Robbins & Myers Reports First Quarter Fiscal 2005 Results
Dayton, Ohio (ots/PRNewswire)
Robbins & Myers, Inc. (NYSE: RBN) announced today its financial results for first quarter of fiscal 2005, ended November 30, 2004. For the first quarter of fiscal 2005, the Company reported a loss per share of $US 0.18, including restructuring expenses of $US 0.22 per share, or income of $US 0.04 per share on a pre-restructuring basis.
Fiscal 2005 first quarter sales of $US 132.5 million were consistent with the first quarter of fiscal 2004. Foreign currency exchange rates, principally the euro, favorably impacted first quarter sales. On a constant dollar basis, sales declined $US 4.9 million in the current quarter when compared with the prior year first quarter. EBIT was negative $US 0.1 million in the first quarter of fiscal 2005 and was $US 7.2 million in the same period of fiscal 2004. Restructuring expenses of $US 5.0 million and reduced sales volume were reasons for the profit decline. The fiscal 2005 first quarter net loss was $US 2.5 million versus net income of $US 2.1 million in the comparable prior year period. The diluted loss per share was $US 0.18 in the first quarter of fiscal 2005 and diluted net income per share was $US 0.15 in the prior year's first quarter.
Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc., stated, "Our performance for the quarter was substantially in line with expectations. During the quarter, we made significant progress on the previously announced restructuring of our Pharmaceutical segment. We closed two plants in Italy, transferred inventory and equipment to other Robbins & Myers' operating facilities, exited a small unprofitable drive systems business located within our Pfaudler Germany facility, reduced headcount by an additional 122 people, and have detailed plans to close one plant in Mexico by the end of this calendar year. These actions resulted in $US 5.0 million of restructuring expenses, primarily for severance, during the first quarter fiscal 2005. Cost savings of $US 0.9 million associated with the restructuring program in the first quarter will continue to grow throughout the 2005 fiscal year. Our current estimate of total restructuring expense for the fiscal 2005 year is now $US 7.7 million, or $US 0.33 per share, up from our previous estimate of $US 7.0 million primarily because of the strength of the euro."
The Pharmaceutical segment experienced a currency adjusted sales decline of $US 10.7 million, or 13.7%. This segment has been in a two-year slowdown due to ongoing consolidation in the pharmaceutical and chemical processing markets. The encouraging news is that first quarter 2005 orders are up both year-over-year and on a sequential basis. The backlog has improved as the Company enters the second quarter of fiscal 2005.
The Energy segment's first quarter sales and EBIT were strong and increased by 21.0% and 24.8%, respectively, compared with the first quarter of the prior year. The outlook for the Energy segment remains positive due to the price of oil, drilling rig count and anticipated increases in maintenance capital spending during 2005.
First quarter fiscal 2005 revenue of the Industrial segment improved by 4.6% compared to prior year. EBIT was slightly lower than the prior year due to increases in healthcare costs and lower margins due to a higher volume of project business. Both orders and backlog in this segment remain about the same as in the first quarter of the prior year.
Mr. Wallace commented, "We will continue to remain focused on achieving the benefits of the restructuring program announced earlier. Our earnings guidance for the year of $US 1.00-$US 1.15 per share pre-restructuring remains unchanged. Earnings for the second quarter should be in the range of $US 0.13-$US 0.18 per share pre-restructuring."
In this release the Company refers to various non-GAAP measures. Earnings and earnings per share excluding special items are non-GAAP financial measures. The Company believes these measures are helpful to investors in assessing the Company's ongoing performance of its underlying businesses before the impact of special items on its financial performance. In addition, these non-GAAP measures provide a comparison to our previously announced earnings guidance which excluded these special items. Earnings and earnings per share before special items reconcile to earnings presented according to GAAP as follows:
All figures are in USD
Three Months Ended
November 30, November 30,
(in thousands, except per share data) 2004 2003
Net (loss) income ($2,545) $2,139
Plus special items, net of tax:
Inventory write-offs included in
cost of sales 465 0
Pharmaceutical segment restructuring
charges 2,662 0
Net Income before special items $582 $2,139
Diluted earnings per share ($0.18) $0.15
Plus special items:
Inventory write-offs included in
cost of sales 0.03 0.00
Pharmaceutical segment restructuring charges 0.19 0.00
Diluted earnings per share before
special items $0.04 $0.15Conference Call & Webcast
Robbins & Myers, Inc. has scheduled a conference call and webcast for 11:00 a.m., EST on Thursday, December 16, 2004, to review the quarter results. Interested Investors should go to the Company's website at www.robbinsmyers.com approximately ten minutes prior to the start of the call and follow the instructions to view the webcast presentation. Replays will be available at the website for 30 days and a telephonic replay will be available for 24 hours beginning at 1:00 p.m. EST by dialing +1-800-642-1687 and entering ID # 2460392.
Robbins & Myers, Inc. is a leading global supplier of highly-engineered, application-critical equipment and systems to the global pharmaceutical, energy, and industrial markets. Headquartered in Dayton, Ohio the Company maintains manufacturing facilities in 15 countries.
In addition to historical information, this release contains forward-looking statements, identified by use of words such as "expects," "anticipates," "estimates," and similar expressions. These statements reflect the Company's expectations at the time this release was issued. Actual events and results may differ materially from those described in the forward-looking statements. Among the factors that could cause material differences are a significant decline in capital expenditures in specialty chemical and pharmaceutical industries, a major decline in oil and natural gas prices, foreign exchange rate fluctuations, the impacts of Sarbanes-Oxley section 404 procedures, work stoppages related to union negotiations, customer order cancellations, the ability of the Company to comply with the financial covenants and other provisions of its financing arrangements, the ability of the Company to realize the benefits of its restructuring program in its Pharmaceutical Segment and general economic conditions that can affect demand in the process industries. The Company undertakes no obligation to update or revise any forward-looking statement.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(All figures are in USD)
(in thousands) November 30, August 31,
2004 2004
ASSETS
Current Assets:
Cash and cash equivalents $11,083 $8,640
Accounts receivable 124,284 128,571
Inventories 122,530 107,478
Other current assets 7,876 7,794
Deferred taxes 7,789 7,901
Assets held for sale 5,898 0
Total Current Assets 279,460 260,384
Goodwill & Other Intangible Assets 335,882 322,935
Other Assets 8,843 10,216
Property, Plant & Equipment 138,770 139,707
$762,955 $733,242
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $56,153 $61,540
Accrued expenses 93,649 93,035
Current portion
of long-term debt 15,892 8,333
Total Current Liabilities 165,694 162,908
Long-Term Debt - Less Current
Portion 181,675 173,369
Deferred Taxes 4,081 4,329
Other Long-Term Liabilities 93,440 89,524
Shareholders' Equity 318,065 303,112
$762,955 $733,242
Note: All known adjustments have been reflected in this report,
but the information is subject to annual audit and year-end
adjustments which are estimated to be insignificant.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
Three Months Ended
November 30, November 30,
(in thousands, except per share data) 2004 2003
Sales $132,455 $132,482
Cost of sales 90,748 89,016
Gross profit 41,707 43,466
SG&A expenses 36,970 35,660
Amortization expense 595 621
Other 4,225 0
Income before interest
and income taxes (83) 7,185
Interest expense 3,539 3,698
(Loss) Income before income taxes and
minority interest (3,622) 3,487
Income tax (benefit) expense (1,340) 1,220
Minority interest 263 128
Net (loss) income ($2,545) $2,139
Net (Loss) Income Per Share:
Basic ($0.18) $0.15
Diluted ($0.18) $0.15
Weighted Average Common Shares
Outstanding:
Basic 14,532 14,441
Diluted 16,338 16,272
Orders $156,104 $142,701
Backlog $137,703 $121,593
Note: All known adjustments have been reflected in this report,
but the information is subject to annual audit and year-end
adjustments which are estimated to be insignificant.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
Three Months Ended
November 30, November 30,
(in thousands) 2004 2003
Sales
Pharmaceutical $71,337 $77,910
Industrial 31,293 29,922
Energy 29,825 24,650
Total $132,455 $132,482
Income Before Interest and Income
Taxes (EBIT)
Pharmaceutical ($5,818) (1) $2,209
Industrial 2,001 2,205
Energy 7,280 5,832
Corporate and Eliminations (3,546) (3,061)
Total ($83) $7,185
Depreciation and Amortization
Pharmaceutical $2,350 $2,607
Industrial 1,096 1,262
Energy 1,261 1,337
Corporate and Eliminations 398 385
Total $5,105 $5,591
Orders
Pharmaceutical $92,442 $85,833
Industrial 29,925 30,580
Energy 33,737 26,288
Total $156,104 $142,701
Backlog
Pharmaceutical $106,855 $94,698
Industrial 21,625 22,626
Energy 9,223 4,269
Total $137,703 $121,593
(1) Includes US $4,963,000 of costs related to the restructuring of
our Romaco and Reactor Systems businesses.
Note: All known adjustments have been reflected in this report,
but the information is subject to annual audit and year-end
adjustments which are estimated to be insignificant.Web site: http://www.robbinsmyers.com
Contact:
Michael McAdams, Manager, Investor Relations of Robbins & Myers,
Inc., +1-937-225-3335.