-----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, Td6/DUnCGUvp/9BUgeD6ANq1k6QvyQftyW3zxOZtDl5lQcWmYGSUB1kAVYD6gggA oHXItTP6d6kP1+ISSwuHng== 0000094328-99-000009.txt : 19990624 0000094328-99-000009.hdr.sgml : 19990624 ACCESSION NUMBER: 0000094328-99-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990527 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990527 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: 99636129 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 1999 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 27, 1999 STEWART & STEVENSON SERVICES, INC. (Exact name of registrant as specified in its charter) TEXAS 0-8493 74-1051605 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 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 27, 1999, Stewart & Stevenson Services, Inc. (the "Company") issued the press release attached hereto as Exhibit 99.1 announcing the Company's first quarter results. Item 7. Exhibits. Exhibit 99.1 Company Press Release dated May 27, 1999 titled "Stewart & Stevenson Services, Inc. Announces First Quarter 1999 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 27, 1999 By:/s/ LAWRENCE E. WILSON Name: Lawrence E. Wilson Title: Vice President, Secretary and General Counsel EXHIBIT INDEX 99.1 Company Press Release dated May 27, 1999 titled "Stewart & Stevenson Services, Inc. Announces First Quarter 1999 Results." - -------------------- EX-99.1 2 EXHIBIT 99.1 STEWART & STEVENSON NEWS FROM: CORPORATE HEADQUARTERS P.O. BOX 1637 HOUSTON, TX 77251-1637 FOR IMMEDIATE RELEASE: STEWART & STEVENSON SERVICES, INC. ANNOUNCES FIRST QUARTER 1999 RESULTS HOUSTON, TX May 27 1999 - STEWART & STEVENSON SERVICES, INC. (NASDAQ:SSSS), a leading manufacturer and distributor of industrial and energy related equipment, announced sales for the fiscal quarter ended May 1, 1999, totaling $188.9 million compared to sales of $305.0 million for the same period a year ago. Net income from operations for the first quarter totaled $2.1 million or $0.08 per share compared to net earnings of $9.2 million and $0.29 per share a year ago. Net earnings from operations for the first quarter of 1998 included $2.7 million or $0.08 per share in interest income on cash proceeds from the sale of Gas Turbine Operations. The Power Products segment, which is responsible for marketing and aftermarket support of a wide range of industrial equipment recorded first quarter sales of $121.3 million compared to $136.2 million for the same period in 1998. Operating profit for the Power Products segment totaled $3.1 million for the quarter compared to $9.9 million a year ago. This segment continues to be adversely impacted by lower equipment, parts and services sales in the petroleum sensitive branches resulting from depressed oil prices. The Petroleum Equipment segment manufactures equipment for oil and gas exploration, production, and well stimulation industries. Sales for this segment totaled $28.5 million compared to $23.6 million last year. Operating profit for Petroleum Equipment totaled $2.0 million compared to $2.1 million last year. The slight decrease in profits resulted from increased sales on lower margin marine riser products, offset by a decrease in higher-margin equipment sales, which remained depressed particularly in the U.S. Market. The Tactical Vehicle Systems (TVS) segment, which manufactures tactical vehicles for the U.S. Army and others, recorded sales of $6.2 million compared to $124.7 million a year ago. Most of the production associated with the original contract was completed as of January 31, 1999, and production on the follow-on contract is scheduled to start in third quarter 1999. Operating profit for the first quarter of 1999 amounted to $1.1 million, compared to $2.7 million a year ago. Other business activities not identified in a specific segment include airline ground support equipment, and the fabrication and leasing of gas compression equipment. Sales totaled $32.9 million, with most of the $12.4 million increase from last year occurring in airline ground support equipment resulting from acquisition of Tug Manufacturing Corporation in December 1998. First quarter 1999 operating profit totaled $0.8 million versus $1.5 million a year ago. Airline profits were adversely impacted by new product development costs and gas compression continues in a start-up mode. Lower corporate G&A expenses resulted from harbor tax refunds and duty drawback recoveries. Michael L. Grimes, Chief Executive Officer, stated "While operating performance was in line with our near term expectations, we need to accelerate efforts to improve margins, reduce working capital, and focus on top line growth." This report contains forward-looking information. The forward-looking statements, including without limitation statements relating to the Company's performance and industry conditions for the year, are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be significantly impacted by various factors described herein and in the Company's Annual Report and Form 10-K filed with the Securities and Exchange Commission of the year ended January 31, 1999. There can be no assurance that anticipated developments will occur. 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 THREE MONTHS ENDED ENDED MAY 1, 1999 APRIL 30, 1998 ---------------- ---------------- (UNAUDITED) Sales $188,911 $305,010 Cost of sales 159,050 273,976 ---------------- ---------------- Gross profit 29,861 31,034 ---------------- ---------------- Selling and administrative expenses 25,491 18,731 Interest expense 3,451 3,150 Other income, net (2,195) (6,022) ---------------- ---------------- 26,747 15,859 ---------------- ---------------- Earnings before income taxes 3,114 15,175 Income tax provision 1,153 5,481 ---------------- ---------------- Earnings of consolidated companies 1,961 9,694 Equity in net earnings (loss) of unconsolidated affiliates 159 (529) ---------------- ---------------- Net earnings $2,120 $9,165 ================ ================ Weighted average number of shares of Common Stock outstanding - Basic 27,984 31,976 Diluted 27,984 32,035 Net earnings per share: Basic and Diluted $.08 $.29 ================ ================ Cash dividends per share $.085 $.085 ================ ================
STEWART & STEVENSON SERVICES, INC. SEGMENT DATA (Dollars in thousands) FISCAL QUARTER THREE MONTHS ENDED ENDED MAY 1, 1999 APRIL 30, 1998 ------------------------------------- Sales: (UNAUDITED) Power Products $121,288 $136,169 Petroleum Equipment 28,464 23,592 Tactical Vehicle Systems 6,215 124,660 Other Business Activities 32,944 20,589 -------------------------------------- $188,911 $305,010 ===================================== Operating Profit: Power Products $3,090 $9,905 Petroleum Equipment 1,958 2,103 Tactical Vehicle Systems 1,106 2,719 Other Business Activities 836 1,496 ------------------------------------- 6,990 16,223 Corporate expenses, net (452) (2,121) Interest expense (3,451) (3,150) Non-operating interest income 27 4,223 ------------------------------------- Earnings before income taxes $3,114 $15,175 =====================================
STEWART & STEVENSON SERVICES, INC. CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (Dollars in thousands) FISCAL QUARTER THREE MONTHS ENDED ENDED MAY 1,1999 APRIL 30, 1998 ----------------- ---------------- (UNAUDITED) OPERATING ACTIVITIES Net earnings $ 2,120 $ 9,165 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: Accrued postretirement benefits 509 5 Depreciation and amortization 5,203 4,193 Deferred income taxes, net (37) (2,899) Change in operating assets and liabilities net of the effect of acquisition: Accounts and notes receivable, net (13,482) (13,467) Recoverable costs and accrued profits not yet billed 30,009 3,833 Inventories (6,814) 1,723 Accounts payable (37,409) (9,357) Accrued payrolls and incentives (7,844) (6,591) Current income taxes 994 8,893 Other current liabilities (824) (907) Other--principally long-term assets and liabilities (824) (1,999) ----------------- ---------------- NET CASH USED IN OPERATING ACTIVITIES (28,399) (7,408) INVESTING ACTIVITIES Collection of receivable from sale of Gas Turbine Operations -- 600,000 Expenditures for property, plant and equipment (7,821) (8,107) Acquisition of businesses -- (9,450) Disposal of property, plant and equipment, net 1,667 406 ----------------- ---------------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (6,154) 582,849 FINANCING ACTIVITIES Additions to long-term borrowings 16,234 483 Payments on long-term borrowings (333) (226,000) Net short-term borrowings (payments) 9,724 (34,507) Dividends paid (2,379) (2,683) Repurchase of common stock -- (57,060) Exercise of stock options -- 615 ----------------- ---------------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 23,246 (319,152) ----------------- ---------------- Increase (decrease) in cash and equivalents (11,307) 256,289 Cash and equivalents, February 1 12,959 18,987 ----------------- ---------------- Cash and equivalents, end of period $ 1,652 $ 275,276 ================= ================ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Net cash paid during the Period for: Interest payments $986 $258 Income tax payments $419 $88
STEWART & STEVENSON SERVICES, INC. CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION (Dollars in thousands) MAY 1, 1999 JANUARY 31, 1999 (UNAUDITED) ASSETS CURRENT ASSETS Cash and equivalents $ 1,652 $ 12,959 Accounts and notes receivable, net 178,029 164,547 Recoverable costs and accrued profits not yet billed 69,088 99,097 Income tax receivable 48,002 48,596 Inventories: Power Products 189,119 182,894 Petroleum Equipment 35,586 40,560 Other Business Activities 45,881 40,222 Excess of current cost over LIFO values (48,570) (48,474) --------------------------------------- 222,016 215,202 --------------------------------------- TOTAL CURRENT ASSETS 518,787 540,401 PROPERTY, PLANT AND EQUIPMENT 275,950 271,658 Allowances for depreciation and amortization (146,792) (142,913) --------------------------------------- 129,158 128,745 DEFERRED INCOME TAX ASSETS 7,949 7,904 INVESTMENTS AND OTHER ASSETS 29,518 28,727 --------------------------------------- $685,412 $705,777 ======================================= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Notes payable $27,192 $17,468 Accounts payable 45,718 83,127 Accrued payrolls and incentives 9,279 17,123 Current income taxes 3,331 2,931 Current portion of long-term debt 70,220 69,488 Other current liabilities 94,520 95,349 --------------------------------------- TOTAL CURRENT LIABILITIES 250,260 285,486 LONG-TERM DEBT 98,699 83,530 DEFERRED INCOME TAXES 51 43 ACCRUED POSTRETIREMENT BENEFITS 13,528 13,019 DEFERRED COMPENSATION 2,866 3,336 SHAREHOLDERS' EQUITY Common Stock, without par value, 100,000,000 shares authorized; 27,984,035, shares issued at May 1, 1999 and January 31, 1999 47,723 47,819 Retained earnings 272,285 272,544 --------------------------------------- TOTAL SHAREHOLDERS' EQUITY 320,008 320,363 --------------------------------------- $685,412 $705,777 =======================================
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