EX-99 2 l18702aexv99.htm EX-99 NEWS RELEASE EX-99 NEWS RELEASE
 

Exhibit 99
Page 1
GORMAN-RUPP REPORTS DOUBLE-DIGIT SALES AND EARNINGS GROWTH FOR 2005
Mansfield, Ohio – February 16, 2006 – The Gorman-Rupp Company (AMEX:GRC) reports record net sales of $231,249,000 for the year ended December 31, 2005, a 13.6% increase over net sales of $203,554,000 during 2004. Net income increased 17.5% to $10,903,000 during 2005 compared to $9,277,000 in 2004. Earnings per share were $1.02 during 2005 compared to $0.87 during 2004.
Record sales in 2005 reflected double-digit percentage increases in commercial, municipal and international sales, principally from the Company’s Mansfield Division. Sales to most markets improved over 2004.
Net sales during the fourth quarter 2005 were $64,123,000 compared to $50,927,000 in 2004, an increase of 25.9%. Net income increased 26.2% to $3,237,000 during the same period compared to $2,565,000 during 2004, equal to earnings per share of $0.30 and $0.24 respectively.
The Company’s record backlog of orders at December 31, 2005 was $94.1 million compared to $69.0 million at the end of 2004, an increase of 36.4%. The record backlog includes an increase in orders at the Company’s subsidiary Patterson Pump Company of approximately $20.0 million, an increase of 43.2% over 2004.
All of the Company’s subsidiaries and divisions were profitable during 2005. In particular, Patterson Pump Company earnings during the fourth quarter were much improved over the previous three quarters. The material weakness in internal controls identified during 2004 at Patterson has been remediated.
The Company remains financially strong with no bank debt at December 31, 2005.
President and CEO Jeffrey Gorman stated, “2005 was a much-improved and solid growth year for the Company. We are especially encouraged by the growth in international sales. The Patterson Pump Company has made substantial progress and its improved contribution is expected to continue during 2006. The record backlog at year-end is also a very positive sign as we move into the new year.”
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Senior Vice President & CFO, 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
(Thousands of dollars, except per share data)
                                 
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    (unaudited)              
    2005     2004     2005     2004  
 
                               
Net sales
  $ 64,123     $ 50,927     $ 231,249     $ 203,554  
Cost of products sold
    50,613       40,278       184,178       161,129  
 
                       
Gross Profit
    13,510       10,649       47,071       42,425  
 
                               
Selling, general and administrative expenses
    8,536       7,446       30,368       28,999  
 
                       
Operating Income
    4,974       3,203       16,703       13,426  
 
                               
Other income (expense) — net
    (4 )     495       435       926  
 
                       
Income Before Income Taxes
    4,970       3,698       17,138       14,352  
Income taxes
    1,733       1,133       6,235       5,075  
 
                       
Net Income
  $ 3,237     $ 2,565     $ 10,903     $ 9,277  
 
                       
 
                               
Basic and Diluted Earnings Per Share
  $ 0.30     $ 0.24     $ 1.02     $ 0.87  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(Thousands of dollars)
                 
    December 31,     December 31,  
    2005     2004  
 
               
Assets
               
 
               
Cash and short-term investments
  $ 11,540     $ 18,898  
Accounts receivable
    41,473       32,988  
Inventories
    52,403       38,234  
Deferred income taxes and other current assets
    5,085       6,854  
 
           
Total Current Assets
    110,501       96,974  
 
               
Property, Plant and Equipment — net
    51,505       54,812  
Other
    17,535       13,887  
 
           
Total Assets
  $ 179,541     $ 165,673  
 
           
 
               
Liabilities and Shareholders’ Equity
               
 
               
Accounts payable
  $ 9,835     $ 6,615  
Accrued liabilities and expenses
    18,384       14,497  
 
           
Total Current Liabilities
    28,219       21,112  
 
               
Postretirement Benefits
    23,255       22,334  
 
               
Deferred Income Taxes
    1,019       329  
 
               
Shareholders’ Equity
    127,048       121,898  
 
           
 
               
Total Liabilities and Shareholders’ Equity
  $ 179,541     $ 165,673  
 
           
 
               
Shares outstanding
    10,685,697       10,682,697