Robbins & Myers, Inc. (NYSE: RBN) announced today that sales and earnings for the third quarter ended May 31, 1999 were better than expectations and also reflect improvement over second quarter results. Sales for the third quarter were $103.8 million compared to $112.7 million reported for the same period of fiscal 1998. Operating income was $10.3 million for the quarter and $16.3 million for the fiscal 1998 third quarter. Net income for the quarter was $4.4 million and $8.1 million for fiscal 1999 and fiscal 1998, respectively. Third quarter earnings per share on a fully diluted basis were $.37 and $.63 for the third quarter of last fiscal year. Year-to-date sales for fiscal year 1999 were $297.0 million compared to $325.2 million for fiscal year 1998. Operating income for the first nine months was $23.7 million, which included the $5.0 million one-time charge recorded in the second quarter primarily for the closure of its Fairfield, California manufacturing facility. For the same period fiscal 1998, operating income was $46.6 million. Nine months net income of $8.2 million compares to $24.2 million reported for the same period last fiscal year. Fully diluted earnings per share for the nine months were $.74 ($.99 before the one-time plant closure charge). Fiscal 1998 fully diluted earnings per share for the first nine months were $1.88. Gerald L. Connelly, President and Chief Executive Officer of Robbins & Myers, Inc., said, "We are pleased with our performance for the quarter. Sales and earnings showed positive improvement in a very challenging environment. The work stoppage at our Moyno Industrial Products Springfield, Ohio facility, which began February 1, 1999, continued through early April affecting third quarter results as well as the second quarter. Consolidation of our two businesses serving the oil and gas sector is proceeding as planned. The overall improvement in quarterly earnings reflects the cost-control initiatives undertaken early in the current down cycle." Connelly further stated, "During the quarter we witnessed continued softness in the specialty chemical and the oil and gas sectors. However, order activity has remained stable the last two quarters thus indicating a bottoming of this current down cycle. Although currently there are no signs of an immediate pickup in specialty chemicals, we are seeing the first signs of recovery in the oil and gas sector. We are optimistic that the Company will achieve current analysts' estimates for the fiscal year. Robbins & Myers is well positioned to maximize the leverage of a lower cost structure when our major markets rebound." Robbins & Myers, Inc. is an international manufacturer and marketer of superior quality fluid management products and systems serving the process industries including: specialty chemicals, pharmaceuticals, oil and gas exploration, production and pipeline, water treatment, food and beverage, pulp and paper, and mining. Headquartered in Dayton, Ohio, the Company has facilities in the United States, Canada, Europe, Brazil, Mexico, Singapore and joint ventures in China, India, and Taiwan. In addition to historical information, this release contains forward- looking statements and performance trends which are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements and trends. Such factors include, but are not limited to, a significant decline in capital expenditures in specialty chemicals and pharmaceutical industries, a major decline in oil and natural gas prices, foreign exchange rate fluctuations, continued availability of acceptable acquisition candidates and general economic conditions that can affect demand in the process industries. The Company's common stock trades on the New York Stock Exchange under the symbol RBN. ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands) May 31, 1999 May 31, 1998 ASSETS
Current Assets
Cash and cash equivalents $10,508 $8,430
Accounts receivable 71,024 76,075
Inventories 55,808 63,014
Other current assets 9,440 2,966
Deferred taxes 9,657 6,818
Total Current Assets 156,437 157,303 Goodwill & Other Intangible Assets, Net 215,265 219,356 Other Assets 5,158 4,785 Property, Plant & Equipment, Net 114,416 118,704
Total $491,276 $500,148 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $26,052 $25,365
Accrued expenses 51,360 53,402
Current portion of long-term debt 3,990 3,426
Total Current Liabilities 81,402 82,193 Long-Term Debt - Less Current Portion 195,989 214,003 Other Long-Term Liabilities 59,794 53,393 Shareholders' Equity 154,091 150,559
Total $491,276 $500,148 ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31, May 31, May 31, (in thousands, except 1999 1998 1999 1998
per share data) Net sales $103,829 $112,708 $296,971 $325,238 Cost of sales 68,979 71,506 196,936(a) 205,983 Gross profit 34,850 41,202 100,035 119,255 Operating expenses 22,299 22,808 65,863 67,809 Amortization expense 1,984 2,114 5,874 5,846 Other expense (income) 284 (30) 4,569(a) (1,018) Income before interest
and income taxes 10,283 16,310 23,729 46,618 Interest expense 3,175 4,039 10,329 9,921 Income before income
taxes 7,108 12,271 13,400 36,697 Income taxes 2,417 4,173 4,557 12,477 Minority interest,
net of taxes 275 -- 680 -- Net income $4,416 $8,098 $8,163 $24,220 Net Income Per Share:
Basic $0.40 $0.73 $0.75 $2.20
Diluted $0.37 $0.63 $0.74 $1.88 Weighted Average Common Shares Outstanding:
Basic 10,938 11,064 10,929 11,018
Diluted 13,521 13,900 13,537 13,896 Unfilled Orders $84,860 $100,403 $84,860 $100,403 (a) -- In the nine month period of fiscal 1999, cost of sales and other expense include one-time charges of $400,000 and $4,600,000, respectively, primarily for the closure of the Company's Fairfield, California Manufacturing Facility. Note: All known adjustments have been reflected in this report, but the information is subject to annual audit and year- end adjustments which are estimated to be insignificant. ots Original Text Service: Robbins & Myers, Inc. Internet: http://www.newsaktuell.de Contact: Hugh E. Becker, Vice President, Investor Relations of Robbins & Myers, Inc., (USA) 937-225-3335 Web site: http://www.robn.com