Exhibit 99.1
Ameron Reports Strong
First-Quarter Results
PASADENA, Calif.--(BUSINESS WIRE)--March 21, 2007--Ameron
International Corporation (NYSE:AMN) reported earnings of $.94 per
diluted share in the first quarter ended February 25, 2007, compared
to $.41 per diluted share in the first quarter ended March 5, 2006.
Earnings per diluted share from continuing operations, which excludes
the performance coatings and finishes business that was divested in
2006, were $.92 in the first quarter of 2007, compared to $.43 per
share in the first quarter of 2006. Income from discontinued
operations, after taxes, was $.02 per diluted share in the first
quarter of 2007, compared to a net loss of $.02 per diluted share in
the first quarter of 2006. Sales totaled $120.4 million in the first
quarter of 2007, compared to $126.0 million in the first quarter of
2006.
The Fiberglass-Composite Pipe Group and TAMCO had outstanding
results, compared to the first quarter of 2006. The Infrastructure
Products Group's results were about even, in spite of the shorter
quarter in 2007; and the Water Transmission Group had lower sales and
a segment loss.
"Overall, we are pleased with the solid first-quarter
performance," stated James S. Marlen, Ameron's Chairman, President and
Chief Executive Officer. "Business conditions remain favorable for
most of our operations, and we expect the Water Transmission Group to
improve later in the year."
The Fiberglass-Composite Pipe Group's sales increased 27% in the
first quarter of 2007, compared to the first quarter last year, while
segment income improved 55%. The sales increase was driven by the
stronger demand in the marine, offshore and chemical and industrial
markets worldwide, while the onshore oilfield piping segment remained
steady. The increase in segment income was consistent with the higher
sales level. The outlook for the Fiberglass-Composite Pipe Group
remains favorable.
The Infrastructure Products Group had slightly lower sales ($1.1
million) and segment income ($.1 million) in the first quarter of
2007, compared to the first quarter of 2006. Ameron's Hawaiian
Division had lower sales and income due to wet weather in Oahu and
Maui and fewer shipping days in the first quarter of 2007, compared to
the first quarter of 2006. The Pole Products Division had higher sales
and segment income in the first quarter of 2007, as market conditions
for decorative concrete lighting poles remained favorable in Southern
California and the targeted regions in the southeastern U.S.
Construction market conditions are stable, with the exception of the
residential construction market, which has slowed somewhat. The
outlook for the Infrastructure Products Group remains generally
favorable.
The Water Transmission Group had lower sales in the first quarter
of 2007, compared to the first quarter of 2006. The sales decline of
$13.6 million was attributable principally to the continued softness
of the water infrastructure market in the western U.S., and project
delays on active orders for water transmission piping and production
delays related to large-diameter wind towers. The Group incurred a
segment loss of $3.7 million due to the low sales volume and
inefficient plant utilization. The cyclical slowdown in the water
infrastructure market is forecasted to turn late in the second quarter
with a number of major projects scheduled to bid. In addition, the
projects delayed in the first quarter are expected to be rescheduled
into later quarters. The outlook for the Water Transmission Group is
for a steady recovery during 2007 with improved year-over-year
performance.
TAMCO had particularly strong sales and net income in the first
quarter of 2007, compared to the first quarter of 2006. The demand for
steel rebar in California, Nevada and Arizona remained strong due to
increased commercial and highway construction. Net income improved due
to favorable product mix, increased steel selling prices and improved
margins. Ameron's share of TAMCO's net income totaled $5.0 million
after taxes, an increase of $4.2 million from the first quarter of
2006.
James Marlen concluded, "The first-quarter results represent a
good start for 2007. I expect we will continue to achieve strong
operating results throughout 2007."
Ameron International Corporation is a multinational manufacturer
of highly-engineered products and materials for the chemical,
industrial, energy, transportation and infrastructure markets. Traded
on the New York Stock Exchange (AMN), Ameron is a leading producer of
water transmission lines and fabricated steel products, such as wind
towers; fiberglass-composite pipe for transporting oil, chemicals and
corrosive fluids and specialized materials and products used in
infrastructure projects. The Company operates businesses in North
America, South America, Europe and Asia. It also participates in
several joint-venture companies in the U.S. and the Middle East.
Cautionary statement for purposes of the "Safe Harbor" provisions
of The Private Securities Litigation Reform Act of 1995: Any
statements in this report that refer to the forecasted, estimated or
anticipated future results of Ameron International Corporation
("Ameron" or the "Company") are forward-looking and reflect the
Company's current analysis of existing trends and information. Actual
results may differ from current expectations based on a number of
factors affecting Ameron's businesses, including competitive
conditions and changing market situations. Matters affecting the
economy generally, including the state of economies worldwide, can
affect Ameron's results. Forward-looking statements represent the
Company's judgment only as of the date of this report. Since actual
results could differ materially, the reader is cautioned not to rely
on these forward-looking statements. Moreover, Ameron disclaims any
intent or obligation to update these forward-looking statements.
AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
------------------------
February 25, March 5,
(Dollars in thousands, except per share data) 2007 2006
- --------------------------------------------- ------------ -----------
Sales $120,355 $125,972
Cost of sales (94,635) (97,390)
------------ -----------
Gross profit 25,720 28,582
Selling, general and administrative expenses (21,900) (22,964)
Other income, net 1,018 12
------------ -----------
Income from continuing operations before
interest, income taxes and equity in
earnings of joint venture 4,838 5,630
Interest income/(expense), net 366 (950)
------------ -----------
Income from continuing operations before
income taxes and equity in earnings of
joint venture 5,204 4,680
Provision for income taxes (1,920) (1,685)
------------ -----------
Income from continuing operations before
equity in earnings of joint venture 3,284 2,995
Equity in earnings of joint venture, net of
taxes 5,028 780
------------ -----------
Income from continuing operations 8,312 3,775
Income/(loss) from discontinued operations,
net of taxes 156 (164)
------------ -----------
Net income $8,468 $3,611
============ ===========
Basic earnings per share:
Income from continuing operations $.92 $.44
Income/(loss) from discontinued operations,
net of taxes .02 (.02)
------------ -----------
Net income $.94 $.42
============ ===========
Diluted earnings per share:
Income from continuing operations $.92 $.43
Income/(loss) from discontinued operations,
net of taxes .02 (.02)
------------ -----------
Net income $.94 $.41
============ ===========
Weighted-average shares (basic) 8,994,075 8,614,269
============ ===========
Weighted-average shares (diluted) 9,050,525 8,786,041
============ ===========
Cash dividends per share $.20 $.20
============ ===========
AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands, except per share February 25, November 30,
data) 2007 2006
- -------------------------------------------- ------------ ------------
ASSETS
Current assets
Cash and cash equivalents $127,720 $139,479
Receivables, less allowances of $5,139 in
2007 and $4,912 in 2006 150,627 160,173
Inventories 104,323 77,134
Deferred income taxes 23,861 23,861
Prepaid expenses and other current assets 9,485 15,921
------------ ------------
Total current assets 416,016 416,568
Investments in joint ventures
Equity method 20,169 14,501
Cost method 3,784 3,784
Property, plant and equipment
Land 33,122 33,327
Buildings 58,515 57,434
Machinery and equipment 264,503 261,538
Construction in progress 26,910 20,657
------------ ------------
Total property, plant and equipment at
cost 383,050 372,956
Accumulated depreciation (242,258) (238,486)
------------ ------------
Total property, plant and equipment,
net 140,792 134,470
Goodwill and Intangible assets, net of
accumulated amortization of $3,023 in 2007
and $3,017 in 2006 2,137 2,143
Other assets 63,315 63,198
------------ ------------
Total assets $646,213 $634,664
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $10,000 $10,000
Trade payables 53,467 45,650
Accrued liabilities 74,106 68,970
Income taxes payable 3,957 11,481
------------ ------------
Total current liabilities 141,530 136,101
Long-term debt, less current portion 71,263 72,525
Other long-term liabilities 60,423 62,813
------------ ------------
Total liabilities 273,216 271,439
Commitments and contingencies
Stockholders' equity
Common stock, par value $2.50 per share,
authorized 24,000,000 shares,
outstanding 9,109,678 shares in 2007 and
9,075,094 shares in 2006, net of
treasury shares 29,542 29,431
Additional paid-in capital 42,233 39,500
Retained earnings 378,546 371,894
Accumulated other comprehensive loss (25,814) (27,232)
Treasury stock (2,707,114 shares in 2007
and 2,697,148 shares in 2006) (51,510) (50,368)
------------ ------------
Total stockholders' equity 372,997 363,225
------------ ------------
Total liabilities and stockholders' equity $646,213 $634,664
============ ============
AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
------------------------
February 25, March 5,
(Dollars in thousands) 2007 2006
- --------------------------------------------- ------------ -----------
OPERATING ACTIVITIES
Net income $8,468 $3,611
Adjustments to reconcile net income to net
cash (used in)/provided by operating
activities:
Depreciation 3,739 4,646
Amortization 6 51
Net earnings and distributions from joint
ventures (5,668) (596)
Gain from sale of property, plant and
equipment (19) (46)
Stock compensation expense 484 1,366
Other 2 (99)
Changes in operating assets and liabilities:
Receivables, net 9,816 3,278
Inventories (26,515) (5,939)
Prepaid expenses and other current assets 6,492 (759)
Other assets (105) 741
Trade payables 7,730 (1,110)
Accrued liabilities and income taxes
payable (2,538) (3,788)
Other long-term liabilities (2,422) 58
------------ -----------
Net cash (used in)/provided by operating
activities (530) 1,414
------------ -----------
INVESTING ACTIVITIES
Proceeds from sale of property, plant and
equipment 200 154
Additions to property, plant and equipment (9,670) (4,345)
------------ -----------
Net cash used in investing activities (9,470) (4,191)
------------ -----------
FINANCING ACTIVITIES
Issuance of debt - 3,888
Repayment of debt (1,417) (22)
Dividends on common stock (1,816) (1,749)
Issuance of common stock 405 213
Excess tax benefits related to stock-based
compensation 1,955 -
Purchase of treasury stock (1,142) (710)
------------ -----------
Net cash (used in)/provided by financing
activities (2,015) 1,620
------------ -----------
Effect of exchange rate changes on cash and
cash equivalents 256 170
------------ -----------
Net change in cash and cash equivalents (11,759) (987)
Cash and cash equivalents at beginning of
period 139,479 44,671
------------ -----------
Cash and cash equivalents at end of period $127,720 $43,684
============ ===========
CONTACT: Ameron International Corporation
James S. Marlen
Chairman, President and Chief Executive Officer
Gary Wagner
Executive Vice President, Chief Operating Officer
James R. McLaughlin
Senior Vice President, Chief Financial Officer
626-683-4000