EX-99.1 3 aug2803rel.txt 1400 Union Meeting Road Blue Bell, PA 19422 Phone: 215-619-2700 Shareholder Contacts: Stephen E. Markert, Jr. of C&D: 215-619-7835 Yanis Bibelnieks for C&D: 718-499-6516 C&D TECHNOLOGIES REPORTS EARNINGS FOR SECOND QUARTER FY 2004 BLUE BELL, PA, August 28, 2003 - C&D Technologies, Inc. (NYSE: CHP), a leading North American producer and marketer of electrical power storage and conversion products used in telecommunications and industrial applications, today announced net income for its second quarter ending July 31, 2003 of $3,580,000 or 14 cents per share compared to $4,704,000 or 18 cents per share in the prior year's second quarter. Net sales for the second quarter were $81,364,000 compared to the prior year's second quarter of $84,292,000, but were up from net sales of $77,368,000 in the first quarter of this year, with earnings per share up over 10% from the first quarter's 11 cents per share. "The second quarter results reflect our continuing focus on cost controls in a difficult business environment," stated Wade H. Roberts, Jr., president and chief executive officer of the company. "This focus has enabled us to produce a solidly profitable quarter, generate strong operating cash flow and reduce debt to a four-year low. We are encouraged by the modest sequential improvement in sales and profit over the first quarter. This sales increase, the first in three quarters, combined with increased quotation activity, higher order backlog and a book-to-bill ratio slightly greater than one, gives us confidence that third quarter earnings per share could increase by a double digit percentage over the just-concluded second quarter," he said. For the fiscal six-month period ending July 31, 2003, net income decreased 27% to $6,402,000, or 25 cents per share, from $8,828,000, or 34 cents per share for the first six months of the prior year. Sales for the fiscal six-month period declined 6% to $158,732,000 from $168,354,000 in the prior year's comparable period. C&D Technologies' fiscal 2004 second quarter operating results from its reporting segments were as follows: Powercom - Sales fell 6% to $33,354,000, compared with $35,668,000 in last year's second quarter primarily due to lower telecommunications sales. Operating income in the quarter decreased 20% to $4,257,000 from $5,306,000 in the second quarter of fiscal 2003. Dynasty - Sales increased 13% in the quarter to $26,010,000 from $23,054,000 in the prior year's second quarter. This increase was primarily due to an increase in uninterruptible power supply sales. Operating income for the segment was relatively constant at $4,002,000 in the second quarter of fiscal 2004, compared with $4,018,000 in the prior year. Motive Power - Sales decreased 9% in the second quarter to $11,958,000 from $13,077,000 in the prior year's second quarter. The business had an operating loss of $1,649,000 in the second quarter compared to an operating loss of $1,138,000 in the prior year's comparable quarter. Power Electronics - Sales decreased 20% in the quarter to $10,042,000 from $12,493,000 in the prior year's second quarter. The revenue decrease was due primarily to a decline in DC to DC converter sales. The business had an operating loss of $391,000 in the quarter compared to operating income of $440,000 in the prior year's second quarter. This press release may contain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) which are based on management's current expectations and are subject to uncertainties and changes in circumstances. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Factors that appear with the forward-looking statements, or in the company's Securities and Exchange Commission filings (including without limitation the company's annual report on Form 10-K for the fiscal year ended January 31, 2003), could cause the company's actual results to differ materially from those expressed in any forward-looking statements made herein. # # # # # C&D TECHNOLOGIES, INC. AND SUBSIDIARIES SELECTED FINANCIAL INFORMATION (In thousands, except for per share data) (Unaudited)
Three months ended Six months ended July 31, July 31, Summary of earnings 2003 2002 2003 2002 ------------------- ---- ---- ---- ---- Net sales $81,364 $84,292 $158,732 $168,354 Gross profit 19,078 20,202 36,070 38,848 Selling, general and administrative expenses 10,524 9,044 19,694 17,853 Research and development expenses 2,335 2,532 4,746 4,894 Operating income 6,219 8,626 11,630 16,101 Income before income taxes and minority interest 5,605 7,688 10,300 13,985 Net income before minority interest 3,531 4,844 6,489 8,811 Net income 3,580 4,704 6,402 8,828 Basic earnings per share 0.14 0.18 0.25 0.34 Diluted earnings per share 0.14 0.18 0.25 0.34 Weighted average shares outstanding: Basic 25,555 25,915 25,601 25,943 Diluted 25,656 26,140 25,707 26,207 Other financial data Operating cash flow $9,590 $15,923 $16,809 $33,917 Depreciation and amortization 5,628 5,998 11,440 12,250
C&D TECHNOLOGIES, INC. AND SUBSIDIARIES SELECTED FINANCIAL INFORMATION (CONT.) (Dollars in thousands) (Unaudited) Selected Balance July 31, January 31, Sheet data 2003 2003 ---- ---- Total cash $ 6,769 $ 12,966 Total assets 364,319 382,156 Total debt 22,500 39,919 Total equity 260,685 258,274