EX-99 2 l25870aexv99.htm EXHIBIT 99 exv99
 

Exhibit 99
Page 1
GORMAN-RUPP REPORTS RECORD FIRST QUARTER 2007 RESULTS
Mansfield, Ohio – April 26, 2007 – The Gorman-Rupp Company (AMEX:GRC) reports record net sales of $74,461,000 during the first quarter ended March 31, 2007 compared to $67,087,000 during the same period in 2006, an increase of 11.0%. Net income during the quarter was $5,092,000, an increase of 12.2% compared to $4,538,000 in 2006, resulting in record first quarter earnings per share of $0.38 compared to $0.34 in 2006.
Sales during the quarter reflected continued growth in the municipal, industrial, construction and rental markets. Sales at Patterson Pump Company, a wholly-owned subsidiary, increased during the quarter principally as a result of pumps supplied for a flood control project in New Orleans.
Record first quarter earnings, resulting primarily from the volume leverage of increased sales, were reduced by higher healthcare costs of approximately $0.04 per share.
Strong incoming orders during the quarter resulted in a record backlog of $115.2 million at March 31, 2007, a 16.8% increase from a year ago and 5.2% higher than the backlog of $109.5 million at December 31, 2006. Demand arising from continued global focus on water, wastewater and flood control projects remains a major contributor to the record-breaking backlog.
The Company continued its international growth strategy with the purchase on April 2, 2007 of a controlling interest in Wavo Pompen B.V., located in The Netherlands and the establishment of Gorman-Rupp Europe B.V. These actions are expected to offer the Company expanded European market opportunities.
The Company was pleased to be recognized in the Audit Integrity Top 100 for excellence in corporate integrity for its financial reporting and corporate governance during 2006.
President and CEO Jeffrey Gorman stated, “We are extremely pleased with the record first quarter results and strength of incoming orders. The establishment of Gorman-Rupp Europe B.V. is an additional step in positioning the Company for continued international growth. We look forward to another good year in 2007.”
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 designs, manufactures and sells pumps and related equipment (pumps and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, heating ventilating and air conditioning (HVAC), military and other liquid handling 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 March 31,  
    2007     2006  
Net sales
  $ 74,461     $ 67,087  
Cost of products sold
    58,396       52,137  
 
           
Gross Profit
    16,065       14,950  
 
               
Selling, general and administrative expenses
    8,440       8,106  
 
           
Operating Income
    7,625       6,844  
 
               
Other income (expense) — net
    418       204  
 
           
Income Before Income Taxes
    8,043       7,048  
Income taxes
    2,951       2,510  
 
           
Net Income
  $ 5,092     $ 4,538  
 
           
 
               
Basic and Diluted Earnings Per Share
  $ 0.38     $ 0.34  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands of dollars)
                 
    March 31,     December 31,  
    2007     2006  
 
               
Assets
               
 
               
Cash and short-term investments
  $ 24,125     $ 16,855  
Accounts receivable — net
    44,912       45,135  
Inventories — net
    48,911       50,299  
 
               
Deferred income taxes and other current assets
    4,401       7,829  
 
           
Total Current Assets
    122,349       120,118  
 
               
Property, Plant and Equipment — Net
    52,305       52,351  
 
               
Deferred income taxes and other assets
    16,020       15,071  
 
           
Total Assets
  $ 190,674     $ 187,540  
 
           
 
               
Liabilities and Shareholders’ Equity
               
 
               
Accounts payable
  $ 10,193     $ 10,417  
Accrued liabilities and expenses
    17,024       17,229  
 
           
Total Current Liabilities
    27,217       27,646  
 
               
Income Tax Payable
    1,211        
Retirement Benefits
    3,005       4,185  
Postretirement Benefits
    27,809       27,567  
 
               
Shareholders’ Equity
    131,432       128,142  
 
           
Total Liabilities and Shareholders’ Equity
  $ 190,674     $ 187,540  
 
           
 
               
Shares outstanding
    13,360,004       13,360,004