Baldwin Reports Second Quarter Results and Sale of Receivables.Business Editors NORWALK Norwalk (nôr`wôk'). 1 City (1990 pop. 94,279), Los Angeles co., S Calif.; settled in the 1850s, inc. 1957. With the arrival (1875) of the Southern Pacific RR, it became a center for the dairy and logging industries, but , Conn.--(BUSINESS WIRE)--Feb. 2, 2000 Baldwin Baldwin, cities, United States Baldwin. 1 Uninc. city (1990 pop. 22,719), Nassau co., SE N.Y., on the south shore of Long Island, on Baldwin Bay; settled 1640s. A fishing center and summer resort, it has varied manufactures. Technology Company, Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :BLD BLD Build BLD Blood BLD Blade BLD Blonde BLD Breakfast Lunch Dinner BLD Bukas-Loob Sa Diyos (Filipino: Open In Spirit To God) BLD BASIC Bload Graphics (File Name Extension) BLD Below Limit of Detection ) reported today that net income for its second quarter ended December December: see month. 31, 1999, prior to the effect of a special charge, was $1,529,000, or $0.10 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, versus net income of $2,597,000, or $0.15 per diluted share, for the quarter ended December 31, 1998. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the current period were $51,510,000 versus $65,169,000 for the prior year's quarter. Currency translation increased net sales and net income for the quarter by $660,000 and $129,000, respectively, when compared to the prior year's quarter. The company also announced that it has entered into an agreement to sell its pre-petition 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 from Goss n. 1. Gorse. Graphic Systems, Inc. in a transaction that resulted in a non-cash pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge to its second quarter earnings of $1.1 million (the after tax effect of which was $737,000, or $0.05 per diluted share). Orders for the quarter were $52.5 million versus $49.8 million for the prior year's quarter, an increase of over 5%. Currency translation decreased orders by $1.4 million for the current quarter when compared to the prior year period. Otherwise, orders would have increased over 8%. 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. at December 31, 1999 was $68.3 million versus $57.5 million at June June: see month. 30, 1999 and $74.2 million at December 31, 1998. Gerald A. Nathe, Chairman and President, commented on the results: &uot;Excluding the special charge, our sales and income results were as expected across all our product groups and all geographic regions. We also saw an improvement in our 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. levels versus the last few quarters, a direct result of product mix changes, particularly in our Material Handling Group. &uot;We expected stronger order activity during the quarter, however, in our Graphic Products and Controls Group. The continuing consolidation among larger printers, especially in the commercial web market, coupled with delays in purchasing decisions has had a dampening effect on incoming orders. As a result, our second half results may not be as strong as we had previously expected.&uot; Mr. Nathe continued: &uot;Later this quarter we will announce a 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). program that will substantially reduce our fixed cost base while improving our ability to serve our customers. Our plan will eliminate a number of the redundancies inherent in our current organization while improving our focus on delivering a price competitive, quality product, on-time all the time. This plan will form the foundation upon which we will make Baldwin the global preferred supplier of auxiliary equipment Noun 1. auxiliary equipment - electronic equipment not in direct communication (or under the control of) the central processing unit off-line equipment to the major printing press OEMs.&uot; Mr. Nathe concluded: &uot;The decision to sell our pre-petition accounts receivable from Goss will result in a cash infusion to Baldwin of over $3 million during the next few days. These funds will be used to support our near term investment and restructuring plans, as well as our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program.&uot; Baldwin Technology Company, Inc. is the leading international manufacturer of material handling, accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. and control equipment for the printing industry. CAUTIONARY STATEMENT--This Release contains statements regarding expected future order and sales rates, operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and profitability which may constitute &uot;forward-looking&uot; information as defined in 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 or by the Securities and Exchange Commission. Investors are cautioned that any such 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. are not guarantees of future performance and actual results may differ. See Exhibit 99 to the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Report for the year ended June 30, 1999.
Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Quarter ended December 31,
1999 1998
Net Sales $ 51,510 $ 65,169
Cost of Goods Sold 34,416 44,321
-------- --------
Gross Profit 17,094 20,848
Operating Expenses (1) 16,299 16,668
-------- --------
Operating Income 795 4,180
Interest Expense 468 578
Interest Income (82) (110)
Other income (752) (411)
-------- --------
Pretax Income 1,161 4,123
-------- --------
Net Income $ 792 $ 2,597
======== ========
Weighted Average Shares Outstanding
- Basic 15,801 16,887
Weighted Average Shares Outstanding
- Diluted 15,801 17,285
Basic Net Income Per Share $ 0.05 $ 0.15
======== ========
Diluted Net Income Per Share $ 0.05 $ 0.15
======== ========
Six Months ended December 31,
1999 1998
Net Sales $ 97,006 $120,488
Cost of Goods Sold 66,377 81,470
-------- --------
Gross Profit 30,629 39,018
Operating Expenses (1) 29,604 32,001
-------- --------
Operating Income 1,025 7,017
Interest Expense 993 1,141
Interest Income (169) (270)
Other Income (1,450) (1,073)
-------- --------
Pretax Income 1,651 7,219
-------- --------
Net Income $ 1,106 $ 4,517
======== ========
Weighted Average Shares Outstanding
- Basic 16,012 17,001
Weighted Average Shares Outstanding
- Diluted 16,012 17,395
Basic Net Income Per Share $ 0.07 $ 0.27
======== ========
Diluted Net Income Per Share $ 0.07 $ 0.26
======== ========
(1) December 1999 amounts include a charge of $1.1 million related to
the sale of receivables.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
December 31, June 30,
1999 1999
Assets
Cash and Equivalents $ 8,183 $ 10,673
Trade Receivables 48,208 46,898
Inventory 36,697 31,791
Prepaid Expenses and Other 11,710 8,821
---------- ----------
Total Current Assets 104,798 98,183
Property, Plant &Equipment, net 7,558 6,928
Intangibles, net 35,620 35,434
Other Assets 14,977 18,810
---------- ----------
Total Assets $ 162,953 $ 159,355
========== ==========
Current Liabilities
Loans Payable $ 3,350 $ 3,893
Current Portion of Long-Term debt 6,488 6,397
Other Current Liabilities 64,973 58,739
---------- ----------
Total Current Liabilities 74,811 69,029
Long-Term Debt 12,407 16,515
Other Long-Term Liabilities 6,564 7,271
---------- ----------
Total Liabilities 93,782 92,815
Shareholders' Equity 69,171 66,540
---------- ----------
Total Liabilities and Shareholders'
Equity $ 162,953 $ 159,355
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