Income Up 75%
SHELTON, Conn.--(BUSINESS WIRE)--Jan. 26, 2006--Baldwin Technology Company,
Inc. (AMEX: BLD), a leading global manufacturer of press accessories and control
equipment, announced today that net income for the second fiscal quarter ended
December 31, 2005 rose 75% to $1,383,000, or $0.09 per diluted share, up from
$788,000, or $0.05 per diluted share, from the comparable quarter last year.
Currency translation negatively impacted quarterly net income by $208,000.
Net sales for the quarter were $43,826,000, compared to $41,232,000 for the
second quarter last year, an increase of more than 6%. However, excluding the
unfavorable effects of currency translation of $3,524,000 in the quarter, sales
would have increased by close to 15%.
Net sales for the six months ended December 31, 2005 of $86,471,000
represented an increase of more than 6% from net sales of $81,229,000 for the
six months ended December 31, 2004. Excluding the effects of currency
translation, net sales grew by more than 11%. Year-to-date net income was
$2,576,000, or $0.17 per diluted share, compared to $1,507,000, or $0.10 per
diluted share, for the comparable six-month period in the prior year. The
currency impact decreased year-to-date net income by $213,000.
Backlog at the end of the quarter was $51,580,000, essentially flat when
compared to the level at September 30, 2005, but up approximately 7% from the
beginning of the fiscal year.
Vijay C. Tharani, Vice President and CFO, commented, "Earnings improved
significantly in comparison to the same quarter last year despite the loss of
royalty income from expired patents. Our gross margin percentage improved by
about 3% quarter over quarter, and our interest expense was less than half of
the comparable quarter's figure of a year ago. I am particularly pleased with
the strength of our top-line growth, which was approximately 15% excluding the
effects of currency. In addition, our operating cash flows for the quarter were
approximately $2,800,000."
President and COO Karl S. Puehringer, said, "The second quarter results
reflected another strong business performance by Baldwin Technology. Printing
markets worldwide continued to see steady, stable growth. At the same time,
however, market dynamics are driving a growing need in the industry to
aggressively reduce costs and improve press productivity. This translates into
more demand for the type of process automation that Baldwin Technology's
products provide the market."
Chairman and CEO Gerald A. Nathe added, "Our products and their benefits
will be on display during the next several months at exhibitions such as
Graphitec in France and IPEX in England as well as other shows in America and
Asia. We remain optimistic about our business prospects, and we see additional
opportunities in the global printing accessory and controls business."
Baldwin will review its second quarter results and discuss its business
outlook during a conference call today beginning at 11 a.m. EST. Call-in
information is available on the company's website at http://www.baldwintech.com
under the Investor Relations section. Interested investors are encouraged to log
onto the website and either participate in the call or access the webcast and
replay of the call.
Participating in the call will be Baldwin Technology Chairman and CEO
Gerald Nathe, President and COO Karl Puehringer and Vice President and CFO Vijay
Tharani.
About Baldwin
Baldwin Technology Company, Inc. is a leading global manufacturer of press
accessories and controls for the commercial and newspaper printing industries.
Baldwin offers its customers a broad range of market-leading technologies,
products and systems that enhance the quality of printed products and improve
the economic and environmental efficiency of printing presses. Headquartered in
Shelton, Ct., the company has sales and service centers, product development and
manufacturing operations in the Americas, Asia and Europe. Baldwin's technology
and products include cleaning systems, fluid management and ink control systems,
web press protection systems and drying systems. For more information, visit
http://www.baldwintech.com.
Investors may contact Frank Hawkins or Julie Marshall at (305) 451-1888 or
e-mail info@hawkassociates.com. For an online investment kit, visit
http://www.hawkassociates.com. An investment profile about Baldwin Technology
may be found at http://www.hawkassociates.com/baldwin/profile.htm.
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
(Unaudited, in thousands, except per share data)
Quarter ended
December 31,
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2005 2004
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Net sales $43,826 $41,232
Cost of goods sold 29,040 28,525
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Gross profit 14,786 12,707
Operating expenses 12,421 11,446
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Operating income 2,365 1,261
Interest expense 249 571
Interest (income) (33) (30)
Other expense (income), net 12 (626)
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Income before income taxes 2,137 1,346
Provision for income taxes 754 558
------- -------
Net income $ 1,383 $ 788
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Net income per share - basic and diluted $ 0.09 $ 0.05
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Weighted average shares outstanding - basic 14,953 14,901
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Weighted average shares outstanding - diluted 15,666 15,319
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Six Months ended
December 31,
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2005 2004
------- -------
Net sales $86,471 $81,229
Cost of goods sold 57,629 56,431
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Gross profit 28,842 24,798
Operating expenses 24,323 22,137
------- -------
Operating income 4,519 2,661
Interest expense 547 1,523
Interest (income) (61) (53)
Other expense (income), net (121) (1,393)
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Income before income taxes 4,154 2,584
Provision for income taxes 1,578 1,077
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Net income $ 2,576 $ 1,507
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Net income per share - basic and diluted $ 0.17 $ 0.10
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Weighted average shares outstanding - basic 14,983 14,887
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Weighted average shares outstanding - diluted 15,570 15,335
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Baldwin Technology Company, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December June 30,
31, 2005 2005
Current assets -------- --------
Cash $ 16,949 $ 15,443
Trade receivables 34,640 35,250
Inventories 21,878 22,755
Prepaid expenses and other 3,656 3,548
-------- --------
Total current assets 77,123 76,996
Property, plant and equipment, net 3,201 3,415
Intangible assets 13,105 13,483
Other assets 14,978 15,457
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Total assets 108,407 109,351
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Current liabilities
Loans payable $ 2,544 $ 2,705
Current portion of long-term debt 1,251 1,033
Other current liabilities 44,802 47,759
-------- --------
Total current liabilities 48,597 51,497
Long-term debt 11,940 12,223
Other long-term liabilities 6,682 6,400
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Total liabilities 67,219 70,120
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Shareholders' equity 41,188 39,231
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Total liabilities and shareholders' equity 108,407 109,351
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CONTACT: Hawk Associates, Inc.
Frank N. Hawkins, Jr. or Julie Marshall
305-451-1888
info@hawkassociates.com
http://www.hawkassociates.com