OLGR Oilgear

The Oilgear Company (Nasdaq:OLGR) today announced it has filed today its 2005 Form 10-K and on April 7 it filed Form 10-Q/A reports amending the first three quarters of 2005. The company also confirmed previously announced anticipated results for the fourth quarter and year ended December 31, 2005. The 2005 restatements relate to the accounting for non-operating income resulting from the sale of shares received in an insurance company demutualization in 2001. As previously announced, net sales were a record $103.3 million for 2005, a 9.4% increase from sales of $94.4 million in 2004. Net earnings for 2005 were $2.1 million or $1.04 per diluted share, compared to net earnings of $251,000 or $0.13 per diluted share in 2004. For the fourth quarter of 2005, net sales were $26.2 million, a 5.6% increase from sales of $24.8 million in the fourth quarter of 2004. Net earnings for the fourth quarter of 2005 were $401,000 or $0.20 per diluted share, compared to earnings of $164,000 or $0.09 per diluted share in the fourth quarter of 2004. "We are pleased with our progress in 2005 and with our encouraging start to 2006," said David A. Zuege, president and chief executive officer of Oilgear. A leader in the fluid power industry, The Oilgear Company provides advanced technology in the design and production of unique fluid power components and electronic controls. The company serves customers in the primary metals, machine tool, automobile, petroleum, construction equipment, chemical, plastic, glass, lumber, rubber and food industries. Its products are sold as individual components or integrated into high performance applications. Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "believes," "anticipates," "expects" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated. In addition to the assumptions and other factors referenced specifically in connection with such statements, the following could impact the business and financial prospects of the Company: factors affecting our financial performance or condition, including restrictions or conditions imposed by our current and prospective lenders and our ability to obtain new financing arrangements in a timely manner or on acceptable terms and the costs of complying with recent accounting, disclosure and corporate governance requirements; factors affecting the Company's international operations, including fluctuations in currencies, changes in laws and political or financial insecurity of foreign governments; factors affecting the Company's ability to hire and retain competent employees, including unionization of non-union employees and strikes or work stoppages; factors affecting percentage of completion contracts, including the accuracy of estimates and assumptions regarding the timing and levels of costs to complete those contracts; factors affecting the economy generally, including an economic slowdown and other conditions that could reduce demand for the Company's products; decrease in stock price as a result of market conditions; changes in the law or standards applicable to the Company, including environmental laws and accounting pronouncements; availability of raw materials; unanticipated technological developments that result in competitive disadvantages and may impair existing assets; and factors set forth in the Company's periodic reports filed with the SEC in accordance with the Securities Exchange Act. Shareholders, potential investors and other readers are urged to consider these factors and those set forth in the Company's filings with the SEC carefully in evaluating the forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. -0- *T The Oilgear Company Consolidated Condensed Operating Statement (Unaudited) Three Months Ended December 31, ---------------------------------- 2005 2004 ---------------------------------- Net sales $26,221,000 $24,830,000 Cost of sales 19,875,000 18,993,000 ---------------------------------- Gross profit 6,346,000 5,837,000 Selling, general and administrative expenses 5,123,000 5,119,000 ---------------------------------- Operating income 1,223,000 718,000 ---------------------------------- Interest expense 689,000 354,000 Other non-operating (loss), net (9,000) (2,000) ---------------------------------- Earnings before income taxes 525,000 362,000 Income tax expense 101,000 154,000 ---------------------------------- Net earnings before minority interest 424,000 208,000 Minority interest 23,000 44,000 ---------------------------------- Net earnings $401,000 $164,000 ================================== Basic earnings per share of common stock $0.20 $0.09 ================================== Diluted earnings per share of common stock $0.20 $0.09 ================================== Basic weighted average outstanding shares 2,011,000 1,962,000 Diluted weighted average outstanding shares 2,038,000 1,995,000 The Oilgear Company Consolidated Condensed Operating Statement (Unaudited) Year Ended December 31, ---------------------------------- 2005 2004 ---------------------------------- Net sales $103,260,000 $94,422,000 Cost of sales 75,921,000 72,247,000 ---------------------------------- Gross profit 27,339,000 22,175,000 Selling, general and administrative expenses 22,003,000 19,957,000 ---------------------------------- Operating income 5,336,000 2,218,000 ---------------------------------- Interest expense 2,549,000 1,357,000 Other non-operating income, net 72,000 130,000 ---------------------------------- Earnings before income taxes 2,859,000 991,000 Income tax expense 614,000 640,000 ---------------------------------- Net earnings before minority interest 2,245,000 351,000 Minority interest 148,000 100,000 ---------------------------------- Net earnings $2,097,000 $251,000 ================================== Basic earnings per share of common stock $1.05 $0.13 ================================== Diluted earnings per share of common stock $1.04 $0.13 ================================== Basic weighted average outstanding shares 1,998,000 1,960,000 Diluted weighted average outstanding shares 2,023,000 1,983,000 The Oilgear Company Consolidated Condensed Balance Sheet (Unaudited) December 31, 2005 December 31, 2004 ----------------- ----------------- ASSETS Current Assets Cash and cash equivalents $4,370,000 $4,109,000 Accounts receivable 18,849,000 17,030,000 Inventories 25,365,000 25,480,000 Other current assets 3,785,000 5,860,000 -------------------------------------- Total current assets 52,369,000 52,479,000 -------------------------------------- Net property plant and equipment 15,881,000 18,163,000 Other assets 2,893,000 2,150,000 -------------------------------------- $71,143,000 $72,792,000 ====================================== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current debt $16,612,000 $21,334,000 Accounts payable 9,215,000 10,841,000 Other current liabilities 9,820,000 8,541,000 -------------------------------------- Total current liabilities 35,647,000 40,716,000 -------------------------------------- Long-term debt 7,724,000 1,302,000 Unfunded employee benefit costs 18,764,000 23,226,000 Other non-current liabilities 850,000 694,000 -------------------------------------- Total liabilities 62,985,000 65,938,000 -------------------------------------- Minority interest in consolidated subsidiary 1,091,000 1,037,000 Shareholders' equity 7,067,000 5,817,000 -------------------------------------- $71,143,000 $72,792,000 ====================================== *T