Bucyrus International, Inc. Announces Summary Unaudited Results for
the Three Months Ended March 31, 2005 SOUTH MILWAUKEE, Wis., April
14 /PRNewswire-FirstCall/ -- Bucyrus International, Inc. today
announced its summary unaudited results for the three months ended
March 31, 2005. The following includes the summary unaudited
results for this period. References to "Bucyrus" and the "Company"
refer to Bucyrus International, Inc. and its consolidated
subsidiaries. For the three months ended March 31, Dollars in
thousands, except per share amounts 2005 2004 Consolidated
Statements of Operations: Sales $105,521 $ 97,128 Cost of products
sold 76,495 77,471 Gross profit 29,026 19,657 Selling, general and
administrative expenses 12,305 14,056 Research and development
expenses 1,350 1,354 Amortization of intangible assets 453 412
Operating earnings 14,918 3,835 Interest expense 1,252 4,125 Other
expense - net 23 345 Earnings (loss) before income taxes 13,643
(635) Income tax expense 4,518 1,380 Net earnings (loss) $9,125
$(2,015) Net earnings (loss) per share: Basic: Net earnings (loss)
per share $.45 $ (.17) Weighted average shares 20,068,110
12,058,400 Diluted: Net earnings (loss) per share $.44 $ (.17)
Weighted average shares 20,782,311 12,058,400 Other Financial Data:
EBITDA (1) $ 18,238 $7,008 AIP management fee and expenses(2) - 500
Non-cash stock compensation expense 45 4,148 Restructuring charges
(severance) 13 54 Loss on sale of fixed assets 282 8 (1) EBITDA is
defined as earnings (loss) before interest, income taxes,
depreciation and amortization. EBITDA, a measure used by management
to measure liquidity and performance, is reconciled to net earnings
(loss) and net cash provided by operating activities in the
following table. The Company's management believes EBITDA is useful
to investors because it is frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry. EBITDA is not a recognized term under
generally accepted accounting principles ("GAAP"), and does not
purport to be an alternative to net earnings (loss) as an indicator
of operating performance or to net cash provided by operating
activities as a measure of liquidity. Because not all companies use
identical calculations, this presentation of EBITDA may not be
comparable to other similarly titled measures of other companies.
Additionally, EBITDA is not intended to be a measure of free cash
flow for management's discretionary use, as it does not consider
certain cash requirements such as interest payments, tax payments
and debt service requirements. The amounts shown for EBITDA as
presented herein differ from the amounts calculated under the
definition of EBITDA used in the Company's debt instruments. The
definition of EBITDA used in the Company's debt instruments is
further adjusted for certain cash and non-cash charges and is used
to determine compliance with financial covenants and the Company's
ability to engage in certain activities such as incurring
additional debt and making certain payments. For the three months
ended March 31, Dollars in thousands 2005 2004 Net earnings (loss)
$9,125 $ (2,015) Interest income (209) (65) Interest expense 1,252
4,125 Income taxes 4,518 1,380 Depreciation 2,864 2,761
Amortization 688 822 EBITDA 18,238 7,008 Changes in assets and
liabilities 2,249 (4,269) Non-cash stock compensation expense 45
4,148 Loss on sale of fixed assets 282 8 Interest income 209 65
Interest expense (1,252) (4,125) Income tax expense (4,518) (1,380)
Net cash provided by operating activities $15,253 $1,455 (2)
Excludes fees of $44,000 paid to American Industrial Partners
("AIP") or its affiliates and advisors for services performed for
the Company outside the scope of the management services agreement
for the three months ended March 31, 2004. This management services
agreement was terminated in July 2004. Dollars in thousands March
31, December 31, 2005 2004 Consolidated Balance Sheets Assets Cash
and cash equivalents $33,893 $20,617 Receivables-net 78,338 90,802
Inventories 130,801 110,815 Deferred income tax assets 9,616 9,607
Prepaid expenses and other current assets 7,716 7,205 Total current
assets 260,364 239,046 Goodwill 47,306 47,306 Intangible assets-net
36,419 36,935 Deferred income tax assets 5,499 7,651 Other assets
8,048 8,191 97,272 100,083 Property, plant and equipment-net 52,771
53,680 $410,407 $392,809 Liabilities and Common Shareholders'
Investment Accounts payable and accrued expenses $64,438 $59,446
Liabilities to customers on uncompleted contracts and warranties
15,888 8,221 Income taxes 3,548 2,880 Current maturities of
long-term debt and other short-term obligations 23,184 6,342 Total
current liabilities 107,058 76,889 Postretirement benefits 13,803
13,700 Deferred expenses, pension and other 35,617 38,242 49,420
51,942 Long-term debt 78,960 96,910 Common shareholders' investment
174,969 167,068 $410,407 $392,809 The results for the three months
ended March 31, 2005 include an increase in sales of $8.4 million
or 8.6% as compared to the three months ended March 31, 2004. New
machine sales were $27.7 million, which was equal to machine sales
for the three months ended March 31, 2004, and aftermarket parts
and service sales were $77.8 million, an increase of $8.4 million
or 12.1% from $69.4 million for the three months ended March 31,
2004. The higher level of aftermarket parts and service sales for
the three months ended March 31, 2005 as compared to the prior year
period resulted from an increase in customer discretionary spending
and equipment utilization, primarily due to higher commodity
prices. In addition, aftermarket sales have increased due to the
Company's initiatives and strategies to capture additional market
share. A significant portion of the increase in aftermarket sales
for the three months ended March 31, 2005 was in the United States.
The Company achieved operating earnings of $14.9 million for the
three months ended March 31, 2005. Operating earnings for the three
month period ended March 31, 2005 increased from 2004 due to
increased gross profit resulting from increased sales volume and
higher gross margins on both machines and aftermarket sales. Also,
operating earnings for the three month period ended March 31, 2004
included non-cash stock compensation expense of $4.1 million.
Interest expense for the three months ended March 31, 2005
decreased $2.9 million compared to the prior year period. The
decrease in interest expense was due to reduced borrowings as well
as the refinancing that was effective with the completion of the
Company's initial public equity offering on July 28, 2004. As of
March 31, 2005, the Company's total backlog was $505.4 million,
$288.4 million of which was expected to be recognized within twelve
months of such date. This represents a 15.8% and 24.6% increase
from the December 31, 2004 total backlog of $436.3 million and
twelve months backlog of $231.5 million, respectively, and a 78.0%
and 87.8% increase from the March 31, 2004 total backlog of $284.0
million and twelve months backlog of $153.6 million, respectively.
The increase from December 31, 2004 was due to an increase in
aftermarket parts and service orders and the increase from March
31, 2004 was due to an increase in both new machine orders and
aftermarket parts and service orders. New machine orders for the
three months ended March 31, 2005 totaled $2.3 million. As of March
31, 2005, the Company had aggregate outstanding indebtedness of
$102.1 million. The Company had no borrowings under its revolving
credit facility as of March 31, 2005 and cash and cash equivalents
were $33.9 million as of that date. On April 1, 2005, the Company
made a voluntary prepayment of $16.0 million on the outstanding
balance of its senior secured term loan. Bucyrus is one of the
world's leading manufacturers of large-scale excavation equipment
used in surface mining. Bucyrus machines are used throughout the
world by customers mining copper, coal, oil sands, iron ore and
other minerals. An important part of the Company's business
consists of aftermarket sales in support of its large installed
base (almost $10 billion based on estimated replacement value) of
machines which have service lives from fifteen to forty years.
Statements contained in this press release that are not based on
current or historical fact are forward-looking in nature. Such
forward-looking statements are based on current plans, estimates
and expectations and are made pursuant to the Private Securities
Litigation Reform Act of 1995. Forward- looking statements are
based on known and unknown risks, assumptions, uncertainties and
other factors. Bucyrus' actual results, performance, or
achievements may differ materially from any future results,
performance, or achievements expressed or implied by such
forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, those
cautionary factors described in the "Forward Looking Statements"
section of Bucyrus' 10-K for the year ended December 31, 2004 and
other factors described in Bucyrus' subsequent reports filed with
the Securities and Exchange Commission. Bucyrus undertakes no
obligation to publicly update or revise any forward-looking
statements. DATASOURCE: Bucyrus International, Inc. CONTACT: Kent
Henschen, Director - Marketing of Bucyrus International, Inc.,
+1-414-768-4626, Fax, +1-414-768-4474, Web site:
http://www.bucyrus.com/
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