Exhibit 99.1
Intermec Announces Fourth Quarter and Full Year 2005 Results
EVERETT, Wash.--(BUSINESS WIRE)--Feb. 8, 2006--Intermec, Inc.
(NYSE:IN):
-- Q4 and FY 2005 Revenues of $241.7M and $875.5M, from
Continuing Operations
-- Q4 and FY 2005 Diluted EPS of $0.19 and $0.64, from Continuing
Operations
-- Cash and Cash Equivalents increase $77M during the quarter to
a year end balance of $257M
-- Company Completes its Strategic Divestitures with Sale of the
Landis Grinding Systems Business
Intermec, Inc. (NYSE:IN) today announced financial results for its
fourth quarter and fiscal year which ended December 31, 2005.
Intermec reported 2005 fourth quarter revenues of $241.7 million
and earnings from continuing operations of $12.1 million, or $0.19 per
diluted share, compared to 2004 fourth quarter revenues of $236.9
million and earnings from continuing operations of $26.4 million, or
$0.42 per diluted share. The effective tax rate for the fourth quarter
of 2005 was 25 percent. In the fourth quarter of 2004, the Company had
recorded a tax benefit from continuing operations of $9.0 million
primarily reflecting the recognition of earned tax credits and the
benefit of net operating losses resulting from foreign legal entity
restructuring. Including discontinued operations, net earnings for the
fourth quarter of 2005 were $44.5 million or $0.69 per diluted share
compared to net loss of ($71.2) million or ($1.14) per diluted share
in the prior years fourth quarter.
Fourth quarter 2005 gross margin was 40.5 percent, compared to the
fourth quarter of 2004 of 41.6 percent and compared to the sequential
third quarter 2005 of 39.9 percent. This amount was below the
company's expectation of 42 percent, primarily due to a higher
customer mix of lower margin enterprise accounts during the quarter.
Fiscal year 2005 revenues were $875.5 million and earnings from
continuing operations were $40.6 million, or $0.64 per diluted share,
compared to 2004 revenues of $811.3 million and earnings from
continuing operations of $52.2 million, or $0.84 per diluted share.
Revenues and earnings from continuing operations before income taxes
for fiscal year 2004 included a settlement for an intellectual
property (IP) dispute regarding its smart battery patents in the
amount of $19.7 million and $15.6 million, respectively. Including
discontinued operations, net earnings for fiscal year 2005 were $64.7
million or $1.02 per diluted share compared to net loss of ($49.1)
million or ($0.79) per diluted share in the prior fiscal year.
The Company's cash and cash equivalent position at the end of the
fourth quarter was $256.8 million, an increase of $77.2 million during
the fourth quarter. The increase in cash primarily reflects the sales
of its Landis Grinding Systems business, cash flows from operating
activities and the sale of certain assets held for sale. The Company's
net cash, defined as cash and cash equivalents less total debt,
increased to a record $156.8 million.
Geographically during the fourth quarter, North American revenues
increased 8 percent over the comparable prior-year period. Revenues in
Europe, Mid-East and Africa (EMEA) decreased 13 percent; and the rest
of the world, consisting of Asia Pacific and Latin America, increased
7 percent.
During the fourth quarter, Systems and Solutions revenue decreased
2 percent and Printer and Media revenues increased 7 percent over the
comparable prior-year period. Service revenue increased 15 percent
over the comparable prior-year period.
Geographically for fiscal year 2005, North American revenues
increased 14 percent over the comparable prior-year period. Revenues
in Europe, Mid-East and Africa (EMEA) increased 3 percent; and the
rest of the world, consisting of Asia Pacific and Latin America,
increased 12 percent.
For the full fiscal year 2005, Systems and Solutions revenue
increased 9 percent and Printer and Media revenues increased 13
percent over the comparable prior-year period. Service revenue
increased 13 percent over the comparable prior-year period.
About Intermec Inc.
Intermec Inc. (NYSE:IN) develops, manufactures and integrates
technologies that identify, track and manage supply chain assets. Core
technologies include RFID, mobile computing and data collection
systems, bar code printers and label media. The company's products and
services are used by customers in many industries worldwide to improve
the productivity, quality and responsiveness of business operations.
For more information about Intermec, visit www.intermec.com or call
800-347-2636. Contact Intermec Investor Relations Director Kevin
McCarty at kevin.mccarty@intermec.com, 425-265-2472.
(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, 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.
Intermec will hold a conference call on February 8, 2006 at 5 p.m.
Eastern (2 p.m. Pacific) to review financial results from its fourth
fiscal quarter and fiscal year 2005. The call will be hosted by
Intermec, Inc. Chairman and Chief Executive Officer, Larry D. Brady,
President and COO, Steven J. Winter, Controller and Acting Chief
Financial Officer, Rick B. Anderson and Director of Investor
Relations, Kevin P. McCarty. The dial-in number for participants is
1-800-988-9454 (US); 1-312-470-7109 (International) (Pass code is
"Intermec").
The call will be broadcast on the Internet via a link from the
investor's Web page at the Intermec website at
www.intermec.com/InvestorRelations
INTERMEC, INC.
(Unaudited, amounts in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
------------------- --------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
-------- -------- -------- ---------
CONSOLIDATED STATEMENTS OF OPERATIONS (Preliminary)
Revenues:
Product $198,369 $199,216 $720,959 $ 674,517
Service 43,345 37,703 154,523 136,800
-------- -------- -------- ---------
Total Revenues 241,714 236,919 875,482 811,317
Costs and Expenses:
Cost of product revenues 118,952 115,790 420,707 384,609
Cost of service revenues 24,846 22,467 91,899 80,821
Selling, general and
administrative 82,141 77,515 304,995 281,174
-------- -------- -------- ---------
Total Costs and Expenses 225,939 215,772 817,601 746,604
-------- -------- -------- ---------
Operating Profit From
Continuing Operations 15,775 21,147 57,881 64,713
Interest, net (115) (2,918) (4,026) (12,361)
Foreign currency exchange,
net 507 (763) 670 (1,675)
-------- -------- -------- ---------
Earnings from Continuing
Operations before Income
Taxes 16,167 17,466 54,525 50,677
Provision (Benefit) for
income taxes 4,057 (8,980) 13,880 (1,504)
-------- -------- -------- ---------
Earnings from Continuing
Operations 12,110 26,446 40,645 52,181
Earnings (Loss) from
discontinued operations,
net of tax 32,430 (97,663) 24,014 (101,310)
-------- -------- -------- ---------
Net Earnings (Loss) $ 44,540 $(71,217) $ 64,659 $ (49,129)
======== ======== ======== =========
Basic Earnings (Loss) per
Share
Continuing operations $ 0.19 $ 0.44 $ 0.66 $ 0.86
Discontinued operations 0.52 (1.61) 0.39 (1.67)
-------- -------- -------- ---------
Net earnings (Loss) per
share $ 0.71 $ (1.17) $ 1.05 $ (0.81)
======== ======== ======== =========
Diluted Earnings (Loss) per
Share
Continuing operations $ 0.19 $ 0.42 $ 0.64 $ 0.84
Discontinued operations 0.50 (1.56) 0.38 (1.63)
-------- -------- -------- ---------
Net earnings (Loss) per
share $ 0.69 $ (1.14) $ 1.02 $ (0.79)
======== ======== ======== =========
Shares Used in Computing
Earnings (Loss) per Share
Basic 62,629 60,780 61,785 60,502
Diluted 64,204 62,374 63,350 62,154
INTERMEC, INC.
CONSOLIDATED BALANCE SHEETS (Preliminary)
(Unaudited, amounts in thousands)
Dec. 31, Dec. 31,
2005 2004
--------- ----------
Assets
Current Assets:
Cash and cash equivalents $ 256,782 $ 217,899
Restricted cash - 50,000
Accounts receivable, net 185,916 157,833
Inventories 81,706 80,854
Net deferred tax assets 100,656 81,769
Assets held for sale 8,517 19,748
Current assets of discontinued operations - 211,116
Other current assets 23,775 8,831
--------- ----------
Total Current Assets 657,352 828,050
Property, Plant and Equipment, Net 30,820 30,375
Other Intangibles, Net 6,871 4,072
Net Deferred Tax Assets 137,437 134,978
Long Term Assets of Discontinued Operations - 21,238
Other Assets 69,090 53,964
--------- ----------
Total Assets $ 901,570 $1,072,677
========= ==========
Liabilities and Shareholders' Investment
Current Liabilities:
Accounts payable and accrued expenses $ 185,913 $ 160,001
Payroll and related expenses 31,011 30,077
Current portion of long-term debt - 108,500
Current liabilities of discontinued
operations - 130,257
--------- ----------
Total Current Liabilities 216,924 428,835
Long-term Debt 100,000 100,000
Other Long-term Liabilities 108,806 86,220
Long-term Liabilities of Discontinued
Operations - 46,388
Shareholders' Investment:
Common stock 628 611
Additional paid-in capital 736,223 703,416
Accumulated deficit (242,036) (306,695)
Accumulated other comprehensive income (loss) (18,975) 13,902
--------- ----------
Total Shareholders' Investment 475,840 411,234
--------- ----------
Total Liabilities and Shareholders' Investment $ 901,570 $1,072,677
========= ==========
CONTACT: Intermec, Inc.
Kevin P. McCarty, 425-265-2472
kevin.mccarty@intermec.com