Butler Manufacturing Company Reports First-Quarter Results.Business Editors KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--April 24, 2003 Butler Manufacturing Company, (NYSE NYSE See: New York Stock Exchange :BBR BBR Bureau of Business Research BBR Broadbandreports.com (website) BBR Bending Beam Rheometer BBR Burnt Beyond Repair BBR Black Body Radiation (quantum physics) BBR Baby Back Ribs BBR Back Bone Ring ) reported sales for the first quarter ended March 31, 2003 of $170 million, 7% lower than a year ago. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. F.W. Dodge, domestic nonresidential Adj. 1. nonresidential - not residential; "the commercial or nonresidential areas of a town"; "community colleges are typically nonresidential" residential - used or designed for residence or limited to residences; "a residential hotel"; "a residential quarter"; "a construction activity remained weak with total contract awards off 18% through February February: see month. . Price competition also remained intense and the unabsorbed capacity costs associated with the lower volume resulted in a loss for the quarter of $3.9 million, or $.62 per share, compared with a loss of $5.4 million, or $.85 per share last year. Costs are being well managed as evidenced by the lower expenses for the quarter that more than offset rising health care, pension and general insurance cost increases. Commenting on the results, John Holland, chairman and chief executive officer said, "Sales in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Building Systems segment were approximately $80 million, up nearly 3% compared with a year ago. Our pre-engineered metal buildings sales were up and sales in our Lester Les´ter n. 1. (Meteor.) A dry sirocco in the Madeira Islands. wood frame building business were down when compared with last year. Although the domestic market was weaker, we were able to grow the top line and gain market share in the metal building market. However, higher steel costs and continued price competition resulted in an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $6.4 million compared with an operating loss of $4.9 million last year. The metal building business accounted for the increased loss. We recently announced the decision to build a pre-engineered metal building facility in Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , a necessary step to adjust our sourcing strategy. This investment will support the company's successful historical growth in Mexico and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and enhance our competitiveness and growth prospects in these markets. In addition, the plant will provide a source of lower cost production to serve the US market. "The International Building Systems segment sales, all from China in the current year, were approximately $22 million, up 17% compared with a year ago, excluding European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales as that business was sold in July July: see month. 2002. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $2.6 million compared with $0.4 million last year. The 2002 results include a loss from 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). of $0.6
million. The market for our products in China remains strong. We intend
to build upon Butler's leadership position in the pre-engineered
metal building market in China investing in additional capacity, as
needed as needed prn. See prn order. , to support growth and introduce new products to broaden the
markets served.
"The Vistawall Architectural Products segment sales were about $53 million, up 2.5% compared with last year. 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 were $2.1 million compared with $0.9 million a year ago with the improvement driven by increased operating efficiencies and lower operating costs operating costs npl → gastos mpl operacionales . We opened two additional service centers during the quarter to support the growth strategies in this segment and will use our capacity and low cost structure to continue to target market share gains. "Butler Construction's sales were approximately $19 million compared with $38 million last year and operating earnings were $0.3 million compared with $0.8 million in 2002. The drop in earnings was volume related with costs well managed. The Real Estate segment had no sales in the first quarter with none last year as well. The business recorded a pretax loss pretax loss A loss reported before tax benefits are considered. of $0.6 million compared with pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings of $0.6 million last year. This turnabout was related to lower rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time as well as recording $0.8 million in cumulative depreciation on a project where the prospect for the sale has extended beyond one year. "Domestic construction markets remain weak and challenging. Entering April, our 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. was $277 million, down about 2% from a comparable backlog a year ago. Price competition is expected to continue in the second quarter and unabsorbed capacity costs will continue with the likely result of a loss for the quarter. Our higher margin product backlog was approximately 1% lower and construction backlog was down about 4%. We are striking a balance between tough cost management and investment in new products and strategic investments that will position the company for marked improvement when the economy turns around," Mr. Holland concluded. An analyst conference call to review the first-quarter results will be held today at 3:30 PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . A live audio webcast of the call will be available to the public on a listen-only basis. To listen to the webcast go to www.butlermfg.com and click on the webcast icon. Statements in this press release concerning the company's business outlook or future economic performance; anticipated profitability, revenues, expenses or other financial items, together with other statements that are not historical facts, are "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 that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those stated in such statements. Such risks and uncertainties include, but are not limited to, industry cyclicality, fluctuations in customer demand and order pattern, the seasonal nature of the business, changes in pricing or other actions by competitors, and general economic conditions, as well as other risks detailed in the company's 2002 Annual Report to Shareholders on page 16.
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three months ended March 31, 2003 2002
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(Dollars in thousands except per share amounts)
Net sales $ 169,767 $ 182,852
Cost of sales 148,347 160,733
---------- ----------
Gross profit 21,420 22,119
Selling, general and administrative expenses 26,542 27,837
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Operating loss (5,122) (5,718)
Other income (expense), net (996) (70)
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Loss before interest and taxes (6,118) (5,788)
Interest expense 2,146 1,958
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Pretax loss (8,264) (7,746)
Income tax benefit 4,349 2,378
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Net loss $ (3,915)$ (5,368)
========== ==========
Basic loss per common share $ (0.62)$ (0.85)
========== ==========
Diluted loss per common share $ (0.62)$ (0.85)
========== ==========
Basic weighted average number of shares 6,335,289 6,290,239
Diluted weighted average number of shares 6,335,289 6,290,239
CONSOLIDATED BALANCE SHEETS
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At March 31, 2003 2002
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(Dollars in thousands)
ASSETS:
Cash and equivalents $ 62,321 $ 45,263
Receivables, net 88,098 94,791
Inventories 61,846 54,548
Real estate developments 5,598 23,975
Net current deferred tax assets 26,783 16,635
Other current assets 17,900 9,400
-------- --------
Total current assets 262,546 244,612
Investments and other assets 60,245 52,340
Assets held for sale 3,684 3,684
Plant and equipment, net 121,040 141,013
-------- --------
$447,515 $441,649
======== ========
LIABILITIES &
SHAREHOLDERS' EQUITY:
Short-term debt $ 12,288 $ 7,557
Accounts payable 54,346 55,881
Accrued liabilities 107,602 89,993
Taxes on income 8,711 5,248
Dividends payable 1,140 1,134
-------- --------
Total current liabilities 184,087 159,813
Net noncurrent deferred tax liabilities 4,799 3,683
Other non-current liabilities 20,408 21,493
Long-term debt 93,648 98,041
Shareholders' equity 144,573 158,619
-------- --------
$447,515 $441,649
======== ========
CONSOLIDATED STATEMENTS OF CASH FLOWS
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Three Months Ended March 31, 2003 2002
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(Dollars in thousands)
CASH FROM
OPERATING ACTIVITIES:
Net loss $ (3,915)$ (5,368)
Depreciation and amortization 5,538 4,533
Change in assets and liabilities (12,125) (1,489)
Other, net (17) 15
-------- --------
Total (10,519) (2,309)
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CASH FROM
INVESTING ACTIVITIES:
Capital expenditures - PP&E (4,759) (1,602)
Capital expenditures - software (1,254) (2,314)
-------- --------
Total (6,013) (3,916)
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CASH FROM
FINANCING ACTIVITIES:
Dividends (1,135) (1,130)
Net change in long-term debt 1,121 (203)
Net change in short-term debt 2,476 (160)
Purchase and sale of treasury stock, net 400 358
-------- --------
Total 2,862 (1,135)
-------- --------
EFFECT OF EXCHANGE RATE CHANGES 213 54
-------- --------
INCREASE (DECREASE) IN
CASH AND EQUIVALENTS $(13,457)$ (7,306)
======== ========
The information and opinions contained in this release have been furnished fur·nish tr.v. fur·nished, fur·nish·ing, fur·nish·es 1. To equip with what is needed, especially to provide furniture for. 2. and approved by Butler Manufacturing Company. We are retained by them as investor relations Investor relations The process by which the corporation communicates with its investors. counsel. |
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