EX-99.A 2 l20040aexv99wa.htm EX-99(A) NEWS RELEASE APRIL 26, 2006 EX-99(A) News Release April 26, 2006
 

Exhibit 99(A) Page 1
GORMAN-RUPP REPORTS RECORD EARNINGS AND SALES FOR FIRST QUARTER 2006
Mansfield, Ohio – April 26, 2006 – The Gorman-Rupp Company (AMEX:GRC) reported record net income of $4,538,000 for the first quarter ended March 31, 2006 compared to $1,654,000 during the first quarter of 2005 resulting in earnings per share of $0.42 compared to $0.15 in 2005. The Company also achieved record sales of $67,087,000 during the first quarter compared to $52,037,000 during the same period in 2005, an increase of 28.9%.
Higher sales during the first quarter of 2006 primarily reflected increases at the Company’s Mansfield Division and its subsidiaries Patterson Pump Company and Gorman-Rupp of Canada Limited. Double-digit percentage increases in the fire protection, municipal and international markets, along with shipment of fabricated components to the original equipment manufacturer market contributed to the record sales.
A record $98.6 million in backlog of orders at March 31, 2006, reflects a 10.8% increase from the backlog of a year ago and is 4.8% higher than at December 31, 2005. Nearly all of the current backlog is expected to ship during 2006.
The Company continues to support its increased working capital requirements through internally generated funds and remains financially strong with no bank debt.
President and CEO Jeffrey Gorman stated, “We are extremely pleased with the record sales and earnings for the first quarter and the improvement in profitability at Patterson Pump Company. The first quarter continued to build on the momentum that began in the fourth quarter of last year. The record backlog at the end of the quarter should position the Company for continued strength in the coming months.”
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For additional information contact Robert E. Kirkendall, Sr.VP & CFO, Telephone (419) 755-1294.
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.

 


 

Exhibit 99(A) 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 March 31,  
 
               
    2006     2005  
 
               
Net sales
  $ 67,087     $ 52,037  
Cost of products sold
    52,137       42,252  
 
           
Gross Profit
    14,950       9,785  
 
               
Selling, general and administrative expenses
    8,106       7,431  
 
           
Operating Income
    6,844       2,354  
Other income (expense) — net
    204       270  
 
           
Income Before Income Taxes
    7,048       2,624  
Income taxes
    2,510       970  
 
           
Net Income
  $ 4,538     $ 1,654  
 
           
 
               
Basic and Diluted Earnings Per Share
  $ 0.42     $ 0.15  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands of dollars)
                 
    March 31,     December 31,  
    2006     2005  
Assets
               
 
               
Cash and short-term investments
  $ 11,715     $ 11,540  
Accounts receivable
    47,967       41,473  
Inventories
    54,192       52,403  
Deferred income taxes and other current assets
    4,594       5,085  
 
           
Total Current Assets
    118,468       110,501  
 
               
Property, Plant and Equipment — Net
    50,690       51,505  
 
               
Other
    17,615       17,535  
 
           
Total Assets
  $ 186,773     $ 179,541  
 
           
 
               
Liabilities and Shareholders’ Equity
               
 
               
Accounts payable
  $ 11,326     $ 9,835  
Accrued liabilities and expenses
    21,113       18,384  
 
           
Total Current Liabilities
    32,439       28,219  
 
               
Postretirement Benefits
    23,549       23,255  
 
               
Deferred Income Taxes
    1,019       1,019  
 
               
Shareholders’ Equity
    129,766       127,048  
 
           
Total Liabilities and Shareholders’ Equity
  $ 186,773     $ 179,541  
 
           
 
               
Shares outstanding
    10,685,697       10,685,697