-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A8vuSAmHgp2BkrqhKJqpo6gE13eOnKlTFQmQ+Tf9rLh7lBb39/Eg5rHA2nvmBIKV bbve3ayLdufYwY9C2vSzJg== 0000094328-00-000014.txt : 20000525 0000094328-00-000014.hdr.sgml : 20000525 ACCESSION NUMBER: 0000094328-00-000014 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000524 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000524 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STEWART & STEVENSON SERVICES INC CENTRAL INDEX KEY: 0000094328 STANDARD INDUSTRIAL CLASSIFICATION: ENGINES & TURBINES [3510] IRS NUMBER: 741051605 STATE OF INCORPORATION: TX FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11443 FILM NUMBER: 642658 BUSINESS ADDRESS: STREET 1: 2707 N LOOP W CITY: HOUSTON STATE: TX ZIP: 77008 BUSINESS PHONE: 7138687700 MAIL ADDRESS: STREET 1: P O BOX 1637 CITY: HOUSTON STATE: TX ZIP: 77251-1637 8-K 1 FIRST QUARTER 2000 RESULTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MAY 24, 2000 STEWART & STEVENSON SERVICES, INC. (Exact name of registrant as specified in its charter) TEXAS 0-8493 74-1051605 (State or other (Commission File Number) (I.R.S. Employer jurisdiction Identification No.) of incorporation) 2707 NORTH LOOP WEST HOUSTON, TEXAS 77008 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (713) 868-7700 Item 5. Other Events. On May 24, 2000, Stewart & Stevenson Services, Inc. (the "Company") issued the press release attached hereto as Exhibit 99.1 announcing the Company's First Quarter 2000 Results. Item 7. Exhibits. Exhibit 99.1 Company Press Release dated May 24, 2000, titled "Stewart & Stevenson Services, Inc. Announces First Quarter 2000 Results". SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STEWART & STEVENSON SERVICES, INC. Date: May 18, 2000 By: /s/ JOHN H. DOSTER Name: John H. Doster Title: Senior Vice President and Chief Financial Officer EX-99.1 2 FIRST QUARTER 2000 RESULTS EXHIBIT INDEX 99.1 Company Press Release May 24, 2000, titled "Stewart & Stevenson Services, Inc. Announces First Quarter 2000 Results." News From: Stewart & Stevenson Corporate Headquarters P.O. Box 1637 Houston, TX 77251-1637 FOR IMMEDIATE RELEASE: STEWART & STEVENSON SERVICES, INC. ANNOUNCES FIRST QUARTER 2000 RESULTS HOUSTON, TX May 24, 2000 - STEWART & STEVENSON SERVICES, INC. (NASDAQ:SSSS), HOUSTON, TX a leading manufacturer and distributor of industrial, energy related and defense equipment, announced sales for the Fiscal Quarter ending April 29, 2000, totaling $259.2 million compared to sales of $188.9 million for the same period a year ago. Net income from operations for the First Quarter totaled $7.5 million or $0.27 per share compared to net earnings of $2.1 million and $0.08 per share a year ago. The Tactical Vehicle Systems segment, which manufactures tactical vehicles for the U.S. Army and others, recorded sales of $78.7 million in the First Quarter compared to $6.2 million a year ago. Operating profit for the quarter totaled $14.6 million, compared with a $1.1 million profit in the First Quarter of Fiscal 1999. The segment continues to realize improved operating margins resulting from an effective cost reduction program. In addition, the current plan is to complete the driveline upgrade program by the end of May, three months ahead of schedule. The Army's latest shipment schedule has shifted some truck deliveries from the second quarter to the second half, but the expected total year volume remains intact. The Power Products segment, which is responsible for marketing and aftermarket support of a wide range of industrial equipment, recorded First Quarter sales of $127.1 million compared to $121.3 million for the same period in 1999. The Power Products segment reported a $0.8 million loss for the quarter as the rebound in profitability was overshadowed by special items netting to a charge of $6.4 million, principally in connection with a potentially uncollectable account and note receivable. Excluding the special items, the segment would have reported an operating profit of $5.6 million or 4.4% of sales. A year ago the segment reported a $3.1 million operating profit or 2.6% of sales. Power Products is beginning to experience improved sales in domestic land-based oil and gas markets, and the rebound in profitability is expected to continue in subsequent quarters. The Petroleum Equipment segment manufactures equipment for oil and gas exploration, production, and well stimulation industries. Sales for this segment totaled $14.9 million for the First Quarter compared to $28.5 million last year. The operating loss for the First Quarter totaled $0.7 million compared to an operating profit of $2.0 million in the previous year. The decrease in sales and operating profit resulted from a depleted order backlog in the oil and gas markets. We are encouraged by a recent rebound in order activity, and the segment is well positioned for a turnaround in the second half of Fiscal Year 2000. The Airline Products segment, known as S&S Tug, which manufactures airline ground support products and mobile railcar movers, recorded sales of $28.3 million in the First Quarter of Fiscal 2000, compared with $22.3 million in the same quarter last year. Operating results were breakeven in both years. First Quarter 2000 operations were impacted by higher costs associated with the startup of additional airport based service facilities, and new products. Other business activities not identified in a specific segment include predominantly gas compression equipment sales or leases. Sales totaled $10.2 million for the First Quarter, compared to $10.7 million for the comparable period last year. A First Quarter operating loss of $0.6 million included $0.8 million in incentive bonus payments associated with the 1998 acquisition of Compression Specialties, Inc. An operating profit of $0.8 million was recorded during the First Quarter of 1999. Corporate general and administrative expenses for the quarter totaled $2.5 million, versus $0.5 million for the comparable period of 1999. Last year's quarter was favorably impacted by harbor tax refunds and duty drawback recoveries. Interest expense decreased from $3.5 million in the First Quarter of Fiscal 1999 to $2.3 million in the First Quarter of Fiscal 2000 as a direct result of asset management initiatives. The Company recorded $4.0 million in interest income in connection with tax refunds from the Internal Revenue Service for the years ended January 31, 1990, through January 31, 1993. Cash flow provided by operating activities during the First Quarter of Fiscal 2000 totaled $25.5 million or $0.91 per share, which compared favorably with usage of $28.4 million during the corresponding quarter of Fiscal 1999. Michael L. Grimes, President and Chief Executive Officer, commented that "we have delivered five consecutive quarters of earnings improvements; we continue to make progress in generating cash flow and improving our balance sheet; the oil and gas markets are beginning to recover; we continue to improve the leadership team; and supply chain initiatives are resulting in lower material costs for the future." This press release contains forward-looking statements that are based on management's current expectations, estimates, and projections. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Many factors, including those discussed more fully elsewhere in this release and in the Company's filings with the Securities and Exchange Commission, particularly its latest annual report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, risks associated with newly acquired businesses; increasing price and product/service competition by foreign and domestic competitors; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost effective basis; the mix of products/services; the achievement of lower costs and expenses; reliance on large customers; technological, implementation and cost/financial risks in use of large, multi-year contracts; the cyclical nature of the markets served; the outcome of pending and future litigation and governmental proceedings; the continued availability of financing, financial instruments and financial resources in the amount, at the times and on the terms required to support the Company's business; the assessment of unanticipated taxes by foreign or domestic governmental authorities; the risk of cancellation or adjustment of specific orders and termination of significant government programs; and failure of the Company or unrelated third parties on whom the Company relies for essential products or services to become Year 2000 capable. In addition, such forward-looking statements could be affected by general industry and market conditions and growth rates, general domestic and international conditions including interest rates, inflation and currency exchange rates and other future factors. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Contact: Mr. David R. Stewart, Treasurer Phone: (713) 868-7657 Fax: (713) 863-1519 Email: d.stewart@ssss.com HTTP://www.ssss.com
STEWART & STEVENSON SERVICES, INC. CONSOLIDATED CONDENSED STATEMENT OF EARNINGS (IN THOUSANDS, EXCEPT PER SHARE DATA) FISCAL QUARTER FISCAL QUARTER ENDED ENDED APRIL 29, 2000 MAY 1, 1999 -------------- -------------- (UNAUDITED) Sales $ 259,207 $ 188,911 Cost of sales 213,317 159,050 -------------- -------------- Gross profit 45,890 29,861 Selling and administrative expenses 36,091 25,491 Interest expense 2,309 3,451 Other income, net (4,434) (2,195) -------------- -------------- 33,966 26,747 -------------- -------------- Earnings before income taxes 11,924 3,114 Income tax provision 4,426 1,153 -------------- -------------- Earnings of consolidated companies 7,498 1,961 Equity in net earnings of unconsolidated affiliates - 159 -------------- -------------- Net earnings $ 7,498 $ 2,120 ============== ============== Weighted average number of shares of Common Stock outstanding - Basic 27,996 27,984 Diluted 28,075 27,984 Net earnings per share: Basic and Diluted $ 0.27 $ .08 ============== ============== Cash dividends per share $ .085 $ .085 ============== ==============
STEWART & STEVENSON SERVICES, INC. SEGMENT DATA (IN THOUSANDS) - -------------------------------------------------------------------------------- Fiscal Quarter Ended Fiscal Quarter Ended APRIL 29, 2000 MAY 1, 1999 (UNAUDITED) - -------------------------------------------------------------------------------- Sales Power Products $ 127,091 $ 121,288 Tactical Vehicles 78,673 6,215 Airline Products 28,271 22,252 Petroleum Equipment 14,927 28,464 Other Business Activities 10,245 10,692 -------------- -------------- Total 259,207 188,911 Operating Profit Power Products (816) 3,090 Tactical Vehicles 14,636 1,106 Airline Products 4 4 Petroleum Equipment (673) 1,958 Other Business Activities (634) 832 -------------- -------------- Total 12,517 6,990 Corporate expenses (net) (2,476) (452) Interest expense (2,309) (3,451) Non-operating interest income 4,192 27 -------------- -------------- Earnings before income taxes $ 11,924 $ 3,114 ============== ==============
STEWART & STEVENSON SERVICES, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (IN THOUSANDS) FISCAL QUARTER FISCAL QUARTER ENDED ENDED APRIL 29, 2000 MAY 1, 1999 -------------- -------------- (UNAUDITED) OPERATING ACTIVITIES Net earnings $ 7,498 $ 2,120 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Accrued postretirement benefits 248 509 Depreciation and amortization 5,532 5,203 Deferred income taxes, net 36 (37) Change in operating assets and liabilities net of the effect of acquisition: Accounts and notes receivable, net 44,964 (13,482) Recoverable costs and accrued profits not yet billed (5,983) 30,009 Inventories (12,314) (6,814) Accounts payable (10,029) (37,409) Accrued payrolls and incentives (4,421) (7,844) Current income taxes 4,291 994 Other current liabilities (2,839) (829) Other--principally long-term assets and liabilities (1,469) (819) -------------- -------------- NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 25,514 (28,399) INVESTING ACTIVITIES Expenditures for property, plant and equipment (10,279) (7,821) Disposal of property, plant and equipment, net 123 1,667 -------------- -------------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (10,156) (6,154) FINANCING ACTIVITIES Additions to long-term borrowings 20,047 16,234 Payments on long-term borrowings (20,029) (333) Net short-term borrowings (payments) (9,490) 9,724 Dividends paid (2,379) (2,379) Exercise of stock options 222 - -------------- -------------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (11,629) 23,246 -------------- -------------- Increase (decrease) in cash and equivalents 3,729 (11,307) Cash and equivalents, February 1 11,715 12,959 -------------- -------------- Cash and equivalents, end of period $ 15,444 $ 1,652 ============== ==============
STEWART & STEVENSON SERVICES, INC. CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION (IN THOUSANDS) APRIL 29, 2000 JANUARY 31, 2000 -------------- -------------- (UNAUDITED) ASSETS CURRENT ASSETS Cash and equivalents $ 15,444 $ 11,715 Accounts and notes receivable, net 197,661 242,625 Recoverable costs and accrued profits not yet billed 14,134 8,151 Income tax receivable 22,508 26,255 Deferred tax asset 8,553 9,076 Inventories: Power Products 158,254 150,844 Petroleum Equipment 31,588 30,151 Airline Products 32,065 26,029 Other Business Activities 31,123 33,762 Excess of current cost over LIFO values (49,769) (49,839) -------------- -------------- 203,261 190,947 -------------- -------------- TOTAL CURRENT ASSETS 461,561 488,769 PROPERTY, PLANT AND EQUIPMENT 300,325 290,355 Allowances for depreciation and amortization (166,167) (160,821) -------------- -------------- 134,158 129,534 DEFERRED INCOME TAX ASSETS 89 166 INVESTMENTS AND OTHER ASSETS 25,239 23,881 -------------- -------------- $ 621,047 $ 642,350 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Notes payable $ 15,779 $ 25,269 Accounts payable 80,134 90,163 Accrued payrolls and incentives 14,280 18,701 Income tax 3,278 3,257 Current portion of long-term debt 9,097 8,955 Other current liabilities 63,064 65,903 -------------- -------------- TOTAL CURRENT LIABILITIES 185,632 212,248 COMMITMENTS AND CONTINGENCIES LONG-TERM DEBT 78,157 78,281 DEFERRED INCOME TAX 917 958 ACCRUED POSTRETIREMENT BENEFITS 12,996 12,748 DEFERRED COMPENSATION 2,325 2,436 OTHER LONG-TERM LIABILITIES 600 600 SHAREHOLDERS' EQUITY Common Stock, without par value, 100,000,000 shares authorized; 28,012,203 and 27,992,203 shares issued at April 29, 2000 and January 31, 2000, respectively 47,944 47,722 Retained earnings 292,476 287,357 -------------- -------------- TOTAL SHAREHOLDERS' EQUITY 340,420 335,079 -------------- -------------- $ 621,047 $ 642,350 ============== ==============
-----END PRIVACY-ENHANCED MESSAGE-----