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8-K - FORM 8-K - GORMAN RUPP CO | c12509e8vk.htm |
Exhibit 99
GORMAN-RUPP REPORTS 2010 RESULTS ON RECORD FOURTH QUARTER
Mansfield, Ohio February 10, 2011 The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales
and earnings for the fourth quarter and twelve months ended December 31, 2010.
Net sales during the fourth quarter ended December 31, 2010 increased 36.1% to a record $84,689,000
compared to $62,203,000 during the same period in 2009. Net income increased 159.6% to a record
$9,655,000 compared to $3,719,000 in 2009s fourth quarter. Earnings per share were $0.57 and
$0.22 for the respective periods.
Net sales during the quarter continued to be positively impacted by the slowly improving global
economy. Primary increases were in sales to the international, municipal, construction, rental and
industrial markets, partially offset by decreased sales in the OEM market. The fourth quarter also
includes sales of National Pump Company acquired October 1, 2010.
The increase in earnings for the quarter principally reflects improved operating leverage on the
higher volume of sales. Earnings include $0.05 per share due to the partial liquidation of LIFO
quantities as a result of reduced inventory levels at two operating units. The Company does not
expect this inventory trend to continue. Fourth quarter earnings also benefited $0.04 per share
from adjustments of inventory standard costs at two operating units and $0.03 per share from the
2010 research and development tax credit and the addition of National Pump Company.
Net sales during 2010 increased 11.5% to $296,808,000 compared to $266,242,000 during 2009. Net
income increased 42.1% to $25,963,000 compared to $18,269,000 in 2009. Earnings per share were
$1.55 and $1.09 for the respective periods. Sales to most markets increased in 2010 when compared
to depressed 2009 levels, while the OEM market continued to be weak due to decreased sales of power
generation equipment.
The Companys backlog of orders increased 14.6% to $107.4 million at December 31, 2010 compared to
$93.7 million a year ago. The increase from December 31, 2009 was largely due to orders arising
from the construction, rental, and custom pump markets along with the inclusion of National Pump
Company. Partially offsetting these backlog increases were declines in the municipal and OEM
markets.
The Companys balance sheet continues to remain strong with $34.2 million cash and short-term
investments at year end. The Company generated $25.8 million in operating cash flow during 2010
and has excellent liquidity. During the quarter, $10.0 million of borrowings used to finance the
acquisition of National Pump Company were re-paid with the remaining $25.0 million planned to be
paid by the end of 2011.
Jeffrey S. Gorman, President and CEO said, After experiencing a very challenging 2009 the Company
finished 2010 strong, primarily as a result of organic revenue with notable improvements in
incoming orders, operating income and earnings. It appears the global economy is gradually
continuing to improve, although challenges remain in the OEM market and may slow fire protection
opportunities. With a solid order backlog and the full integration of National Pump Company, we
are increasingly optimistic that 2011 will be a good year for the Company.
Released by David P. Emmens, Corporate Secretary, Telephone (419) 755-1477.
For additional information contact Wayne L. Knabel, Chief Financial Officer, Telephone (419)
755-1397.
The Gorman-Rupp company designs, manufactures and sells pumps and related equipment (pumps and
motor controls) for use in water, wastewater, construction, industrial, petroleum, original
equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military
and other liquid handling applications.
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share data)
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share data)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 84,689 | $ | 62,203 | $ | 296,808 | $ | 266,242 | ||||||||
Cost of products sold |
59,742 | 47,665 | 220,471 | 204,469 | ||||||||||||
Gross profit |
24,947 | 14,538 | 76,337 | 61,773 | ||||||||||||
Selling, general and
administrative expenses |
10,843 | 9,229 | 37,378 | 35,380 | ||||||||||||
Operating income |
14,104 | 5,309 | 38,959 | 26,393 | ||||||||||||
Other income (expense) net |
(238 | ) | 71 | (626 | ) | 862 | ||||||||||
Income before income taxes |
13,866 | 5,380 | 38,333 | 27,255 | ||||||||||||
Income taxes |
4,211 | 1,661 | 12,370 | 8,986 | ||||||||||||
Net income |
$ | 9,655 | $ | 3,719 | $ | 25,963 | $ | 18,269 | ||||||||
Basic and diluted earnings per share |
$ | 0.57 | $ | 0.22 | $ | 1.55 | $ | 1.09 |
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Condensed Consolidated Balance Sheets
(in thousands of dollars)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Cash and short-term investments |
$ | 34,246 | $ | 45,908 | ||||
Accounts receivable net |
51,996 | 37,239 | ||||||
Inventories |
51,449 | 40,506 | ||||||
Deferred income taxes and other current assets |
5,503 | 7,747 | ||||||
Total current assets |
143,194 | 131,400 | ||||||
Property, plant and equipment net |
113,526 | 108,523 | ||||||
Deferred income taxes and other assets |
29,987 | 9,501 | ||||||
Total assets |
$ | 286,707 | $ | 249,424 | ||||
Liabilities and shareholders equity |
||||||||
Accounts payable |
$ | 12,042 | $ | 8,972 | ||||
Short-term debt |
25,000 | 15,000 | ||||||
Accrued liabilities and expenses |
22,636 | 19,203 | ||||||
Total current liabilities |
59,678 | 43,175 | ||||||
Deferred and other income taxes |
4,954 | 1,323 | ||||||
Retirement benefits |
| 5,044 | ||||||
Postretirement benefits |
22,241 | 22,270 | ||||||
The Gorman-Rupp Company shareholders equity |
199,834 | 176,905 | ||||||
Noncontrolling interest |
| 707 | ||||||
Total shareholders equity |
199,834 | 177,612 | ||||||
Total liabilities and shareholders equity |
$ | 286,707 | $ | 249,424 | ||||
Shares outstanding |
16,788,535 | 16,710,535 |
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