Attached files
file | filename |
---|---|
8-K - FORM 8-K - GORMAN RUPP CO | c16159e8vk.htm |
Exhibit 99
GORMAN-RUPP REPORTS DOUBLE-DIGIT SALES, EARNINGS AND BACKLOG
GROWTH AND ANNOUNCES STOCK SPLIT AND CASH DIVIDEND INCREASE
GROWTH AND ANNOUNCES STOCK SPLIT AND CASH DIVIDEND INCREASE
Mansfield, Ohio April 28, 2011 The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and
earnings for the first quarter ended March 31, 2011.
Net sales during the first quarter ended March 31, 2011 increased 27.8% to $84,074,000 compared to
$65,786,000 during the same period in 2010. Net income increased 58.3% to $7,119,000 compared to
$4,497,000 in the first quarter 2010. Earnings per share were $0.42 and $0.27 for the respective
periods.
Higher sales during the quarter, which includes sales of National Pump Company acquired October 1,
2010, were positively impacted by the improved global economy compared to a year ago. Primary
increases were in sales to the industrial, agricultural, construction and rental markets. In
addition, sales of custom pumps increased during the quarter as a result of pumps supplied for
flood control projects.
Strong incoming orders in the aforementioned markets during the quarter resulted in a record
backlog of $141.1 million at March 31, 2011, a 35.0% increase from a year ago and 31.4% higher than
the backlog of $107.4 million at December 31, 2010.
The increase in earnings for the quarter principally reflects improved operating leverage on the
higher volume of sales. First quarter earnings also benefited from the inclusion of National Pump
Company, partially offset by additional LIFO expense of $0.03 per share primarily due to increases
in price indexes.
The Company continues to maintain a strong balance sheet with $32.9 million in cash and short-term
investments at March 31, 2011 and has excellent liquidity. During the quarter, $3.0 million of
borrowings used to finance the acquisition of National Pump Company were re-paid with the remaining
$22.0 million planned to be paid by the end of the year.
Jeffrey S. Gorman, President and CEO said, We are very encouraged by the amount and diversity of
new orders received during the quarter and by the much improved financial results compared to a
year ago. Strong domestic sales growth combined with continued expansion in international markets
and improved operating leverage have contributed to the Companys performance. The record backlog
at the end of the quarter favorably positions the Company for the coming months.
At its April 28, 2011 meeting, the Board of Directors of the Company declared a five-for-four split
of the Companys Common Shares in the form of a distribution of one additional Common Share for
each four Common Shares previously issued. The distribution will be made on June 10, 2011 to
shareholders of record at the close of business on May 13, 2011.
Cash payments will be made to shareholders in settlement of fractional-share interests resulting
from the distribution on the basis of the average of the high and low sales price of the Companys
Common Shares on the NYSE Amex Exchange on the record date (or, if there are no sales on the record
date, then on the first preceding day on which there were sales), adjusted to reflect the
distribution.
Computershare Investor Services, LLC, the Transfer Agent and Registrar for the Common Shares of the
Company, will accept instructions from brokers and nominees regarding their requirements for the
distribution until June 3, 2011.
After giving effect to the issuance of the additional Common Shares in the distribution, the most
recent quarterly cash dividend rate of $0.105 per Common Share on a post-split basis would be
equivalent to $0.084 per share.
In an additional action, the Board of Directors of the Company declared a quarterly cash dividend
of $0.09 per share on the common stock of the Company, payable June 10, 2011, to shareholders of
record May 13, 2011. The cash dividend is payable on post-split shares and represents a 7.1%
increase over the equivalent post-split dividend paid during the previous quarter. This marks the
245th consecutive dividend paid by The Gorman-Rupp Company.
As demonstrated previously, the 25% increase in our Common Shares resulting from the split should
enhance trading liquidity in our stock, said Jeffrey S. Gorman, President and CEO. The increase
in the quarterly dividend at this same time reflects the strength of our cash flow and balance
sheet, our recognition of an improving global economy, and our desire to share our increasing value
with our shareholders.
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
NYSE Amex: GRC
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
NYSE Amex: GRC
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.
Page 2
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(in thousands of dollars, except per share data)
Condensed Consolidated Statements of Income (Unaudited)
(in thousands of dollars, except per share data)
Three Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
Net sales |
$ | 84,074 | $ | 65,786 | ||||
Cost of products sold |
62,688 | 50,337 | ||||||
Gross profit |
21,386 | 15,449 | ||||||
Selling, general and
administrative expenses |
10,727 | 8,759 | ||||||
Operating income |
10,659 | 6,690 | ||||||
Other income (expense) net |
(31 | ) | 9 | |||||
Income before income taxes |
10,628 | 6,699 | ||||||
Income taxes |
3,509 | 2,202 | ||||||
Net income |
$ | 7,119 | $ | 4,497 | ||||
Basic and diluted earnings per share |
$ | 0.42 | $ | 0.27 |
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Condensed Consolidated Balance Sheets
(in thousands of dollars)
Unaudited | ||||||||
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Cash and short-term investments |
$ | 32,929 | $ | 34,246 | ||||
Accounts receivable net |
54,811 | 51,996 | ||||||
Inventories |
56,958 | 51,449 | ||||||
Deferred income taxes and other current assets |
3,869 | 5,503 | ||||||
Total current assets |
148,567 | 143,194 | ||||||
Property, plant and equipment net |
113,280 | 113,526 | ||||||
Deferred income taxes and other assets |
5,565 | 3,545 | ||||||
Goodwill and other intangible assets |
26,189 | 26,442 | ||||||
Total assets |
$ | 293,601 | $ | 286,707 | ||||
Liabilities and shareholders equity |
||||||||
Accounts payable |
$ | 14,115 | $ | 12,042 | ||||
Short-term debt |
22,000 | 25,000 | ||||||
Accrued liabilities and expenses |
24,126 | 22,636 | ||||||
Total current liabilities |
60,241 | 59,678 | ||||||
Deferred and other income taxes |
4,954 | 4,954 | ||||||
Postretirement benefits |
22,430 | 22,241 | ||||||
Shareholders equity |
205,976 | 199,834 | ||||||
Total liabilities and shareholders equity |
$ | 293,601 | $ | 286,707 | ||||
Shares outstanding |
16,788,535 | 16,788,535 |
Page 3