Ameron Reports Solid First-Quarter Results.Business Editors PASADENA, Calif.--(BUSINESS WIRE)--March 20, 2002 Ameron International Corporation (NYSE NYSE See: New York Stock Exchange :AMN Amn abbr. airman ) today reported results for the first quarter: net income totaled $1.8 million, or $.43 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, on sales of $120.7 million. Ameron earned $1.6 million, or $.41 per diluted share, on sales of $121.6 million during the same period in 2001. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. S. Marlen, Ameron's Chairman, President and Chief Executive Officer, commented, "We had a solid and well balanced first quarter as the Water Transmission Group continued to build momentum and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. a strong order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. . Also, the Fiberglass-Composite Pipe and Infrastructure Products businesses had positive contributions in line with last year. The Coatings business started slowly, primarily because of weak chemical and industrial market demand." The Water Transmission Group's sales and profits improved, compared to the first quarter of 2001. Sales into West Coast markets continued to benefit from the demand for water piping for new developments and a large wastewater rehabilitation rehabilitation: see physical therapy. project in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . The outlook for the Water Transmission Group is positive, due to a strong order backlog and increased bidding activity during the quarter. Fiberglass-Composite Pipe had lower sales but slightly higher profits during the first quarter of 2002, compared to the same period in 2001. The sales decline reflected the continued weakness in domestic and Asian industrial and fuel-handling markets, as well as a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. in worldwide oilfield markets. Profits improved, despite lower sales, due to cost reduction programs and lower raw material costs. Recent increases in oil prices should strengthen the demand for fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. pipe. The Performance Coatings & Finishes Group had lower sales and a loss in the first quarter of 2002. Sales of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" protective coatings declined in both 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). and the U.S., while sales of
light-industrial finishes in the U.K., Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. were
equal to last year. Major markets, such as offshore, rail, industrial
and petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. , continued to suffer due to weak economic conditions.
The outlook for the Performance Coatings & Finishes Group is largely
dependent on the timing and strength of the economic recovery.
The Infrastructure Products Group had sales and profits essentially equal to the prior year. Hawaiian quarry Quarry Cerynean stag captured by Hercules as third Labor. [Gk. and Rom. Myth.: Hall, 149] Cretan bull savage bull caught by Hercules as seventh Labor. [Gk. and ready-mix operations declined slightly due to weather, and sales of pole products increased as low interest rates continued to support a strong housing market. The outlook for Infrastructure Products appears to be improving as residential and military construction strengthens in Hawaii. James Marlen stated, "As current economic conditions improve, we become more optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that Ameron should have another solid financial performance in 2002. We are pleased with the first-quarter results and the progress of the Water Transmission and Infrastructure Products Groups." Ameron International Corporation is a multinational manufacturer of highly-engineered products and materials for the chemical, industrial, energy, transportation and infrastructure markets. Traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (AMN), Ameron is a leading producer of water transmission lines; high-performance coatings and finishes for the protection of metals and structures; fiberglass-composite pipe for transporting oil, chemicals and corrosive corrosive /cor·ro·sive/ (kor-o´siv) producing gradual destruction, as of a metal by electrochemical reaction or of the tissues by the action of a strong acid or alkali; an agent that so acts. fluids and specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. materials and products used in infrastructure projects. The Company operates businesses 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. , 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. , Europe, Australasia and Asia. It also participates in several joint-venture companies in the U.S., Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. , Kuwait, Egypt and Mexico.
Cautionary statement for purposes of the "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. " 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: Any statements in this report that refer to the estimated or anticipated future results of Ameron International Corporation ("Ameron" or the "Company") are forward-looking and reflect the Company's current analysis of existing trends and information. Actual results may differ from current expectations based on a number of factors affecting Ameron's businesses, including competitive conditions and changing market situations. Matters affecting the economy generally, including the state of economies worldwide, can affect Ameron's results. 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. represent the Company's judgment only as of the date of this report. Since actual results could differ materially, the reader is cautioned not to rely on these forward-looking statements. Moreover, Ameron disclaims any intent or obligation to update these forward-looking statements.
Ameron International Corporation
Condensed Consolidated Statements of Income
Three Months Ended February 28,
(In thousands, except per share data)
(Unaudited)
2002 2001
--------- ---------
Sales $ 120,702 $ 121,605
Cost of Sales ( 90,263) ( 91,706)
--------- ---------
Gross Profit 30,439 29,899
Selling, General and Administrative Expenses ( 27,238) ( 26,498)
Royalty, Equity and Other Income 1,791 1,808
--------- ---------
Income before Interest and Income Taxes 4,992 5,209
Interest Expense, Net ( 2,388) ( 3,015)
--------- ---------
Income before Income Taxes 2,604 2,194
Provision for Income Taxes ( 833) ( 614)
--------- ---------
Net Income $ 1,771 $ 1,580
========= =========
Net Income Per Diluted Share $ .43 $ .41
========= =========
Cash Dividends Paid Per Share $ .32 $ .32
========= =========
Ameron International Corporation
Condensed Consolidated Statements of Cash Flows
Three Months Ended February 28,
(In thousands)
(Unaudited)
2002 2001
--------- ---------
Operating Activities
Net Income $ 1,771 $ 1,580
Adjustments to Reconcile Net Income
to Net Cash Provided by Operations 5,535 5,786
Changes in Operating Assets
and Liabilities ( 3,273) 1,781
--------- ---------
Net Cash Provided by Operations 4,033 9,147
Investing Activities
Proceeds from Sale of Assets 134 109
Additions to Property, Plant
and Equipment ( 2,825) ( 6,950)
--------- ---------
Net Cash Used in Investing Activities ( 2,691) ( 6,841)
Financing Activities
Short and Long-Term Borrowings, Net 2,579 116
Dividends on Common Stock ( 1,239) ( 1,238)
--------- ---------
Net Cash Provided by (Used in)
Financing Activities 1,340 ( 1,122)
Effect of Exchange Rate Changes on
Cash and Cash Equivalents ( 66) 226
--------- ---------
Net Change in Cash and Cash Equivalents $ 2,616 $ 1,410
========= =========
Ameron International Corporation
Condensed Consolidated Balance Sheets
(In thousands)
Feb. 28, Nov. 30,
2002 2001
(Unaudited)
--------- ---------
ASSETS
Current Assets
Cash and Cash Equivalents $ 13,931 $ 11,315
Receivables, Net 129,269 135,963
Inventories 91,719 92,534
Other Current Assets 28,189 25,896
--------- ---------
Total Current Assets 263,108 265,708
Investments and Advances -
Joint Ventures 18,787 18,780
Property, Plant and Equipment, Net 143,616 145,801
Other Assets 55,295 54,791
--------- ---------
Total Assets $ 480,806 $ 485,080
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-Term Borrowings $ 1,379 $ 4,080
Current Portion of Long-Term Debt 8,461 8,597
Trade Payables 43,337 46,703
Accrued Liabilities 40,692 47,486
Income Taxes Payable 4,711 2,352
--------- ---------
Total Current Liabilities 98,580 109,218
Long-Term Debt, Less Current Portion 142,384 137,197
Other Long-Term Liabilities 34,708 34,418
--------- ---------
Total Liabilities 275,672 280,833
Stockholders' Equity
Common Stock 13,017 13,017
Additional Paid-In Capital 20,346 19,457
Retained Earnings 247,938 247,406
Accumulated Other Comprehensive Loss ( 27,508) ( 26,974)
Treasury Stock ( 48,659) ( 48,659)
--------- ---------
Total Stockholders' Equity 205,134 204,247
--------- ---------
Total Liabilities and Stockholders' Equity $ 480,806 $ 485,080
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