APW Ltd.'s Fourth Quarter Results Demonstrate Strong Improvement.Business Editors ST. MICHAEL, Barbados--(BUSINESS WIRE)--Oct. 1, 2001 Benefits of Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). Continue and Twenty-Six Percent Sales Growth in Communications Sector Realized Over Prior Quarter APW APW All Pro Wrestling APW Altmar Parish Williamstown (School District; Parish, New York) APW Add-Printer Wizard (Microsoft Windows) APW Augmented Plane Wave APW Apparent Polar Wander Ltd. (NYSE NYSE See: New York Stock Exchange : APW), a leading Technically Enabled Manufacturing Services "TEMS TEMS Terrestrial Ecosystem Monitoring Sites TEMS Tactical Emergency Medical Support TEMS Toyota Electronic Modulated Suspension TEMS Tactical Emergency Medical Services (EMS) TEMS Total Electronic Migration System " Company, announced today its financial results for the fourth quarter and fiscal year ended August 31, 2001. The following results for both the quarter and fiscal year ended August 31, 2001, exclude all non-recurring charges. Review of Fiscal Fourth Quarter Results Sales for the three months ended August 31, 2001 were $290.2 million, a 3% decline from the third quarter ended May 31, 2001, and a decline of 18% from the same period last year. Excluding the negative impact of foreign currency translation, sales declined 15% from the same period a year ago. Strong sales growth in Asia and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. was offset by declines in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .Sales for the twelve months ended August 31, 2001 were a record $1.268 billion, an increase of 2% from $1.238 billion for the same period last year. Earnings, Cash earnings, which exclude amortization and non-cash financing costs, were a $1.7 million loss or ($0.04) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the fiscal fourth quarter ended August 31, 2001 compared to $0.51 for the prior year quarter on a pro-forma basis. For the twelve months ended August 31, 2001, cash earnings were $10.2 million or $0.25 per diluted share.
Summary of Financial Results for APW Ltd. (excluding non-recurring
charges)
(Dollars in millions, except per share values)
Pro Forma
Pro Forma Twelve months Twelve months
Q4 01 Q4 00 ending 8/31/01 ending 8/31/00
----- ----- -------------- --------------
Sales $290.2 $351.9 $1,267.7 $1,237.9
EBITDA $18.0 $43.0 $85.9 $155.5
Cash Earnings $(1.7) $20.9 $10.2 $72.2
Cash EPS $(0.04) $0.51 $0.25 $1.77
Net Earnings $(10.7) $14.7 $(19.6) $47.6
Diluted EPS $(0.27) $0.36 $(0.49) $1.17
Under United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), including all charges, APW incurred a loss of $17.4 million or ($0.44) per diluted share in the fourth quarter. Fiscal 4Q Review Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. improved in the fourth quarter to 18.3%, up 130 basis points, compared with 17.0% in the third quarter. Sales, Administrative and Engineering (SAE sae abbr (BRIT) (= stamped addressed envelope) → sobre con las propias señas de uno y con sello ) costs were $45.9 million in the fourth quarter, representing a decline of $8.2 million or 15% from the third quarter. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , excluding cash used in restructuring, was $22.0 million. Free cash flow, including all restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , was $10 million. Net inventory on August 31, 2001, was $135.0 million, down $20.0 million or 12.9% from May 31, 2001. Inventory turns improved to 6.8 from 6.0 and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying DSO See CSO. improved to 36 days from 38 versus the third quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become before non-recurring charges increased $10.0 million sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , improving to $18.0 million from the $8.0 million generated in the third quarter. Including off balance sheet securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , APW had borrowing capacity in excess of $70 million, as of August 31, 2001. Restructuring and other non-recurring items recorded in the quarter totaled $12.6 million, before taxes. GAAP recognized restructuring expenses totaled $4.5 million and relate primarily to severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when associated with the headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reductions in addition to lease termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. and exit costs associated with the closure of certain manufacturing facilities. Other non-recurring items totaled $8.1 million and consist primarily of the non-cash write down of equipment and leasehold improvements Leasehold Improvement Improvements on a leased asset that increase the value of the asset. Notes: A leasehold improvement is classified as an asset that must be depreciated over time. of exited facilities. Although sales decreased 3% from the third quarter, sales have been stable since March. Actual sales by month for April through August were $96, $101, $98, $93 and $99 million, respectively. Sales in the fourth quarter were unfavorably impacted by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2 million, as the result of the decision to exit a single customer following a plant shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down . The key factor in stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. sales since March is increased sales into the communication market, which has offset softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in other markets. Fourth quarter sales to communication customers increased 26% from the third quarter, an increase of $15 million. This improvement reflects both new program ramps as well as market share gains on certain existing programs. Quarter to quarter sales increases were recorded with four communication customers. This strengthening of our position in communications is expected to continue. During the fourth quarter, APW was awarded over 20 significant new programs across all the targeted end-markets it serves. These programs include large enclosure enclosure (inclosure) n. land bounded by a fence, wall, hedge, ditch or other physical evidence of boundary. Unfortunately, too often these creations are not included among the actual legally-described boundaries and cause legal problems. ENCLOSURE. integration, as well as thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. management, backplane An interconnecting device that has sockets for printed circuit boards to plug into. Passive and Active Although resistors may be used, a "passive" backplane adds no processing in the circuit. , and power supply products. Estimating the timing and size of new program wins continues to be difficult in current market conditions. However, the number and diversity of these wins are a key underlying assumption for the future outlook of APW. Rick Carroll Rick Carroll (15 September 1946 – 10 July 1989) was a program director (PD) for influential radio station KROQ in Los Angeles, California, United States, where he introduced the "Rock of the Eighties" format. , Vice President and Chief Financial Officer of APW Ltd. commented: "In our third quarter release, we gave guidance for our fourth quarter. We met all the estimates we guided to; sales, gross profit percent, Cash EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. , and working capital reductions. I also want to highlight the speed we have delivered on the economic benefits from our restructuring initiatives. The additional benefits realized in the quarter from our restructuring efforts allowed us to deliver cash EPS in the middle of our range, despite sales at the low end of our forecast." Restructuring Status APW total personnel on August 31, 2001 was approximately 8,200, a 33% reduction from the Company's pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma peak at the end of November November: see month. 2000. APW plans to continue to reduce personnel by effecting further organizational realignments and plant consolidations. All plant closures announced to date have effectively been completed. Looking forward, there will be additional plant consolidations, which will be partially offset by expansion in manufacturing capacity needed to serve growth opportunities in Birmingham Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. ; Galway Galway, city, Republic of Ireland Galway, city (1991 pop. 50,853), seat of Co. Galway, W Republic of Ireland, on Galway Bay near the mouth of the Corrib River. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. ; and Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. , the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China. It is expected that by the third quarter of FY2002, APW's total manufacturing space will be approximately four million square feet, a 20% reduction from pre-restructuring levels. As of the end of the fourth quarter, $100 million of annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings have been achieved. The company is targeting in excess of $150 million in annualized benefits, which will be fully implemented by the fourth quarter of 2002 and is expected to yield $125 million of cost improvement in FY 2002 compared to pro forma 2001 levels. Approximately 95% of these benefits are permanent reductions to fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a G. Sim (1) (Society for Information Management, Chicago, IL, www.simnet.org) Founded in 1968 as the Society for MIS, it is a membership organization made up of corporate and division heads of IT organizations. , Chairman, President, and Chief Executive Officer of APW Ltd. commented: "The APW Team has done an outstanding job in executing our cost restructuring program. We have moved faster, delivered more benefits and continued to excel in supporting our customers. As evidence of the continuity of customer service, sales to APW's top ten customers increased in the fourth quarter both in absolute dollars as well as a percentage of total sales. The cost reductions already implemented resulted in a 125% increase in quarterly sequential One after the other in some consecutive order such as by name or number. EBITDA improvement. I am extremely proud of how aggressively and pro-actively the APW management team has worked together to achieve these results." Fiscal 2002 Outlook APW expects to continue to expand its share of existing customers' new programs as well as continue to win programs from new customers. APW's strength is its ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution in the design, manufacture and integration of large electronic products. Customers recognize APW's superior performance in quality and delivery, and they continue to reward the Company with new program opportunities and a larger share of existing business in cases where they have dual supply. APW's 26% growth sequentially in the communication market, at a time when many others are seeing sharp declines in demand, is due to the positive endorsement A signature on a Commercial Paper or document. An endorsement on a negotiable instrument, such as a check or a promissory note, has the effect of transferring all the rights represented by the instrument to another individual. of APW by an array of communication customers. This strong customer endorsement also exists in other markets such as the large enterprise hardware and semiconductor equipment markets, but due to market conditions and program timing has not yet been translated into positive sequential quarter growth. In the fourth quarter, APW was awarded new programs or increased market share from seven of its top ten customers. We expect APW's market share to continue to grow throughout 2002, and expect that the second half of the year will reflect absolute growth in sales versus the first half. It is anticipated that with a consistent sales mix sales mix See product mix. , gross profit margin percent will continue to improve throughout FY2002. Based on achieving the expected benefits from continued restructuring initiatives, gross margins should be in the range of 21% to 22% in the second half of FY2002. Additionally, SAE costs are expected to continue to decline modestly throughout FY2002. Solid, continuous improvement in EBITDA and on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" reductions in working capital, will allow APW to invest in its operations and exceed its current cash flow commitments. Richard G. Sim commented: "APW has clearly demonstrated in the last five months that we have the management team that can cut costs quickly, and do it while outperforming our competition in quality and delivery to the customer. I am confident we will continue to generate the cash required to meet our external obligation and preserve adequate borrowing capacity while continuing to invest in our growth opportunities." About APW Ltd. APW Ltd. is a Technically Enabled Manufacturing Services ("TEMS") company that designs and manufactures large, electronic products for OEM's in the communications, large enterprise hardware and semiconductor equipment markets. APW Ltd. has strong capabilities in the areas of designing and manufacturing enclosures, thermal management and backplanes; as well as core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain of the above comments represent forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. APW Ltd.'s results are also subject to general economic conditions, market conditions in the computer, semiconductor, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , and electronic industries in North America, South America, Europe and Asia, continued market acceptance of APW's existing products and new product introductions, the successful integration of recent acquisitions, competitive product and pricing pressures, foreign currency risk, interest rate risk, and APW's ability to access capital markets. See our Form 10 and Form S-3 for further information on risk factors.
APW Ltd.
Comparative Statement of Earnings
(Dollars in thousands, except per share amounts)
Three Months Ended August 31, 2001 (2)
----------------------------------
(1) Pro Forma
APW 4th Quarter APW Three Months
As Non-Recurring Excluding Non- Ended
Reported Items Recurring Aug 31, 2000
Items
-------- ----------- ----------- ---------
Net sales $ 290,190 $ - $ 290,190 $ 351,916
Cost of products
sold 244,774 7,739 237,035 261,616
------- ----- ------- -------
Gross profit 45,416 (7,739) 53,155 90,300
Engineering, selling
and administrative
expenses 46,282 367 45,915 56,160
------- ----- ------ ------
EBITA (866) (8,106) 7,240 34,140
Amortization of
intangible assets 7,426 - 7,426 6,074
Restructuring
expenses 4,497 4,497 - -
Other expense:
Net financing
costs 14,621 - 14,621 6,435
Other - net 380 - 380 686
------ ----- ------ -----
Earnings (loss) before
income taxes (27,790) (12,603) (15,187) 20,945
Income tax expense
(benefit) (10,347) (5,822) (4,525) 6,284
------ ------ ------ ------
Net earnings (loss) $(17,443) $ (6,781) $ (10,662) $ 14,661
======= ====== ====== ======
Cash earnings
(loss) (3) $ (8,505) $ (6,781) $ (1,724) $ 20,890
======= ====== ====== ======
Depreciation expense 17,511 6,794 10,717 8,893
EBITDA 16,645 (1,312) 17,957 43,033
Memo: Non-cash
financing costs 1,512 - 1,512 155
Earnings (loss) per share:
Cash earnings (loss)
per share: $ (0.21) $ (0.17) $ (0.04) $ 0.51
======= ======= ======= ======
Basic earnings (loss)
per share: $ (0.44) $ (0.17) $ (0.27) $ 0.37
======= ======= ======= ======
Diluted earnings
(loss) per share: $ (0.44) $ (0.17) $ (0.27) $ 0.36
======= ======= ======= ======
Weighted average common
shares outstanding
(000's) 40,044 40,044 40,044 39,163
======= ======= ======= ======
Weighted average common
and potential dilutive
common shares outstanding
(000's) (4) 40,044 40,044 40,044 40,907
======= ======= ======= ======
(1) Non-recurring items in the quarter ended August 31, 2001 are: (i)
$4.5M restructuring charge for severance, lease exit and dilapidation
costs, and (ii) $8.1M in other non-recurring items related to the
restructuring.
(2) Pro forma adjustments to Fiscal 2000 are: (i) adjustments to
include $3.0M of general corporate expenses per quarter, (ii)
adjustments to exclude corporate reorganization expenses allocated
from Applied Power Inc. relating to the spin-off transaction, (iii)
adjustments to net financing costs based on the debt structure of the
company after the spin-off from Applied Power Inc., (iv) adjustments
to income tax expense to reflect an estimated 30% tax rate APW Ltd. is
subject to after its incorporation in Bermuda, (v) adjustment to
exclude foreign exchange loss recorded on forward contracts, and (vi)
adjustments to exclude the results of a business held for sale. -----
(3) Cash earnings exclude the amortization of intangible assets and
non-cash financing costs.
(4) Shares outstanding for the three months ended August 31, 2001
reflect no dilution due to the loss in the quarter then ended.
APW Ltd.
Comparative Statement of Earnings
(Dollars in thousands, except per share amounts)
Twelve Months Ended August 31, 200(2)
--------------------------------------
(1) APW Pro Forma
APW Non- Excluding Twelve Months
As Recurring Non-Recurring Ended
Reported Items Items Aug 31, 2000
------------ ----------- ------------ ------------
Net sales $ 1,267,684 $ - $ 1,267,684 $ 1,237,930
Cost of products
sold 1,036,348 26,903 1,009,445 915,193
------------ ----------- ------------ ------------
Gross profit 231,336 (26,903) 258,239 322,737
Engineering,selling
and administrative
expenses 226,734 13,394 213,340 202,168
Loss on sale
of subsidiary 2,667 2,667 - -
------------ ----------- ------------ ------------
EBITA 1,935 (42,964) 44,899 120,569
Amortization of
intangible assets 27,448 - 27,448 23,918
Restructuring
expenses 16,981 16,981 - -
Other expense:
Net financing costs 43,762 841 42,921 26,971
Other - net 2,418 - 2,418 1,644
------------ ----------- ------------ ------------
Earnings (loss)
before income taxes (88,674) (60,786) (27,888) 68,036
Income tax
expense (benefit) (23,372) (15,075) (8,297) 20,411
------------ ----------- ------------ ------------
Net earnings (loss) $ (65,302) $ (45,711) $ (19,591) $ 47,625
============ =========== ============ ============
Cash earnings
(loss) (3) $ (35,468) $ (45,619) $ 10,151 $ 72,163
============ =========== ============ ============
Depreciation
expense 53,502 12,531 40,971 34,954
EBITDA 55,437 (30,433) 85,870 155,523
Memo: Non-cash
financing costs 2,386 92 2,294 620
Earnings (loss)
per share:
Cash earnings
(loss) per
share: (4) $ (0.89) $ (1.15) $ 0.25 $ 1.77
============ =========== ============ ============
Basic earnings
(loss) per share: $ (1.65) $ (1.15) $ (0.49) $ 1.22
============ =========== ============ ============
Diluted earnings
(loss) per share: $ (1.65) $ (1.15) $ (0.49) $ 1.17
============ =========== ============ ============
Weighted average
common shares
outstanding
(000's) 39,665 39,665 39,665 39,077
============ =========== ============ ============
Weighted average
common and
potential
dilutive
common shares
outstanding
(000's) (5) 39,665 39,665 39,665 40,820
============ =========== ============ ============
(1) Non-recurring items in the year ended August 31, 2001 are: (i)
$17.0M restructuring charge for severance, lease exit and
dilapidation costs, (ii) $23.5M in other non-recurring items
related to the restructuring, (iii) $17.6M in non-cash asset
write-offs of inventory, accounts receivable and equipment, and
(iv) $2.7M book loss on the sale of a subsidiary.
(2) Pro forma adjustments to Fiscal 2000 are: (i) adjustments to
include $3.0M of general corporate expenses per quarter, (ii)
adjustments to exclude corporate reorganization expenses allocated
from Applied Power Inc. relating to the spin-off transaction,
(iii) adjustments to net financing costs based on the debt
structure of the company after the spin-off from Applied Power
Inc., (iv) adjustments to income tax expense to reflect an
estimated 30% tax rate APW Ltd. is subject to after its
incorporation in Bermuda, (v) adjustment to exclude foreign
exchange loss recorded on forward contracts, and (vi) adjustments
to exclude the results of a business held for sale.
(3) Cash earnings exclude the amortization of intangible assets and
non-cash financing costs.
(4) Cash earnings per share for the 12 months ended August 31, 2001,
excluding non-recurring items, reflects the potential dilutive
effect on common shares outstanding of 1,291,000 shares in the 12
month period due to positive cash earnings.
(5) Shares outstanding for the 12 months ended August 31, 2001 reflect
no dilution due to the loss in the 12 month period then ended.
APW Ltd.
Comparative Balance Sheets
(Dollars in Thousands)
August 31, August 31,
2001 2000
---------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 8,542 $ 570
Accounts receivable, net 112,992 118,481
Inventories, net 135,019 155,402
Prepaid expenses and other assets 59,681 23,149
---------- ---------
Total current assets 316,234 297,602
Property, plant & equipment:
Gross property, plant & equipment 477,915 359,007
Less: accumulated depreciation (222,886) (181,975)
---------- ---------
Net property, plant & equipment 255,029 177,032
---------- ---------
Goodwill, net 846,119 673,060
Other intangible assets, net 27,616 9,262
Other assets 47,328 57,114
---------- ---------
Total assets $ 1,492,326 $ 1,214,070
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 5,745 $ -
Trade accounts payable 118,466 149,877
Accrued compensation and benefits 29,594 31,174
Income taxes payable
(including amounts due to Actuant) 31,522 71,073
Other current liabilities 40,163 40,113
--------- --------
Total current liabilities 225,490 292,237
Long-term debt 615,704 236,370
Deferred income taxes 13,107 9,580
Other non-current liabilities
(including amounts due to Actuant) 55,375 49,504
--------- --------
Total liabilities 909,676 587,691
Shareholders' equity 582,650 626,379
--------- --------
Total liabilities and shareholders' equity $ 1,492,326 $ 1,214,070
=========== ===========
APW Ltd.
GAAP Comparative Statements of Earnings
(Dollars in thousands, except per share amounts)
Three Months Ended August 31,
------------------------------
2001 2000
-------------- --------------
Net sales $ 290,190 $ 353,528
Cost of products sold 244,774 262,717
-------------- --------------
Gross profit 45,416 90,811
Engineering, selling and
administrative expenses 46,282 58,819
Corporate reorganization expenses - 3,738
-------------- --------------
EBITA (866) 28,254
Amortization of intangible assets 7,426 6,074
Restructuring expenses 4,497 -
Other expense (income):
Net financing costs 14,621 14,435
Other - net 380 4,009
-------------- --------------
Earnings (loss) before income taxes (27,790) 3,736
Income tax expense (benefit) (10,347) 41,545
-------------- --------------
Net loss $ (17,443) $ (37,809)
============== ==============
Depreciation expense 17,511 8,893
EBITDA 16,645 37,147
Loss per share:
Basic and Diluted loss per share: $ (0.44) $ (0.97)
============== ==============
Weighted average common and potential
dilutive common shares
outstanding (000's) (1) 40,044 39,163
============== ==============
(1) Shares outstanding for the three months ended August 31, 2000 and
2001 reflect no dilution due to the losses in the quarters then
ended.
APW Ltd.
GAAP Comparative Statement of Earnings
(Dollars in thousands, except per share amounts)
Twelve Months Ended August 31,
2001 2000
---- ----
Net sales $ 1,267,684 $ 1,239,542
Cost of products sold 1,036,348 916,294
--------- ---------
Gross profit 231,336 323,248
Engineering, selling and
administrative expenses 226,734 201,611
Corporate reorganization expenses - 6,541
Loss on sale of subsidiary 2,667 -
--------- ---------
EBITA 1,935 115,096
Amortization of intangible assets 27,448 23,918
Restructuring expenses 16,981 -
Other expense:
Net financing costs 43,762 52,657
Other - net 2,418 4,967
--------- --------
Earnings (loss) before income taxes (88,674) 33,554
Income tax expense (benefit) (23,372) 54,093
--------- --------
Loss before extraordinary item (65,302) (20,539)
Extraordinary loss on early retirement of debt,
net of income tax benefit of $1,250 - (2,083)
--------- --------
Net loss $ (65,302) $ (22,622)
========= ========
Depreciation expense 53,502 34,954
EBITDA 55,437 150,050
Loss per share:
Basic and Diluted loss per share
before extraordinary item: $ (1.65) $ (0.53)
Extraordinary loss on early
retirement of debt,
net of income tax benefit - (0.05)
--------- -------
Basic and Diluted loss per share: $ (1.65) $ (0.58)
========= =======
Weighted average common and potential dilutive
common shares outstanding (000's) (1) 39,665 39,077
========= =======
(1) Shares outstanding for the 12 months ended August 31, 2000 and
2001 reflect no dilution due to the losses in the 12 month periods
then ended.
APW Ltd
Customer Sales Summary
Actual
Quarter Ended November 30, 2000
--------------------------------
Applied Materials
Compaq
Cymer
EMC
Ericsson
Hewlett-Packard
Lucent
NCR
Nortel
Sun Microsystems
Top 10 Customers Sales $ 147,634
---------
% of Total Sales 41%
---------
Top Customer
% of Total Sales 9%
---------
Actual
Quarter Ended February 28, 2001
--------------------------------
Applied Materials
Compaq
Cymer
EMC
Ericsson
Hewlett-Packard
Lucent
NCR
Nortel
Sun Microsystems
Top 10 Customers Sales $ 128,600
---------
% of Total Sales 40%
---------
Top Customer
% of Total Sales 10%
---------
Actual
Quarter Ended May 31, 2001
-------------------------------
Compaq
Cymer
EMC
Ericsson
Fujitsu
Hewlett-Packard
Lucent
NCR
Nortel
Sun Microsystems
Top 10 Customers Sale $ 127,546
---------
% of Total Sales 42%
---------
Top Customer
% of Total Sales 11%
---------
Actual
Quarter Ended August 31, 2001
--------------------------------
Compaq
EMC
Ericsson
Hewlett-Packard
IBM
Lucent
Motorola
NCR
Nortel
Sun Microsystems
Top 10 Customers Sales $ 132,950
---------
% of Total Sales 46%
---------
Top Customer
% of Total Sales 10%
---------
Actual
FY 2001 Year-To-Date
--------------------------------
Applied Materials
Compaq
Cymer
EMC
Ericsson
Hewlett-Packard
Lucent
NCR
Nortel
Sun Microsystems
Top 10 Customers Sales $ 530,615
---------
% of Total Sales 42%
---------
Top Customer
% of Total Sales 10%
---------
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