Cascade Corporation Announces Earnings of 36 Cents Per Share for the Third Quarter of Fiscal 2003 Ended October 31, 2002.Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 4, 2002 Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. Corporation (NYSE NYSE See: New York Stock Exchange :CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. ) today reported its financial results for the quarter ended Oct. 31, 2002. Third Quarter Financial Highlights: -- Consolidated net sales of $70.2 million, a 13% increase from consolidated net sales of $62.1 million in the third quarter of fiscal 2002. -- Gross margin of 35.5% as compared to 33.6% in the third quarter of fiscal 2002, largely attributable to improvements in manufacturing processes and measures to reduce costs. -- Consolidated net income of $4.4 million ($.36 per share), compared to net income of $3.6 million ($.30 per share) in the third quarter of the prior year. Excluding the impact of the elimination of goodwill amortization recognized during the prior year quarter; and the settlement of litigation with the City of Portland during the quarter just ended, net income would have been $5.8 million in the third quarter of fiscal 2003 versus $4.4 million in the third quarter of fiscal 2002. Market Conditions: -- Cascade manufactures materials handling Materials handling The loading, moving, and unloading of materials. The hundreds of different ways of handling materials are generally classified according to the type of equipment used. devices for all brands of lift trucks sold in each of its major markets. The North American lift truck market improved during the third quarter of fiscal 2003 as measured by a 15% increase in lift truck shipments over the same period in fiscal 2002. Industry shipments are a strong indicator of the business environment and broad trends. Although sales and industry shipments do not necessarily correlate, Cascade's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales increased 10.8% in Q3 fiscal 2003 to $44.4 million as compared to $40.1 million in Q3 of fiscal 2002. -- European lift truck shipments have continued to fluctuate. Cascade's European sales improved 18% to $16.1 million during Q3 of fiscal 2003 as compared to $13.6 million during Q3 of fiscal 2002. The increase is primarily due to improved OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and order rates and also to the strengthening of the Euro. Overall weak economic conditions in Europe continue to create uncertainty as to future lift truck shipments. -- Sales in the Asia Pacific market increased 15.9% in Q3 of fiscal 2003 in comparison to Q3 of fiscal 2002, largely driven by strong sales in China. Significant Events: -- Settlement Agreement: The Company entered into a settlement agreement with the City of Portland
of fiscal 2003. The $3.6 settlement, net of a $1.5 million charge recorded in the fourth quarter of fiscal 2002, resulted in a $2.1 million charge in the current quarter. -- Dividend Reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. and 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. : The Company's Board of Directors reinstated and declared a quarterly dividend of $.10 per share as announced November 21, 2002. A quarterly dividend was last paid in Q2 of fiscal 2001. The Board also extended the prior authorization prior authorization, n See predetermination. prior authorization Health insurance A cost containment measure that provides full payment of health benefits only if the hospitalization or medical treatment has been to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 600,000 shares for twelve months as market conditions warrant. A total of 248,700 shares have been purchased to date under the authorization. Robert C. Warren, Jr., president and chief executive officer, stated, "We're pleased with the quarterly financial performance and encouraged by the continuing uptick Uptick A transaction occurring at price above its previous transaction. In order for an uptick to occur, a transaction price must be followed by an increased transaction price. in North American activity. We continue to be cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the business climate in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The European market continues to suffer from overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. and general economic uncertainty and is not expected to improve in the near future. Our focus is currently on internal initiatives and increasing market share." Warren further commented, "This quarter was important to Cascade in several ways. The City of Portland 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. settlement was positively resolved and we're now able to concentrate on our future business. In addition, the reinstatement of the quarterly dividend validates our financial performance and commitment to our shareholders." Forward Looking Statements: This press release contains 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. made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of 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. Readers are cautioned that a number of factors could cause Cascade's actual results to differ materially from any results indicated in this release or in any other forward-looking statements made by, or on behalf of Cascade. These include among others factors related to general economic conditions, interest rates, the demand for materials handling products, performance of its manufacturing facilities, and the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the Materials Handling Industry. Further, historical information should not be considered an indicator of future performance. Additional considerations and important risk factors are described in Cascade's reports on 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. and 10-Q and other filings with the Securities and Exchange Commission. About Cascade Corporation: Cascade Corporation, headquartered in Portland, Ore., is a leading international manufacturer of lift truck attachments, forks and accessories. Additional information on Cascade is available on its web site, www.cascorp.com.
Cascade Corporation
(unaudited - in thousands, except per share data)
CONSOLIDATED STATEMENTS OF Three Months Nine Months
INCOME Ended October 31 Ended October 31
-------------------------- -------------------------------------
2002 2001 2002 2001
-------- -------- --------- ---------
Net sales $70,241 $62,140 $194,455 $199,804
Cost of goods sold 45,298 41,232 126,650 131,722
-------- -------- --------- ---------
Gross profit 24,943 20,908 67,805 68,082
Selling and administrative
expenses 14,411 12,786 41,679 40,872
Environmental expenses 2,100 -- 2,100 --
Amortization -- 1,067 -- 3,228
-------- -------- --------- ---------
Operating income 8,432 7,055 24,026 23,982
Interest expense, net 1,238 1,273 3,426 4,226
Other (income) expense 291 (225) 136 64
-------- -------- --------- ---------
Income from continuing
operations before provision for
income taxes 6,903 6,007 20,464 19,692
Income tax provision 2,485 2,279 7,367 7,479
-------- -------- --------- ---------
Income from continuing
operations 4,418 3,728 13,097 12,213
Discontinued operations:
Income (loss) from discontinued
operations, net of
income taxes -- (107) -- 476
-------- -------- --------- ---------
Net income $4,418 $3,621 $13,097 $12,689
======== ======== ========= =========
Basic earnings per share:
Continuing operations $0.39 $0.33 $1.15 $1.08
Discontinued operations -- (0.01) -- 0.04
-------- -------- --------- ---------
$0.39 $0.32 $1.15 $1.12
======== ======== ========= =========
Diluted earnings per share:
Continuing operations $0.36 $0.31 $1.07 $1.00
Discontinued operations -- (0.01) -- 0.04
-------- -------- --------- ---------
$0.36 $0.30 $1.07 $1.04
======== ======== ========= =========
CONSOLIDATED BALANCE SHEETS
---------------------------
Assets
------ Oct. 31, 2002 Jan. 31, 2002
-------------- -------------
Current Assets:
Cash and Cash Equivalents $ 33,007 $ 25,611
Marketable Securities 10,200 --
Receivables, Net 46,383 39,312
Inventories 28,802 30,817
Other Current Assets 10,269 10,317
-------------- -------------
Total Current Assets 128,661 106,057
Property, Plant & Equipment, Net 62,349 61,412
Goodwill and Other Assets, Net 80,977 79,817
-------------- -------------
Total Assets $271,987 $247,286
============== =============
Liabilities and Shareholders' Equity
-----------------------------------------
Current Liabilities $48,491 $40,046
Long-Term Liabilities:
Long-Term Debt 62,627 65,679
Other Long-Term Liabilities 17,091 16,920
-------------- -------------
Total Liabilities 128,209 122,645
Exchangeable Preferred Stock
and Minority Interest 8,530 11,374
Shareholders' Equity 135,248 113,267
-------------- -------------
Total Liabilities & Shareholders' Equity $271,987 $247,286
============== =============
Note: Certain reclassifications have been made to the prior year consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current year presentation. Such reclassifications had no impact on results of operations or shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. . |
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