EX-99 2 c03703exv99.htm EXHIBIT 99 Exhibit 99
Exhibit 99
GORMAN-RUPP REPORTS IMPROVED SECOND QUARTER 2010 RESULTS
Mansfield, Ohio — July 22, 2010 — The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the second quarter and six months ended June 30, 2010.
Net sales during the second quarter ended June 30, 2010 increased 5.9% to $72,380,000 compared to $68,345,000 during the same period in 2009. Net income increased 16.2% to $5,656,000 compared to $4,867,000 in the second quarter 2009. Earnings per share were $0.34 and $0.29 for the two respective periods.
Net sales for the six months ended June 30, 2010 totaled $138,166,000, down 1.3% from net sales of $139,943,000 during the same period in 2009. Net income increased 8.3% to $10,153,000 compared to $9,373,000 in the first six months of 2009. Earnings per share were $0.61 and $0.56 for these two periods.
The increase in net sales during the quarter was positively impacted by the early stages of economic recovery and is due primarily to increases in sales to the international fire protection market, custom pump applications and the construction and rental market, partially offset by decreases in sales to the OEM and the domestic fire protection markets.
The increase in earnings for the quarter reflects continued cost savings implemented in 2009 which also contributed to the 16.8% increase in operating income. Changes in principal operating expenses, including LIFO and employee benefit costs, generally offset each other in the current quarter compared to the same period last year.
The Company’s backlog of orders increased to $105.0 million at June 30, 2010 compared to $82.9 million a year ago and $93.7 million at December 31, 2009. The increase from June 30, 2009 was largely due to orders arising from wastewater, rental and international fire protection applications.
Cash flow from operations during the first six months of 2010 was $16.5 million, resulting in a continuing strong liquidity position. During the quarter, the remaining $10.0 million of borrowings used to partially finance the expansion and consolidation of the Mansfield Division were re-paid. The Company remains financially strong with positive cash flow and no long-term or short-term debt.
Jeffrey S. Gorman, President and CEO said, “The Company experienced improved financial results during this quarter with earnings largely driven by solid operating performance in what is still an unpredictable environment. Customer order growth continues to be encouraging, but we still remain cautious as full economic recovery remains uncertain.”
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 (Unaudited)
(in thousands of dollars, except per share data)
                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2010     2009     2010     2009  
 
                               
Net sales
  $ 72,380     $ 68,345     $ 138,166     $ 139,943  
Cost of products sold
    55,094       52,555       105,431       108,808  
 
                       
 
                               
Gross profit
    17,286       15,790       32,735       31,135  
 
                               
Selling, general and administrative expenses
    8,375       8,790       17,134       17,778  
 
                       
 
                               
Operating income
    8,911       7,000       15,601       13,357  
 
                               
Other income (expense) — net
    (400 )     202       (391 )     713  
 
                       
 
                               
Income before income taxes
    8,511       7,202       15,210       14,070  
Income taxes
    2,855       2,335       5,057       4,697  
 
                       
 
                               
Net income
  $ 5,656     $ 4,867     $ 10,153     $ 9,373  
 
                       
 
                               
Basic and diluted earnings per share
  $ 0.34     $ 0.29     $ 0.61     $ 0.56  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    June 30,     December 31,  
    2010     2009  
Assets
               
Cash and short-term investments
  $ 38,729     $ 45,908  
Accounts receivable — net
    49,315       37,239  
Inventories
    37,711       40,506  
Deferred income taxes and other current assets
    4,538       7,747  
 
           
 
               
Total current assets
    130,293       131,400  
 
               
Property, plant and equipment — net
    108,381       108,523  
 
               
Deferred income taxes and other assets
    9,816       9,149  
 
           
 
               
Total assets
  $ 248,490     $ 249,072  
 
           
 
Liabilities and shareholders’ equity
               
 
               
Accounts payable
  $ 13,669     $ 8,972  
Short-term debt
          15,000  
Accrued liabilities and expenses
    25,766       19,203  
 
           
 
               
Total current liabilities
    39,435       43,175  
 
               
Income taxes payable
    971       971  
Retirement benefits
    2,768       5,044  
Postretirement benefits
    22,752       22,270  
 
               
The Gorman-Rupp Company shareholders’ equity
    181,907       176,905  
Noncontrolling interest
    657       707  
 
           
 
               
Total shareholders’ equity
    182,564       177,612  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 248,490     $ 249,072  
 
           
 
               
Shares outstanding
    16,685,535       16,710,535  

 

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