Exhibit 99.1
Baldwin Releases Results for Q2 of FY '07
SHELTON, Conn.--(BUSINESS WIRE)--Jan. 31, 2007--Baldwin Technology
Company, Inc. (AMEX: BLD), a leading global manufacturer of printing
press accessories and control equipment, reported net sales for the
second fiscal quarter ended December 31, 2006, of $48,168,000 compared
to $43,826,000 for the second quarter last year, an increase of 9.9%.
Net income for the quarter was $402,000, or $0.03 per diluted share,
compared to $1,383,000, or $0.09 per diluted share, for the similar
quarter last year.
Net income for the current quarter was impacted by a pretax
restructuring charge of $994,000 associated with the acquisition of
the Oxy-Dry companies along with integration expenses of approximately
$111,000. In addition, the company incurred fees of $125,000 to
voluntarily terminate its credit line with Maple Bank GmbH and
recorded a one-time tax expense of $250,000 in settlement of a tax
audit at its German subsidiary that related to prior years. Currency
translation had a negligible impact on net income for the quarter.
The increase in sales was primarily attributable to the Oxy-Dry
companies, which were acquired in late November 2006. Currency
translation also favorably increased sales by $2,012,000 for the
quarter.
Net sales for the six months ended December 31, 2006, were
$91,375,000, compared to $86,471,000 in the comparable period last
year, an increase of 5.7%. Currency translation favorably increased
sales by $2,568,000 for the six month period.
Backlog at the end of the quarter was $58,614,000, including
approximately $6,400,000 from the Oxy-Dry entities. Backlog was
$49,167,000 at the beginning of the fiscal year, and $51,882,000 on
September 30, 2006. Prior period backlog does not include Oxy-Dry.
President and COO Karl S. Puehringer said, "During this quarter,
we successfully completed the acquisition of the Oxy-Dry group of
companies. Immediately after closing in late November, we started to
aggressively manage the integration of Oxy-Dry operations into our
own, and I am pleased with the progress we have achieved in the
intervening two months. We expect to complete the integration before
the end of the calendar year. While we will be able to record some of
the integration benefits in Q3 and Q4 of FY '07, the full impact of
expected annual savings of $3,700,000 will be felt during FY '08.
"The acquisition of Oxy-Dry makes Baldwin the leading global full
solution provider of cleaning applications in the offset printing
market. We are pleased with initial reactions from customers about our
new product lines. We will continue to work hard to leverage this
unique market position," Puehringer said.
Baldwin's Vice President and CFO Vijay Tharani, added, "During the
quarter we refinanced our long-term debt by entering into a new larger
credit facility with LaSalle/ABNAmro Bank. Under this arrangement, we
have the ability to borrow up to $50,000,000 over the next five years
at terms comparable to our previous arrangement. A portion of this
credit line was utilized in the acquisition of Oxy-Dry."
Baldwin will review its second quarter results and discuss its
business outlook during a conference call today beginning at 11 a.m.
Eastern Time. Call-in information is available at
http://www.baldwintech.com under the Investor Relations section.
Interested investors are encouraged to log onto the website and
participate in the call or access the webcast to replay the call.
Puehringer and Tharani will participate in the conference call.
About Baldwin
Baldwin Technology Company, Inc. is a leading international
supplier of offset printing press accessories and controls for the
newspaper publishing and commercial 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, Conn., 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, Hawk
Associates, 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/bldprofile.aspx.
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 Item 1A "Risk Factors" and Exhibit 99 to the company's
Annual Report on Form 10-K for the fiscal year ended June 30, 2006.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(Unaudited, in thousands, except per share data)
Quarter ended December 31,
------------------------------
2006 2005
------------- -------------
Net sales $ 48,168 $ 43,826
Cost of goods sold 32,550 29,040
------------- -------------
Gross profit 15,618 14,786
Operating expenses 12,913 12,421
Restructuring 994 -0-
------------- -------------
Operating income 1,711 2,365
Interest expense 559 249
Interest (income) (57) (33)
Other expense (income), net 175 12
------------- -------------
Income before income taxes 1,034 2,137
Provision for income taxes 632 754
------------- -------------
Net income $ 402 $ 1,383
============= =============
Net income per share - basic and diluted $ 0.03 $ 0.09
============= =============
Weighted average shares outstanding -
basic 15,097 14,953
============= =============
Weighted average shares outstanding -
diluted 15,695 15,666
============= =============
Six Months ended December 31,
------------------------------
2006 2005
------------- -------------
Net sales $ 91,375 $ 86,471
Cost of goods sold 61,495 57,629
------------- -------------
Gross profit 29,880 28,842
Operating expenses 25,060 24,323
Restructuring 994 -0-
------------- -------------
Operating income 3,826 4,519
Interest expense 783 547
Interest (income) (88) (61)
Other expense (income), net (51) (121)
------------- -------------
Income before income taxes 3,182 4,154
Provision for income taxes 1,454 1,578
------------- -------------
Net income 1,728 $ 2,576
============= =============
Net income per share - basic and diluted $ .11 $ 0.17
============= =============
Weighted average shares outstanding -
basic 15,050 14,983
============= =============
Weighted average shares outstanding -
diluted 15,710 15,570
============= =============
Baldwin Technology Company, Inc.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December 31, June 30,
Current assets: 2006 (1) 2006
------------- -----------
Cash and equivalents $ 20,523 $ 14,986
Trade receivables 46,984 39,862
Inventory 29,468 22,657
Prepaid expenses and other 6,374 5,274
------------- -----------
Total current assets 103,349 82,779
Property, plant and equipment, net 5,282 3,617
Intangible assets 30,545 13,749
Other assets 12,697 12,618
------------- -----------
Total assets 151,873 112,763
============= ===========
Current liabilities:
Loans payable $ 3,361 $ 2,622
Current portion of long-term debt 412 853
Other current liabilities 60,854 49,539
------------- -----------
Total current liabilities 64,627 53,014
Long-term debt 31,309 7,080
Other long-term liabilities 6,750 6,736
------------- -----------
Total liabilities 102,686 66,830
Shareholders' equity 49,187 45,933
------------- -----------
Total liabilities and shareholders' equity $ 151,873 $ 112,763
============= ===========
(1) = includes preliminary allocation of purchase price paid for
the Oxy-Dry group of companies acquired November 21, 2006, subject to
final valuation.
CONTACT: Hawk Associates, Inc.
Frank N. Hawkins, Jr. / Julie Marshall, 305-451-1888
info@hawkassociates.com
http://www.hawkassociates.com