Coltec Industries' Fourth Quarter Earnings Per Share Increased 15%; Cash Flow for the Year Reaches $88 Million.CHARLOTTE, N.C.--(BUSINESS WIRE)--Jan. 21, 1999--For the fourth quarter, Coltec Coltec a fictional character from , portrayed by Byron Chief-Moon. He is an Immortal. History 1150-1190 Coltec is a Native American who was born in 1150, Mississippi. Coltec grew up in the Cahokia Indian tribe. Industries Inc (NYSE NYSE See: New York Stock Exchange : COT) reported $.45 in earnings per share, an increase of 15%, compared to $.39 in the year-ago quarter. Net income in the quarter was $30 million versus $26 million last year, and sales increased 4% to $375 million. Free cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $36 million, which helped drive total year free cash flow from operations to $88 million, exceeding Coltec's stated goal of $70 million. These results marked the tenth Tenth can mean: In mathematics:
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 in excess of its 15% target. For the year, net earnings from operations on a per-share basis increased 18% to a record $1.68 per share versus $1.42 per share in 1997. 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. in 1998 was $230 million versus $198 million in the prior-year period. Net earnings and operating income figures for the current year exclude a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain and charges in the second quarter. Sales for 1998 increased 14% to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.5 billion from $1.3 billion in 1997. In commenting on the year's results, John W. Guffey Guffey may refer to: People
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . Our cash flow performance for the year improved over $100 million compared to 1997. Now that our investments in growth are behind us and generating the returns we expected, we can look forward to continued high operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. over the next few years." In the Aerospace Segment, fourth quarter revenues increased 16% and operating income rose 22%. Every business contributed to higher profits. These results reflect increased shipments of fully integrated landing gear systems for Boeing's Next-Generation 737, 757, and 777 aircraft and higher operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and margins at the landing gear overhaul and maintenance business. The engine component businesses achieved strong growth and improved margins, reflecting increased demand for regional jets, higher productivity, and the positive impact of new programs and mix changes. In the Industrial Segment, sales and earnings in the quarter, excluding Holley Hol·ley , Robert William 1922-1993. American biochemist. He shared a 1968 Nobel Prize for the study of genetic codes. , increased 5% and 2%, respectively, including the contribution of several businesses acquired earlier this year. Slower economic growth in key markets, including pulp and paper, chemicals, refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar , and steel, along with the strong U.S. dollar adversely affected sales and profits. As reported, sales and profits were down compared to last year's fourth quarter, which included Holley. This press release contains various 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. . For a discussion of various factors that may cause Coltec's actual results to differ materially from those expressed in such forward-looking statements, see Coltec's 1997 Annual Report 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. as well as Coltec's 1998 filings with the Securities and Exchange Commission. Coltec Industries is a leading producer of landing gear, industrial sealing systems, and other highly engineered products for aerospace and industrial applications. The company, which has its headquarters in Charlotte, North Carolina “Charlotte” redirects here. For other uses, see Charlotte (disambiguation). Charlotte is the largest city in the state of North Carolina and the 20th largest city in the United States. , expects to complete its merger with The BFGoodrich Company by late March/early April of this year. The new company will have revenues approaching $6 billion and leading positions in aerospace systems, performance materials, and industrial products. -0-
COLTEC INDUSTRIES AND SUBSIDIARIES
Summary Consolidated Statements of Earnings
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
1998 1997 1998 1997
Net sales $ 374,461 $359,017 $1,504,054 $1,314,869
Costs and expenses (314,505) (304,101) (1,273,881) (1,117,077)
Non-recurring charges(1) - - (42,054) -
Operating income (1) 59,956 54,916 188,119 197,792
Gain on sale of business - - 56,194 -
Interest expense and other,
net (12,508) (15,138) (53,438) (54,043)
Earnings before income taxes,
minority interest
and extraordinary item 47,448 39,778 190,875 143,749
Income taxes (16,132) (13,525) (64,898) (48,875)
Minority interest in net
loss of subsidiaries (1,300) (3,684)
-
Earnings before extraordinary
item (2) 30,016 26,253 122,293 94,874
Extraordinary item (4) - - (4,326)
-
Net earnings $ 30,016 $ 26,253 $ 117,967 $ 94,874
Earnings from
operations (2) $ 30,016 $ 26,253 $ 112,961 $ 94,874
Diluted earnings per share
Earnings from
operations (3) $ 0.45 $ 0.39 $ 1.68 $ 1.42
Non-recurring
charges - - (0.39) -
-
Gain on sale of
business - - 0.52 -
Earnings before
extraordinary item (3) 0.45 $ 0.39 1.81 $ 1.42
Extraordinary item(4) - - (0.06) -
Net earnings $ 0.45 $ 0.39 1.75 $ 1.42
Diluted weighted average
common and common
stock equivalents 68,910 66,622 69,443 66,911
-0-
(1) 0perating income for the twelve months ended December December: see month. 31, 1998 included non-recurring charges as follows: a) $25.0 million non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to recognize program costs during the ramp-up of the Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. 777 program which will reduce future shipset costs, b) $12.0 million non-cash charge to record additional warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. and legal reserves, and c) $5.0 million expense related to Year 2000 compliance costs for new computer systems. Excluding these charges totaling $42.0 million, operating income for the twelve months ended December 31, 1998 was $230.1 million. (2) Earnings before extraordinary item excluding the non-recurring charges of $42.0 million and the gain on the sale of Holley Performance Products Holley Performance Products is an automotive performance company based out of Bowling Green, Kentucky. They produce mostly engine modification product, and among the company's owned divisions are popular brand names such as NOS, FlowTech, and Hooker. (Holley) of $56.2 million was $113.0 million for the twelve months ended December 31, 1998. (3) Represents diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before extraordinary item excluding the non-recurring charges and the gain on the sale of Holley. Such one-time items net to $14.1 million of pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. ($9.3 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) or $0.13 per share for the twelve months ended December 31, 1998. (4) The Company incurred extraordinary charges of $4.3 million (net of income taxes of $2.2 million) in connection with early repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of debt in the twelve months ended December 31, 1998.
COLTEC INDUSTRIES INC AND SUBSIDIARIES
Industry Segment Information
(in millions)
Three Months Ended Twelve Months Ended
--------------------- -------------------
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1998 1997 1998 1997
----------------------- ---------------------
Sales:
Aerospace $ 195.1 $ 167.8 $ 724.8 $ 558.3
Industrial 179.5 191.7 780.5 757.6
Intersegment
elimination (0.1) (0.5) (1.2) (1.0)
---------- ---------- ---------- ---------
Total $ 374.5 $ 359.0 $1,504.1 $1,314.9
=========== ============ ========= ===========
Operating income:
Aerospace (1) $ 32.8 $ 26.8 $ 90.1 $ 87.7
Industrial (2) 35.9 37.8 135.5 149.8
--------- ---------- ---------- ----------
Total segments 68.7 64.6 225.6 237.5
Corporate
unallocated (8.7) (9.6) (37.5) (39.7)
---------- ---------- ---------- ---------
Operating income $ 60.0 $ 55.0 $ 188.1 $ 197.8
=========== ========== ========== ==========
(1) Operating income in the Aerospace Segment for the twelve
months ended December 31, 1998 included a nonrecurring charge of $25.0
million to recognize program costs during the rampup of the Boeing 777
program and a $2.0 million expense for training costs and year 2000
compliance for new computer systems. Excluding these onetime charges,
Aerospace Segment operating income was $117.1 million for the twelve
months ended December 31, 1998.
(2) Operating income in the Industrial Segment for the twelve
months ended December 31, 1998 included nonrecurring charges of $12.0
million to record additional warranty and legal reserves and $3.0
million expense for training costs and year 2000 compliance for new
computer systems. Excluding these onetime charges, Industrial Segment
operating income was $150.5 million for the twelve months ended
December 31, 1998.
COLTEC INDUSTRIES INC AND SUBSIDIARIES
Summary Consolidated Balance Sheets
(in thousands)
December 31
Assets 1998 1997
------ ---- ----
Current assets
Cash and cash equivalents $ 21,785 $ 14,693
Accounts and notes receivable, net
of allowance 148,185 120,311
Inventories 236,003 256,736
Deferred income taxes 20,464 15,195
Other current assets 15,612 20,508
--------- ---------
Total current assets 442,049 427,443
Property, plant and equipment, net 306,642 287,619
Costs in excess of net assets, net 214,647 157,751
Other assets 92,310 60,221
--------- ---------
$1,055,648 $ 933,034
=========== ===========
Liabilities and Shareholders' Equity
--------------------------------------
Current liabilities
Current portion of longterm debt $ 2,513 $ 1,811
Accounts payable 91,595 93,799
Accrued expenses 171,084 138,969
Liabilities of discontinued
operations 4,999 4,999
--------- ---------
Total current liabilities 270,191 239,578
--------- ---------
Longterm debt 580,092 757,578
Deferred income taxes 139,909 79,229
Other liabilities 85,490 72,592
Liabilities of discontinued operations 134,995 143,218
Company-obligated, mandatorily redeemable
convertible preferred securities of
subsidiary
Coltec Capital Trust holding
solely convertible junior
subordinated debentures of the
company 145,293 -
Shareholders' equity:
Common stock 706 705
Capital surplus 643,615 642,828
Retained deficit (795,356) (912,029)
Other equity (21,359) (11,112)
---------- ---------
(172,394) (279,608)
Less treasury shares (127,928) (79,553)
---------- ---------
(300,322) (359,161)
---------- ---------
$1,055,648 $ 933,034
========== =========
COLTEC INDUSTRIES INC AND SUBSIDIARIES
Summary Consolidated Statements of Cash Flows
(in thousands)
Twelve Months Ended
Dec. 31, Dec. 31,
1998 1997
------------ -----------
Cash flows from operating activities:
Net earnings $ 117,967 $ 94,874
Adjustments to reconcile net earnings
to cash provided by operating activities
Gain on divestiture ( 56,194) -
Extraordinary item 6,554 -
Depreciation and amortization 47,947 38,415
Deferred income taxes 56,616 24,791
Payment of liabilities of
discontinued operations ( 8,223) ( 25,052)
Special charge payments - ( 11,746)
Foreign currency translation
adjustment ( 8,364) ( 5,594)
Other operating items ( 3,837) ( 6,951)
Changes in assets and liabilities,
net of effect from acquisitions and
divestitures:
Accounts and notes receivable ( 40,254) ( 4,263)
Inventories 17,776 ( 42,508)
Other current assets 2,131 3,455
Accounts payable ( 2,982) 35,963
Accrued expenses and other 26,379 ( 18,972)
Accrued pension liability ( 14,076) ( 20,993)
------------ -----------
Cash provided by operating activities 141,440 61,419
------------ -----------
Cash flows from investing activities:
Proceeds from divestitures 100,000 -
Capital expenditures ( 53,545) ( 81,218)
Acquisition of businesses ( 94,242) ( 60,711)
------------ -----------
Cash used in investing activities ( 47,787) ( 141,929)
------------ -----------
Cash flows from financing activities:
Issuance of long-term debt 291,451 813
Issuance of convertible preferred
securities 143,999 -
Repayment of long-term debt ( 24,265) ( 8,113)
Increase (decrease) in revolving
facility, net ( 458,000) 39,500
Proceeds from sale of accounts
receivable 12,500 82,500
Payments for unclaimed stock ( 3,871) -
Proceeds from exercise of stock
options 2,996 8,169
Purchase of treasury stock ( 51,371) ( 42,695)
------------ -----------
Cash provided by (used in)
financing activities ( 86,561) 80,174
------------ -----------
Increase (decrease) in cash and cash
equivalents 7,092 ( 336)
Cash and cash equivalents -
beginning of period 14,693 15,029
------------ -----------
Cash and cash equivalents - end of
period $ 21,785 $ 14,693
------------ -----------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion