Cascade Corporation Announces Operating Results for the Fourth Quarter and the Year Ended January 31, 2002.Business Editors PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore.--(BUSINESS WIRE)--April 2, 2002 Robert C. Warren, Jr., President and Chief Executive Officer of 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. ) reported net income for the year ended January 31, 2002 of $4.1 million ($.34 per share) on 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 of $252.7 million, as compared to net income of $11.9 million ($0.97 per share) on net sales of $301.4 million for the year ended January 31, 2001. The Company incurred a net loss in the fourth quarter ended January 31, 2002 of $8.6 million (.76 per share), which included fourth quarter after-tax charges of $9.7 million ($.86 per share) as described below, on net sales of $52.9 million. This compared to net income for the fourth quarter ended January 31, 2001 of $1.3 million ($.11 per share) on net sales of $68.2 million. The Company's fourth quarter results include pre-tax charges of $5.1 million ($3.3 million after-tax) for a loss on goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. related to the Company's operations in Australia and $7.3 million ($4.7 million after-tax) for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. from the sale of the Company's tire business in 1999. Fourth quarter results also include a loss of $1.9 million ($1.7 million after-tax) from the sale of its hydraulic cylinder Hydraulic cylinders (also called linear hydraulic motors) are mechanical actuators that are used to give a linear force through a linear stroke. Operation Hydraulic cylinders get their power from pressurized hydraulic fluid, which is typically oil. division in January 2002. The Company had previously announced the sale of its hydraulic cylinder division as part of the Company's commitment to pursuing opportunities more closely related to its core business of designing and manufacturing material handling products. Warren noted that the 16.1% decrease in the Company's net sales in fiscal 2002 was due to the worldwide decline in lift truck shipping rates. The Company's largest market, 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. , experienced the most significant decline with calendar year 2001 lift truck order and shipping rates falling 40% and 25%, respectively, below prior year levels. 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. Warren "The Company pursued major cost management initiatives during the year to maintain strong gross margins on its core products. These initiatives included a 13% reduction in Cascade's worldwide workforce, modified work schedules and aggressive material cost reductions." Despite the decrease in sales with the industry downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , the Company's gross margin in fiscal 2002 was consistent with fiscal 2001. Warren added "the Company is well positioned with industry demand expected to increase somewhat towards the end of the year." Warren noted that the environmental 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. brought by the City of Portland
adj. Capable of being allocated. Adj. 1. allocable - capable of being distributed allocatable, apportionable distributive - serving to distribute or allot or disperse share of any eventual liability. The Company continues to believe it has substantial defenses against the City's claims. Cascade Corporation, headquartered in Portland, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. is a leading international manufacturer of lift truck attachments, forks Forks may refer to:
Forward-looking Information 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. " within the meaning 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. Factors which could cause actual results to differ materially from these forward-looking statements include, but are not limited to, competitive factors in, 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 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. industry; fluctuations in lift truck orders or deliveries, availability and cost of raw materials; general business, financing and economic conditions in North America, Europe and Asia; foreign currency fluctuations; pending litigation; and effectiveness of the Company's cost reduction initiatives.
Cascade Corporation
(in thousands except per share data)
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Twelve Months Ended
January 31 January 31
----------------- -------------------
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 52,911 $ 68,225 $ 252,715 $ 301,358
Cost of goods sold 36,294 46,297 168,015 200,993
--------- ---------- ---------- ----------
Gross profit 16,617 21,928 84,700 100,365
Selling and administrative
expenses 12,087 19,244 52,960 65,212
Amortization 1,172 1,157 4,399 5,366
Write-off of note receivable 7,308 -- 7,308 --
Loss on goodwill impairment 5,100 -- 5,100 --
Environmental expenses 1,500 -- 1,500 4,878
--------- ---------- ---------- ----------
Operating income (loss) (10,550) 1,527 13,433 24,909
Interest expense (1,314) (2,051) (6,366) (8,121)
Interest income 218 443 1,044 1,269
Other income (expense), net 166 1,347 102 (792)
--------- ---------- ---------- ----------
(Loss) income from continuing
operations before provision
for income taxes (11,480) 1,266 8,213 17,265
Income tax provision
(benefit) (4,569) 707 2,911 7,491
---------- ---------- ---------- ----------
(Loss) income from continuing
operations (6,911) 559 5,302 9,774
Discontinued operations:
Income from discontinued
operations, net of income
Taxes 9 737 485 2,089
Loss on sale of discontinued
operations, net of Income
taxes (1,660) -- (1,660) --
---------- ---------- ---------- ----------
Net income (loss) $ (8,562) $ 1,296 $ 4,127 $ 11,863
========== ========== ========== ==========
Basic earnings per share:
Continuing operations $ (0.61) $ 0.05 $ 0.47 $ 0.84
Discontinued operations $ -- $ 0.06 $ 0.04 $ 0.18
$
Loss on sale of
discontinued
operations $ (0.15) $ -- $ (0.15) --
---------- ---------- ---------- ----------
$ (0.76) $ 0.11 $ 0.36 $ 1.02
========== ========== ========== ==========
Diluted earnings per share:
Continuing operations $ (0.61) $ 0.05 $ 0.44 $ 0.80
Discontinued operations $ -- $ 0.06 $ 0.04 $ 0.17
Loss on sale of
discontinued
operations $ (0.15) $ -- $ (0.14) $ --
---------- ---------- ---------- ----------
$ (0.76) $ 0.11 $ 0.34 $ 0.97
========== ========== ========== ==========
Diluted weighted average
shares outstanding 11,294,323 12,339,638 12,232,832 12,271,657
========== ========== ========== ==========
CONSOLIDATED BALANCE SHEETS
January 31, January 31,
2002 2001
Assets ---------- ----------
Current Assets:
Cash $25,611 $12,418
Receivables, Net 40,085 53,846
Inventories 30,817 40,278
Other Current Assets 9,544 7,397
----- -----
Total Current Assets 106,057 113,939
Property, Plant & Equipment, Net 61,412 77,235
Goodwill and Other Assets, Net 79,817 91,446
------ ------
Total Assets $247,286 $282,620
======== ========
Liabilities and Shareholders' Equity
Current Liabilities $ 40,046 $ 49,192
Long-Term Liabilities:
Long-Term Debt 65,679 87,513
Other Long-Term Liabilities 16,920 18,038
------ ------
Total Liabilities 122,645 154,743
Exchangeable Preferred Stock
and Minority Interest 11,374 11,374
Shareholders' Equity 113,267 116,503
------- -------
Total Liabilities & Shareholders' Equity $247,286 $282,620
======== ========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion