Barnes Group Announces First Quarter Results.Business Editors BRISTOL, Conn.--(BUSINESS WIRE)--April 12, 2001 Barnes Group Inc. (NYSE NYSE See: New York Stock Exchange : B)-- -- Highest quarterly sales in the Company's history at $199 million. --Barnes Aerospace achieves record orders, 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. up 83 percent. Barnes Group Inc. (NYSE: B) today announced that diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.39 for the first quarter of 2001, compared with $0.50 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 first quarter of 2000. Net income for the quarter ended March 31, 2001 was $7.3 million, down from $9.4 million for the same period a year ago. 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 first quarter of 2001 were the highest in the Company's history at $199.3 million, up 15 percent from net sales of $173.0 million in 2000. Net sales growth in the first quarter reflected Barnes Group's recent acquisitions and a sharp increase in sales at Barnes Aerospace, which more than offset a decline in transportation-related sales at Associated Spring. "The significant efforts we have undertaken to re-focus our sales, both by industry and geographically, were apparent in our most recent quarterly results," said Edmund M. Carpenter, Barnes Group Inc.'s President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The integration of our two most recently acquired businesses remains at or ahead of schedule, and both of these businesses were important contributors to our top and bottom line this past quarter. It was also a very strong period for Barnes Aerospace, with record-setting sales, orders, and backlog," Carpenter added. Sales at Associated Spring were $76.0 million for the first quarter of 2001, down 12 percent from $86.3 million a year ago. Sales during the quarter were negatively impacted by the industry-wide slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the domestic transportation sector. This was partially offset by continued strong growth of the company's nitrogen gas spring products. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. at Associated Spring fell to $7.2 million in the first quarter of 2001, from $12.3 million for the same period a year ago, reflecting the sales volume decline and 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 costs incurred during the most recent quarter. Carpenter commented, "While sales and operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before at Associated Spring were impacted by the recent rapid contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of production in the domestic transportation market, Associated Spring's efforts to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. its customer base mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. that impact. Moreover, they have been rapidly reducing headcount and other expenses, while investing in the sales and marketing functions, to maximize long-term operating profitability at Associated Spring as transportation build levels improve." First quarter 2001 sales at Barnes Distribution were $79.4 million, up 30 percent from $61.1 million in the first quarter of 2000. This included sales of $21.0 million from Curtis Industries, which Barnes Group acquired in May, 2000. Barnes Distribution's operating profit for the first quarter of 2001 was $3.0 million, up from $2.9 million in the same period a year ago. Operating profit improved on the higher sales volume and aggressive expense controls, partially offset by lower sales and operating profit contribution from Barnes Distribution's Raymond division. "We continue to see improvement in Barnes Distribution's operating profitability, a trend that should be sustainable throughout the remainder of 2001," Carpenter stated. "The team's integration of Curtis Industries and Bowman Distribution is running ahead of schedule, with three facilities already consolidated. We expect to realize other post-acquisition expense reductions in warehousing, inventory and purchasing costs through the remainder of this year," Carpenter continued. Sales at Barnes Aerospace were $46.9 million in the quarter ended March 31, 2001, up 60 percent from $29.3 million in the same period a year ago. Organic sales grew approximately 21 percent, reflecting penetration of new accounts and sales of new products to existing customers, while sales from the recently acquired Kratz/Apex business totaled approximately $11.4 million in the first quarter of 2001. Orders at Barnes Aerospace were approximately $60 million during the first quarter of 2001, while order backlog increased to $157 million, compared with $86 million at March 31, 2000. Operating profit at Barnes Aerospace increased to $3.9 million for the quarter ended March 31, 2001, compared with $1.1 million in the comparable year-ago period. Operating profit increased primarily as a result of the higher sales volume, as well as a solid contribution from the Kratz/Apex acquisition. Commenting on Barnes Group's financial position, William C. Denninger, the Company's Chief Financial Officer, noted, "While Barnes Group has historically been a significant consumer of cash in the first quarter, by aggressively managing our operating assets Operating Assets Another term for working capital. and working capital, we were free cash flow positive this year." Among the other highlights of the quarter, Carpenter noted: -- Barnes Aerospace's West Chester, Ohio West Chester, Ohio, can refer to:
East Granby is in the Farmigton valley, with the Farmington River passing along the Southern border of the town. and Singapore. -- Barnes Distribution received approval from General Motors for its GM Dealer Equipment Program for the Curtis(R) PC+HD computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. code key cutter cutter, small, one-masted sailing vessel, with a rig similar to that of a sloop except that it usually has a sliding bowsprit and a topmast. From 1800 to 1830 cutters were in service between England and France. and duplicator. Carpenter concluded, "Looking out to the remainder of 2001, we believe that our plans to increase sales and profitability at Barnes Aerospace and Barnes Distribution will lead to continued growth on a year-over-year basis. Additionally, Associated Spring has taken a number of important steps to enhance shareholder value within that business. Thus, for Barnes Group Inc. as a whole, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op regarding the remainder of the year." Barnes Group Inc. (www.barnesgroupinc.com) is a diversified diversified (di·verˑ·s international manufacturer of precision metal parts and distributor of industrial supplies, serving a wide range of markets and customers. Founded in 1857 and headquartered in Bristol, Connecticut Bristol is a city located in Hartford County, Connecticut, 20 miles (32 km) southwest of Hartford. According to 2006 Census Bureau estimates, the population of the city is 61,353. , Barnes Group consists of three businesses with 2000 sales of $740 million: Associated Spring, a manufacturer of precision mechanical and nitrogen gas springs; Barnes Aerospace, a manufacturer and repairer of aircraft engine and airframe components and assemblies; and Barnes Distribution, a distributor of maintenance, repair and operating supplies. Nearly 5,500 dedicated employees at more than 50 locations worldwide contribute to Barnes Group Inc.'s success. This release may contain certain 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. as defined in the Public Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements. Investors are encouraged to consider these risks and uncertainties as described within the Company's periodic filings with the Securities and Exchange Commission, including the following: changes in market demand for the types of products and services produced and sold by Barnes Group, changes in worldwide economic and political conditions, interest and foreign exchange rate fluctuations, and regulatory changes.
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
Unaudited
Three months ended March 31
2001 2000
Net sales $ 199,250 $ 173,007
Cost of sales 132,562 116,318
Selling Expenses 29,122 21,180
Administrative Expenses 23,813 19,753
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185,497 157,251
Operating income 13,753 15,756
Operating margin 6.9% 9.1%
Other income 1,405 1,318
Interest expense 4,233 2,778
Other expenses 1,173 673
Income before income taxes 9,752 13,623
Income taxes 2,438 4,223
Net income $ 7,314 $ 9,400
Per common share:
Net income - basic $ 0.39 $ 0.51
- diluted 0.39 0.50
Dividends 0.20 0.19
Average common shares
outstanding - basic 18,620,760 18,598,578
- diluted 18,937,924 18,753,019
BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Unaudited
March March
2001 2000
Assets
Current assets
Cash and short-term investments $ 31.2 $ 43.9
Accounts receivable 117.3 106.3
Inventories 82.6 68.5
Deferred income taxes and prepaid expenses 20.8 17.6
Total current assets 251.9 236.2
Deferred income taxes 14.1 23.1
Property, plant and equipment 162.7 143.7
Goodwill 155.7 88.0
Other assets 53.0 40.7
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$ 637.5 $ 531.8
Liabilities and Stockholders' Equity
Current liabilities
Notes payable $ 9.0 $ 33.9
Accounts payable 63.1 55.2
Accrued liabilities 53.4 45.7
Total current liabilities 125.5 134.8
Long-term debt 230.0 140.0
Deferred income taxes 6.2 6.9
Other liabilities 72.2 70.5
Stockholders' equity 203.5 179.7
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$ 637.5 $ 531.8
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