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8-K - FORM 8-K - GORMAN RUPP COd343624d8k.htm

Exhibit 99

GORMAN-RUPP REPORTS RECORD SALES AND EARNINGS FOR THE

FIRST QUARTER 2012 AND DECLARES CASH DIVIDEND INCREASE

Mansfield, Ohio – April 26, 2012 – The Gorman-Rupp Company (NYSE Amex: GRC) reports record net sales and earnings for the first quarter 2012.

Net sales during the first quarter 2012 increased 22.3% to a record $102.8 million compared to $84.1 million during the same period in 2011. Net income increased 43.9% to a record $10.2 million compared to $7.1 million in the first quarter 2011. Earnings per share were $0.49 and $0.34 for the respective periods.

Increases in sales during the quarter were primarily in the construction, industrial, original equipment manufacturer (OEM) and agricultural markets, while municipal sales were flat largely due to decreased sales of pumps supplied for domestic flood control projects as compared to the first quarter of 2011. Domestic sales grew 24.6% and international sales grew 17.5% in the first quarter 2012 compared to the same period last year.

The increase in earnings during the quarter was due to improved operating leverage on record sales. As a percent of net sales, gross profit was 25.9% in the first quarter 2012, which represents a 50 basis-point increase from the first quarter 2011. Operating profit increased 210 basis-points during the first quarter 2012 to 14.8% of net sales compared to 12.7% during the same period last year.

Record shipments during the quarter, less intense demand for pumps in natural gas drilling applications and lower incoming orders for the municipal market resulted in a backlog of $139.1 million at March 31, 2012, a 1.4% decrease from a year ago and 10.5% lower than the backlog of $155.5 million at December 31, 2011.

Cash and short-term investments totaled $21.3 million and $10.0 million of bank debt was outstanding at March 31, 2012; this debt is expected to be repaid during 2012. Working capital increased 5.9% from December 31, 2011 to a record $111.2 million at March 31, 2012 primarily due to increased current accounts receivable as a result of the increase in net sales.

Jeffrey S. Gorman, President and CEO said, “We are off to a great start in 2012 with record quarterly revenue exceeding $100 million for the first time in Company history. We are equally pleased that our operations achieved record earnings by maintaining solid production and operating margins. We are however mindful of many significant global economic and political challenges that continue, and we have begun to experience some softening of incoming orders for pumps from the energy sector related to low natural gas prices and have seen few signs of returns to domestic commercial or residential construction and municipal infrastructure funding. The remainder of 2012 therefore is expected to be good but not at the record pace of this quarter.”

The Board of Directors of the Company has declared a quarterly cash dividend of $0.10 per share on the common stock of the Company, payable June 8, 2012, to shareholders of record on May 15, 2012. This marks the 249th consecutive quarterly dividend paid by The Gorman-Rupp Company and represents an 11.1% increase over the $0.09 dividend paid during the previous quarter.

 

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“The increased cash dividend returns added value to our shareholders from our continuing strong operating performance and reflects the strength of our cash flow and balance sheet,” said Jeffrey S. Gorman, President and CEO.

Safe Harbor Statement

In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, The Gorman-Rupp Company provides the following cautionary statement: This news release contains various forward-looking statements based on assumptions concerning The Gorman-Rupp Company’s operations, future results and prospects. These forward-looking statements are based on current expectations about important economic, political, and technological factors, among others, and are subject to risks and uncertainties, the absence of which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Such factors include, but are not limited to: (1) continuation of the current and projected future business environment; (2) stability of government laws and regulations, including taxes; and (3) the Company’s future cash flow and financial condition.

David P. Emmens

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.

 

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Exhibit 99

The Gorman-Rupp Company and Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

(in thousands of dollars, except per share data)

 

     Three Months Ended March 31,  
     2012      2011  

Net sales

   $ 102,825       $ 84,074   

Cost of products sold

     76,151         62,688   
  

 

 

    

 

 

 

Gross profit

     26,674         21,386   

Selling, general and administrative expenses

     11,446         10,727   
  

 

 

    

 

 

 

Operating income

     15,228         10,659   

Other income (expense)—net

     154         (31
  

 

 

    

 

 

 

Income before income taxes

     15,382         10,628   

Income taxes

     5,141         3,509   
  

 

 

    

 

 

 

Net income

   $ 10,241       $ 7,119   
  

 

 

    

 

 

 

Earnings per share

   $ 0.49       $ 0.34   

The Gorman-Rupp Company and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands of dollars)

 

     Unaudited
March 31,
2012
     December 31,
2011
 
       
       
Assets      

Cash and short-term investments

   $ 21,264       $ 21,202   

Accounts receivable—net

     63,050         56,419   

Inventories

     77,630         73,193   

Deferred income taxes and other current assets

     5,173         5,058   
  

 

 

    

 

 

 

Total current assets

     167,117         155,872   

Property, plant and equipment—net

     116,162         114,349   

Other assets

     3,996         2,998   

Goodwill and other intangible assets

     25,262         25,481   
  

 

 

    

 

 

 

Total assets

   $ 312,537       $ 298,700   
  

 

 

    

 

 

 
Liabilities and shareholders' equity      

Accounts payable

   $ 18,269       $ 15,679   

Short-term debt

     10,000         10,000   

Accrued liabilities and expenses

     27,671         25,194   
  

 

 

    

 

 

 

Total current liabilities

     55,940         50,873   

Pension benefits

     6,941         6,571   

Postretirement benefits

     22,898         22,705   

Deferred and other income taxes

     3,718         3,787   
  

 

 

    

 

 

 

Total liabilities

     89,497         83,936   

Shareholders’ equity

     223,040         214,764   
  

 

 

    

 

 

 

Total liabilities and shareholders' equity

   $ 312,537       $ 298,700   
  

 

 

    

 

 

 

Shares outstanding

     20,990,893         20,990,893   

Shares outstanding and per share data reflect the 5 for 4 stock split effective June 10, 2011.

 

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