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8-K - FORM 8-K - GORMAN RUPP COc12509e8vk.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 2009’s 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 Company’s 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 Company’s 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)
                                 
    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)
                 
    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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