EX-99.1 2 l39224exv99w1.htm EX-99.1 2
Exhibit 99.1
Investor Relations
+1 (937) 458-6600
ROBBINS & MYERS ANNOUNCES SECOND QUARTER 2010 RESULTS
Order Levels Continue to Improve;
Cash Generation Remains Strong
DAYTON, OHIO, March 24, 2010...Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share (DEPS) of $0.13 for its fiscal second quarter ended February 28, 2010 as compared with $0.46 in the comparable prior year period. The Company also reported that second quarter orders of $156 million were 21% higher than the second quarter of 2009 and 13% higher than the first quarter of 2010, with growth noted in each of the Company’s segments.
Second quarter sales of $130 million were 21% lower than the second quarter of 2009. Lower sales volumes, combined with difficult pricing conditions in certain markets, contributed to lower earnings before interest and taxes (EBIT) of $7 million in the second quarter of 2010.
“We are encouraged by the growth in order levels, especially in energy markets,” said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. “Offsetting some of the benefit from this growth are pricing pressures within our Process Solutions Group. We are actively addressing the cost structure in this business, having cut over $2 million of annualized costs in the first half of this year and implementing another restructuring initiative later this month to cut an additional $3 million of annualized costs. Our attention to operating improvements throughout Robbins & Myers also contributed to improved cash flow in the quarter.”
$18 million of cash was generated from operating activities in the second quarter of 2010, substantially higher than the $5 million in the prior year quarter. The Company’s cash balances grew to $132 million. Robbins & Myers has $31 million of debt, including $30 million of senior notes which mature on May 3, 2010. The Company’s $150 million revolving credit agreement remains undrawn.
Mr. Wallace said, “Continued customer order growth supports our projections for strengthening financial performance in the second half of fiscal 2010.” The Company initiated its third quarter DEPS forecast of $0.13-$0.23, excluding the cost of restructuring actions which are expected to be approximately $2 million. Robbins & Myers affirmed its full year 2010 DEPS forecast of $0.80-$1.00, excluding the cost of restructuring actions.
Second Quarter Results by Segment
In January, the Company announced a realignment of its businesses that included moving its Chemineer US and Asian operations from the Process Solutions Group to the Fluid Management Group. All results included in this press release have been adjusted to reflect the new operating and reporting structure. A recasting of quarterly segment

 


 

results for fiscal 2007 through 2009 can be viewed in the “Investor Relations” section of the Company’s website, www.robn.com.
The Company’s Fluid Management segment orders of $80 million represent a 20% increase over the prior year second quarter and a 17% sequential increase from the first quarter of 2010, driven primarily from strengthening energy markets. Sales of $67 million are 23% lower than the comparable prior year period, and EBIT fell 39% to $14 million.
The Process Solutions segment reported orders of $45 million, 11% higher than the prior year second quarter or 5% excluding currency translation effects. Sales of $40 million were 18% lower than the comparable prior year period or 23% excluding currency translation effects. The segment incurred an EBIT loss of $3 million in the second quarter of 2010 as a result of lower sales and pricing pressures. In the second quarter of 2009, the segment had EBIT income of $2 million.
Romaco segment orders of $31 million were 46% higher than the comparable prior year quarter or 32% excluding currency translation effects. Segment backlog also included a $9 million reduction to reflect the cancellation of an order originally booked in fiscal 2006. Sales in the quarter were $23 million, 19% less than the second quarter of 2009. Romaco EBIT of $0.3 million was similar to the amount earned in the prior year second quarter.
Conference Call to Be Held Today, March 24 at 1:30 PM (Eastern)
A conference call to discuss these results has been scheduled for 1:30 PM Eastern on Wednesday, March 24, 2010, which can be accessed at www.robn.com or by dialing 1-866-700-7477 (US/Canada) or +1-617-213-8840, using conference ID #58160159. Replays of the call can be accessed by dialing 1-888-286-8010 (U.S./Canada) or +1-617-801-6888, using replay ID #33481357.

 


 

About Robbins & Myers
Robbins & Myers, Inc. is a leading supplier of engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets.
In this release the Company refers to EBIT, a non-GAAP measure. The Company uses this measure to evaluate its performance and believes this measure is helpful to investors in assessing its performance. A reconciliation of this measure to net income is included in our Condensed Consolidated Income Statement. EBIT is not a measure of cash available for use by the Company.
In addition to historical information, this press release contains forward-looking statements identified by use of words such as “expects,” “anticipates,” “believes,” and similar expressions. These statements reflect management’s current expectations and involve known and unknown risks, uncertainties, contingencies and other factors that could cause actual results, performance or achievements to differ materially from those stated. The most significant of these risks and uncertainties are described in our Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission and include, but are not limited to: the cyclical nature of some of our markets; a significant decline in capital expenditures in our primary markets; a major decline in oil and natural gas prices; reduced demand due to the general worldwide economic downturn and general credit market crises; our ability to realize the benefits of our restructuring programs; increases in competition; changes in the availability and cost of our raw materials; foreign exchange rate fluctuations as well as economic or political instability in international markets and the performance of our business in hyperinflationary environments, such as Venezuela; work stoppages related to union negotiations; customer order cancellations; the possibility of product liability lawsuits that could harm our business; events or circumstances which result in an impairment of, or valuation against, assets; the potential impact of U.S. and foreign legislation, government regulations, and other governmental action, including those relating to export and import of products and materials, and changes in the interpretation and application of such laws and regulations; the outcome of audit, compliance, administrative or investigatory reviews; proposed changes in U.S. tax law which could impact our future tax expense and cash flow; and decline in the market value of our pension plans’ investment portfolios affecting our financial condition and results of operations. Except as otherwise required by law, we do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date hereof.

 


 

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
                 
(in thousands)   February 28, 2010     August 31, 2009  
ASSETS
               
Current Assets:
               
Cash and cash equivalents
  $ 132,420     $ 108,169  
Accounts receivable
    104,655       114,191  
Inventories
    103,929       105,772  
Other current assets
    14,619       11,573  
Deferred taxes
    11,304       12,519  
 
           
Total Current Assets
    366,927       352,224  
 
               
Goodwill & Other Intangible Assets
    269,737       273,476  
Deferred Taxes
    25,698       26,477  
Other Assets
    8,985       9,490  
Property, Plant & Equipment
    127,966       135,187  
 
           
 
  $ 799,313     $ 796,854  
 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current Liabilities:
               
Accounts payable
  $ 46,658     $ 55,918  
Accrued expenses
    77,054       68,059  
Current portion of long-term debt
    30,853       30,194  
 
           
Total Current Liabilities
    154,565       154,171  
 
               
Long-Term Debt — Less Current Portion
    176       265  
Deferred Taxes
    44,106       44,194  
Other Long-Term Liabilities
    114,411       115,113  
Shareholders’ Equity
    486,055       483,111  
 
           
 
  $ 799,313     $ 796,854  
 
           

 


 

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    February 28,     February 28,     February 28,     February 28,  
(in thousands, except per share data)   2010     2009     2010     2009  
 
                               
Sales
  $ 129,919     $ 163,825     $ 259,332     $ 341,796  
Cost of sales
    87,989       107,049       174,368       217,044  
 
                       
Gross profit
    41,930       56,776       84,964       124,752  
SG&A expenses
    35,384       35,941       68,682       77,523  
 
                       
Income before interest and income taxes
    6,546       20,835       16,282       47,229  
Interest expense, net
    161       90       304       143  
 
                       
Income before income taxes
    6,385       20,745       15,978       47,086  
Income tax expense
    1,932       5,290       5,299       14,247  
 
                       
Net income including noncontrolling interest
    4,453       15,455       10,679       32,839  
Less: Net income attributable to noncontrolling interest
    260       392       456       568  
 
                       
Net income attributable to Robbins & Myers, Inc.
  $ 4,193     $ 15,063     $ 10,223     $ 32,271  
 
                       
 
                               
Net income per share:
                               
Basic
  $ 0.13     $ 0.46     $ 0.31     $ 0.96  
Diluted
  $ 0.13     $ 0.46     $ 0.31     $ 0.96  
 
                               
Weighted average common shares outstanding:
                               
Basic
    32,927       32,802       32,899       33,620  
Diluted
    32,966       32,804       32,949       33,679  

 


 

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    February 28,     February 28,     February 28,     February 28,  
(in thousands)   2010     2009     2010     2009  
 
                               
Customer Sales
                               
Fluid Management
  $ 66,970     $ 86,871     $ 135,158     $ 187,401  
Process Solutions
    39,867       48,503       83,400       102,527  
Romaco
    23,082       28,451       40,774       51,868  
 
                       
Total
  $ 129,919     $ 163,825     $ 259,332     $ 341,796  
 
                       
 
                               
Income Before Interest and Income Taxes (EBIT)
                               
Fluid Management
  $ 13,633     $ 22,283     $ 30,367     $ 50,507  
Process Solutions
    (2,538 )     1,937       (4,189 )     5,222  
Romaco
    340       442       (418 )     (1,001 )
Corporate and Eliminations
    (4,889 )     (3,827 )     (9,478 )     (7,499 )
 
                       
Total
  $ 6,546     $ 20,835     $ 16,282     $ 47,229  
 
                       
 
                               
Depreciation and Amortization
                               
Fluid Management
  $ 1,969     $ 2,023     $ 4,016     $ 4,086  
Process Solutions
    1,419       1,400       2,902       2,818  
Romaco
    572       500       1,150       982  
Corporate and Eliminations
    71       132       157       262  
 
                       
Total
  $ 4,031     $ 4,055     $ 8,225     $ 8,148  
 
                       
 
                               
Orders
                               
Fluid Management
  $ 79,860     $ 66,688     $ 147,967     $ 167,018  
Process Solutions
    44,800       40,489       86,714       98,267  
Romaco
    30,843       21,119       57,977       47,844  
 
                       
Total
  $ 155,503     $ 128,296     $ 292,658     $ 313,129  
 
                       
 
                               
Backlog
                               
Fluid Management
  $ 46,937     $ 66,441     $ 46,937     $ 66,441  
Process Solutions
    63,013       78,428       63,013       78,428  
Romaco
    43,879       40,558       43,879       40,558  
 
                       
Total
  $ 153,829     $ 185,427     $ 153,829     $ 185,427  
 
                       
Note: EBIT is a non-GAAP measure. The Company uses this measure to evaluate its performance and believes this measure is helpful to investors in assessing its performance. A reconciliation of this measure to net income is included in our Condensed Consolidated Income Statement. EBIT is not a measure of cash available for use by the Company.

 


 

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    February 28,     February 28,     February 28,     February 28,  
(in thousands)   2010     2009     2010     2009  
 
                               
Operating activities:
                               
Net income including noncontrolling interest
  $ 4,453     $ 15,455     $ 10,679     $ 32,839  
Depreciation and amortization
    4,031       4,055       8,225       8,148  
Other, net
    9,729       (14,287 )     10,599       (36,062 )
 
                       
Cash provided by operating activities
    18,213       5,223       29,503       4,925  
 
                               
Investing activities:
                               
Capital expenditures
    (1,265 )     (3,667 )     (3,447 )     (7,044 )
Proceeds from asset sales
    1,094             1,094        
 
                       
Cash used by investing activities
    (171 )     (3,667 )     (2,353 )     (7,044 )
 
                               
Financing activities:
                               
(Payments) proceeds of long-term debt, net
    (716 )     (1,213 )     570       (2,195 )
Share buyback program
                      (39,114 )
Dividends paid
    (1,399 )     (1,314 )     (2,713 )     (2,616 )
Other, net
    255       288       366       859  
 
                       
Cash used by financing activities
    (1,860 )     (2,239 )     (1,777 )     (43,066 )
Exchange rate impact on cash
    (2,872 )     (1,529 )     (1,122 )     (6,095 )
 
                       
Increase (decrease) in cash
    13,310       (2,212 )     24,251       (51,280 )
Cash at beginning of period
    119,110       74,337       108,169       123,405  
 
                       
Cash at end of period
  $ 132,420     $ 72,125     $ 132,420     $ 72,125