EX-99 3 l02202aexv99.txt EX-99 PRESS RELEASE Exhibit 99, Page 1 GORMAN-RUPP REPORTS IMPROVED SECOND QUARTER 2003 Mansfield, Ohio - July 18, 2003 - The Gorman-Rupp Company (AMEX:GRC) reports that second quarter 2003 net sales and net income were improved over the first quarter; however, they remain below those of the second quarter 2002. Net sales for the second quarter ended June 30, 2003 were $49,083,000 compared to $52,583,000 in 2002. Net income for the second quarter 2003 was $2,567,000, or $0.30 per share, compared to $3,250,000, or $0.38 per share for the same quarter in 2002. Net sales for the first six months of 2003 were $92,876,000 compared to $97,882,000 in 2002. Net income for the same period was $3,769,000 compared to $5,403,000 in 2002, equal to earnings per share of $0.44 and $0.63, respectively. The Company reports the improvement over the previous quarter is attributed to increased pump sales and continued cost reduction. However, the lack of any significant improvement in spending in the capital sector continues to place pressure on companies selling products into these markets. The decline in orders from the power generation industry continues to impact the Company compared to previous years. Positive cash flow from operations, continuing profitability by all the Company's subsidiaries and divisions and no bank debt remain as pillars positioning the Company for the future. Backlog at June 30, 2003 was $68.5 million compared to $70.2 million at year end. In June, the Company was again named among the top 100 Ohio public companies by The Cleveland Plain Dealer in "The Plain Dealer 100." The Company is pleased to be included in this elite group and the recognition again confirms the financial and business success of Gorman-Rupp. The Company anticipates that the capital goods sector will remain relatively soft through the balance of 2003. David P. Emmens Corporate Secretary The Gorman-Rupp Company Telephone (419) 755-1477 For information contact Robert E. Kirkendall, Senior Vice President, Telephone (419) 755-1294. The Gorman-Rupp Company is a manufacturer of pumps and related equipment for water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire and government applications. Exhibit 99, Page 2 The Gorman-Rupp Company and Subsidiaries Condensed Consolidated Statements of Income (unaudited) (in thousands of dollars, except per share data)
Three Months Six Months Ended June 30, Ended June 30, 2003 2002 2003 2002 ------- ------- ------- ------- Net sales $49,083 $52,583 $92,876 $97,882 Cost of products sold 37,814 40,336 73,169 76,088 ------- ------- ------- ------- Gross profit 11,269 12,247 19,707 21,794 Selling, general & administrative expenses (1) 7,195 7,369 13,958 13,448 ------- ------- ------- ------- Operating income 4,074 4,878 5,749 8,346 Other income (expense), net (1) 77 100 338 104 ------- ------- ------- ------- Income before income taxes 4,151 4,978 6,087 8,450 Income taxes 1,584 1,728 2,318 3,047 ------- ------- ------- ------- Net income $ 2,567 $ 3,250 $ 3,769 $ 5,403 ======= ======= ======= ======= Basic & diluted earnings per share $ 0.30 $ 0.38 $ 0.44 $ 0.63
(1) Prior period amounts have been reclassified to conform to current period presentation. The Gorman-Rupp Company and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (in thousands of dollars)
June 30, December 31, 2003 2002 ---------- ----------- Assets Cash & cash equivalents $ 12,548 $ 13,086 Accounts receivable 32,529 29,234 Inventories 38,422 35,587 Other current assets & deferred income taxes 5,096 5,952 ---------- ---------- Total Current Assets 88,595 83,859 Property, plant & equipment - net 56,371 57,757 Other assets 11,682 11,230 ---------- ---------- Total Assets $ 156,648 $ 152,846 ========== ========== Liabilities and Shareholders' Equity Accounts payable $ 5,620 $ 6,557 Accrued liabilities & expenses 13,569 12,257 Income taxes 2,199 468 ---------- ---------- Total Current Liabilities 21,388 19,282 Long-term notes payable 145 291 Postretirement benefits 22,100 21,817 Shareholders' Equity 113,015 111,456 ---------- ---------- Total Liabilities & Shareholders' Equity $ 156,648 $ 152,846 ========== ========== Shares outstanding 8,540,553 8,540,553