EX-99.1 2 a5457577ex991.txt EXHIBIT 99.1 Exhibit 99.1 Dayton Superior Reports Second Quarter Results DAYTON, Ohio--(BUSINESS WIRE)--July 26, 2007--Dayton Superior Corporation (NASDAQ:DSUP), the leading North American provider of specialized products for the non-residential concrete construction market, reported today the following results for its second quarter ended June 29, 2007, compared with results for the similar period of 2006: -- Net sales were $138 million, up 6% from $130 million in 2006. -- Gross profit increased 15% to $44 million from $39 million, reflecting gains in all three segments, as favorable pricing and ongoing cost improvement programs continued to expand margins; -- Net income of $4 million, or 23 cents per diluted share, significantly increased from net income of $1 million, or 15 cents per diluted share on fewer shares outstanding, for the prior year period. Eric R. Zimmerman, Dayton Superior's President and Chief Executive Officer, said, "We are pleased with our operating performance this quarter as gross profit margins demonstrated continued improvement. Considering that the construction industry has experienced weather challenges all year long and that the spring ramp up in non-residential construction activity is kicking in a bit later this year, these results validate the work that the Dayton Superior team is doing to improve our processes and our customer service while expanding sales. Gross profit less SG&A is up 29% for the quarter." Sales of Dayton Superior's concrete construction related products increased 7% to $117 million, stemming mostly from higher selling prices. Equipment rental revenues at $15 million were essentially flat with year-earlier levels, while the revenues from sales of used rental equipment declined. Gross profit on product sales was $34 million, or 29% of product sales, compared with $29 million and 26% in the second quarter of 2006. Rental gross profit was $7 million, or 45% of rental revenue, compared with $6 million, or 41% of rental revenue, in the second quarter of 2006. Before excluding depreciation of $4 million, rental gross profit was flat with year-earlier levels at $11 million, or 71% of rental revenue. Second quarter gross profit as a percent of sales of used rental equipment increased to 72% from 70% in last year's second quarter. Selling, general, and administrative expenses were flat compared to 2006 levels at 19% of sales. Stock compensation expense was $1 million in the second quarter stemming from the vesting of restricted common stock issued in connection with our December IPO. In the second quarter of 2006, Dayton Superior recorded $1 million in gains on disposals of property. There was no such recurring benefit in 2007. For the first six months of 2007, Dayton Superior had a net loss of $4 million, or 21 cents per share, on net sales of $237 million. For the first six months of 2006, the net loss was $8 million, or 76 cents per share, on net sales of $232 million. Earlier this month, Dayton Superior elected to defer an announced refinancing of much of its outstanding long-term debt due to unfavorable market conditions. The Company intends to monitor those conditions over the next several months and reconsider its refinancing plans as conditions evolve. "We are driving improvements throughout our business and we expect our markets to remain steady as there is continuing strength in the non-residential construction sector. Industry forecasts remain bullish for this year and we believe 2007 will meet our expectations, and, further, that 2008 will show steady growth," Zimmerman said. The Company has scheduled a conference call at 11:00 a.m. EDT, Friday, July 27, 2007 to discuss the second quarter results. The conference call can be accessed by dialing 1-866-814-1918. A replay of the call will be available from 7:00 p.m. EDT on Friday, July 27, 2007 through 11:59 p.m. EDT on Friday, August 10, 2007 by calling 1-888-266-2081 and entering reservation #1117459. Dayton Superior is the leading North American provider of specialized products consumed in non-residential, concrete construction, and we are the largest concrete forming and shoring rental company serving the domestic, non-residential construction market. Our products can be found on construction sites nationwide and are used in non-residential construction projects, including: infrastructure projects, such as highways, bridges, airports, power plants and water management projects; institutional projects, such as schools, stadiums, hospitals and government buildings; and commercial projects, such as retail stores, offices and recreational, distribution and manufacturing facilities. Note: Certain statements made herein concerning anticipated future performance are forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of important factors. Representative examples of these factors include (without limitation): -- depressed or fluctuating market conditions for our products and services; -- operating restrictions imposed by our existing debt; -- increased raw material costs and operating expenses; -- our ability to increase manufacturing efficiency, leverage our purchasing power and broaden our distribution network; -- the competitive nature of our industry in general, as well as our specific market areas; -- changes in prevailing interest rates and the availability of and terms of financing to fund the anticipated growth of our business. This list of factors is not intended to be exhaustive, and additional information concerning relevant risk factors can be found in Dayton Superior's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and current Reports on Form 8-K filed with the Securities and Exchange Commission. (tables follow) Dayton Superior Corporation Summary Income Statement, Unaudited (amounts in thousands, except per share amounts) For the three months ended: June 29, 2007 June 30, 2006 % of % of Amount Sales Amount Sales -------- ------ --------- ------- Product Sales $117,174 85.2% $109,459 84.1% Rental Revenue 14,931 10.9% 14,890 11.4% Used Rental Equipment Sales 5,411 3.9% 5,866 4.5% -------- ------ --------- ------- Net Sales 137,516 100.0% 130,215 100.0% -------- ------ --------- ------- Product Cost of Sales 83,334 71.1% 80,921 73.9% Rental Cost of Sales 8,252 55.3% 8,791 59.0% Used Rental Equipment Cost of Sales 1,507 27.9% 1,775 30.3% -------- ------ --------- ------- Cost of Sales 93,093 67.6% 91,487 70.3% -------- ------ --------- ------- Product Gross Profit 33,840 28.9% 28,538 26.1% Rental Gross Profit 6,679 44.7% 6,099 41.0% Used Rental Equipment Gross Profit 3,904 72.1% 4,091 69.7% -------- ------ --------- ------- Gross Profit 44,423 32.3% 38,728 29.7% Selling, General & Administrative (SG&A) 26,550 19.3% 24,909 19.1% -------- ------ --------- ------- Gross Profit Less SG&A(a) 17,873 13.0% 13,819 10.6% Facility Closing and Severance Expenses 83 0.1% 26 ---- Stock Compensation Expense 707 0.5% 36 ---- (Gain) Loss on Disposals of Property, Plant, and Equipment 178 0.1% (667) (0.5%) Amortization of Intangibles 45 ---- 176 0.1% -------- ------ --------- ------- Income from Operations 16,860 12.3% 14,248 11.0% Interest Expense, net 12,084 8.8% 12,457 9.6% Other Expense 221 0.2% 206 0.2% -------- ------ --------- ------- Income Before Income Taxes 4,555 3.3% 1,585 1.2% Provision for Income Taxes 172 0.1% 91 0.1% -------- ------ --------- ------- Net Income $ 4,383 3.2% $ 1,494 1.1% ======== ====== ========= ======= Weighted Average Shares Outstanding 18,298 9,917 -------- --------- Basic Net Income Per Share $ 0.24 $ 0.15 ======== ========= Weighted Average Shares and Equivalents Outstanding 19,320 10,169 -------- --------- Diluted Net Income Per Share $ 0.23 $ 0.15 ======== ========= Rental Depreciation $ 3,954 $ 4,604 Other Depreciation 2,031 1,739 -------- --------- Total Depreciation $ 5,985 $ 6,343 ======== ========= Rental Gross Profit Without Depreciation 10,633 71.2% 10,703 71.9% (a) Gross Profit Less SG&A is calculated and reconciled to Gross Profit ($44,423 and $38,728, respectively, for the three months ended June 29, 2007 and June 30, 2006) by subtracting SG&A expenses ($26,550 and $24,909, respectively, for the three months ended June 29, 2007 and June 30, 2006) from Gross Profit. Dayton Superior Corporation Summary Income Statement, Unaudited (amounts in thousands, except per share amounts) For the six months ended: June 29, 2007 June 30, 2006 % of % of Amount Sales Amount Sales --------- ------- --------- ------- Product Sales $197,350 83.4% $192,683 83.2% Rental Revenue 29,504 12.5% 28,153 12.2% Used Rental Equipment Sales 9,684 4.1% 10,710 4.6% --------- ------- --------- ------- Net Sales 236,538 100.0% 231,546 100.0% --------- ------- --------- ------- Product Cost of Sales 143,766 72.8% 146,403 76.0% Rental Cost of Sales 16,345 55.4% 16,730 59.4% Used Rental Equipment Cost of Sales 2,633 27.2% 3,192 29.8% --------- ------- --------- ------- Cost of Sales 162,744 68.8% 166,325 71.8% --------- ------- --------- ------- Product Gross Profit 53,584 27.2% 46,280 24.0% Rental Gross Profit 13,159 44.6% 11,423 40.6% Used Rental Equipment Gross Profit 7,051 72.8% 7,518 70.2% --------- ------- --------- ------- Gross Profit 73,794 31.2% 65,221 28.2% Selling, General & Administrative (SG&A) 51,703 21.9% 48,509 21.0% --------- ------- --------- ------- Gross Profit Less SG&A(a) 22,091 9.3% 16,712 7.2% Facility Closing and Severance Expenses 451 0.2% 277 0.1% Stock Compensation Expense 1,366 0.6% 62 ---- (Gain) Loss on Disposals of Property, Plant, and Equipment 261 0.1% (1,336) (0.6%) Amortization of Intangibles 91 ---- 327 0.1% --------- ------- --------- ------- Income from Operations 19,922 8.4% 17,382 7.6% Interest Expense, net 23,134 9.8% 24,594 10.6% Other Expense 333 0.1% 154 0.1% --------- ------- --------- ------- Loss Before Income Taxes (3,545) (1.5%) (7,366) (3.1%) Provision for Income Taxes 231 0.1% 215 0.1% --------- ------- --------- ------- Net Loss $ (3,776) (1.6%) $ (7,581) (3.2%) ========= ======= ========= ======= Weighted Average Shares Outstanding 18,254 9,917 --------- --------- Basic and Diluted Net Loss Per Share $ (0.21) $ (0.76) ========= ========= Rental Depreciation $ 7,938 $ 8,693 Other Depreciation 3,894 3,194 --------- --------- Total Depreciation $ 11,832 $ 11,887 ========= ========= Rental Gross Profit Without Depreciation 21,097 71.5% 20,116 71.5% (a) Gross Profit Less SG&A is calculated and reconciled to Gross Profit ($73,794 and $65,221 respectively, for the six fiscal months ended June 29, 2007 and June 30, 2006) by subtracting SG&A expenses ($51,703 and $48,509, respectively, for the six fiscal months ended June 29, 2007 and June 30, 2006) from Gross Profit. Dayton Superior Corporation Summary Balance Sheet, Unaudited (in thousands) As of: June 29, 2007 December 31, 2006 Summary Balance Sheet: Cash $ ---- $ 26,813 Accounts Receivable, Net 86,570 71,548 Inventories 73,472 58,396 Other Current Assets 9,489 6,227 ------------- ----------------- Total Current Assets 169,531 162,984 Rental Equipment, Net 68,010 63,766 Property & Equipment, Net 50,362 45,697 Goodwill & Other Assets 48,612 49,188 ------------- ----------------- Total Assets $ 336,515 $ 321,635 ============= ================= Current Portion of Long-Term Debt $ 3,258 $ 2,551 Accounts Payable 37,891 40,883 Other Current Liabilities 33,234 38,195 ------------- ----------------- Total Current Liabilities 74,383 81,629 Revolving Credit Facility 20,000 - Other Long-Term Debt 320,897 319,899 Other Long-Term Liabilities 20,585 21,651 ------------- ----------------- Total Liabilities 435,865 423,179 ------------- ----------------- Stockholders' Deficit (99,350) (101,544) ------------- ----------------- Total Liabilities & Stockholders' Deficit $ 336,515 $ 321,635 ============= ================= Dayton Superior Corporation Summary Cash Flow Statement, Unaudited (in thousands) For the six months ended: June 29, 2007 June 30, 2006 Net Loss $ (3,776) $ (7,581) Non-Cash Adjustments to Net Loss 9,519 5,683 Changes in Assets and Liabilities (38,509) (14,543) ------------- ------------- Net Cash Used in Operating Activities (32,766) (16,441) ------------- ------------- Property, Plant and Equipment Additions, Net (10,013) (4,082) Rental Equipment Additions, Net (5,575) 179 ------------- ------------- Net Cash Used in Investing Activities (15,588) (3,903) ------------- ------------- Net Borrowings Under Revolving Credit Facility 20,000 21,250 Repayments of Other Long-Term Debt (453) (1,159) Financing Costs Incurred (633) - Issuance of Shares of Common Stock 826 - Net Change in Loans to Stockholders 1,133 (17) ------------- ------------- Net Cash Provided By Financing Activities 20,873 20,074 ------------- ------------- Other, Net 668 270 ------------- ------------- Net Decrease in Cash $ (26,813) $ - ============= ============= Dayton Superior Corporation EBITDA and Reconciliation to Net Income (Loss), Unaudited (in thousands) For the three For the six months ended: months ended: June 29, June 30, June 29, June 30, 2007 2006 2007 2006 -------- -------- -------- -------- Net Income (Loss) $ 4,383 $ 1,494 $(3,776) $(7,581) Provision for Income Taxes 172 91 231 215 Interest Expense 12,126 12,465 23,311 24,621 Interest Income (42) (8) (177) (27) Depreciation Expense 5,985 6,343 11,832 11,887 Amortization of Intangibles 45 176 91 327 ----------------------------------- EBITDA $22,669 $20,561 $31,512 $29,442 =================================== EBITDA was reduced (increased) by the following items: (Gain) Loss on Disposals of Property, Plant and Equipment 178 (667) 261 (1,336) Facility Closing and Severance Expenses 83 26 451 277 Stock Compensation Expense 707 36 1,366 62 EBITDA, a metric used by management to measure operating performance, is defined as earnings (loss) before interest expense, interest income, income taxes, depreciation and amortization of intangibles. Dayton Superior presents EBITDA because our management believes that EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry, some of which present EBITDA when reporting their results. Dayton Superior's management regularly evaluates our performance as compared to other companies in our industry that have different financing and capital structures and/or tax rates by using EBITDA. Dayton Superior believes EBITDA allows for meaningful company-to-company performance comparisons by adjusting for factors such as interest expense, depreciation, amortization and income taxes, which often vary from company-to-company. In addition, Dayton Superior uses EBITDA in evaluating acquisition targets. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income, operating income or any other performance measures derived in accordance with GAAP. Since not all companies use identical calculations, this presentation of EBITDA may not be comparable to other similarly titled measures of other companies. CONTACT: Dayton Superior Corporation Edward J. Puisis, 937 428-7172 Executive Vice President & CFO Fax: 937-428-9115