EX-99 2 l31288aexv99.htm EX-99 EX-99
 

Exhibit 99
Page 1
GORMAN-RUPP REPORTS FIRST QUARTER 2008 RECORD RESULTS AND ANNOUNCES PHASE II OF MANSFIELD, OHIO FACILITY CONSOLIDATION AND EXPANSION PLANS
Mansfield, Ohio — April 24, 2008 — The Gorman-Rupp Company (AMEX:GRC) reports record net sales of $81,434,000 during the first quarter ended March 31, 2008 compared to $74,461,000 during the same period in 2007, an increase of 9.4%. Net income during the quarter was $7,152,000, an increase of 40.5% compared to $5,092,000 in 2007, resulting in record earnings per share of $0.43 compared to $0.30 for the first quarter in 2007.
Sales growth during the first quarter 2008 resulted from continued increases in the Company’s international sales. In addition, increased sales of fire protection pumps and fabricated components by the Company’s subsidiary, Patterson Pump Company, more than replaced revenues from the sale of custom pumps for a flood control project recorded in the first quarter 2007. Incoming orders increased backlog slightly to $116.6 million from December 31, 2007.
Growth in the Company’s first quarter earnings primarily resulted from operating leverage on increased sales and product mix together with a lower effective tax rate.
Continuing the Company’s development of the Mansfield, Ohio facilities, the Board of Directors approved the second phase of consolidation and expansion plans. Projected cost of the expansion is $52.2 million, which is in addition to $5.8 million previously approved for engineering design and site development. Consolidation and expansion of the facilities will result in increased efficiency and capacity. Construction of the second phase of the project is expected to begin during 2008. The Company anticipates that the expansion will be funded by cash on-hand, operating cash flow and borrowing capacity.
President and CEO Jeffrey Gorman stated, “We are extremely pleased with the strong first quarter results. This is a very good start for the year in which the Company celebrates its seventy-fifth anniversary and continues its growth into the areas of water and wastewater handling and infrastructure renewal and expansion. We are excited about the second phase of the expansion of the Mansfield Division’s manufacturing, customer center and office facilities to support our anticipated continuing growth.”
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,  
    2008     2007  
Net sales
  $ 81,434     $ 74,461  
Cost of products sold
    61,590       58,396  
 
           
 
               
Gross profit
    19,844       16,065  
 
               
Selling, general and administrative expenses
    9,499       8,440  
 
           
 
               
Operating income
    10,345       7,625  
 
               
Other income (expense) — net
    543       418  
 
           
 
               
Income before income taxes
    10,888       8,043  
Income taxes
    3,736       2,951  
 
           
 
               
Net income
  $ 7,152     $ 5,092  
 
           
 
               
Basic and diluted earnings per share
  $ 0.43     $ 0.30  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    March 31,     December 31,  
    2008     2007  
Assets
               
Cash and short-term investments
  $ 31,830     $ 30,190  
Accounts receivable — net
    47,570       47,256  
Inventories
    55,608       53,223  
Deferred income taxes and other current assets
    4,157       4,619  
 
           
 
               
Total current assets
    139,165       135,288  
 
               
Property, plant and equipment — net
    60,257       59,970  
 
               
Deferred income taxes and other assets
    16,819       16,276  
 
           
 
               
Total assets
  $ 216,241     $ 211,534  
 
           
 
               
Liabilities and shareholders’ equity
               
 
               
Accounts payable
  $ 11,225     $ 14,162  
Accrued liabilities and expenses
    21,676       19,319  
 
           
 
               
Total current liabilities
    32,901       33,481  
 
               
Deferred and other long-term income taxes
    1,259       1,432  
Postretirement benefits
    26,909       26,661  
 
               
Minority interest
    591       520  
 
               
Shareholders’ equity
    154,581       149,440  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 216,241     $ 211,534  
 
           
 
               
Shares outstanding
    16,703,035       16,703,035  
Shares outstanding and per share data reflect the 5 for 4 stock split effective December 10, 2007.