Butler Manufacturing Company Reports Third 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)--Oct. 21, 2002 Butler Butler, city (1990 pop. 15,714), seat of Butler co., W Pa.; inc. as a borough 1817, as a city 1917. It is located in an area with coal, natural gas, oil, and limestone resources. Glass and plastic products, machinery, and abrasives are made. 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 third quarter ended Sept. 30, 2002 of $239 million compared with $250 million last year. Net earnings for the quarter were $1.7 million, or $.27 per share. Last year we earned $5.9 million, or $.94 per share. While there was a modest seasonal pick-up pick-up Noun 1. a small truck with an open body used for light deliveries 2. Informal a casual acquaintance made for a sexual purpose 3. Informal a. in the third quarter, as anticipated, the combination of higher steel costs and lower selling prices due to tough competitive conditions limited the improvement in net earnings. For the nine months, sales were $635 million compared with $658 million a year ago. The competitive pressure on selling prices, coupled with higher costs, depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. gross profit margins 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. resulting in a $3.4 million, or $.54 per share, loss year to date. Last year for the first nine months we earned $6.6 million, or $1.04 per share. Commenting on the results, John Holland, chairman and chief executive officer, said, "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 produced year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales of $296 million, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 9% lower than 2001. The 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. through the first nine months was $9 million compared with 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. of $4.4 million for the same period last year. Lower selling prices as a result of intense price competition and higher steel, healthcare and employee separation costs all contributed to this loss. The markets for both our pre-engineered metal and wood buildings remain weak. "The Metal Building Manufacturers Association reports industry sales declined approximately 11% through August, the latest data available. If that trend continues through the end of this year, the peak to trough Trough The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion. sales decline in the metal building industry will be approximately $1 billion, or 39%, spanning 1998 to 2002. We have reduced our capacity and staffing levels and increased prices to pass along the higher steel costs related to the steel industry tariffs This is a list of tariffs and trade legislation:
residential - used or designed for residence or limited to residences; "a residential hotel"; "a residential quarter"; "a construction markets, lessening our dependence on the depressed industrial building market. Our competitive position remains solid and we have maintained market share in this difficult market. "Our International Building Systems segment reported nine month sales of approximately $81 million, 42% higher than last year, all related to Butler's China pre-engineered metal building operations. Operating income in this segment was $5.3 million, compared with $1.3 million a year ago with the income in both years primarily from our China operation. Our China business execution is outstanding and our strategy is working well. We are committed to expanding our market leading position in this dynamic, growth market as evidenced by the addition of the second plant which is on schedule for completion and opening early next year. We completed the sale of our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business in July July: see month. , and have licensed our technology and trademarks to the Lindab Group AB. We will continue to provide marketing support and leads to them for European building opportunities. The asset values received upon sale were greater than originally estimated, and more than offset additional 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 and other benefit costs incurred, allowing for a net restructuring charge 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. recovery of $0.6 million during the quarter. "The Vistawall Architectural Products segment sales were $166 million, 6% lower than a year ago, comparing favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with the 21% drop in overall commercial construction market. 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 approximately $7.6 million compared with $12 million a year ago. The drop in operating earnings is related to the lower sales and more intense price competition which has depressed selling prices. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in this business have been well managed. "Our Construction business sales for the first nine months were $93 million compared with approximately $87 million for the same period last year. Operating earnings were $1.6 million compared with $1.5 million last year. We have enjoyed good success concentrating this business on large, complex structures for major corporate customers and are working in close partnership with our Butler Builder network to successfully execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution several projects. The Real Estate segment sales were $16 million through the first nine months compared with $32 million last year. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings were $3.1 million compared with $5.5 million a year ago. As noted in previous reports, the lower 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 the beginning of the year coupled with the slower economy has resulted in fewer opportunities for our real estate business. "The company's backlog was $284 million compared with $323 million last year, excluding 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). . Our higher margin product
backlog is approximately 3% lower compared with last year, excluding
Europe, and the construction backlog is approximately 42% lower.
"The nonresidential construction market still shows no sign of improvement to date, marking three consecutive years of decline. F. W. Dodge reports that orders through August were 9% lower compared with last year. Based upon our current outlook for the fourth quarter, Butler will record a loss for the quarter and for the year. We take a realistic view of the current market outlook and will continue to focus our efforts on improving our cost competitiveness, developing new products and markets to position Butler for resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in growth and earnings when the economy recovers," Mr. Holland concluded. Butler Manufacturing Company is the world's leading producer of pre-engineered building systems, a leading supplier of architectural aluminum systems and components, and provides construction and real estate services for the nonresidential construction market. An analyst conference call to review the third-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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , and general economic conditions, as well as other risks detailed in the company's 2001 Annual Report to Shareholders on page 19.
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
2002 2001 2002 2001
----------------------------------------------------------------------
(Dollars in thousands
except per share amounts)
Net sales $ 238,501 $ 249,676 $ 634,774 $ 658,207
Cost of sales 206,232 208,770 551,175 558,878
---------- ---------- ---------- ----------
Gross profit 32,269 40,906 83,599 99,329
Selling, general and
administrative
expenses 30,414 30,302 86,160 85,620
Restructuring Credit,
net (631) - (631) -
---------- ---------- ---------- ----------
Operating income
(loss) 2,486 10,604 (1,930) 13,709
Other income, net 961 861 1,577 1,567
---------- ---------- ---------- ----------
Earnings (loss) before
interest and taxes 3,447 11,465 (353) 15,276
Interest expense 1,942 1,949 5,875 5,022
---------- ---------- ---------- ----------
Pretax earnings (loss) 1,505 9,516 (6,228) 10,254
Income tax expense
(benefit) (187) 3,588 (2,846) 3,704
---------- ---------- ---------- ----------
Net earnings (loss) $ 1,692 $ 5,928 $ (3,382) $ 6,550
========== ========== ========== ==========
Basic earnings (loss)
per common share $ 0.27 $ 0.94 $ (0.54) $ 1.04
========== ========== ========== ==========
Diluted earnings
(loss) per common
share $ 0.27 $ 0.94 $ (0.54) $ 1.04
========== ========== ========== ==========
Basic weighted average
number of shares 6,321,912 6,290,196 6,309,066 6,282,147
Diluted weighted
average number of
shares 6,325,052 6,293,169 6,309,066 6,285,761
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
At September 30, 2002 2001 2002 2001
----------------------------------------------------------------------
(Dollars in thousands)
LIABILITIES &
ASSETS: SHAREHOLDERS'
EQUITY:
Cash and Notes
equivalents $ 56,988 $ 51,645 payable $ 1,839 $ 1,889
Receivables, net 120,375 146,951 Current
Inventories 58,334 58,245 maturities of
Real estate long-term
developments debt 5,528 5,581
in progress 9,539 29,430 Accounts
Prepaid income payable 73,215 77,884
taxes 16,635 10,587 Accrued
Other current liabilities 101,723 92,557
assets 8,433 9,203 Taxes on
-------- -------- income 5,115 11,826
Total Dividends
current payable 1,136 1,132
assets 270,304 306,061 -------- --------
Total
Investments and current
other assets 53,949 41,733 liabilities 188,556 190,869
Assets held for
sale 3,684 3,684 Deferred
Plant and income taxes 3,683 1,409
equipment, net 138,449 131,495 Other non-
current
-------- -------- liabilities 17,715 18,254
$466,386 $482,973 Long-term debt 97,843 103,327
======== ======== Shareholders'
equity 158,589 169,114
-------- --------
$466,386 $482,973
======== ========
CONSOLIDATED STATEMENTS OF CASH FLOWS
----------------------------------------------------------------------
Nine Months Ended
September 30, 2002 2001 2002 2001
----------------------------------------------------------------------
(Dollars in thousands)
CASH FROM CASH FROM
OPERATING FINANCING
ACTIVITIES: ACTIVITIES:
Net earnings Dividends (3,400) (3,200)
(loss) $ (3,382) $ 6,550 Net change in
Depreciation and long-term debt (402) 50,029
amortization 13,219 12,775 Net change in
Restructuring short-term
charge (1,137) - debt (350) (33,248)
Change in assets Purchase and
and liabilities 10,362 32,267 sale of
Other, net 117 (360) treasury
-------- -------- stock, net 673 787
Other, net 288 (532)
Total 19,179 51,232 ------- --------
-------- -------- Total (3,191) 13,836
------- --------
CASH FROM
INVESTING ACTIVITIES:
Capital
expenditures (7,584) (26,681)
Capital
expenditures -
Software (6,330) (3,745)
Proceeds from
European assets
sale 2,345 -
Other, net - 148 INCREASE IN
-------- -------- CASH
AND
Total (11,569) (30,278) EQUIVALENTS $ 4,419 $ 34,790
-------- -------- ======= ========
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