CUNO Cuno (MM)

CUNO Reports Record Fourth Quarter and Fiscal 2003 Results -- Record fourth quarter Sales of $77.5 million (up 15%) and record fiscal 2003 Sales of $288.2 million (up 12%) -- Record fourth quarter diluted Earnings Per Share (EPS) of $0.44 (up 16%) and record fiscal 2003 diluted EPS of $1.58 (up 16%) -- Record fourth quarter and fiscal 2003 Operating Margin of 14.3% and 14.0%, respectively -- Record fourth quarter Orders of $75.9 million (up 11%) MERIDEN, Conn., Dec. 15 /PRNewswire-FirstCall/ -- CUNO Incorporated today reported record results for the fourth quarter ended October 31, 2003 including sales of $77.5 million, up 15% from $67.5 million (up 9% in local currency) in the same period in 2002. Net income for the fourth quarter increased by 19% to $7.6 million from $6.4 million reported in 2002. Diluted EPS for the period were a record $0.44, up 16% compared to $0.38 in the prior year quarter. Commenting on the Company's fourth quarter results, Mark G. Kachur, Chairman and Chief Executive Officer, said "Our strong business mix and international scope enabled us to achieve record financial results in the fourth quarter despite sluggish conditions in certain Fluid Processing market segments in the U.S. Our overall Sales increased 15% (up 9% in local currency), led by strong growth in our Healthcare and Potable Water businesses. Particularly strong growth was achieved in Europe and the Asia/Pacific region. In addition, our New Products continued to be well received, generating $11.5 million or approximately 15% of total sales and contributing to our strong performance in the quarter." For the full year, sales were a record $288.2 million, up 12% (up 7% in local currency), and net income increased by 17% to $26.8 million from $23.0 million in the prior year. Diluted EPS were a record $1.58, up 16% from $1.36 in 2002. Commenting on the fiscal 2004 outlook for CUNO, Mr. Kachur added, "Our business model should enable us to continue to achieve superior financial results. Orders were a record $75.9 million in the fourth quarter and our backlog remains strong. As a result, we are optimistic about our prospects in fiscal 2004 and expect to achieve diluted EPS in the range of $1.72 -$1.80. A conference call will be held Tuesday, December 16 at 10:00 a.m. (EST) to review the Company's fourth quarter financial results and business outlook. The call-in number is 1-888-273-9885 for interested analysts and investors. Alternatively, visit us at http://www.cuno.com/ for additional information about the Company. CUNO is a world leader in the design, manufacture and marketing of a comprehensive line of filtration products for the separation, clarification and purification of liquids and gases. CUNO's products, which include proprietary depth filters and semi-permeable membrane filters, are used in the potable water, healthcare and fluid processing markets. CUNO wants to provide shareowners and prospective investors with more meaningful and useful information and, therefore, this press release includes various comments regarding business conditions and the outlook for CUNO, which reflect currently available information. These forward-looking statements are subject to risks and uncertainties which could cause performance or actual results to differ materially from those expressed herein. Such risks and uncertainties include, among other things: those items described in our reports filed with the SEC as well as volumes of shipments of CUNO's products; changes in product mix and product pricing; relationships with customers and suppliers; costs of raw materials; the rate of economic and industry growth in the U.S. and the other countries in which CUNO conducts business; economic and political conditions in the foreign countries in which CUNO conducts a substantial part of its operations and other risks associated with international operations including exchange rate fluctuations; CUNO's ability to protect its technology, proprietary products and manufacturing techniques; changes in technology; changes in legislative, regulatory or industrial requirements and risks generally associated with new product introductions and applications; and domestic and international competition in CUNO's global markets. CUNO assumes no obligation to update the information contained in this press release. CUNO Incorporated Consolidated Statements of Income (dollars in thousands, except share and per-share amounts) Three Months Ended Twelve Months Ended October 31, October 31, 2003 2002 2003 2002 Net sales $77,524 $67,516 $288,231 $258,201 Less costs and expenses: Cost of products sold 41,423 37,138 157,221 142,450 Selling, general and administrative 20,955 16,980 75,808 66,204 Research, development and engineering 4,080 3,812 14,977 14,662 66,458 57,930 248,006 223,316 Operating income 11,066 9,586 40,225 34,885 Nonoperating income (expense): Interest expense (100) (82) (540) (417) Interest and other income, net 101 73 462 302 1 (9) (78) (115) Income before income taxes 11,067 9,577 40,147 34,770 Income taxes 3,430 3,183 13,351 11,814 Net income $7,637 $6,394 $26,796 $22,956 Basic earnings per common share $0.46 $0.39 $1.61 $1.39 Diluted earnings per common share $0.44 $0.38 $1.58 $1.36 Basic shares outstanding 16,780,762 16,554,246 16,661,101 16,477,637 Diluted shares outstanding 17,181,961 16,915,699 16,987,792 16,884,585 CUNO Incorporated Consolidated Condensed Balance Sheets (dollars in thousands) October 31, October 31, 2003 2002 Assets Current assets Cash and cash equivalents $57,603 $40,872 Accounts receivable, net 59,658 50,862 Inventories, net 31,058 26,173 Deferred income taxes 9,020 7,998 Prepaid expenses and other current assets 4,306 4,233 Total current assets 161,645 130,138 Noncurrent assets Deferred income taxes 1,340 1,482 Goodwill, net 28,489 26,995 Prepaid pension costs 7,923 - Other noncurrent assets 3,551 3,505 Property, plant and equipment, net 85,060 74,759 Total assets $288,008 $236,879 Liabilities and Stockholders' Equity Current liabilities Current portion of long-term debt $849 $714 Short-term bank loans 14,098 16,374 Accounts payable 18,556 16,256 Accrued payroll and related taxes 15,665 13,633 Other accrued expenses 12,234 10,093 Accrued income taxes 2,558 497 Total current liabilities 63,960 57,567 Noncurrent liabilities Long-term debt, less current portion 401 2,030 Deferred income taxes 9,862 5,924 Accrued pension liability 5,457 8,945 Total noncurrent liabilities 15,720 16,899 Stockholders' equity Preferred Stock - - Common Stock 17 17 Treasury Stock, at cost (57) (57) Additional paid-in-capital 53,787 46,375 Unearned compensation (784) (551) Accumulated other comprehensive income (loss) -- Foreign currency translation adjustments 3,282 (5,533) Fair value of derivative financial instruments, net 13 (8) Minimum pension liability, net (2,049) (5,153) 1,246 (10,694) Retained earnings 154,119 127,323 Total stockholders' equity 208,328 162,413 Total liabilities and stockholders' equity $288,008 $236,879 DATASOURCE: CUNO Incorporated CONTACT: Investor contact, Frederick C. Flynn, Jr. of CUNO Incorporated, +1-203-238-8847, Company News On-Call: http://www.prnewswire.com/comp/126696.html

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