Exhibit 99.1
Baldwin Sales and Earnings Increased During Fiscal 2007
SHELTON, Conn.--(BUSINESS WIRE)--Sept. 24, 2007--Baldwin Technology
Company, Inc. (AMEX: BLD), a global leader in process automation technology for
the printing industry, announced today that net sales for the fiscal year ended
June 30, 2007 were $201.5 million, an increase of $22 million or 12% over net
sales of $179.4 million for the year ended June 30, 2006. Currency exchange
rates had a favorable impact of approximately $5.7 million on sales.
For the fiscal fourth quarter, net sales were $56.9 million, an increase of
$9.4 million or 20% over net sales of $47.5 million for the fourth quarter in
the prior year. The favorable impact of currency on fiscal fourth quarter sales
was $1.2 million.
For the full year, Baldwin recorded net income of $6.6 million or $0.42 per
diluted share compared to $6.3 million or $0.40 per diluted share for the prior
year. Fourth quarter net income was $3.6 million or $0.23 per diluted share,
compared to net income of $1.9 million or $0.12 per diluted share for the
comparable quarter in the prior fiscal year.
Included in net income for the quarter and year ended June 30, 2007 was a
partial release of the deferred tax asset valuation allowance of $2.5 million,
which had a favorable impact on fourth quarter tax provision of the same amount.
The Company has released a portion of the valuation allowance it had previously
recorded against its U.S. deferred tax assets due to the sustained and projected
profitability of its domestic operations.
Orders for the fiscal fourth quarter were approximately $45.6 million, an
increase of approximately 6% over orders of $43.1 million during the fourth
quarter of fiscal year 2006. Year to date orders were $196 million, an increase
of 9% compared to the prior period's $180.4 million. Backlog as of June 30, 2007
was $52.7 million up from $49.2 million a year earlier.
President and CEO Karl Puehringer said, "We are encouraged with the strong
performance of the Baldwin legacy operations, particularly in Japan and our
newspaper business in Europe and North America. Related to our recent
acquisitions, our integration initiatives are on track, we are achieving the
expected restructuring savings, and orders for Oxy-Dry products continue to
improve."
"In the face of a challenging market environment, gross margins continue to
be stable as a result of an intensive focus on innovation, production cost
control and productivity. We believe that developing opportunities in emerging
countries, the successful integration of our acquisitions and a continued focus
on gaining market share will strengthen our position within the offset printing
industry," Puehringer added.
Baldwin Vice President and CFO John Jordan stated, "During the last few
weeks, the Company and its newly-appointed auditing firm have required more time
than originally planned with respect to the audit of the Company's financial
statements and determining the impact of acquisitions. The Company is reporting
earnings today after a thorough review and documentation of its accounting
policies and procedures."
"During the fourth quarter of 2007, operating costs were $2.3 million
higher than in the fourth quarter of 2006, but this was entirely attributable to
acquisitions and the effect of stronger offshore currencies. Our initiatives
have begun to improve our working capital position and should continue to
contribute to cash flow. Finally, our ability to release the valuation allowance
against the deferred tax assets is a testament to our success in having restored
the American operations to sustainable profitability." Jordan concluded.
The Company will host a conference call to discuss the financial results
and business outlook tomorrow, September 25th at 9 a.m. Eastern Time. 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 participate in the call or access the webcast of the call.
Participating in the call will be Baldwin President and CEO Karl S. Puehringer
and Vice President and CFO John Jordan.
About Baldwin
Baldwin Technology Company, Inc. is a leading global supplier of process
automation technology for the printing and publishing industry. 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.
With a widely recognized reputation for advanced pressroom technology,
Baldwin has more than 100 patents as well as several GATF Intertech awards and
Fogra certifications. For more information, visit http://www.baldwintech.com.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended June 30,
-----------------------
2007 2006
----------- -----------
Net sales $ 56,891 $ 47,462
Cost of goods sold 38,434 31,059
----------- -----------
Gross profit 18,457 16,403
Operating expenses 15,532 13,241
Restructuring charges -- --
----------- -----------
Operating income 2,925 3,162
Interest expense 740 271
Interest (income) (78) (33)
Other expense, net 84 126
----------- -----------
Income before income taxes 2,179 2,798
Income tax provision (benefit) (1,437) 861
----------- -----------
Net income $ 3,616 $ 1,937
=========== ===========
Net income per share - basic $ 0.24 $ 0.13
=========== ===========
Net income per share - diluted $ 0.23 $ 0.12
=========== ===========
Weighted average shares outstanding - basic 15,377 15,022
=========== ===========
Weighted average shares outstanding - diluted 15,749 15,905
=========== ===========
Year ended June 30,
-----------------------
2007 2006
----------- -----------
Net sales $ 201,477 $ 179,380
Cost of goods sold 135,703 119,072
----------- -----------
Gross profit 65,774 60,308
Operating expenses 54,867 49,707
Restructuring charges 994 --
----------- -----------
Operating income 9,913 10,601
Interest expense 2,272 1,074
Interest (income) (210) (125)
Other expense (income), net 253 (38)
----------- -----------
Income before income taxes 7,598 9,690
Income tax provision 958 3,432
----------- -----------
Net income $ 6,640 $ 6,258
=========== ===========
Net income per share - basic $ 0.44 $ 0.42
=========== ===========
Net income per share - diluted $ 0.42 $ 0.40
=========== ===========
Weighted average shares outstanding - basic 15,169 14,966
=========== ===========
Weighted average shares outstanding - diluted 15,716 15,713
=========== ===========
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
June 30, June 30,
Assets 2007 2006
---------- ----------
Cash and equivalents $ 17,375 $ 14,986
Trade receivables 47,863 39,862
Inventory 30,384 22,657
Prepaid expenses and other 7,364 5,274
---------- ----------
Total current assets 102,986 82,779
Property, plant and equipment 5,375 3,617
Intangible assets 35,275 13,749
Other assets 13,544 12,618
---------- ----------
Total assets 157,180 112,763
========== ==========
Liabilities
Loans payable $ 3,249 $ 2,622
Current portion of long-term debt 2,501 853
Other current liabilities 61,673 49,539
---------- ----------
Total current liabilities 67,423 53,014
Long-term debt 26,929 7,080
Other long-term liabilities 8,288 6,736
---------- ----------
Total liabilities 102,640 66,830
Shareholders' equity 54,540 45,933
---------- ----------
Total liabilities and shareholders' equity $ 157,180 $ 112,763
========== ==========
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 and Item 1A "Risk Factors" to the
Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2006.
CONTACT: Baldwin Technology Company, Inc.
Helen P. Oster, 203-402-1004