Gradall Industries Inc., Reports Record Fourth Quarter and Record Year End 1997 Sales and Earnings.NEW PHILADELPHIA New Philadelphia, city (1990 pop. 15,698), seat of Tuscarawas co., E Ohio, on the Tuscarawas River, in a coal and clay area; founded 1804, inc. 1833. Foundry products, machinery, and pottery are made. The Tuscarawas Campus of Kent State Univ. is there. , Ohio--(BUSINESS WIRE)--Feb. 25, 1998--Gradall Industries Inc. (the "company" or "Gradall") (NASDAQ/NMS:GRDL GRDL Griddle GRDL Girdle ), a leading manufacturer of excavating and material handling construction equipment, reports record results for the fourth quarter and record results for the year ended Dec. 31, 1997. 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 for the fourth quarter of 1997 were $44.1 million, a 22.2 percent increase from sales of $36.1 million for the same quarter in the prior year and net income was $3.6 million, a 33.5 percent increase from net income of $2.7 million for the fourth quarter 1996. Basic earnings per share were 40 cents for the fourth quarter of 1997 vs. 30 cents for 1996. 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 were 39 cents for the fourth quarter of 1997 compared to 30 cents in 1996. Net sales for the full year 1997 were $158.7 million, a 12.6 percent increase from sales of $140.9 million in 1996. Net income for the full year 1997 was $12.0 million, a 44.7 percent increase from net income before extraordinary item and a 64.0 percent increase from 1996 net income of $7.3 million after extraordinary item. Basic earnings per share were $1.34 for full year 1997 vs. $1.19 for 1996 before extraordinary item and $1.05 after extraordinary item. Diluted earnings per share were $1.33 for full year 1997 compared to $1.18 for 1996 before extraordinary item and $1.04 per share after extraordinary item. The company's initial stock offering in August of 1996 allowed Gradall to substantially reduce debt, interest expense, and to negotiate a more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. bank agreement. For the full year 1997 basic earnings per share reached $1.34, up 25.2 percent from unaudited pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income per share of $1.07 for the full year 1996. Unaudited pro forma per share amounts are computed as though the initial public offering was effective Jan. 1, 1996. Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. L. Phillips Phil·lips A trademark used for a screw with a head having two intersecting perpendicular slots and for a screwdriver with a tip shaped to fit into these slots. , president and chief executive officer of Gradall Industries, stated, "We are very pleased with the sales and earnings growth we achieved in 1997. Gradall continued its strategic plan of introducing new, high-quality, state-of-the-art, unique products, strengthening our distribution network, maximizing production efficiency through capital investment, and enhancing our product support. As a result, Gradall's gross profit margin 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. and operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: continue to grow, a trend that has continued for six consecutive years." The company's strategy of introducing new products into new markets has contributed significantly to the company's 1997 record sales performance. A supportive economy and the introduction of the XL2200 excavator ex·ca·va·tor n. An instrument, such as a sharp spoon or curette, used in scraping out pathological tissue. excavator (eks´k in the second quarter of 1997 and the XL2210 excavator in the third quarter were significant contributors to fourth quarter excavator shipments. Domestic and international shipments of the remote control XL2210 to steel mill customers also contributed to year end results. The company continues to see substantial growth of units and net sales volume from the XL series excavators with high pressure load sensing hydraulics hydraulics, branch of engineering concerned mainly with moving liquids. The term is applied commonly to the study of the mechanical properties of water, other liquids, and even gases when the effects of compressibility are small. . Record material handler A software routine that performs a particular task. It often refers to a routine that "handles" an exception of some kind, such as an error, but it can refer to mainstream processes as well. The term is typically used in operating systems and other system software. net sales for the fourth quarter of 1997 were driven by supportive housing Supportive housing is designed to support individuals, not just socially but with basic life skills. Housing is coupled with social services such as job training, alcohol and drug abuse programs and case management. and 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 construction market conditions and continued expansion of the rental market for construction equipment. Gradall's rough terrain variable reach material handler market continues to grow as a result of strong utilization of rental fleets and broad acceptance of Gradall material handlers handlers persons involved in the handling of, for example, circus animals. Includes grooms, milkers, herdsmen, strappers. Used mostly in referring to persons handling animals for show or auction. . The company was pleased to announce in early January January: see month. 1998 the all-new D Series family of material handlers featuring improved machine strength, durability du·ra·ble adj. 1. Capable of withstanding wear and tear or decay: a durable fabric. 2. and maneuverability ma·neu·ver n. 1. a. A strategic or tactical military or naval movement. b. A large-scale tactical exercise carried out under simulated conditions of war. Often used in the plural. 2. along with a unique collection of advantages designed for easy, efficient operation. The new D Series machines, which replace Gradall's successful C Series material handlers, have new features which should enable the Company to enhance its leadership position in the competitive material handler market. Fourth quarter service parts sales were strong as a result of parts promotion programs and continued improvement in the company dealer product support strategy, which included the GOLD (Gradall On Line Distribution) system, an intranet service parts inquiry and order system, and the current development of service manuals, parts manuals, and technical bulletins availability on CD ROM CD ROM Compact Disk Read Only Memory . Gross profit as a percentage of net sales increased to 23.9 percent for full year 1997, up from 23.3 percent in 1996. 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. as a percent of sales also increased to 13.0 percent for full year 1997 from 12.7 percent in 1996. Phillips said, "Gradall invested $5.3 million in capital equipment in 1997 which continues our multi-year investment program in capital equipment, and we expect to equal or exceed this amount in 1998. This capital investment continues to improve our operating margins through improved quality, productivity and manufacturing efficiencies." Gradall, headquartered in New Philadelphia, Ohio New Philadelphia is a city in Tuscarawas County, Ohio, United States, 71 miles south of Cleveland on the Tuscarawas River. It was first incorporated in 1808. Coal and clay are found in the vicinity. , is a leading manufacturer of wheeled hydraulic excavators and rough-terrain variable reach material handlers as well as related service parts. The company's products are marketed under the widely respected Gradall trade name and are distinguished by their telescopic tel·e·scop·ic adj. 1. Of or relating to a telescope. 2. Seen or obtained by means of a telescope: telescopic data. 3. boom technology, versatility, productivity and reliability. Gradall products serve niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. within the construction equipment industry. Gradall excavators are typically used by general contractors A general contractor is an organization or individual that contracts with another organization or individual (the owner) for the construction of a building, road or any other execution of work or facility. and government agencies for ditching ditching, n See ditch. , sloping, finish grading, general maintenance and infrastructure projects. Gradall rough-terrain variable reach material handlers are typically used by residential, non-residential and institutional building contractors building contractor n → contratista m/f de obras building contractor n → entrepreneur m (en bâtiment) building contractor for lifting, transporting and placing a wide variety of materials at their point of use or storage. The company's products and service parts are sold through independent distributors and national rental companies throughout 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. . Forward looking statements regarding the company's future performance and financial results are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements due to a variety of factors including, besides those mentioned, the condition of the industry and the economy and the success of the company's strategic and operating plans. -0-
Gradall Industries Inc.
Condensed Consolidated Statements of Income
(Dollars in Thousands Except Per Share)
(Unaudited)
Three Months Ended Fiscal Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
_________ _________ _________ _________
Net sales $ 44,083 $ 36,068 $ 158,659 $ 140,909
Cost of sales 33,786 27,504 120,663 108,098
_________ _________ _________ _________
Gross profit 10,297 8,564 37,996 32,811
Selling, general
and administrative
expenses 4,376 3,746 17,356 14,896
_________ _________ _________ _________
Operating
income 5,921 4,818 20,640 17,915
Interest expense 150 303 696 3,108
Other, net (72) (30) 257 1,018
_________ _________ _________ _________
Income before
provision for
taxes and
extraordinary
item 5,843 4,545 19,687 13,789
Income tax
provision 2,285 1,880 7,696 5,503
_________ _________ _________ _________
Income before
extraordinary
item 3,558 2,665 11,991 8,286
Extraordinary
item 973
_________ _________ _________ _________
Net income $ 3,558 $ 2,665 $ 11,991 $ 7,313
_________ _________ _________ _________
_________ _________ _________ _________
Earnings per
share(1):
Basic:
Before extra-
ordinary item $ 0.40 $ .30 $ 1.34 $ 1.19
After extra-
ordinary item 0.40 .30 1.34 1.05
Weighted average
shares out-
standing 8,940,194 8,939,294 8,939,605 6,956,507
Diluted:
Before extra-
ordinary item $ 0.39 $ 0.30 $ 1.33 $ 1.18
After extra-
ordinary item 0.39 0.30 1.33 1.04
Weighted average
shares out-
standing 9,023,294 9,005,868 9,013,760 7,003,200
Pro forma
(unaudited)(2)
_______________
Net income per
share $ 1.07
Weighted average
shares out-
standing 8,939,294
(1) During the fourth quarter the company adopted Statement of
Financial Accounting Standard No. 128, "Earnings Per Share," which
requires disclosure of basic and diluted earnings per share,
replacing primary and fully diluted earnings per share as
previously required.
(2) Presented as if the 1995 Recapitalization, the issuance of
shares of Common Stock pursuant to the initial public offering and
the application of the net proceeds thereof to reduction in debt,
all had occurred effective Jan. 1, 1995. Pro forma net income per
share data do not include the extraordinary item.
Gradall Industries Inc.
Condensed Consolidated Balance Sheet
(Dollars in Thousand)
__________________________________
Dec. 31, 1997 Dec. 31, 1996
_____________ _____________
ASSETS
Current assets:
Cash $ 1,605 $ 215
Accounts receivable- trade,
net of allowance for doubtful
accounts 25,290 16,846
Inventories 25,564 21,326
Prepaid expenses and deferred
charges 1,645 495
Deferred income taxes 742 1,151
_____________ _____________
Total current assets 54,846 40,033
Deferred income taxes 5,402 5,257
Property, plant and
equipment, net 15,108 11,535
Other assets 1,379 1,401
_____________ _____________
Total assets $ 76,735 $ 58,226
_____________ _____________
_____________ _____________
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current portion long term debt $ 297 $ 174
Accounts payable- trade 17,113 13,405
Accrued other expenses:
Income taxes 1,115 1,333
Other 9,812 10,214
_____________ _____________
Total current liabilities 28,337 25,126
Long term obligations:
Long-term debt, net or current
portion 10,015 7,736
Accrued post-retirement benefit
cost 15,719 14,604
Other long term liabilities 1,445 1,684
_____________ _____________
Total long term obligations 27,179 24,024
_____________ _____________
Total liabilities 55,516 49,150
Stockholders' equity:
Common shares, $.001 par value;
18,000,000 shares authorized;
8,940,194 and 8,939,294 issued
and outstanding in 1997 and
1996 9 9
Serial preferred shares par value
$.001 per share:
2,000,000 shares authorized; none
issued and outstanding
Additional paid-in-capital 38,894 38,907
Accumulated deficit (17,684) (29,840)
_____________ _____________
Total stockholders' equity 21,219 9,076
_____________ _____________
Total liabilities and
stockholders' equity $ 76,735 $ 58,226
_____________ _____________
_____________ _____________
CONTACT: Gradall Industries Inc. Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. A. Jonker, 330/339-8374 |
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