Butler Manufacturing Reports 13% Earnings Per Share Gain in Second Quarter.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)--July 17, 2000 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 net income for the second quarter ended June June: see month. 30, 2000 of $6.6 million compared with $6.3 million a year ago. Earnings per share increased 13% to $1.01 per share compared with $.89 per share in the second quarter last year. Sales for the quarter were $244 million compared with $249 million last year. For the first six months, net earnings were up 34% to $8.9 million and sales increased 2% to $463 million. Earnings per share expanded by 45% to $1.32 per share compared with last year. The increase in earnings per share benefited from Butler's share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. Through June 2000, the company acquired approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 506,000 shares of stock, investing about $11.5 million. Commenting on the results, John Holland, president and chief executive officer, said, "For the six months, our U.S. metal buildings business sales were 4% ahead of last year and 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 up significantly. This improvement was due to our focus on fundamentals in this business, providing our customers with new and enhanced products and services and heightened cost controls. Sales of Lester Les´ter n. 1. (Meteor.) A dry sirocco in the Madeira Islands. wood frame buildings were up about 13% through June and 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. was substantially lower than last year. The general weakness in agriculture continues to challenge the Lester business. Nevertheless, we continue to drive for performance improvement in this business despite lackluster lack·lus·ter adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" market conditions for Lester products. "Sales in the International metal buildings business were approximately 18% below comparable sales during the first six months in 1999, primarily due to lower volume in the Americas A·mer·i·cas , the See America. region. The business operated at breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations through June of this year compared with an 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. in 1999. The outlook for the China and 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). regions
is good while prospects in the Americas region remain weak.
"The Vistawall architectural aluminum group's sales were 11% higher compared with last year. Operating income was about 10% lower than last year due to higher aluminum costs and the necessity to make higher outside purchases of extrusions to keep up with demand. Aluminum costs have begun to decrease, which should help operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: during the balance of the year. We will continue outside purchases of extrusions to support the sales growth in this business. The plant expansion in Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. is on schedule and should begin production early next year which will enable us to significantly reduce outside purchases and provide the capacity to continue our successful growth record at Vistawall. "Butler Construction sales were 16% higher through June and operating income was up 15%. We are sharpening For image sharpening, see . Sharpening is the process of creating or refining a sharp edge on a tool or implement. The term has a wide application but can be expressed as the creation of two intersecting planes which produce an edge that is sharp enough to cut through the target the focus of this business, concentrating operations on higher margin opportunities. Butler Real Estate, our build-to-suit-to-lease real estate subsidiary, is off to a slower start in 2000 with lower sales and operating income compared with last year. Developments in progress are up about 50% however, which will benefit the second half of the year. "We are pleased with the improvement in financial performance for the first six months, particularly considering that F. W. Dodge reports that contract awards for 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 building projects are down 4% through May compared with 1999. Butler's total 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 $336 million, nearly the same as a year ago. Despite the slowing in the nonresidential construction economy and the increase in interest rates, we expect continued improvement in quarterly income in the second half of 2000," Mr. Holland concluded. Butler Manufacturing Company is the world's leading producer of pre-engineered building systems and is a supplier of specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. components and construction services for the nonresidential construction market. 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 1999 Annual Report to Shareholders on page 17.
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
----------------------------------------------------------------------
(Dollars in thousands
except per share amounts)
Net sales $ 244,036 $ 248,713 $ 463,225 $ 452,109
$
Cost of sales 201,879 204,234 386,354 373,727
------------ ----------- ----------- -----------
Gross profit 42,157 44,479 76,871 78,382
Selling, general and
administrative expenses 30,482 32,227 59,979 62,513
Restructuring charge
(credit) (441) - (441) 1,514
------------ ----------- ----------- -----------
Operating income 12,116 12,252 17,333 14,355
Other income
(expense), net (132) (96) (371) (233)
------------ ----------- ----------- -----------
Earnings before
interest and taxes 11,984 12,156 16,962 14,122
Interest expense 1,405 1,366 2,672 2,875
------------ ----------- ----------- -----------
Pretax earnings 10,579 10,790 14,290 11,247
Income tax expense 3,936 4,459 5,432 4,652
------------ ----------- ----------- -----------
Net earnings $ 6,643 $ 6,331 $ 8,858 $ 6,595
$
============ =========== =========== ===========
Basic earnings
per common share $ 1.01 $ 0.89 $ 1.33 $ 0.92
============ =========== =========== ===========
Diluted earnings
per common share $ 1.01 $ 0.89 $ 1.32 $ 0.91
============ =========== =========== ===========
Basic weighted
average number
of shares 6,598,922 7,084,119 6,676,980 7,159,160
Diluted weighted
average number
of shares 6,609,374 7,149,851 6,688,477 7,215,043
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------------------------
At June 30, 2000 1999
----------------------------------------------------------------------
(Dollars in thousands)
ASSETS:
Cash and equivalents $ 17,519 $ 31,669
$
Receivables, net 137,197 137,475
Inventories 57,793 57,745
Real estate developments
in progress 33,057 22,649
Prepaid income taxes 9,237 10,944
Other current assets 9,057 10,078
----------- -----------
Total current assets 263,860 270,560
Investments and other assets 36,844 42,939
Assets held for sale 4,000 4,000
Plant and equipment, net 102,468 94,077
----------- -----------
$ 407,172 $ 411,576
$
=========== ===========
----------------------------------------------------------------------
At June 30, 2000 1999
----------------------------------------------------------------------
LIABILITIES &
SHAREHOLDERS' EQUITY:
Notes payable $ 9,831 $ 1,354
Current maturities of
long-term debt 5,311 5,727
Accounts payable 80,506 90,554
Accrued liabilities 75,089 71,857
Taxes on income 8,705 10,412
Dividends payable 1,023 1,055
------------ ------------
Total current
liabilities 180,465 180,959
Deferred income taxes 1,642 3,441
Other non-current liabilities 13,071 17,280
Long-term debt 56,830 62,293
Shareholders' equity 155,164 147,603
------------ ------------
$ 407,172 $ 411,576
============ ============
CONSOLIDATED STATEMENTS OF CASH FLOWS
------------------------------------------------------------
Six Months Ended June 30, 2000 1999
------------------------------------------------------------
(Dollars in thousands)
CASH FROM
OPERATING ACTIVITIES:
Net earnings $ 8,858 $ 6,595
Depreciation and
amortization 7,804 7,751
Restructuring charge, net (441) 1,514
Change in assets and
liabilities (28,546) 24,593
Other, net (91) (40)
----------- -----------
Total (12,416) 40,413
----------- -----------
CASH FROM
INVESTING ACTIVITIES:
Capital expenditures (14,950) (4,557)
Other, net (988) (3,765)
----------- -----------
Total (15,938) (8,322)
$
----------- -----------
----------------------------------------------------------------------
Six Months Ended June 30, 2000 1999
----------------------------------------------------------------------
CASH FROM
FINANCING ACTIVITIES:
Dividends (2,168) (2,164)
Net change in long-term debt (191) (615)
Net change in short-term debt 6,155 (378)
Purchase and sale of
treasury stock, net (11,019) (6,474)
Other, net 145 (1,051)
----------- -----------
Total (7,078) (10,682)
----------- -----------
INCREASE/(DECREASE) IN
CASH AND EQUIVALENTS $ (35,432) $ 21,409
=========== ===========
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