Higher Backlog from Sequential Order Growth; Strong Cash Flow
Execution; Full Year Earnings Guidance Maintained DAYTON, Ohio,
Jan. 6 /PRNewswire-FirstCall/ -- Robbins & Myers, Inc.
(NYSE:RBN) today reported diluted net earnings per share (DEPS) of
$0.18 for its fiscal first quarter ended November 30, 2009,
including approximately $0.02 from one-time benefits. In the prior
year first quarter, the Company reported DEPS of $0.50. The Company
reported $137 million of customer orders in the fiscal first
quarter, $15 million sequentially higher than the fourth quarter of
2009 and $48 million lower than the first quarter of 2009. Backlog
grew $12 million in the first quarter to $147 million. First
quarter sales of $129 million trailed the comparable prior year
period by $49 million. "Order levels improved sequentially in two
of our platform businesses, contributing to higher backlog for the
enterprise," said Peter C. Wallace, President and Chief Executive
Officer of Robbins & Myers, Inc. "We are encouraged by these
and other signals of an improving global economy but continue to
operate in an environment of reduced customer demand and, in some
cases, pricing pressures. As a result, our businesses remain
focused on initiatives to improve profitability, including
restructuring programs and cost controls." Robbins & Myers
generated $11 million of cash from operating activities in the
first quarter of 2010, including working capital contributions, as
compared with a small use of cash in the prior year same quarter.
The Company expanded its cash balances to $119 million at the end
of the first quarter and reported $32 million of debt. First
quarter 2010 earnings before interest and taxes (EBIT) were $10
million, which was lower than first quarter 2009 EBIT of $26
million due to reduced sales resulting from the global economic
downturn. Current year EBIT includes $2.5 million of benefits from
foreign exchange gains and an insurance recovery, reduced by $1.5
million of corporate costs incurred in conjunction with strategic
and legal matters concluded in the first quarter. Mr. Wallace
commented, "As expected, fiscal 2010 is starting slowly as a result
of recent customer order and backlog levels. We expect current
customer demand conditions to persist into our fiscal second
quarter, which will also include our typical, seasonal facility
shutdowns. For the full year, our financial performance depends in
large part on the pace and scope of the economic recovery,
especially in the second half." The Company expects full year 2010
DEPS of $0.80-$1.00 and second quarter DEPS of $0.05-$0.15,
excluding the cost of restructuring actions. First Quarter Results
by Segment The Company previously announced a realignment of its
businesses that included moving its Chemineer US and Asian
operations from the Process Solutions Group to the Fluid Management
Group. All results included in this press release have been
adjusted to reflect the new operating and reporting structure. A
recasting of quarterly segment results for fiscal 2007 through 2009
can be viewed in the "Investor Relations" section of the Company's
website, http://www.robn.com/. The Company's Fluid Management
segment orders of $68 million represent a 32% decline from the
prior year first quarter but are $10 million sequentially higher
than the fourth quarter of fiscal 2009. Sales of $68 million are
32% lower than the comparable prior year period, and EBIT fell 41%
to $17 million. First quarter EBIT includes $2 million of benefit
from foreign exchange gains and an insurance recovery. The Process
Solutions segment reported orders of $42 million, 27% lower than
the prior year first quarter but $6 million sequentially higher
than the fourth quarter of fiscal 2009. Sales of $44 million were
19% lower than the comparable prior year period. The segment
incurred an EBIT loss of $2 million in the first quarter of 2010 as
a result of lower sales and competitive project pricing; in the
first quarter of 2009, the segment had EBIT income of $3 million.
The Romaco segment reported orders of $27 million, 2% higher than
the comparable prior year quarter but $1 million sequentially lower
than the fourth quarter of fiscal 2009. Sales in the quarter were
$18 million, 24% less than the first quarter of 2009. Romaco
incurred an EBIT loss of $1 million in the first quarter of 2010,
similar to performance in the prior year first quarter. Conference
Call to Be Held Today, January 6 at 2:30 PM (Eastern) A conference
call to discuss these results has been scheduled for 2:30 PM
Eastern on Wednesday, January 6, 2010, which can be accessed at
http://www.robn.com/ or by dialing 1-866-700-0161 (US/Canada) or
+1-617-213-8832, using conference ID #86054479. Replays of the call
can be accessed by dialing 1-888-286-8010 (U.S./Canada) or
+1-617-801-6888, both using replay ID #85472549. 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. EBIT is not a measure of
cash available for use by the Company. 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; our ability to realize the benefits
of our restructuring programs; 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; 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; proposed
changes in U.S. tax law which could impact our future tax expense
and cash flow; 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)
November 30, 2009 August 31, 2009 -------------- -----------------
--------------- ASSETS Current Assets: Cash and cash equivalents
$119,110 $108,169 Accounts receivable 111,642 114,191 Inventories
109,259 105,772 Other current assets 10,139 11,573 Deferred taxes
11,411 12,519 ------ ------ Total Current Assets 361,561 352,224
Goodwill & Other Intangible Assets 279,683 273,476 Deferred
Taxes 26,827 26,477 Other Assets 8,652 9,490 Property, Plant &
Equipment 136,314 135,187 ------- ------- $813,037 $796,854
======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities: Accounts payable $46,644 $55,918 Accrued expenses
73,199 68,059 Current portion of long-term debt 31,666 30,194
------ ------ Total Current Liabilities 151,509 154,171 Long-Term
Debt - Less Current Portion 277 265 Deferred Taxes 44,410 44,194
Other Long-Term Liabilities 118,472 115,113 Shareholders' Equity
498,369 483,111 ------- ------- $813,037 $796,854 ======== ========
ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
INCOME STATEMENT (Unaudited) Three Months Ended
----------------------------- November 30, November 30, (in
thousands, except per share data) 2009 2008
-------------------------------------- ---- ---- Sales $129,413
$177,971 Cost of sales 86,379 109,995 ------ ------- Gross profit
43,034 67,976 SG&A expenses 33,298 41,582 ------ ------ Income
before interest and income taxes 9,736 26,394 Interest expense, net
143 53 --- --- Income before income taxes 9,593 26,341 Income tax
expense 3,367 8,957 ----- ----- Net income including noncontrolling
interest 6,226 17,384 Less: Net income attributable to
noncontrolling interest 196 176 --- --- Net income attributable to
Robbins & Myers, Inc. shareholders $6,030 $17,208 ======
======= Net income per Robbins & Myers, Inc. share: Basic $0.18
$0.50 Diluted $0.18 $0.50 Weighted average Robbins & Myers,
Inc. common shares outstanding: Basic 32,872 34,429 Diluted 32,911
34,465 ROBBINS & MYERS, INC. AND SUBSIDIARIES CONDENSED
BUSINESS SEGMENT INFORMATION (Unaudited) Three Months Ended
----------------------------- November 30, November 30, (in
thousands) 2009 2008 -------------- ---- ---- Customer Sales Fluid
Management $68,188 $100,530 Process Solutions 43,533 54,024 Romaco
17,692 23,417 ------ ------ Total $129,413 $177,971 ========
======== Income Before Interest and Income Taxes (EBIT) Fluid
Management $16,734 $28,224 Process Solutions (1,651) 3,285 Romaco
(758) (1,443) Corporate and Eliminations (4,589) (3,672) ------
------ Total $9,736 $26,394 ====== ======= Depreciation and
Amortization Fluid Management $2,047 $2,063 Process Solutions 1,483
1,418 Romaco 578 482 Corporate and Eliminations 86 130 --- ---
Total $4,194 $4,093 ====== ====== Orders Fluid Management $68,107
$100,330 Process Solutions 41,914 57,778 Romaco 27,134 26,725
------ ------ Total $137,155 $184,833 ======== ======== Backlog
Fluid Management $35,162 $87,722 Process Solutions 60,295 88,201
Romaco 51,410 47,676 ------ ------ Total $146,867 $223,599 ========
======== Note: EBIT is 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. EBIT is not a measure of cash
available for use by the Company. ROBBINS & MYERS, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) Three Months Ended -----------------------------
November 30, November 30, (in thousands) 2009 2008 --------------
---- ---- Operating activities: Net income including noncontrolling
interest $6,226 $17,384 Depreciation and amortization 4,194 4,093
Other, net 870 (21,775) --- ------- Cash provided (used) by
operating activities 11,290 (298) Investing activities: Capital
expenditures, net of nominal disposals (2,182) (3,377) ------
------ Cash used by investing activities (2,182) (3,377) Financing
activities: Proceeds (payments) of long-term debt, net 1,286 (982)
Share repurchases - (39,114) Other, net (1,203) (731) ------ ----
Cash provided (used) by financing activities 83 (40,827) Exchange
rate impact on cash 1,750 (4,566) ----- ------ Increase (decrease)
in cash 10,941 (49,068) Cash at beginning of period 108,169 123,405
------- ------- Cash at end of period $119,110 $74,337 ========
======= DATASOURCE: Robbins & Myers, Inc. CONTACT: Investor
Relations, Robbins & Myers, Inc., +1-937-458-6600 Web Site:
http://www.robn.com/
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