SOUTH MILWAUKEE, Wis., Oct. 13 /PRNewswire-FirstCall/ -- Bucyrus
International, Inc. today announced its summary unaudited results
for the three and nine months ended September 30, 2005. The
following includes the summary unaudited results for these periods.
References to "Bucyrus" and the "Company" refer to Bucyrus
International, Inc. and its consolidated subsidiaries. For the
three months For the nine months ended September 30, ended
September 30, Dollars in thousands, except per share amounts 2005
2004 2005 2004 Consolidated Statements of Operations: Sales
$157,358 $111,509 $402,916 $325,604 Cost of products sold 120,930
87,194 306,468 256,845 Gross profit 36,428 24,315 96,448 68,759
Selling, general and administrative expenses 13,931 13,237 38,377
41,499 Research and development expenses 1,583 1,270 4,393 3,904
Amortization of intangible assets 449 412 1,352 1,235 Operating
earnings 20,465 9,396 52,326 22,121 Interest expense 1,278 2,054
3,640 10,345 Other expense - net 123 149 238 867 Loss on
extinguishment of debt (1) - 7,316 - 7,316 Earnings (loss) before
income taxes 19,064 (123) 48,448 3,593 Income tax expense 6,287 885
16,322 3,987 Net earnings (loss) $ 12,777 $(1,008) $ 32,126 $(394)
Net earnings (loss) per share: Basic: Net earnings (loss) per share
$ .63 $ (.06) $1.59 $ (.03) Weighted average shares 20,434,239
17,671,362 20,266,788 13,943,044 Diluted: Net earnings (loss) per
share $ .61 $ (.06) $1.54 $ (.03) Weighted average shares
20,852,568 17,671,362 20,822,104 13,943,044 Other Financial Data:
EBITDA (2) $23,897 $ 12,535 $62,448 $ 31,587 AIP management fee and
expenses (3) - 132 - 1,182 Non-cash stock compensation expense 45
2,590 135 10,031 Restructuring charges (severance) 251 31 324 201
(Gain) loss on sale of fixed assets (62) 260 91 273 (1) Includes
prepayment penalty and write-off of deferred financing costs
related to the Company's 9.75% Senior Notes which were retired upon
completion of the Company's initial public offering on July 28,
2004. (2) 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 the 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 For the nine months ended September 30, ended
September 30, Dollars in thousands 2005 2004 2005 2004 Net earnings
(loss) $12,777 $(1,008) $32,126 $(394) Interest income (121) (149)
(479) (263) Interest expense 1,278 2,054 3,640 10,345 Income taxes
6,287 885 16,322 3,987 Depreciation 2,971 2,725 8,755 8,228
Amortization 705 712 2,084 2,368 Loss on extinguishment of debt -
7,316 - 7,316 EBITDA 23,897 12,535 62,448 31,587 Changes in assets
and liabilities (8,750) (28,212) (29,772) (21,830) Non-cash stock
compensation expense 45 2,590 135 10,031 (Gain) loss on sale of
fixed assets (62) 260 91 273 Interest income 121 149 479 263
Interest expense (1,278) (2,054) (3,640) (10,345) Income tax
expense (6,287) (885) (16,322) (3,987) Net cash provided by (used
in) operating activities $ 7,686 $ (15,617) $13,419 $5,992 (3)
Excludes fees 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 and nine months ended September 30, 2004 of $0 and $107,000,
respectively. This management services agreement was terminated in
July 2004. September 30, December 31, Dollars in thousands 2005
2004 Consolidated Balance Sheets Assets Cash and cash equivalents
$7,270 $20,617 Receivables-net 131,182 90,802 Inventories 150,069
110,815 Deferred income taxes 9,331 9,607 Prepaid expenses and
other 5,759 7,205 Total current assets 303,611 239,046 Goodwill
47,306 47,306 Intangible assets-net 35,509 36,935 Deferred income
taxes 6,575 7,651 Other assets 8,219 8,191 97,609 100,083 Property,
plant and equipment 58,496 53,680 $459,716 $392,809 Liabilities and
Common Shareholders' Investment Accounts payable and accrued
expenses $93,544 $59,446 Liabilities to customers on uncompleted
contracts and warranties 20,328 8,221 Income taxes 6,028 2,880
Current maturities of long-term debt and other short-term
obligations 1,792 6,342 Total current liabilities 121,692 76,889
Postretirement benefits 14,134 13,700 Deferred expenses, pension
and other 32,205 38,242 46,339 51,942 Long-term debt 88,227 96,910
Common shareholders' investment 203,458 167,068 $459,716 $392,809
The results for the three months ended September 30, 2005 include
an increase in sales of $45.8 million or 41.1% as compared to the
three months ended September 30, 2004. New machine sales were $44.5
million, an increase of $19.7 million or 79.6% from $24.8 million
for the three months ended September 30, 2004, and aftermarket
parts and service sales were $112.9 million, an increase of $26.2
million or 30.1% from $86.7 million for the three months ended
September 30, 2004. The results for the nine months ended September
30, 2005 include an increase in sales of $77.3 million or 23.7% as
compared to the nine months ended September 30, 2004. New machine
sales were $127.2 million, an increase of $41.0 million or 47.5%
from $86.2 million for the nine months ended September 30, 2004,
and aftermarket parts and service sales were $275.7 million, an
increase of $36.3 million or 15.2% from $239.4 million for the nine
months ended September 30, 2004. The increase in machine sales for
the three and nine months ended September 30, 2005 was primarily
due to increased electric mining shovel sales and the recognition
of sales on two draglines that were sold in 2004. The increase in
aftermarket sales in 2005 reflects the Company's initiatives and
strategies to capture additional market share as well as continued
strong commodity prices. Aftermarket sales increased in both United
States and international markets. The Company achieved operating
earnings of $20.5 million for the three months ended September 30,
2005 and $52.3 million for the nine months ended September 30,
2005. Operating earnings for the three and nine month periods ended
September 30, 2005 increased from 2004 primarily due to increased
gross profit resulting from increased sales volume and higher gross
margins on both machines and aftermarket sales. Operating earnings
for the three month and nine month periods ended September 30, 2004
was reduced by non-cash stock compensation expense of $2.6 million
and $10.0 million, respectively. Interest expense for the three and
nine months ended September 30, 2005 decreased $.8 million and $6.7
million, respectively, compared to prior year periods. The decrease
in interest expense was due to the refinancing that was effective
upon completion of the Company's initial public equity offering on
July 28, 2004. As of September 30, 2005, the Company's total
backlog was $590.2 million, $344.4 million of which was expected to
be recognized within twelve months of such date. This represents a
3.0% and 6.2% increase from the June 30, 2005 total backlog of
$573.3 million and twelve months backlog of $324.4 million,
respectively, and a 127.2% and 140.7% increase from the September
30, 2004 total backlog of $259.8 million and twelve months backlog
of $143.1 million, respectively. The increase from June 30, 2005
was due to an increase in aftermarket parts and service orders. The
increase from September 30, 2004 was due to an increase in both new
machine orders and aftermarket parts and services orders. As of
September 30, 2005, the Company had aggregate outstanding
indebtedness of $90.0 million. The Company had $84.7 million of
borrowings under its revolving credit facility as of September 30,
2005 and cash and cash equivalents were $7.3 million as of that
date. On August 24, 2005, the Company announced that it is
proceeding with plans to expand its manufacturing facilities in
South Milwaukee, Wisconsin. The initial phase of the expansion
program will include the construction of a new facility on the
grounds of the Company's South Milwaukee campus north of Rawson
Avenue at an approximate cost of $22 million. The Company also
announced today that Thomas B. Phillips, its Executive Vice
President and Chief Operating Officer, has informed the Company's
board of directors that he intends to retire effective December 31,
2005. The Company will restructure reporting relationships. "This
year marked my 33rd year serving Bucyrus and its customers and
assisting Bucyrus in becoming the innovative worldwide leader in
surface mining that it is today," said Phillips. "I'm very proud of
what the Bucyrus employees have been able to accomplish and of the
very strong teams that we've built. With the announcement of the
expansion plans at our South Milwaukee facility, I know that
Bucyrus has positioned itself to continue the achievements and
innovation that I have so proudly been a part of for the past 33
years. I believe this move will allow us to best position Bucyrus
to successfully achieve its enormous potential for growth over the
coming decade. I intend to work closely with the senior management
over the coming months to help restructure the reporting
relationships." "Tom has been an effective part of our management
team over the past years and his leadership will be missed," said
Timothy W. Sullivan, President and Chief Executive Officer of the
Company. "Tom's 33 years at Bucyrus have been marked by great
achievements and company growth. On behalf of the Company, the
Board of Directors and its shareholders, I wish Tom the best in his
well- deserved retirement." 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. The factors that
could adversely affect Bucyrus' actual results and performance are
discussed in Bucyrus' Form 10-K for the year ended December 31,
2004 and subsequent reports filed with the Securities and Exchange
Commission, which interested parties are urged to review. Bucyrus'
actual results, performance, or achievements may differ materially
from any future results, performance, or achievements expressed or
implied by such forward-looking statements. Bucyrus undertakes no
obligation to publicly update or revise any forward-looking
statements. DATASOURCE: Bucyrus International, Inc. CONTACT: Kent
Henschen, Director - Marketing & Corporate Communications of
Bucyrus International, Inc., +1-414-768-4626, or Fax:
+1-414-768-4474, Web site: http://www.bucyrus.com/
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