-----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, DMcJR0t0FFinjmDTiRmTeyuuOdO27lxHNeflMyGO9uUl/LaEW27eYnZ+yCdvjnHK 1bPmjvLiBYEq0Z1msNoyWQ== 0000912057-02-014357.txt : 20020416 0000912057-02-014357.hdr.sgml : 20020416 ACCESSION NUMBER: 0000912057-02-014357 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020409 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020410 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: 1934 Act SEC FILE NUMBER: 001-11443 FILM NUMBER: 02606340 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 a2076306z8-k.txt 8K ================================================================================ 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): April 9, 2002 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 7. EXHIBITS. Exhibit 99.1 Stewart & Stevenson "Presentation to Investors," also available on the Company's website at www.ssss.com Item 9. REGULATION FD DISCLOSURE. On April 9, 2002, Stewart & Stevenson Services, Inc. (the "Company") will post on its website the "Presentation to Investors" that is attached hereto as Exhibit 99.1. 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 hereto duly authorized. STEWART & STEVENSON SERVICES, INC. Date: April 9, 2002 By: /s/ John H. Doster Name: John H. Doster Title: Senior Vice President and Chief Financial officer EXHIBIT INDEX Company "Presentation to Investors." EX-99.1 3 a2076306zex-99_1.txt EXHIBIT 99.1 Presentation to Investors [Stewart & Stevenson Logo] April 2002 1 [Stewart & Stevenson Logo] FORWARD LOOKING STATEMENTS Statements Contained in This Presentation Which Are Not Historical Facts Could Be Considered Forward-looking Statements. Such Forward-looking Statements Are Made Pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Actual Results May Differ Materially From Anticipated Results. Forward-looking Statements Involve Risks and Uncertainties Including the Effects of Government Budgets and Requirements, Economic Conditions, Competitive Environment and Timing of Awards and Contracts, in Addition to Other Factors Described in the Company's Filings With the Securities and Exchange Commission Including the Most Recent 10-K. 2 [Stewart & Stevenson Logo] CORPORATE PROFILE Stewart & Stevenson is a Global System Integrator and Aftermarket Support Organization for Energy Conversion and Utilization Systems in Niche and Environmentally Challenging Applications. Competitive Advantage is Achieved Through Speed, Application Skills, Customer Relationships and Superior Service Utilizing Enabling Technology Provided by Partners Who Have Scale. - - Manufacturer, Distributor & Provider of Service for Engine-Driven Equipment - - Headquarters in Houston, Texas - - $1.33 Billion U.S. Dollars Sales FY2001 - - 4100+ Employees...1000+ Service Techs & 200+ Engineering Positions - - Publicly Traded on NASDAQ (SSSS) [Picture of Corporate Office] Corporate Office Houston, Texas 3 [Stewart & Stevenson Logo] SALES MIX FOR FISCAL YEAR 2001 ($MM) [Pie Chart] Power Products (44%) - 587 S&S Tug (6%) - 81 Other (2%) - 23 Petroleum Equipment (7%) - 91 Tactical Vehicle Systems (32%) - 432 Distributed Energy Solutions (9%) - 116 $1.33 BILLION TOTAL SALES 4 [Stewart & Stevenson Logo] POWER PRODUCTS [Pie Chart] Equipment, Parts, Rental, Service Solutions $587MM Sales FY2001 - - 5 Geographical Regions - Gulf Coast, South Texas, Central Texas, Industrial Western, Latin America $332MM - - 43 Service Locations On-Highway - - 1000+ Service Techs $124MM - - Industrial & Agricultural Packaged Products Marine - - Marine Systems Integration $96MM - - Significant Class 8 and Specialty Vehicle Engine, Transmission, and Truck Parts & Service Business Agriculture, Municipal, & Other $35MM PARTS & SERVICE SALES 60% OF TOTAL 5 [Stewart & Stevenson Logo] POWER PRODUCTS MARINE [mtu Logo] [Detroit Diesel Logo] ON HIGHWAY - Propulsion TRUCK & BUS - Ships Power - Parts - Service - Service - Parts INDUSTRIAL, UTILITIES, - Refrigeration COMMERCIAL - Engines - Power Gen - Transmissions - Forklifts [Electro-Motive Logo] - Off Hwy Vehicle [Hyster Logo] - Air Compression [Mercury Logo] - Engines [Thermo King Logo] - Gas Compression [Waukesha Logo] - Pumps [Allison Transmission Logo] - RailKing - Service [Tug Logo] - Parts - Rentals AIRPORTS, RAILWAY, HIGHWAY - RailKing - Snowblower - Wheelchair Lifts - Service AGRICULTURE [Stewart & Stevenson Logo] - Irrigation Systems - Engine-Pumps - Engine-Generators - Parts - Service [Deutz Logo] [Auragen Logo] - Rentals 6 [Stewart & Stevenson Logo] POWER PRODUCTS APPLICATIONS [Pictures of motors and what they are used for] 7 [Stewart & Stevenson Logo] POWER PRODUCTS LOCATIONS [Map] * Venezuela * Colombia * Argentina 8 [Stewart & Stevenson Logo] DISTRIBUTED ENERGY SOLUTIONS [Pictures of plants used for distribution] 9 [Stewart & Stevenson Logo] TACTICAL VEHICLE SYSTEMS $432MM Sales FY2001 - - Sole Source Provider of 2 1/2-Ton & 5-Ton Family of Medium Tactical Vehicles (FMTV) to US Army Since 1991 - - Fourteen Vehicle Variants with 85% Component Commonality - - Approx. 16,000 Vehicles Replaced; Another 68,000 Opportunity - - Facility in Sealy, Texas, Producing 2000+ Trucks & Trailers Annually - - Growing Aftermarket Support Infrastructure With Facilities in Military Locations - - E-Commerce Business for Repair Parts and Component Repair Services - - Technology Focus on Hybrid Electric, Suspension and Braking, On-Vehicle Electronics and Diagnostics - - US Government R&D Program Funding Adds to Technology Base - - Lean Manufacturing and Innovative Supplier Partnering Positioning to Win Next Multi-Year Award Expected FY2003 10 [Stewart & Stevenson Logo] S&S TUG (AIRLINE) $81MM Sales FY2001 - - Manufacturer and Service Provider of Full Range of Aircraft Ground Support Systems: - Baggage & Push Back Tractors - Ground Power - Belt Loaders - Air Starts - Air Conditioners - - Manufacturer, Re-manufacturer, and Service Provider for Specialty Material Handling Applications: - Rail Car Spotters - Industrial Material Handling - Snowblowers - - Facilities in Atlanta, GA - - Service Facilities on Airport Properties - - Technology Focus...Emissions, Electric Propulsion, Drive Train Systems - - Market Growth Through Electric Products, Regional Airlines, and Specialty Material Handling Global Market Participant With Strong Customer Relationships 11 [Stewart & Stevenson Logo] PETROLEUM EQUIPMENT $91MM Sales FY2001 - - Equipment and Service Solutions for Land and Offshore Oil & Gas Applications - Coil Tubing Systems - Fracturing Systems - Acidizing Systems - Remanufacturing - - Global Business With Locations in Houston, Hong Kong, Beijing, Moscow - - Technology Focus on Coil Tubing Systems, Electronic Controls, Engine Application - - New Proprietary Product Introduction and Service Growth Focus Unique Engineering Solutions in Global Markets 12 [STEWART & STEVENSON LOGO] [Stewart & Stevenson Logo] EPS MODEL - Receivables - Inventory Balance Sheet - - New Products Earnings - Supply - - Acquisitions Per - ERP/JDEdwards - - Service Share Growth Margin Rate 14 [Stewart & Stevenson Logo] FIVE INITIATIVES Leadership Working Capital Growth Information Management Supply Chain 15 [Stewart & Stevenson Logo] LEADERSHIP President/CEO Power Wheeled Dist. Energy Petroleum Products Vehicles Solutions Equipment CFO South TVS Legal Texas Central Tug M&A Region (Airline) Gulf Quality Region West Bus. Region / / Now in Position Last 3 Years Prac. de las HR Am. Marketing 8 of 10 Board Members Added in Last 3 Years 16 [Stewart & Stevenson Logo] WORKING CAPITAL ($MM) Cash & Equivalents Debt [GRAPHS] $200MM+ Improvement...Improved Earnings Performance... Government Settlements... Asset Sale...Inventory Reductions 17 [Stewart & Stevenson Logo] SUPPLY CHAIN Developing Established Conducting Procurement Supply Chain Engaged Symposiums With Programs... Management Procurement Suppliers, 4000 373 Contracts Team Experts Attend Meetings Awarded Shift to Business Level Focus in FY2002 18 [Stewart & Stevenson Logo] INFORMATION MANAGEMENT Web Based Computing Expand Automation E-Business E-Procurement SRM/PRM E-Learning CRM APS Analytics Current Status Application Centralization: Begin Automation JDE: Accounting Manufacturing Payroll Distribution Labor/Inventory Bar Code P-Cards Laptops Infrastructure Centralization Email Internet Access Website TCP/IP Integrated Data/Voice Pro-Engineering Legacy Systems De-Centralized Green Screen HP3000 E-3 Parts Planning Cullinet GL/Payroll Novell 19 [Stewart & Stevenson Logo] EPS GROWTH - - Service Business...200+ Service Techs Added in Last 2 Years, Service Sales Up 19% During Fiscal 2001 - - Since 1999 Added California Thermo King, Pharr, El Paso, Pueblo, Gillette, Waco, Redding, Stockton, Valencia, Colombia Free Trade Zone, and a New $10MM Facility in Dallas [Picture of new Dallas branch office] - - MerCruiser, AuraGen Added...Deutz Franchise in Venezuela - - Options on U.S. Army Contracts and Growing Contractor Logistic Support Business...Acquired er-L - - Strategic Acquisitions...$80MM in Cash, $150MM Unused Credit Facilities Targeting Double Digit Sales and EPS Growth 20 Financial [Stewart & Stevenson Logo] Results 21 [Stewart & Stevenson Logo] QUARTERLY PERFORMANCE TRENDS-SALES ($MM) [Graph] Recent Top Line Impact From Soft Power Generation Market and Fall-out From the September 11 Terrorist Attacks 22 [Stewart & Stevenson Logo] QUARTERLY PERFORMANCE TRENDS ($MM) NET EARNINGS - CONTINUING OPERATIONS [Graph] 4Q01 Earnings Reduced From Lower Sales Volume and Higher Operating Costs *Excluding Extraordinary Items 23 [Stewart & Stevenson Logo] CORPORATE TOTAL DEBT ($MM) [GRAPH] ... Total Debt Decreased to $60 Million 24 [Stewart & Stevenson Logo] CORPORATE CASH & EQUIVALENTS ($MM) [GRAPH] ... And Cash and Equivalents Exceed $80 Million 25 [Stewart & Stevenson Logo] OUTLOOK FOR 2002
Sales Volume Operating Margin* -------- ----------------- Power Products [ARROWS] Improving Distributed Energy Solutions [ARROWS] Improving Tactical Vehicles Systems [ARROWS] Down Slightly (ReBuy Costs) Petroleum Equipment [ARROWS] Improving S&S Tug (Airline) [ARROWS] Improving Total [ARROWS] Improving
2002 Earnings Growth Expected From Improved Cost Management *Normalized to Exclude Special Items Recorded in Fiscal 2001 26 [Stewart & Stevenson Logo] SUMMARY - - Continue to Implement the 5 Initiatives - - Win U.S. Army ReBuy-2 at TVS - - Grow Service in All Business Units - - Re-establish Prominent Market Position in Power Generation - - Increase Margin Rates in Power Products, Distributed Energy Solutions, S&S Tug, and Petroleum Equipment - - Launch New Products at S&S Tug and PED - - Utilize Information Management for Improved Customer Service, Lower Costs, and E-Commerce Identify & Complete Synergistic Acquisition to Grow Shareholder Value 27 [Stewart & Stevenson Logo] Thank You! 28 -----END PRIVACY-ENHANCED MESSAGE-----