EX-99 2 c99543exv99.htm EXHIBIT 99 Exhibit 99
Exhibit 99
GORMAN-RUPP REPORTS FIRST QUARTER 2010 RESULTS
Mansfield, Ohio — April 22, 2010 — The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the first quarter ended March 31, 2010.
Net sales during the first quarter ended March 31, 2010 decreased 8.1% to $65,786,000 compared to $71,598,000 during the same period in 2009. Net income decreased slightly to $4,497,000 compared to $4,506,000 in the first quarter 2009, a total decrease of 0.2%. Earnings per share were $0.27 and $0.27 for the two compared periods.
Net sales during the quarter continued to be negatively impacted by the global recession. The markets with the largest declines include fire protection, government and custom pump applications.
Although sales were lower, earnings for the quarter were similar to the first quarter of 2009 due to continuing cost savings implemented in 2009. These cost savings also contributed to the 5.2% increase in operating income. In addition, pension expense decreased $0.02 per share as a result of the rebound in the equity markets during 2009. Offsetting this decrease was increased depreciation expense of $0.02 per share primarily due to the Mansfield Division’s new facilities.
The Company’s backlog of orders increased to $104.5 million at March 31, 2010 compared to $91.8 million a year ago and $93.7 million at December 31, 2009. The increase from March 31, 2009 was primarily due to orders arising from wastewater and international fire protection applications. Federal stimulus dollars had some favorable impact on orders received in the municipal market during the quarter.
Cash flow from operations during the first quarter 2010 was $9.0 million, resulting in a continuing strong liquidity position with $45.5 million of cash and short-term investments. During the quarter, $5.0 million of borrowings used to partially finance the expansion and consolidation of the Mansfield Division were re-paid with the remaining $10.0 million planned to be paid by the end of 2010.
The Company successfully implemented a new enterprise resource planning system at several locations during the quarter, which will provide for greater information technology capabilities as the Company continues to grow.
Jeffrey S. Gorman, President and CEO said, “Customer order growth is encouraging, especially in the commercial and international fire protection markets. The economy appears to be starting to recover from the global recession, but we continue to remain cautious until clearer signs of a solid recovery in the capital goods sector become more evident. We are pleased with the continued collective effort of all our locations to control costs while improving productivity, resulting in our earnings for the quarter being comparable to first quarter 2009 even though sales decreased.”
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.

 

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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,  
    2010     2009  
 
                
Net sales
   $ 65,786     $ 71,598  
Cost of products sold
     50,337       56,253  
 
            
 
                
Gross profit
     15,449       15,345  
 
                
Selling, general and administrative expenses
     8,759       8,988  
 
            
 
                
Operating income
     6,690       6,357  
 
                
Other income (expense) — net
     9       511  
 
            
 
                
Income before income taxes
     6,699       6,868  
Income taxes
     2,202       2,362  
 
            
 
                
Net income
   $ 4,497     $ 4,506  
 
            
 
                
Basic and diluted earnings per share
   $ 0.27     $ 0.27  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    March 31,     December 31,  
    2010     2009  
 
                
Assets
                
Cash and short-term investments
   $ 45,528     $ 45,908  
Accounts receivable — net
     42,739       37,239  
Inventories
     38,539       40,506  
Deferred income taxes and other current assets
     4,929       7,747  
 
            
 
                
Total current assets
     131,735       131,400  
 
                
Property, plant and equipment — net
     108,660       108,523  
 
                
Deferred income taxes and other assets
     9,751       9,501  
 
            
 
                
Total assets
   $ 250,146     $ 249,424  
 
            
 
                
Liabilities and shareholders’ equity
                
 
                
Accounts payable
   $ 11,548     $ 8,972  
Short-term debt
     10,000       15,000  
Accrued liabilities and expenses
     19,999       19,203  
 
            
 
                
Total current liabilities
     41,547       43,175  
 
                
Deferred and other income taxes
     1,325       1,323  
Retirement benefits
     4,206       5,044  
Postretirement benefits
     22,582       22,270  
 
                
The Gorman-Rupp Company shareholders’ equity
     179,798       176,905  
Noncontrolling interest
     688       707  
 
            
 
                
Total shareholders’ equity
     180,486       177,612  
 
            
 
                
Total liabilities and shareholders’ equity
   $ 250,146     $ 249,424  
 
            
 
                
Shares outstanding
     16,710,535       16,710,535  

 

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