Exhibit 99.1
Baldwin Reports Earnings for Q1 of FY'08
SHELTON, Conn.--(BUSINESS WIRE)--Oct. 30, 2007--Baldwin Technology
Company, Inc. (AMEX: BLD), a global leader in process automation
technology for the printing industry, announced today that net sales
for its first fiscal quarter ended September 30, 2007 increased by
approximately $10.7 million, or 25%, to $53.9 million, from $43.2
million for the first quarter in the prior fiscal year. Currency
exchange rates had a favorable impact on sales of approximately $1.7
million in the period.
Net income for the quarter was $1.0 million, or $0.07 per basic
and diluted share, compared to $1.3 million, or $0.09 per basic and
$0.08 per diluted share, for the same quarter in the prior fiscal
year. Included in net income in the current quarter was the impact of
a change in German tax law that increased the current period tax
provision by $.4 million and reduced EPS by $.02 per share.
Orders for the quarter were $60.9 million, an increase of 33% over
the $45.9 million of orders for the first quarter of fiscal year 2007.
Backlog was $59.6 million on September 30, 2007, $6.9 million higher
than the June 30, 2007 backlog of $52.7 million.
President and Chief Executive Officer Karl Puehringer stated, "We
are pleased with the start of our 2008 fiscal year. Sales and
operating income were in line with our expectations. The Baldwin
Oxy-Dry integration continues to be on schedule and on budget.
Activities in the graphic arts market remain good, and we are
well-positioned to continue to strengthen our relationships with major
customers and expand our business opportunities in emerging countries.
Backlog has grown to nearly $64 million through the date of this
release.
Gross margins in our legacy operations continue to meet
expectations with a strong focus on strategic sourcing and
productivity improvements. We are driving these same initiatives to
improve the margins at the former Oxy-Dry operations."
John Jordan, Vice President and Chief Financial Officer, said,
"The Company is also pleased with achieving improvement in its
operating income margins this quarter. Operating expenses as a
percentage of sales decreased from 28.1% in the first quarter of
fiscal 2007 to 26.1% in the current quarter.
A change in tax law in Germany reduced the value of German
deferred tax assets on the balance sheet, which required an additional
tax provision in the current quarter. Absent that additional tax
provision, our tax rate would have remained approximately the same as
the rate in the first quarter of fiscal 2007. In addition, as
required, the Company adopted FIN 48 as of July 1, 2007, which caused
a one time reduction primarily in the deferred tax asset and
shareholders' equity accounts in the balance sheet.
Although working capital decreased during the quarter, it was not
in line with our objectives due to the inventory buildup for impending
shipments and timing of accounts receivable collections. We maintain
our intense focus on driving cash from working capital," concluded Mr.
Jordan.
The Company will host a conference call to discuss the financial
results and business outlook today, October 30th at 11 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.
A replay audiotape of the conference call, in its entirety, will
be available one hour after the end of the call and will be available
until Tuesday, November 6 at 9:59 p.m. Central Time. To hear that
replay, call toll free (866) 360-7721 in the U.S. or (203) 369-0173
from outside the U.S. A live and archived webcast will be available on
the Internet for 90 days through the Investor Relations section of the
Baldwin website at www.baldwintech.com.
In other news, the Company noted that it will hold its Annual
Meeting of Stockholders at the Marriott in Shelton, Connecticut on
Tuesday, November 13 at 10 a.m.
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, Connecticut, 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.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
Quarter ended
September 30,
-----------------
2007 2006
-------- --------
Net sales $53,929 $43,207
Cost of goods sold 36,683 28,945
-------- --------
Gross profit 17,246 14,262
Operating expenses 14,094 12,147
-------- --------
Operating income 3,152 2,115
Interest expense 770 224
Interest income (68) (31)
Other expense (income), net 72 (226)
-------- --------
Income from operations before income taxes 2,378 2,148
Provision for income taxes 1,339 822
-------- --------
Net Income 1,039 1,326
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Net Income per share - basic $ 0.07 $ 0.09
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Net Income per share - diluted $ 0.07 $ 0.08
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Weighted average shares outstanding:
Basic 15,435 15,003
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Diluted 15,872 15,726
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Condensed Consolidated Balance Sheets
(In thousands, unaudited)
September 30, June 30,
Assets 2007 2007
---------------- -----------
Cash and equivalents $ 11,720 $ 17,375
Trade receivables 47,708 47,863
Inventory 34,794 30,384
Prepaid expenses and other 8,517 7,364
----------------- ------------
Total current assets 102,739 102,986
Property, plant and equipment 5,409 5,375
Intangible assets 37,335 35,910
Other assets 10,221 12,909
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Total assets 155,704 157,180
================= ============
Liabilities
Loans payable $ 2,611 $ 3,249
Current portion of long-term debt 2,917 2,501
Other current liabilities 62,847 61,673
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Total current liabilities 68,375 67,423
Long-term debt 24,388 26,929
Other long-term liabilities 8,486 8,288
----------------- ------------
Total liabilities 101,249 102,640
Shareholders' equity 54,455 54,540
----------------- ------------
Total liabilities and shareholders'
equity $ 155,704 $ 157,180
================= ============
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" to the Company's Annual Report
on Form 10-K for the fiscal year ended June 30, 2007.
CONTACT: Baldwin Technology Company, Inc.
Helen P. Oster, 203-402-1004