EX-99 2 l10162aexv99.txt EXHIBIT 99 NEWS RELEASE DATED OCTOBER 22, 2004 EXHIBIT 99, Page 1 GORMAN-RUPP REPORTS THIRD QUARTER 2004 RESULTS Mansfield, Ohio - October 22, 2004 - The Gorman-Rupp Company (AMEX: GRC) reports net sales for the third quarter ended September 30, 2004 were $52,392,000 compared to $53,500,000 for the third quarter 2003. Net income during the quarter was $2,056,000 compared to $2,555,000 in 2003. Earnings per share for the third quarter 2004 and 2003, stated to reflect the five-for-four stock split effective September 10, 2004, equaled $0.19 and $0.24, respectively. Third quarter net sales, while slightly lower than the quarter a year ago, marked the third consecutive quarter of increased sales for the Company during 2004 and reflect positive signs of general economic and business improvement. Sales increases, principally in the industrial, construction and international markets, are credited for the improvement while sales in the municipal market decreased from a year ago. Margins on sales during the quarter were slightly lower, principally due to higher cost of materials, product mix factors and excess capacity at some divisions. Increases in operating costs related to the introduction of a new product line of pumping systems, health care, and compliance with the requirements of the Sarbanes-Oxley Act of 2002 also effected margins. Net sales for the first nine months of 2004 were $152,627,000 compared to $146,667,000 in 2003, an increase of 4.1%. Net income during the same period was $6,712,000 compared to $6,324,000 in 2003, an increase of 6.1%, equal to post-split earnings per share of $0.63 and $0.59, respectively. The Company's backlog of orders at September 30, 2004 was $65.9 million compared to $58.4 million at December 31, 2003, an increase of 12.8%, principally reflecting increased orders at Patterson Pump Company. The Company continues to be financially well positioned with positive cash flow and no debt contributing to its balance sheet strength. Company President and Chief Executive Officer, Jeffrey S. Gorman stated, "Although the pace of the economic upturn seems to have slowed somewhat, we remain confident that a general economic improvement is in place and should result in improved 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, Sr. Vice President & CFO, Tel (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 September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2004 2003 2004 2003 -------- -------- -------- -------- Net sales $ 52,392 $ 53,500 $152,627 $146,667 Cost of products sold 41,497 42,236 120,744 115,696 -------- -------- -------- -------- Gross profit 10,895 11,264 31,883 30,971 Selling, general & administrative expenses 7,584 7,379 21,545 21,337 -------- -------- -------- -------- Operating income 3,311 3,885 10,338 9,634 Other income (expense), net (48) 229 316 567 -------- -------- -------- -------- Income before income taxes 3,263 4,114 10,654 10,201 Income taxes 1,207 1,559 3,942 3,877 -------- -------- -------- -------- Net income $ 2,056 $ 2,555 $ 6,712 $ 6,324 ======== ======== ======== ======== Basic & diluted earnings per share $ 0.19 $ 0.24 $ 0.63 $ 0.59
Per share data reflects the 5 for 4 stock split effective September 10, 2004. The Gorman-Rupp Company and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) (in thousands of dollars)
September 30, December 31, 2004 2003 ----------- ----------- Assets Cash & cash equivalents $ 23,370 $ 17,446 Accounts receivable - net 35,344 32,148 Inventories 35,629 38,062 Other current assets & deferred income taxes 7,290 6,606 ----------- ----------- Total Current Assets 101,633 94,262 Property, plant & equipment - net 52,408 54,338 Other assets 12,116 12,339 ----------- ----------- Total Assets $ 166,157 $ 160,939 =========== =========== Liabilities and Shareholders' Equity Accounts payable $ 6,362 $ 6,163 Accrued liabilities & expenses 15,134 13,203 Income taxes 2,657 2,542 ----------- ----------- Total Current Liabilities 24,153 21,908 Postretirement benefits 23,033 22,569 Shareholders' Equity 118,971 116,462 ----------- ----------- Total Liabilities & Shareholders' Equity $ 166,157 $ 160,939 =========== =========== Shares outstanding 10,682,697 10,678,947
Shares reflect the 5 for 4 split effective September 10, 2004.