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The Company noted that it achieved an effective tax rate of 23.5% for fiscal 2009, primarily as a result of tax strategies implemented during the year. The fourth quarter effective tax rate of 10.5% reflects the benefits of these strategies and the favorable effects from finalizing tax estimates.
The Company reported $122 million of customer orders in the fourth quarter, consistent with order levels for the two preceding quarters, and 38% lower than the prior year comparable period. Excluding currency translation effects, orders declined 35% in the quarter. For the full year, orders of $554 million represent a 32% decline. Excluding currency translation effects, full year orders declined 26%.
Robbins & Myers also reported fourth quarter 2009 sales of $155 million, 32% lower than the comparable prior year results. Full year fiscal 2009 sales of $640 million were 19% lower than the prior year. Excluding currency translation effects, sales declined 28% in the quarter and 13% in the year.
Fourth quarter 2009 earnings before interest, taxes and minority interest (EBIT) were $15 million, 64% less than in the prior year fourth quarter primarily as a result of lower sales levels. Full year EBIT of $74 million represents a 43% decline from prior year levels, which included $8 million of benefit from asset sales. The Company generated $28 million of cash from operating activities in its fourth quarter of 2009 and $53 million for the full year, ending the year with $108 million of cash and $30 million of debt.
"Robbins & Myers achieved profitability in each of its businesses and remains well-capitalized during these challenging times," said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. "We started fiscal 2009 in a favorable economic environment with significant backlog, but during the year order levels were negatively impacted by the global recession. We responded to these changing business conditions by cutting more than $15 million of annualized costs, and we developed plans to restructure our business for more permanent cost reductions."
"We have initiated the first two of our restructuring actions which should reduce annualized costs by $3 million when completed later this fiscal year, and several others that are actionable in the near term should deliver an additional $3-4 million of annualized savings by fiscal year-end. We expect these projects to reduce manufacturing capacity, increase activities in lower cost regions, and more tightly integrate our businesses. Over the long-term, these restructuring actions should further improve our competitiveness and profitability, especially when market conditions improve."
"As a result of recent customer order levels, we expect fiscal 2010 to start slowly but improve throughout the year as the global economy recovers. Our financial performance in the new fiscal year hinges on the pace and scope of this recovery." The Company expects full year 2010 DEPS of $0.80-$1.00 and first quarter DEPS of $0.05-$0.15, excluding the cost of restructuring actions.
Mr. Wallace commented, "Over the past five years, Robbins & Myers made impressive strides to improve its operating and financial capabilities. We reduced complexity throughout our businesses, launched our lean journey, invested in profitable growth initiatives, and refocused everyone on better serving our customers. We are committed to our long-term strategy of profitable growth to create shareholder value."
Fourth Quarter Results by Segment
All comparisons are made against the comparable year-ago quarterly period unless otherwise stated.
The Company's Fluid Management segment orders of $48 million represent a 52% decline from the record performance in the prior year. Continued softness in energy and industrial markets also contributed to a 39% decline in sales, with the segment reporting $55 million in its fiscal fourth quarter of 2009. EBIT fell 64% to $10 million on lower sales, and EBIT margins of 17.5% included a 260 basis point impact from lower valuation of certain operating assets.
The Process Solutions segment reported orders of $47 million, 32% lower due to continued weakness in chemical, pharmaceutical and industrial markets. Excluding currency translation effects, orders declined 27%. Sales of $64 million were 27% lower, or 21% lower before currency translation effects, contributing to a 68% reduction in EBIT. The segment reported fourth quarter 2009 EBIT of $4 million and EBIT margins of 6.0%.
The Romaco segment reported orders of $28 million, 6% below the comparable prior year quarter or 1% lower excluding currency translation effects. Sales in the quarter were $37 million, 27% lower, or 22% lower excluding currency translation effects. Romaco earned $4 million of EBIT in the fourth quarter of 2009 as compared with $9 million in the prior year fourth quarter.
Conference Call to Be Held Tomorrow, October 6 at 10:00 AM (Eastern)
A conference call to discuss these results has been scheduled for 10:00 AM Eastern on Tuesday, October 6, 2009, which can be accessed at www.robn.com or by dialing 866-713-8562 (US/Canada) or +1-617-597-5310, using conference ID #48211363. Replays of the call can be accessed by dialing 888-286-8010 (U.S./Canada) or +1-617-801-6888, both using replay ID #29226735.
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; 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) August 31, 2009 August 31, 2008
-------------- --------------- ---------------
ASSETS
Current Assets:
Cash and cash equivalents $108,169 $123,405
Accounts receivable 114,191 153,648
Inventories 105,772 109,797
Other current assets 11,573 8,017
Deferred taxes 12,519 13,476
------ ------
Total Current Assets 352,224 408,343
Goodwill & Other Intangible Assets 273,476 285,759
Deferred Taxes 26,477 21,969
Other Assets 9,490 10,931
Property, Plant & Equipment 135,187 137,715
------- -------
$796,854 $864,717
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $55,918 $86,012
Accrued expenses 68,059 102,876
Current portion of long-term debt 30,194 3,192
------ -----
Total Current Liabilities 154,171 192,080
Long-Term Debt - Less Current Portion 265 30,435
Deferred Taxes 44,194 44,628
Other Long-Term Liabilities 129,273 97,557
Shareholders' Equity 468,951 500,017
------- -------
$796,854 $864,717
======== ========
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
Three Months Ended Twelve Months Ended
------------------ -------------------
August 31, August 31, August 31, August 31,
(in thousands, 2009 2008 2009 2008
except per share ---- ---- ---- ----
data)
-----------------
Sales $155,187 $227,754 $640,358 $787,168
Cost of sales 105,235 143,413 415,861 496,906
------- ------- ------- -------
Gross profit 49,952 84,341 224,497 290,262
SG&A expenses 35,208 44,114 150,129 167,229
Other income 0 (835) 0 (7,631)
--- ---- --- ------
Income before
interest, income
taxes and
minority interest 14,744 41,062 74,368 130,664
Interest expense,
net 140 268 382 2,031
--- --- --- -----
Income before
income taxes and
minority interest 14,604 40,794 73,986 128,633
Income tax expense 1,537 9,812 17,412 39,099
Minority interest 260 350 1,210 2,132
--- --- ----- -----
Net income $12,807 $30,632 $55,364 $87,402
======= ======= ======= =======
Net Income Per Share:
Basic $0.39 $0.88 $1.67 $2.53
Diluted $0.39 $0.88 $1.66 $2.52
Weighted Average Common
Shares Outstanding:
Basic 32,853 34,685 33,227 34,524
Diluted 32,941 34,836 33,261 34,718
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION
(Unaudited)
Three Months Ended Twelve Months Ended
------------------ -------------------
August 31, August 31, August 31, August 31,
(in thousands) 2009 2008 2009 2008
-------------- ---- ---- ---- ----
Sales
Fluid Management $54,841 $90,499 $268,761 $322,868
Process Solutions 63,661 87,021 258,584 313,604
Romaco 36,685 50,234 113,013 150,696
------ ------ ------- -------
Total $155,187 $227,754 $640,358 $787,168
======== ======== ======== ========
Income Before Interest,
Income Taxes and Minority
Interest (EBIT)
Fluid Management $9,587 $26,671 $69,139 $91,319
Process Solutions 3,842 11,956 19,418 37,570
Romaco 3,757 9,046 2,292 20,603
Corporate and
Eliminations (2,442) (6,611) (16,481) (18,828)
------ ------ ------- -------
Total $14,744 $41,062 $74,368 $130,664
======= ======= ======= ========
Depreciation and Amortization
Fluid Management $1,897 $1,970 $7,117 $6,993
Process Solutions 1,558 1,595 6,639 6,753
Romaco 530 491 2,013 1,869
Corporate and
Eliminations 97 131 457 634
-- --- --- ---
Total $4,082 $4,187 $16,226 $16,249
====== ====== ======= =======
Orders
Fluid Management $47,534 $99,174 $232,415 $343,079
Process Solutions 46,740 68,872 218,895 324,542
Romaco 27,862 29,754 103,039 145,377
------ ------ ------- -------
Total $122,136 $197,800 $554,349 $812,998
======== ======== ======== ========
Backlog
Fluid Management $22,579 $63,168 $22,579 $63,168
Process Solutions 72,259 123,529 72,259 123,529
Romaco 40,139 51,283 40,139 51,283
------ ------ ------ ------
Total $134,977 $237,980 $134,977 $237,980
======== ======== ======== ========
Note: EBIT is a non-GAAP measure. We use this measure to evaluate our
businesses, and we allocate resources to our businesses based on EBIT.
EBIT is not, however, a measure of performance calculated in accordance
with accounting principles generally accepted in the United States and
should not be considered as an alternative to net income as a measure of
operating results. EBIT is not a measure of cash available for use by
management.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Three Months Ended Twelve Months Ended
------------------ -------------------
August 31, August 31, August 31, August 31,
(in thousands) 2009 2008 2009 2008
-------------- ---- ---- ---- ----
Operating activities:
Net income $12,807 $30,632 $55,364 $87,402
Depreciation and
amortization 4,082 4,187 16,226 16,249
Other, net 11,114 5,985 (18,502) (14,091)
------ ----- ------- -------
Cash provided by
operating
activities 28,003 40,804 53,088 89,560
Investing activities:
Capital
expenditures,
net of nominal
disposals (4,780) (9,331) (17,694) (22,114)
Proceeds from
sales of product
lines/
facilities 0 1,291 0 8,484
Acquisition of
business, net of
cash acquired (2,325) 0 (2,325) (5,061)
------ --- ------ ------
Cash used by
investing
activities (7,105) (8,040) (20,019) (18,691)
Financing activities:
(Payments)
proceeds of long-
term debt,
net (133) 667 (3,168) (69,448)
Share buyback
program 0 0 (39,114) -
Other, net (1,396) 344 (4,079) 3,576
------ --- ------ -----
Cash (used)
provided by
financing
activities (1,529) 1,011 (46,361) (65,872)
Exchange rate
impact on cash 254 (2,114) (1,944) 2,298
--- ------ ------ -----
Increase
(Decrease) in
cash 19,623 31,661 (15,236) 7,295
Cash at
beginning of
period 88,546 91,744 123,405 116,110
------ ------ ------- -------
Cash at end of
period $108,169 $123,405 $108,169 $123,405
======== ======== ======== ========
SOURCE Robbins & Myers, Inc.
http://www.robn.com
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