TODD SHIPYARDS CORP - FORM 10-Q - EX-99.1 CHARTER - EXHIBIT 99.1 - EARNINGS RELEASE - February 4, 2010

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10-Q - FORM 10-Q - TODD SHIPYARDS CORPform10qfy10q3.htm
EX-31 - EXHIBIT 31.2 - TODD SHIPYARDS CORPexhibit312.htm
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EX-32 - EXHIBIT 32.2 - TODD SHIPYARDS CORPexhibit322.htm

TODD SHIPYARDS CORPORATION

ANNOUNCES QUARTERLY FINANCIAL RESULTS FOR

DECEMBER 27, 2009

VIA FACSIMILE

CONTACT: HILARY PICKEREL

TOTAL PAGES - 3

SHAREHOLDER RELATIONS
 

(206) 623-1635 Ext. 106

SEATTLE, WASHINGTON...February 4, 2010...Todd Shipyards Corporation (NYSE:TOD) announced financial results for the third quarter ended December 27, 2009. For the quarter, we reported net income of $1.6 million or $0.27 per diluted share on revenue of $47.1 million. For the prior year third quarter ended December 28, 2008, we reported net income of $2.6 million or $0.45 per diluted share on revenue of $33.5 million.

Our third quarter revenue of $47.1 million reflects an increase of $13.7 million or 41% from the same period last fiscal year. The quarter to quarter increase largely results from higher volumes of Coast Guard and Navy work and new construction activity for Washington State Ferries.

For the quarter ended December 27, 2009, we reported operating income of $2.3 million. In the prior year quarter ended December 28, 2008, we reported operating income of $2.7 million. The decrease in operating income in the third quarter of fiscal 2010 versus the third quarter of the prior year primarily results from a $1.3 million charge against cost of revenue resulting from the contingent settlement of a lawsuit for contribution to an environmental clean up where one of our subsidiaries operated a shipyard during World War II.

We reported investment and other income of $0.1 million and $1.3 million for the quarters ended December 27, 2009 and December 28, 2008, respectively. The decrease in investment and other income versus the prior year is due primarily to the completion of contracts to lease certain facilities and provide related services to Kiewit-General in connection with their construction of the Hood Canal Floating Bridge.

For the third quarter ended December 27, 2009, we reported income before income taxes of $2.4 million and recorded $0.8 million of federal income tax expense, resulting in net income for the period of $1.6 million. For the prior year third quarter ended December 28, 2008, we reported net income before income taxes of $3.9 million and recorded federal income tax expense of $1.3 million, resulting in net income for the period of $2.6 million.

 

 

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements contained in this Release which are not historical facts or information are "forward-looking statements." Words such as "believe," "expect," "intend," "will," "should," and other expressions that indicate future events and trends identify such forward-looking statements. These forward-looking statements involve risks and uncertainties, which could cause the outcome to be materially different than stated. Such risks and uncertainties include matters which relate directly to the Company's operations and properties and are discussed in the Company's filings with the Securities & Exchange Commission, as well as general economic risks and uncertainties. The Company cautions that any forward-looking statement reflects only the belief of the Company or its management at the time the statement was made. Although the Company believes such forward-looking statements are based upon reasonable assumptions, such assumptions may ultimately prove to be inaccurate or incomplete. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement was made.

 

The results of operations are as follows:

TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Periods ended December 27, 2009 and December 28, 2008
(in thousands of dollars, except per share data)


  Three Months Ended   Nine Months Ended
  12/27/09   12/28/08   12/27/09   12/28/08
               
Revenues  $            47,129    $            33,472    $          131,335    $            80,286
Operating expenses:              
Cost of revenue                35,545                  22,131                  97,425                  55,217
Administrative and manufacturing overhead                   9,311                    8,703                  27,064                  23,846
Other insurance settlements                     (24)                       (21)                       (62)                       (65)
Total operating expenses                44,832                  30,813                124,427                  78,998
Operating income                  2,297                    2,659                    6,908                    1,288
Investment and other income                       69                    1,284                       902                    3,456
               
Income before income tax expense                  2,366                    3,943                    7,810                    4,744
Income tax expense                   (783)                  (1,337)                  (2,636)                  (1,605)
Net income  $              1,583    $              2,606    $              5,174    $              3,139
             
Net income per common share              
Diluted  $                0.27    $                0.45    $                0.89    $                0.54
Weighted average shares outstanding              
Diluted                  5,794                    5,787                    5,787                    5,779

A copy of our financial statements for the quarter ended December 27, 2009 will be filed with the Securities & Exchange Commission as part of our quarterly report on Form 10-Q. Our Form 10-Q should be read in conjunction with this earnings report.

 

TODD SHIPYARDS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 27, 2009 and March 29, 2009
(in thousands of dollars)

                                                  12/27/09   03/29/09  
         
ASSETS        
Cash and cash equivalents                          $                         2,831    $                         4,551  
Securities available-for-sale                           18,407                             19,003  
Accounts receivable        
  U.S. Government                             9,721                               5,035  
Other, net                             8,770                               8,878  
Costs and estimated profits in excess of billings on incomplete contracts                           17,347                             12,326  
Inventory                             1,391                               1,523  
Insurance receivable                                382                                  382  
Other current assets                             3,383                               3,457  
Deferred taxes                                506                                    66  
Total current assets                           62,738                             55,221  
Property, plant, and equipment, net                                             30,271                             32,045  
Restricted cash                             5,288                               3,807  
Deferred pension assets                                6,327                               7,942  
Insurance receivable                               8,637                               8,622  
Intangible assets, net                             1,629                               1,859  
Goodwill                             1,109                               1,109  
Other long-term assets                                         906                               3,635  
Total assets  $                     116,905    $                     114,240  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Accounts payable and accruals  $                       13,991    $                       13,403  
Accrued payroll and related liabilities                             2,061                               2,142  
Billings in excess of costs and estimated profits on incomplete contracts                             9,225                               8,619  
Environmental and other reserves                                382                                  382  
Taxes payable other than income taxes                             1,028                               1,376  
Income taxes payable                                578                               1,199  
Total current liabilities                           27,265                             27,121  
Environmental and other reserves                           11,955                             10,703  
Accrued post retirement health benefits                             6,977                               8,701  
Deferred taxes                                322                               1,171 (1)
Other non-current liabilities                             1,873                               2,413  
  Total liabilities                           48,392                             50,109  
Stockholders' equity        
Common stock $.01 par value, authorized 19,500,000 shares,        
issued 11,828,305 shares at December 27, 2009 and March 29, 2009,        
and outstanding 5,775,691 shares at December 27, 2009 and 5,766,071 shares at March 29, 2009                                118                                  118  
Paid-in capital                           38,816                             38,690  
Retained earnings                           84,361                             80,056 (1)
Accumulated other comprehensive loss                         (10,925)                           (10,806)  
Treasury stock (6,052,614 shares at December 27, 2009 and 6,062,234 shares at March 29, 2009)                         (43,857)                           (43,927)  
  Total stockholders' equity                           68,513                             64,131  
Total liabilities and stockholders' equity  $                     116,905    $                     114,240  
           

A copy of our financial statements for the quarter ended December 27, 2009 will be filed with the Securities & Exchange Commission as part of our quarterly report on Form 10-Q. Our Form 10-Q should be read in conjunction with this earnings report.

(1) Revised due to prior period corrections. See Note 12 of the Notes to Consolidated Financial Statements of our Form 10-Q filed February 4, 2010.

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