Exhibit 99.1
Baldwin Reports Increased FY Q3 Sales and Net Income
SHELTON, Conn.--(BUSINESS WIRE)--April 27, 2006--Baldwin
Technology Company, Inc. (AMEX: BLD), a leading global manufacturer of
printing press accessories and control equipment reported today net
sales of $45,447,000 for the third fiscal quarter ended March 31,
2006, compared with net sales of $43,673,000 for the third quarter
last year, an increase of 4.1%. Excluding significant unfavorable
effects of currency translation of $3,717,000 in the quarter, sales
would have been $49,164,000, an increase of approximately 13%.
Net income for the third quarter was $1,745,000 or $0.12 per basic
share and $0.11 per diluted share, a gain of approximately 16% over
net income of $1,509,000, or $0.10 per basic and diluted share for the
comparable period a year earlier. Currency translation negatively
impacted the net income by $271,000. Excluding the impact of currency
translation, net income would have increased by 34%.
The Company's backlog at March 31, 2006 was $53,557,000, up from
$51,580,000 at December 31, 2005. Orders for the third quarter were
$47,424,000, compared to $43,470,000 for the previous quarter,
representing an increase of 9%.
Vice President and CFO Vijay C. Tharani said, "This was another
quarter of double-digit sales growth when measured in local
currencies. The Company's performance, when compared to the prior
year, was better than the reported results would indicate due to
several factors. First, last year's third quarter results included
royalty income as well as positive adjustments relating to
restructuring reserves, which in total amounted to $600,000. Second,
there was also a significant negative currency impact on reported
sales and net income due to the strength of the U.S. dollar during the
quarter."
President and COO Karl Puehringer said, "Business conditions
continue to be favorable, particularly in Europe and the Americas.
This is reflected by the increases in our backlog and order flow. We
are also encouraged by the interest level shown in our products at two
recent trade shows, IPEX in the U.K. and NEXPO in the U.S. During the
quarter, we hired a new deputy general manager to head our Chinese
operations and opened a new office in Shanghai to spearhead our China
initiative. We believe we have excellent opportunities in this
fast-growing market."
Baldwin will review its third quarter results and discuss its
business outlook during a conference call today beginning at 11 a.m.
EST. To participate, call (888) 390-0474 any time after 10:55 a.m. The
toll dial-in number is +1 (210) 234-0010. The passcode is "Baldwin
Q3." Interested investors are encouraged to log onto
http://www.vcall.com/CustomEvent/NA000113/index.asp?id=103564, and
either participate in the call or access the webcast and replay of the
call. The replay will be available from one hour after the call
through Thursday, May 4, 2006, toll free at (800) 430-5981 and toll +1
(402) 220-2055.
The financial statements are attached.
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 investor
relations kit, visit http://www.hawkassociates.com. An investor
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 March 31
2006 2005
----------- -----------
Net Sales $ 45,447 $ 43,673
Cost of Goods Sold 30,384 29,232
----------- -----------
Gross Profit 15,063 14,441
Operating Expenses 12,143 12,345
Restructuring Charges --- (338)
----------- -----------
Operating Income 2,920 2,434
Interest Expense 256 462
Interest (Income) (31) (26)
Other (Income), net (43) (375)
----------- -----------
Income before income taxes 2,738 2,373
Provision for income taxes 993 864
----------- -----------
Net income 1,745 1,509
=========== ===========
Net income per share - basic $ 0.12 $ 0.10
=========== ===========
Net income per share - diluted $ 0.11 $ 0.10
=========== ===========
Weighted average shares outstanding - basic 14,966 14,911
=========== ===========
Weighted average shares outstanding - diluted 15,806 15,274
=========== ===========
Nine Months ended March 31
2006 2005
----------- -----------
Net Sales $ 131,918 $ 124,902
Cost of Goods Sold 88,013 85,663
----------- -----------
Gross Profit 43,905 39,239
Operating Expenses 36,466 34,482
Restructuring Charges --- (338)
----------- -----------
Operating Income 7,439 5,095
Interest Expense 803 1,985
Interest (Income) (92) (79)
Other (Income), net (164) (1,768)
----------- -----------
Income before income taxes 6,892 4,957
Provision for income taxes 2,571 1,941
----------- -----------
Net income 4,321 3,016
=========== ===========
Net income per share - basic $ 0.29 $ 0.20
=========== ===========
Net income per share - diluted $ 0.28 $ 0.20
=========== ===========
Weighted average shares outstanding - basic 14,947 14,895
=========== ===========
Weighted average shares outstanding - diluted 15,649 15,315
=========== ===========
Baldwin Technology Company, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
March 31, June 30,
Current assets 2006 2005
------------ -----------
Cash $ 17,059 $ 15,443
Trade receivables 37,387 35,250
Inventories 23,609 22,755
Prepaid expenses and other 3,417 3,548
------------ -----------
Total current assets 81,472 76,996
Property, plant and equipment, net 3,289 3,415
Intangible assets 13,121 13,483
Other assets 14,970 15,457
------------ -----------
Total assets 112,852 109,351
============ ===========
Current liabilities
Loans payable $ 2,549 $ 2,705
Current portion of long-term debt 1,248 1,033
Other current liabilities 48,428 47,759
------------ -----------
Total current liabilities 52,225 51,497
Long-term debt 10,574 12,223
Other long-term liabilities 6,748 6,400
------------ -----------
Total liabilities 69,547 70,120
------------ -----------
Shareholders' equity 43,305 39,231
------------ -----------
Total liabilities and shareholders' equity $ 112,852 $ 109,351
============ ===========
CONTACT: Hawk Associates, Inc.
Frank N. Hawkins, Jr. or Julie Marshall, 305-451-1888
info@hawkassociates.com
http://www.hawkassociates.com