Sharpening Focus on Cost Reduction DAYTON, Ohio, June 25
/PRNewswire-FirstCall/ -- Robbins & Myers, Inc. (NYSE:RBN)
today reported diluted net earnings per share (DEPS) of $0.31 for
its fiscal third quarter ended May 31, 2009, including
approximately $0.05 of benefit from finalizing earlier tax
positions. DEPS of $0.76 in the third quarter of 2008 included
$0.14 of benefit from the expiration of certain contingency
obligations related to the sale of two product lines in March 2006.
Robbins & Myers reported third quarter 2009 sales of $143
million, 29% lower than the comparable prior year results or 21%
lower excluding the effects of currency translation. Orders of $119
million in the third quarter were 42% lower than the prior year
comparable period. Excluding the impact from currency translation,
orders decreased 35%. Third quarter 2009 earnings before interest
and income taxes (EBIT) were $12 million. Prior year third quarter
EBIT of $40 million included a $6 million gain from the expiration
of certain contingency obligations related to the sale of two
product lines in March 2006. In the current year quarter, the
Company generated $20 million of cash from operating activities as
compared with $30 million in the prior year quarter. "Robbins &
Myers remains in solid financial shape during these extraordinary
times," said Peter C. Wallace, President and Chief Executive
Officer of Robbins & Myers, Inc. "We continue to generate
expected profit from lower sales, and we are building our cash
position with positive cash flow from our operations. At the end of
the third quarter we had $89 million in cash and only $31 million
in debt, leaving us with a positive net cash position of $58
million." The Company announced that today its Board of Directors
approved its regular cash dividend payment of $0.04 per share. The
dividend is payable on August 7, 2009 to shareholders of record as
of July 10, 2009. Mr. Wallace commented, "We have responded to
difficult market conditions by reducing employment 6% this fiscal
year and reducing overtime to achieve a total reduction in full
time equivalents of approximately 8%. In addition, we began to
furlough employees in various European locations through
government-supported programs. We have also reduced discretionary
spending across the enterprise. We are expecting $15 million of
annualized gross savings from these completed actions, and we
anticipate that we will have recognized approximately $6 million,
net of severance and related costs, by our fiscal year-end." "We
are also reviewing and finalizing restructuring plans within each
of our platform business units that are expected to permanently
reduce fixed costs and increase longer-term profitability as
markets begin to recover. We expect these efforts to begin before
year-end. The initial focus will be to standardize some of our
product offerings to allow greater utilization of lower cost
manufacturing facilities, reduce our manufacturing footprint in
specific markets, and leverage functional resources across the
various platform businesses." The Company narrowed its fiscal 2009
DEPS forecast from $1.35-$1.65 to $1.41-$1.51 and forecasted fourth
quarter DEPS of $0.14-$0.24. Third Quarter Results by Segment All
comparisons are made against the comparable year-ago quarterly
period unless otherwise stated. Weakness in energy and industrial
markets, including $4 million of order cancellations, caused the
Company's Fluid Management segment orders to decline 49% to $45
million. Sales declined 29% to $59 million. EBIT fell 39% to $15
million on lower sales, and EBIT margins of 25.9% were 430 basis
points lower. The Company's Process Solutions segment reported
orders of $47 million, 44% lower or 36% lower excluding currency
translation effects, due to slower demand in chemical,
pharmaceutical and industrial markets. Strong backlog at the
beginning of the fiscal year dampened the market impact on sales,
which were $60 million, 26% lower or 16% lower excluding currency
translation effects. Lower sales led to a 60% reduction in EBIT,
and EBIT margins decreased 580 basis points to 6.8%. The Romaco
segment reported a 20% order decline. Reported orders of $27
million were 2% lower excluding currency translation effects. Sales
of $24 million were 33% lower or 24% lower excluding currency
translation effects. Lower sales caused the segment to report an
EBIT loss of $0.5 million as compared with $7.9 million of income
in the prior year. The prior year comparable quarter included a
$5.7 million gain from the expiration of certain contingency
obligations related to the sale of two product lines in March 2006.
Conference Call to Be Held Tomorrow, June 26 at 10:00 AM (Eastern)
A conference call to discuss these results has been scheduled for
10:00 AM Eastern on Friday, June 26, 2009, which can be accessed at
http://www.robn.com/ or by dialing 800-884-5695 (US/Canada) or
+1-617-786-2960, using conference ID #14450826. Replays of the call
can be accessed by dialing 888-286-8010 (U.S./Canada) or
+1-617-801-6888, both using replay ID #83201733. About Robbins
& Myers Robbins & Myers, Inc. is a leading supplier of
engineered equipment and systems for critical applications in
global energy, industrial, chemical and pharmaceutical markets. In
this release the Company refers to EBIT, a non-GAAP measure. The
Company uses this measure to evaluate its performance and believes
this measure is helpful to investors in assessing its performance.
A reconciliation of this measure to net income is included in our
Condensed Consolidated Income Statement. In addition to historical
information, this press release contains forward-looking statements
identified by use of words such as "expects," "anticipates,"
"believes," and similar expressions. These statements reflect
management's current expectations and involve known and unknown
risks, uncertainties, contingencies and other factors that could
cause actual results, performance or achievements to differ
materially from those stated. The most significant of these risks
and uncertainties are described in our Form 10-K and Form 10-Q
reports filed with the Securities and Exchange Commission and
include, but are not limited to: the cyclical nature of some of our
markets; a significant decline in capital expenditures in our
primary markets; a major decline in oil and natural gas prices;
reduced demand due to the general worldwide economic downturn and
general credit market crises; increases in competition; changes in
the availability and cost of our raw materials; foreign exchange
rate fluctuations; work stoppages related to union negotiations;
customer order cancellations; business disruptions caused by the
implementation of business computer systems; the possibility of
product liability lawsuits that could harm our business; events or
circumstances which result in an impairment of assets; the
potential impact of U.S. and foreign legislation, government
regulations, and other governmental action, including those
relating to export and import of products and materials, and
changes in the interpretation and application of such laws and
regulations; the outcome of audit, compliance, administrative or
investigatory reviews; and decline in the market value of our
pension plans' investment portfolios affecting our financial
condition and results of operations. Except as otherwise required
by law, we do not undertake any obligation to publicly update or
revise these forward-looking statements to reflect events or
circumstances after the date hereof. ROBBINS & MYERS, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (in
thousands) May 31, 2009 August 31, 2008 -------------- ------------
--------------- ASSETS Current Assets: Cash and cash equivalents
$88,546 $123,405 Accounts receivable 115,887 153,648 Inventories
119,608 109,797 Other current assets 6,684 8,017 Deferred taxes
12,699 13,476 ------ ------ Total Current Assets 343,424 408,343
Goodwill & Other Intangible Assets 272,623 285,759 Deferred
Taxes 22,070 21,969 Other Assets 10,583 10,931 Property, Plant
& Equipment 135,348 137,715 ------- ------- $784,048 $864,717
======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities: Accounts payable $53,342 $86,012 Accrued expenses
80,181 102,876 Current portion of long-term debt 30,252 3,192
------ ----- Total Current Liabilities 163,775 192,080 Long-Term
Debt - Less Current Portion 340 30,435 Deferred Taxes 45,095 44,628
Other Long-Term Liabilities 97,813 97,557 Shareholders' Equity
477,025 500,017 ------- ------- $784,048 $864,717 ======== ========
ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
INCOME STATEMENT (Unaudited) Three Months Ended Nine Months Ended
------------------ ----------------- (in thousands, except per
share May 31, May 31, May 31, May 31, data) 2009 2008 2009 2008
----------------- ---- ---- ---- ---- Sales $143,375 $200,946
$485,171 $559,414 Cost of sales 93,582 124,122 310,626 353,493
------ ------- ------- ------- Gross profit 49,793 76,824 174,545
205,921 SG&A expenses 37,398 42,361 114,921 123,115 Other
income 0 (5,697) 0 (6,796) ------ ------ ------ ------ Income
before interest and income taxes 12,395 40,160 59,624 89,602
Interest expense, net 99 257 242 1,763 ------ ------ ------ ------
Income before income taxes and minority interest 12,296 39,903
59,382 87,839 Income tax expense 1,628 12,749 15,875 29,287
Minority interest 382 659 950 1,782 ------ ------ ------ ------ Net
income $10,286 $26,495 $42,557 $56,770 ======= ======= =======
======= Net Income Per Share: Basic $0.31 $0.77 $1.28 $1.65 Diluted
$0.31 $0.76 $1.28 $1.64 Weighted Average Common Shares Outstanding:
Basic 32,829 34,548 33,353 34,469 Diluted 32,845 34,650 33,365
34,582 ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED
BUSINESS SEGMENT INFORMATION (Unaudited) Three Months Ended Nine
Months Ended ------------------ ----------------- May 31, May 31,
May 31, May 31, (in thousands) 2009 2008 2009 2008 --------------
---- ---- ---- ---- Sales Fluid Management $59,332 $83,505 $213,920
$232,369 Process Solutions 59,583 80,782 194,923 226,583 Romaco
24,460 36,659 76,328 100,462 ------ ------ ------ ------- Total
$143,375 $200,946 $485,171 $559,414 ======== ======== ========
======== Income (Loss) Before Interest and Income Taxes (EBIT)
Fluid Management $15,359 $25,230 $59,552 $64,648 Process Solutions
4,040 10,184 15,576 25,614 Romaco (464) 7,906 (1,465) 11,557
Corporate and Eliminations (6,540) (3,160) (14,039) (12,217) ------
------ ------- ------- Total $12,395 $40,160 $59,624 $89,602
======= ======= ======= ======= Depreciation and Amortization Fluid
Management $1,692 $1,839 $5,220 $5,023 Process Solutions 1,705
1,803 5,081 5,158 Romaco 501 496 1,483 1,378 Corporate and
Eliminations 98 154 360 503 ------ ------ ------ ------ Total
$3,996 $4,292 $12,144 $12,062 ====== ====== ======= ======= Orders
Fluid Management $44,623 $86,901 $184,881 $243,905 Process
Solutions 47,128 84,271 172,155 255,670 Romaco 27,333 34,115 75,177
115,623 ------ ------ ------ ------- Total $119,084 $205,287
$432,213 $615,198 ======== ======== ======== ======== Backlog Fluid
Management $31,040 $54,493 $31,040 $54,493 Process Solutions 89,423
141,678 89,423 141,678 Romaco 48,302 71,763 48,302 71,763 ------
------ ------ ------ Total $168,765 $267,934 $168,765 $267,934
======== ======== ======== ======== ROBBINS & MYERS, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) Three Months Ended Nine Months Ended ------------------
----------------- May 31, May 31, May 31, May 31, (in thousands)
2009 2008 2009 2008 -------------- ---- ---- ---- ---- Operating
activities: Net income $10,286 $26,495 $42,557 $56,770 Depreciation
and amortization 3,996 4,292 12,144 12,062 Other, net 5,878 (832)
(29,616) (20,076) ----- ---- ------- ------- Cash provided by
operating activities 20,160 29,955 25,085 48,756 Investing
activities: Capital expenditures, net of nominal disposals (5,870)
(4,028) (12,914) (12,783) Proceeds from sales of product lines/
facilities 0 3,197 0 7,193 Acquisition of business, net of cash
acquired 0 0 0 (5,061) ----- ----- ----- ------ Cash used by
investing activities (5,870) (831) (12,914) (10,651) Financing
activities: Payments of long- term debt, net (840) (71,251) (3,035)
(70,115) Share repurchases 0 0 (39,114) 0 Other, net (926) 1,689
(2,683) 3,232 ---- ----- ------ ----- Cash used by financing
activities (1,766) (69,562) (44,832) (66,883) Exchange rate impact
on cash 3,897 1,408 (2,198) 4,412 ----- ----- ------ ----- Increase
(Decrease) in cash 16,421 (39,030) (34,859) (24,366) Cash at
beginning of period 72,125 130,774 123,405 116,110 ------ -------
------- ------- Cash at end of period $88,546 $91,744 $88,546
$91,744 ======= ======= ======= ======= DATASOURCE: Robbins &
Myers, Inc. CONTACT: Investor Relations, +1-937-458-6600 Web Site:
http://www.robn.com/
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