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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q
  
   (Mark One)
 

x        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2005

OR
     

o        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________
  

Commission file number 1-871

BUCYRUS INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in its Charter)
        
DELAWARE    39-0188050
  
 (State or Other Jurisdiction of
 Incorporation or Organization) 		   (I.R.S. Employer
 Identification No.)
        

P. O. BOX 500
1100 MILWAUKEE AVENUE
SOUTH MILWAUKEE, WISCONSIN
53172
(Address of Principal Executive Offices)
(Zip Code)
  
 (414) 768-4000
(Registrant’s Telephone Number, Including Area Code)


            Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

            Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes o No x

            Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

     
Class Outstanding May 6, 2005
 
Class A Common Stock, $.01 par value 20,325,096


BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES

INDEX

       
   Page No.
  
PART I.   FINANCIAL INFORMATION:
       
   Item 1 - Financial Statements (Unaudited)
       
Consolidated Condensed Statements of Operations -
Quarters ended March 31, 2005 and 2004		 4  
       
Consolidated Condensed Statements of
Comprehensive Income (Loss) - Quarters ended
March 31, 2005 and 2004		 5  
       
Consolidated Condensed Balance Sheets -
March 31, 2005 and December 31, 2004		 6-7  
       
Consolidated Condensed Statements of Cash Flows -
Quarters ended March 31, 2005 and 2004		 8  
       
Notes to Consolidated Condensed Financial Statements 9-14  
       
Item 2 - Management’s Discussion and Analysis of
              Financial Condition and Results of Operations		 15-24  
       
Item 3 - Quantitative and Qualitative Disclosures
              About Market Risk		 25  
       
Item 4 - Controls and Procedures 26  
       
Forward-Looking Statements 27  
       
PART II. OTHER INFORMATION
       
Item 1 - Legal Proceedings 28  
       
Item 2 - Unregistered Sales of Equity Securities
              and Use of Proceeds		 28  
       
Item 3 - Defaults Upon Senior Securities 28  
       
Item 4 - Submission of Matters to a Vote of
              Security Holders		 28  
       
Item 5 - Other Information 28  
       
Item 6 - Exhibits 28  
       
Signature Page 29   


PART I
FINANCIAL INFORMATION

BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES
ITEM 1 - FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)

  
   Quarter Ended March 31,   
  
  
   2005    2004   
  
  
  
              
Sales $ 105,521    $ 97,128   
Cost of products sold    76,495       77,471   
  
  
  
                    
  Gross profit    29,026       19,657   
                    
Selling, general and administrative expenses    12,305       14,056   
Research and development expenses    1,350       1,354   
Amortization of intangible assets    453       412   
 
 
  
                    
  Operating earnings    14,918       3,835   
                    
Interest expense    1,252       4,125   
Other expense – net    23       345   
 
 
  
                    
Earnings (loss) before income taxes    13,643       (635 )
Income tax expense    4,518       1,380   
 
 
  
                    
Net earnings (loss) $ 9,125    $ (2,015 )
 
 
  
              
Net earnings (loss) per share data                  
Basic:            
   Net earnings (loss) per share $ .45    $ (.17 )
   Weighted average shares    20,068,110       12,058,400   
                    
Diluted:                  
   Net earnings (loss) per share $ .44    $ (.17 )
   Weighted average shares    20,782,311       12,058,400   
  

See notes to consolidated condensed financial statements.


4


BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES
ITEM 1 - FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED STATEMENTS OF
COMPREHENSIVE INCOME (LOSS) (Unaudited)
(Dollars in Thousands)

  
  Quarter Ended March 31,  
 
 
  2005   2004  
 
 
 
              
Net earnings (loss) $ 9,125    $ (2,015 )
Other comprehensive loss-                  
  Foreign currency translation adjustments    (3,773 )    (995 )
 
 
 
              
Comprehensive income (loss) $ 5,352    $ (3,010 )
 
 
 
  

See notes to consolidated condensed financial statements


5


BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES
ITEM 1 - FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)

  
   March 31,
2005		    December 31,
2004		   
  
  
  
                    
ASSETS                  
             
CURRENT ASSETS:                  
  Cash and cash equivalents $ 33,893    $ 20,617   
  Receivables – net    78,338       90,802   
  Inventories    130,801       110,815   
  Deferred income tax assets    9,616       9,607   
  Prepaid expenses and other current assets
   7,716       7,205   
         
  
  
  
  Total Current Assets    260,364       239,046   
                    
OTHER ASSETS:                  
  Goodwill    47,306       47,306   
  Intangible assets – net    36,419       36,935   
  Deferred income tax assets    5,499       7,651   
  Other assets    8,048       8,191   
         
  
  
  
      97,272       100,083   
PROPERTY, PLANT AND EQUIPMENT:                  
  Cost    121,703       120,724   
  Less accumulated depreciation    (68,932 )    (67,044 )
         
  
  
  
      52,771       53,680   
  
  
  
   $ 410,407    $ 392,809   
  
  
  

6


BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES
ITEM 1 - FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Continued)
(Dollars in Thousands, Except Per Share Amounts)

  
   March 31,
2005		    December 31,
2004		   
  
  
  
 
LIABILITIES AND COMMON SHAREHOLDERS’ INVESTMENT
                  
 
CURRENT LIABILITIES:                  
  Accounts payable and accrued expenses $ 64,438    $ 59,446   
  Liabilities to customers on uncompleted contracts and warranties    15,888       8,221   
  Income taxes    3,548       2,880   
  Current maturities of long-term debt and other short-term obligations
   23,184       6,342   
         
  
  
  
  Total Current Liabilities    107,058       76,889   
                    
LONG-TERM LIABILITIES:                  
  Postretirement benefits    13,803       13,700   
  Pension and other    35,617       38,242   
 
  
  
  
      49,420       51,942   
                    
LONG-TERM DEBT, less current maturities      78,960         96,910   
                    
COMMON SHAREHOLDERS’ INVESTMENT:                  
                    
Class A common stock – par value $0.01per share, authorized 41,000,000
    shares, issued 20,270,895 shares and 20,095,977 shares, respectively
    203       201   
Additional paid-in capital    293,583       289,930   
Unearned restricted stock compensation    (626 )    (671 )
Treasury stock – 72,400 shares, at cost    (851 )    (851 )
Accumulated deficit    (91,876 )    (99,850 )
Accumulated other comprehensive loss    (25,464 )    (21,691 )
                    
  
  
  
      174,969       167,068   
  
  
  
   $ 410,407    $ 392,809   
  
  
  
  

See notes to consolidated condensed financial statements.


7


BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES
ITEM 1 - FINANCIAL STATEMENTS
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in Thousands)

  
  Quarter Ended March 31,  
 
 
  2005   2004  
 
 
 
              
Net Cash Provided By Operating Activities $ 15,253    $ 1,455   
 
 
 
                    
Cash Flows From Investing Activities                  
Increase in restricted funds on deposit    (5 )    (5 )
Purchases of property, plant and equipment    (2,643 )    (704 )
Proceeds from sale of property, plant
  and equipment		    47       8   
 
 
 
                    
Net cash used in investing activities    (2,601 )    (701 )
 
 
 
Cash Flows From Financing Activities                  
Repayment of senior secured term loan    (1,250 )    —   
Net repayments of revolving credit facilities    —       (2,365 )
Net increase in long-term
  debt and other bank borrowings		    143       127   
Payment of refinancing expenses    (19 )    (166 )
Proceeds from issuance of common stock    3,093       —   
Dividends paid    (1,151 )    —   
 
 
 
 
Net cash provided by (used in) financing activities    816       (2,404 )
 
 
 
                    
Effect of exchange rate changes on cash    (192 )    25   
 
 
 
                    
Net increase (decrease) in cash and cash equivalents    13,276       (1,625 )
Cash and cash equivalents at beginning of period    20,617       6,075   
 
 
 
                    
Cash and cash equivalents at end of period $ 33,893    $ 4,450   
 
 
 
                    
Supplemental Disclosures of Cash Flow Information                  
              
     2005      2004   
 
 
 
              
Cash paid during the period for:                  
  Interest $ 1,130    $ 7,836   
  Income taxes - net of refunds    1,999       661   
  

See notes to consolidated condensed financial statements.


8


BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES
ITEM 1 - FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited)

  
1.
In the opinion of Bucyrus International, Inc. (the “Company”), the consolidated condensed financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial results for the interim periods. Certain items are included in these statements based on estimates for the entire year. Actual results in future periods may differ from the estimates. The Company’s operations are classified as one operating segment.
  
  
2.
Certain notes and other information have been condensed or omitted from these interim consolidated condensed financial statements. Therefore, these statements should be read in conjunction with the Company’s 2004 Annual Report to Shareholders and Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 21, 2005.
     
3. Inventories consist of the following:
  
     March 31,
2005