EX-99.1 2 l35954aexv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
Investor Relations
+1 (937) 458-6600
ROBBINS & MYERS ANNOUNCES SECOND QUARTER 2009 RESULTS
Effective Execution in Difficult Conditions
DAYTON, OHIO, March 24, 2009...Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share (DEPS) of $0.46 for its fiscal second quarter ended February 28, 2009, as compared with $0.47 in the prior year second quarter. Current quarter results include benefits from a lower effective tax rate, and the prior year quarter includes benefits from a facility sale and favorable resolution of a tax matter.
Robbins & Myers’ sales in the second quarter of 2009 were $164 million, 11% lower than the comparable prior year results or 3% lower excluding the effects of currency translation. Orders of $128 million in the second quarter were 41% lower than the prior year comparable period. Excluding the impact from currency translation, orders decreased 35%.
Second quarter 2009 earnings before interest, taxes and minority interest (EBIT) were $21 million. The prior year second quarter EBIT of $26 million included a $1 million gain from the sale of a facility. The Company achieved EBIT margins of 12.7% in the current year quarter, slightly lower than the prior year comparable figure after adjusting for the facility sale gain.
“During the quarter we effectively met customer demand and achieved good profitability while carefully adjusting our cost structure to meet slowing global markets,” said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. “Employment reductions were initiated and will continue into the third quarter, and we plan to implement government-supported employee furlough programs in certain international locations. Discretionary spending was cut sharply, we re-prioritized our capital spending programs and increased our focus on working capital to support cash flow improvements in the second half of the year. We continue to work closely with suppliers to maintain an effective value proposition for our customers.”
“The market declines experienced during our first quarter continued into the second quarter. We experienced a significant reduction in orders as customers took the opportunity to adjust their requirements for future product shipments, and this resulted in a rise in order cancellations. Each of our product platforms experienced customer order weakness in the second quarter, causing us to lower our sales and profit expectations for the second half of the year. We will continue to hone our cost structure for the balance of the year while pursuing key sales and profit initiatives, supported by our ample cash and credit capacity.”
The Company revised its fiscal 2009 DEPS expectations from $1.80-$2.00 to $1.35-$1.65 and forecasted third quarter DEPS of $0.20-$0.30.

 

 

Second Quarter Results by Segment
All comparisons are made against the comparable year-ago quarterly period unless otherwise stated.
The Fluid Management segment reported sales of $72 million and orders of $56 million, lower than prior year period sales of $77 million and orders of $74 million as a result of broad market weakness. EBIT fell $1 million to $20 million on lower sales, and EBIT margins of 27.0% were 40 basis points lower.
Difficult market conditions also affected the Company’s Process Solutions segment, which reported sales of $63 million in the second quarter and orders of $51 million, as compared with sales of $75 million and orders of $94 million in the second quarter of the prior year. The segment earned $5 million of EBIT in the second quarter of 2009, and EBIT margins decreased 260 basis points to 7.4% due to lower sales volume.
The Romaco segment reported lower customer demand with second quarter sales of $28 million, compared with $33 million in the prior year period, and orders of $21 million versus $48 million in the prior year period. Lower sales resulted in lower profitability, with the Romaco segment reporting EBIT of $0.4 million as compared with $2.1 million in the prior year, which included a $1 million gain from the sale of a facility.
Conference Call to Be Held Tomorrow, March 25 at 2:00 PM (Eastern)
A conference call to discuss these results has been scheduled for 2:00 PM Eastern on Wednesday, March 25, 2009, which can be accessed at www.robn.com or by dialing 800-259-0251 (US/Canada) or +1-617-614-3671, using conference ID #67980695. Replays of the call can be accessed by dialing 888-286-8010 (U.S./Canada) or +1-617-801-6888, both using replay ID # 18245371.
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 on our Condensed Consolidated Income Statement.
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; increases in competition; changes in the availability and cost of our raw materials; foreign exchange rate fluctuations; work stoppages related to union negotiations; customer order cancellations; business disruptions caused by the implementation of business computer systems; the possibility of product liability lawsuits that could harm our business; events or circumstances which result in an impairment of 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; 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, 2009     August 31, 2008  
ASSETS
                
Current Assets:
                
Cash and cash equivalents
   $ 72,125     $ 123,405  
Accounts receivable
     130,411       153,648  
Inventories
     113,095       109,797  
Other current assets
     7,308       8,017  
Deferred taxes
     12,389       13,476  
 
            
Total Current Assets
     335,328       408,343  
 
                
Goodwill & Other Intangible Assets
     257,447       285,759  
Deferred Taxes
     21,398       21,969  
Other Assets
     9,745       10,931  
Property, Plant & Equipment
     126,307       137,715  
 
            
 
   $ 750,225     $ 864,717  
 
            
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current Liabilities:
                
Accounts payable
   $ 61,971     $ 86,012  
Accrued expenses
     80,894       102,876  
Current portion of long-term debt
     762       3,192  
 
            
Total Current Liabilities
     143,627       192,080  
 
                
Long-Term Debt — Less Current Portion
     30,305       30,435  
Deferred Taxes
     44,729       44,628  
Other Long-Term Liabilities
     92,613       97,557  
Shareholders’ Equity
     438,951       500,017  
 
            
 
   $ 750,225     $ 864,717  
 
            

 

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    February 28,     February 29,     February 28,     February 29,  
(in thousands, except per share data)   2009     2008     2009     2008  
 
                                
Sales
   $ 163,825     $ 184,932     $ 341,796     $ 358,468  
Cost of sales
     107,049       118,697       217,044       229,371  
 
                        
Gross profit
     56,776       66,235       124,752       129,097  
SG&A expenses
     35,941       41,113       77,523       80,754  
Other income
     0       (1,099 )     0       (1,099 )
 
                        
Income before interest and income taxes
     20,835       26,221       47,229       49,442  
Interest expense, net
     90       779       143       1,506  
 
                        
Income before income taxes and minority interest
     20,745       25,442       47,086       47,936  
Income tax expense
     5,290       8,583       14,247       16,538  
Minority interest
     392       522       568       1,123  
 
                        
Net income
   $ 15,063     $ 16,337     $ 32,271     $ 30,275  
 
                        
 
                                
Net Income Per Share:
                                
Basic
   $ 0.46     $ 0.47     $ 0.96     $ 0.88  
Diluted
   $ 0.46     $ 0.47     $ 0.96     $ 0.88  
 
                                
Weighted Average Common Shares Outstanding:
                                
Basic
     32,802       34,488       33,620       34,429  
Diluted
     32,804       34,620       33,679       34,548  

 

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    February 28,     February 29,     February 28,     February 29,  
(in thousands)   2009     2008     2009     2008  
 
                                
Sales
                                
Fluid Management
   $ 72,318     $ 76,509     $ 154,588     $ 148,864  
Process Solutions
     63,056       74,952       135,340       145,801  
Romaco
     28,451       33,471       51,868       63,803  
 
                        
Total
   $ 163,825     $ 184,932     $ 341,796     $ 358,468  
 
                        
 
                                
Income (Loss) Before Interest and Income Taxes (EBIT)
                                
Fluid Management
   $ 19,553     $ 20,970     $ 44,193     $ 39,418  
Process Solutions
     4,667       7,474       11,536       15,430  
Romaco
     442       2,106       (1,001 )     3,651  
Corporate and Eliminations
     (3,827 )     (4,329 )     (7,499 )     (9,057 )
 
                        
Total
   $ 20,835     $ 26,221     $ 47,229     $ 49,442  
 
                        
 
                                
Depreciation and Amortization
                                
Fluid Management
   $ 1,732     $ 1,531     $ 3,528     $ 3,184  
Process Solutions
     1,691       1,686       3,376       3,355  
Romaco
     500       430       982       882  
Corporate and Eliminations
     132       127       262       349  
 
                            
Total
   $ 4,055     $ 3,774     $ 8,148     $ 7,770  
 
                        
 
                                
Orders
                                
Fluid Management
   $ 55,831     $ 74,212     $ 140,258     $ 157,004  
Process Solutions
     51,346       93,983       125,027       171,399  
Romaco
     21,119       47,795       47,844       81,508  
 
                        
Total
   $ 128,296     $ 215,990     $ 313,129     $ 409,911  
 
                        
 
                                
Backlog
                                
Fluid Management
   $ 44,086     $ 51,097     $ 44,086     $ 51,097  
Process Solutions
     100,783       138,189       100,783       138,189  
Romaco
     40,558       74,307       40,558       74,307  
 
                        
Total
   $ 185,427     $ 263,593     $ 185,427     $ 263,593  
 
                        

 

ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
                                 
    Three Months Ended     Six Months Ended  
    February 28,     February 29,     February 28,     February 29,  
(in thousands)   2009     2008     2009     2008  
 
                                
Operating activities:
                                
Net income
   $ 15,063     $ 16,337     $ 32,271     $ 30,275  
Depreciation and amortization
     4,055       3,774       8,148       7,770  
Other, net
     (13,895 )     5,052       (35,494 )     (19,244 )
 
                        
Cash provided by operating activities
     5,223       25,163       4,925       18,801  
 
                                
Investing activities:
                                
Capital expenditures, net of nominal disposals
     (3,667 )     (3,830 )     (7,044 )     (8,755 )
Proceeds from sale of facility
     0       3,996       0       3,996  
Acquisition of business, net of cash acquired
     0       (5,061 )     0       (5,061 )
 
                        
Cash used by investing activities
     (3,667 )     (4,895 )     (7,044 )     (9,820 )
 
                                
Financing activities:
                                
(Payments) Proceeds of long-term debt, net
     (1,213 )     1,897       (2,195 )     1,136  
Share repurchases
     0       0       (39,114 )     0  
Other, net
     (1,026 )     (351 )     (1,757 )     1,543  
 
                        
Cash (used) provided by financing activities
     (2,239 )     1,546       (43,066 )     2,679  
Exchange rate impact on cash
     (1,529 )     949       (6,095 )     3,004  
 
                        
(Decrease) Increase in cash
     (2,212 )     22,763       (51,280 )     14,664  
Cash at beginning of period
     74,337       108,011       123,405       116,110  
 
                        
Cash at end of period
   $ 72,125     $ 130,774     $ 72,125     $ 130,774