EX-99 2 l34192aexv99.htm EX-99 EX-99
Exhibit 99
Page 1
GORMAN-RUPP REPORTS RECORD BACKLOG AND 9 MONTHS RESULTS
Mansfield, Ohio — October 23, 2008 — The Gorman-Rupp Company (AMEX:GRC) reports record backlog and nine months ended September 30, 2008 financial results.
Net income for the third quarter 2008 was $7,385,000 compared to $5,475,000 during the third quarter of 2007, an increase of 34.9%. Net sales increased 12.8% to a record $84,188,000 for the quarter ended September 30, 2008 from $74,629,000 during the same period in 2007. Earnings per share during the quarter were $0.44 compared to $0.33 during 2007’s third quarter.
Net income for the first nine months of 2008 increased 31.1% to a record $22,432,000 compared to $17,105,000 during 2007. Net sales increased 9.1% to a record $249,653,000 for the nine months ended September 30, 2008 from $228,737,000 during the same period in 2007. Earnings per share for the current nine months were a record $1.34 compared to $1.02 in the first nine months of 2007.
Increased net sales for the quarter principally resulted from water and wastewater applications, fabricated components, and continued strength in international business. The increase in the Company’s third quarter earnings primarily resulted from additional operating leverage on sales growth and favorable product mix.
Incoming orders principally arising from water and wastewater applications and fabricated components contributed to a record backlog of $128.3 million at September 30, 2008, a 10.2% increase from the backlog of $116.4 million at December 31, 2007.
Capital expenditures of $9.7 million for the previously announced consolidation and expansion of the Mansfield, Ohio facilities have been incurred as of September 30, 2008, of which $7.3 million has been incurred during 2008. Construction started during this quarter and is expected to be completed by the end of 2009.
President and CEO Jeffrey Gorman stated, “We are extremely pleased with the record performance for the third quarter and nine months 2008, and are encouraged by the record backlog and level of business so far this year. Even with the current economic conditions, we remain confident as we move into the fourth quarter. On behalf of all of our global employees and investors, I am proud that The Gorman-Rupp Company has again been named as one of Forbes Magazine’s “200 Best Small Companies” for the third consecutive 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 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
September 30,
    Nine Months Ended
September 30,
 
    2008     2007     2008     2007  
 
                               
Net sales
  $ 84,188     $ 74,629     $ 249,653     $ 228,737  
Cost of products sold
    64,016       58,362       189,231       178,306  
 
                       
 
                               
Gross profit
    20,172       16,267       60,422       50,431  
 
                               
Selling, general and administrative expenses
    9,140       8,342       27,995       25,068  
 
                       
 
                               
Operating income
    11,032       7,925       32,427       25,363  
 
                               
Other income (expense) — net
    377       507       1,803       1,550  
 
                       
 
                               
Income before income taxes
    11,409       8,432       34,230       26,913  
Income taxes
    4,024       2,957       11,798       9,808  
 
                       
 
                               
Net income
  $ 7,385     $ 5,475     $ 22,432     $ 17,105  
 
                       
 
                               
Basic and diluted earnings per share
  $ 0.44     $ 0.33     $ 1.34     $ 1.02  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands of dollars)
                 
    Unaudited        
    September 30,     December 31,  
    2008     2007  
Assets
               
Cash and short-term investments
  $ 39,835     $ 30,190  
Accounts receivable — net
    46,652       47,256  
Inventories
    56,060       53,223  
Deferred income taxes and other current assets
    3,501       4,619  
 
           
 
               
Total current assets
    146,048       135,288  
 
               
Property, plant and equipment — net
    66,598       59,970  
 
               
Deferred income taxes and other assets
    19,612       16,276  
 
           
 
               
Total assets
  $ 232,258     $ 211,534  
 
           
 
               
Liabilities and shareholders’ equity
               
 
               
Accounts payable
  $ 11,623     $ 14,162  
Accrued liabilities and expenses
    25,324       19,319  
 
           
 
               
Total current liabilities
    36,947       33,481  
 
               
Deferred and other long-term income taxes
    1,258       1,432  
Postretirement benefits
    27,748       26,661  
 
               
Minority interest
    621       520  
 
               
Shareholders’ equity
    165,684       149,440  
 
           
 
               
Total liabilities and shareholders’ equity
  $ 232,258     $ 211,534  
 
           
 
               
Shares outstanding
    16,707,535       16,703,035