EX-99 3 l03636aexv99.txt EXHIBIT 99 Exhibit 99 Page 1 GORMAN-RUPP REPORTS INCREASES IN THIRD QUARTER 2003 Mansfield, Ohio - October 17, 2003 - The Gorman-Rupp Company (AMEX:GRC) reports that third quarter sales exceeded sales during each of the eight previous quarters and increased 8.5% over those during the third quarter, 2002. Net sales for the third quarter ended September 30, 2003 were $53,336,000 compared to $49,139,000 in 2002, an increase of $4,197,000 or 8.5%. Net income for the third quarter 2003 was $2,555,000 or $0.30 per share compared to $1,905,000 or $0.23 per share for the same quarter 2002, an increase of $650,000 or 34.1%. Net sales for the first nine months of 2003 were $146,212,000 compared to $147,021,000 in 2002. Net income for the same period was $6,324,000 compared to $7,308,000 in 2002, equal to earnings per share of $0.74 and $0.86, respectively. The increase in net sales was primarily attributable to timing of customer releases for shipment of product during the quarter rather than the result of a significant upturn in business. The Company's backlog, currently at $58.5 million, declined $10.0 million or 14.7% from the second quarter 2003. 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 business continues to impact the Company compared to previous years. The increased net income for the quarter, reflecting the positive effect of the Company's operating leverage on increased shipments and the benefit from continuing cost containment programs, was offset somewhat by increased pension cost. Positive cash flow from operations, profitability of all the Company's subsidiaries and divisions and no bank debt continue to position the Company well for the future. While certain indicators show that overall economic activity is starting to improve, the Company views the economic climate for industrial manufacturers serving the capital goods sector as remaining stagnant. Jeffrey S. Gorman, President and CEO, said, "Although I am pleased with the improvement in the Company's third quarter report, any sustained recovery will need to come through increased spending in the capital goods sector." 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 Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 -------- -------- -------- -------- Net sales $ 53,336 $ 49,139 $146,212 $147,021 Cost of products sold 42,072 39,219 115,241 115,307 -------- -------- -------- -------- Gross profit 11,264 9,920 30,971 31,714 Selling, general & administrative expenses (1) 7,379 7,067 21,337 20,515 -------- -------- -------- -------- Operating profit 3,885 2,853 9,634 11,199 Other income (expense), net (1) 229 282 567 386 -------- -------- -------- -------- Income before income taxes 4,114 3,135 10,201 11,585 Income taxes 1,559 1,230 3,877 4,277 -------- -------- -------- -------- Net income $ 2,555 $ 1,905 $ 6,324 $ 7,308 ======== ======== ======== ======== Basic & diluted earnings per share $ 0.30 $ 0.23 $ 0.74 $ 0.86
(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)
September 30, December 31, 2003 2002 ---------- ---------- Assets Cash & cash equivalents $ 17,250 $ 13,086 Accounts receivable 36,512 29,234 Inventories 35,538 35,587 Other current assets & deferred income taxes 6,444 5,952 ---------- ---------- Total Current Assets 95,744 83,859 Property, plant & equipment - net 55,312 57,757 Other assets 9,985 11,230 ---------- ---------- Total Assets $ 161,041 $ 152,846 ========== ========== Liabilities and Shareholders' Equity Accounts payable $ 7,145 $ 6,557 Accrued liabilities & expenses 14,731 12,257 Income taxes 2,627 468 ---------- ---------- Total Current Liabilities 24,503 19,282 Long-term notes payable 145 291 Postretirement benefits 22,225 21,817 Shareholders' Equity 114,168 111,456 ---------- ---------- Total Liabilities & Shareholders' Equity $ 161,041 $ 152,846 ========== ========== Shares outstanding 8,543,553 8,540,553