SOUTH MILWAUKEE, Wis., Feb. 16 /PRNewswire-FirstCall/ -- Bucyrus
International, Inc. today announced its summary unaudited results
for the three and twelve months ended December 31, 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 twelve months ended December 31, ended
December 31, Dollars in thousands, except per share amounts 2005
2004 2005 2004 Consolidated Statements of Operations: Sales
$172,126 $128,582 $575,042 $454,186 Cost of products sold 131,143
100,974 437,611 357,819 Gross profit 40,983 27,608 137,431 96,367
Selling, general and administrative expenses 15,977 11,551 54,354
53,050 Research and development expenses 2,832 1,715 7,225 5,619
Amortization of intangible assets 449 582 1,801 1,817 Operating
earnings 21,725 13,760 74,051 35,881 Interest expense 1,225 1,202
4,865 11,547 Other expense - net 31 791 269 1,658 Loss on
extinguishment of debt (1) - - - 7,316 Earnings before income taxes
20,469 11,767 68,917 15,360 Income tax expense (benefit) (964)
5,289 15,358 9,276 Net earnings $21,433 $6,478 $53,559 $6,084 Net
earnings per share: Basic: Net earnings per share $1.05 $ .32 $2.64
$ .39 Weighted average shares 20,487,036 19,999,577 20,322,302
15,464,861 Diluted: Net earnings per share $1.03 $ .31 $2.57 $ .38
Weighted average shares 20,856,438 20,727,454 20,830,758 16,147,700
Other Financial Data: EBITDA (2) $ 25,134 $ 16,575 $87,582 $ 48,162
AIP management fee and expenses (3) - - - 1,182 Non-cash stock
compensation expense 45 45 180 10,076 Restructuring charges
(severance) 197 169 521 370 Loss on sale of fixed assets 182 14 273
287 Secondary offering expenses - 602 - 602 (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 before interest, income taxes, depreciation
and amortization. EBITDA, a measure used by management to measure
liquidity and performance, is reconciled to net earnings 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 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 twelve months
ended December 31, ended December 31, Dollars in thousands 2005
2004 2005 2004 Net earnings $21,433 $6,478 $53,559 $6,084 Interest
income (190) (53) (669) (316) Interest expense 1,225 1,202 4,865
11,547 Income tax expense (benefit) (964) 5,289 15,358 9,276
Depreciation 2,926 2,833 11,681 11,061 Amortization 704 826 2,788
3,194 Loss on extinguishment of debt - - - 7,316 EBITDA 25,134
16,575 87,582 48,162 Changes in assets and liabilities 11,649
(4,032) (18,123) (25,862) Non-cash stock compensation expense 45 45
180 10,076 Loss on sale of fixed assets 182 14 273 287 Interest
income 190 53 669 316 Interest expense (1,225) (1,202) (4,865)
(11,547) Income tax (expense) benefit 964 (5,289) (15,358) (9,276)
Secondary offering expenses - 602 - 602 Net cash provided by
operating activities $36,939 $6,766 $50,358 $12,758 (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 twelve
months ended December 31, 2004 of $0 and $107,000, respectively.
This management services agreement was terminated in July 2004.
December 31, December 31, Dollars in thousands 2005 2004
Consolidated Balance Sheets Assets Cash and cash equivalents
$12,451 $20,617 Receivables-net 155,547 90,802 Inventories 133,476
110,815 Deferred income taxes 18,363 9,607 Prepaid expenses and
other 6,982 7,205 Total current assets 326,819 239,046 Goodwill
47,306 47,306 Intangible assets-net 34,565 36,935 Deferred income
taxes 10,355 7,651 Other assets 8,767 8,191 100,993 100,083
Property, plant and equipment - net 64,155 53,680 $491,967 $392,809
Liabilities and Common Shareholders' Investment Accounts payable
and accrued expenses $106,747 $59,446 Liabilities to customers on
uncompleted contracts and warranties 35,239 8,221 Income taxes
11,943 2,880 Current maturities of long-term debt and other
short-term obligations 1,339 6,342 Total current liabilities
155,268 76,889 Postretirement benefits 14,257 13,700 Pension and
other 34,567 38,242 48,824 51,942 Long-term debt 66,975 96,910
Common shareholders' investment 220,900 167,068 $491,967 $392,809
The results for the three months ended December 31, 2005 include an
increase in sales of $43.5 million or 33.9% as compared to the
three months ended December 31, 2004. New machine sales were $53.4
million, an increase of $6.9 million or 14.8% from $46.5 million
for the three months ended December 31, 2004, and aftermarket parts
and service sales were $118.7 million, an increase of $36.6 million
or 44.7% from $82.1 million for the three months ended December 31,
2004. The results for the twelve months ended December 31, 2005
include an increase in sales of $120.8 million or 26.6% as compared
to the twelve months ended December 31, 2004. New machine sales
were $180.6 million, an increase of $47.8 million or 36.0% from
$132.8 million for the twelve months ended December 31, 2004, and
aftermarket parts and service sales were $394.4 million, an
increase of $73.0 million or 22.7% from $321.4 million for the
twelve months ended December 31, 2004. The increase in machine
sales for the twelve months ended December 31, 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 continuing
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 $21.7 million for the three
months ended December 31, 2005 and $74.1 million for the twelve
months ended December 31, 2005. Operating earnings for the three
and twelve month periods ended December 31, 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 twelve months
ended December 31, 2004 was reduced by non-cash stock compensation
expense of $10.1 million. Interest expense for the twelve months
ended December 31, 2005 decreased $6.7 million compared to the
prior year period. 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. For the three
months ended December 31, 2005, the Company recorded an income tax
benefit of approximately $1.0 million. This amount includes a net
income tax benefit of $7.0 million, which consists of $1.8 million
of foreign tax expense related to a foreign dividend distribution
and the recognition of an income tax benefit of approximately $8.8
million related to foreign tax credits. During the fourth quarter
of 2005, the Company quantified the amount of previously unclaimed
foreign tax credits which the Company now believes can be utilized
in part by amending historical income tax returns. During 2006, the
Company will continue to evaluate the potential to claim additional
foreign tax credits originating from other jurisdictions and may
record further income tax benefits at that time. As of December 31,
2005, the Company's total backlog was $658.6 million, $413.1
million of which was expected to be recognized within twelve months
of such date. This represents an 11.6% and 19.9% increase from the
September 30, 2005 total backlog of $590.2 million and twelve
months backlog of $344.4 million, respectively, and a 51.0% and
78.4% increase from the December 31, 2004 total backlog of $436.3
million and twelve months backlog of $231.5 million, respectively.
The increases from September 30, 2005 and December 31, 2004 were
due to an increase in both new machine orders and aftermarket parts
and services orders. As of December 31, 2005, the Company had
aggregate outstanding indebtedness of $68.3 million compared with
$90.0 million at September 30, 2005 and $103.3 million at December
31, 2004. The Company had $63.5 million of borrowings under its
revolving credit facility as of December 31, 2005 and cash and cash
equivalents were $12.5 million as of that date. The Company
announced today that the Board of Directors elected Kenneth W.
Krueger and Marc L. Staff as officers of the Company. Both will
report to Mr. Tim Sullivan, President & CEO. Kenneth W. Krueger
joined Bucyrus as Executive Vice President. Mr. Krueger is
responsible for all Bucyrus subsidiary operations. All Regional
Vice Presidents and General Managers report to Mr. Krueger. Prior
to joining Bucyrus, Mr. Krueger served as Senior Vice President
& CFO of A.O. Smith Corporation and also held senior financial
positions at Eaton and Rockwell Automation. Marc L. Staff has
assumed the position of Senior Vice President Marketing &
Sales. Mr. Staff is responsible for Bucyrus' machine and
aftermarket sales and will help drive improvements in operational
efficiency. Reporting to Mr. Staff are the Marketing, Machine Sales
and Aftermarket Sales departments. Prior to joining Bucyrus, Mr.
Staff served as Acting Vice President Sales & Marketing for
McCloskey International Limited of Ontario and prior to that he
served with Metso Minerals Industries, Inc. as President North
& Central America. On August 24, 2005, Bucyrus first announced
its multi-phase expansion program at its South Milwaukee facility.
Bucyrus has now decided that based upon the strong positive
indicators in its core markets and continuing demand for its
machine products and to serve our customers, it will continue its
facilities expansion program to the next phase. The initial phase
of building the new Rawson Avenue facility began this past winter
and is expected to be completed during the fourth quarter of 2006.
It will provide 110,000 square feet of new space for welding and
machining of large electric shovel components. The next phase,
which has an approximate cost of $30 million, will expand the
Rawson Avenue facility to over 350,000 square feet of welding,
machining and outdoor hard-goods storage space. The Company has
just started the next phase of expansion and expects to complete it
in mid-2007. 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 $12.5 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. First Call Analyst: FCMN Contact: DATASOURCE: Bucyrus
International, Inc. CONTACT: Kent Henschen, Director - Marketing
& Corporate Communications of Bucyrus International, Inc.,
+1-414-768-4626, Fax, +1-414-768-4474, Web site:
http://www.bucyrus.com/
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