Gradall Industries Inc. Reports Record Second Quarter and First Six Months 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)--July 31, 1998--Gradall Industries Inc. (NASDAQ/NMS:GRDL GRDL Griddle GRDL Girdle ), a leading manufacturer of excavating and material handling construction equipment, reports record results for the second quarter and first six months of 1998. Record second quarter 1998 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 were $49.8 million, a 29.8 percent increase from sales of $38.4 million for the same quarter in the prior year and net income was $3.6 million, a 39.0 percent increase from net income of $2.6 million for the second quarter of 1997. Basic and 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 40 cents for the second quarter of 1998, a 38.0 percent increase from 29 cents for the same period in 1997. Record first half 1998 net sales were $91.3 million, a 23.0 percent increase from sales of $74.3 million for the same period in the prior year and net income was $6.6 million, a 27 percent increase from $5.2 million net income for the same period in 1997. Barry Phillips Barry Phillips is a musician, arranger and producer of many recordings of Celtic, world and American folk music on the Gourd Music label. Barry received a Masters of Music degree in composition from the San Francisco Conservatory of Music in 1990. , president and chief executive officer of Gradall Industries, stated, "Our record performance in the second quarter and first half of 1998 was led by a strong market for the 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. and strong second quarter demand for excavators. We continue to see solid retail and rental demand for material handlers from national rental companies while maintaining a large order 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. at the end of the quarter. Improved weather conditions and the general economic environment contributed to the record second quarter excavator ex·ca·va·tor n. An instrument, such as a sharp spoon or curette, used in scraping out pathological tissue. excavator (eks´k results." Strength in the company's 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. sales was the direct result of a stronger than expected housing market, broadening applications of the company's products, and the growth of national rental company customers. This supportive environment was evidenced by continued expansion of rental fleets and excellent utilization. The passage of the Federal Highway Bill (TEA-21) guarantees a minimum of $167 billion in spending for the highway program over the next six years. This represents a 40 percent increase over the 1991 Federal Highway Bill which, in conjunction with a supportive economy for non-residential construction and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. interest rates has created a positive economic climate for the sale of hydraulic excavators and associated service parts. On June June: see month. 28, 1998, the company completed a public offering for 562,500 shares of common stock along with the sale of 1,250,000 shares from the majority shareholder, MLGA MLGA Manitoba Ladies Golf Association (Canada) MLGA Maximum-Likelihood Gaussian Approximation Fund II L.P. The proceeds from this public offering were used to reduce the company's bank debt. With the second quarter cash flow and the funds available from the successful public offering, the company has created a bank debt free balance sheet which will facilitate the future growth of the business. 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 percentage of sales decreased slightly to 12.3 percent for the first six months of 1998 from 12.7 percent in 1997. Lower service parts margin attributable to promotional programs and a greater mix of lower margin material handler parts combined with increased production costs from capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. contributed to the lower margin percentages. 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. stated, "The board of directors has recently approved a $50 million capacity expansion for which we expect to have final plans by year end. The rapid growth of demand for our products has created some temporary inefficiency in our production and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. systems. This new expansion will position the Company for efficient production needs into the next millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. and should enhance shareholder value." Gradall, headquartered in New Philadelphia, 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. and Subsidiaries
Condensed Consolidated Statements of Income
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
____________________ ___________________
Three Months Ended Six Months Ended
___________________ ___________________
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
_______ _______ _______ _______
Net sales $49,789 $38,356 $91,330 $74,266
Cost of sales 38,646 29,089 70,636 56,381
_______ _______ _______ _______
Gross profit 11,143 9,267 20,694 17,885
Operating expenses:
Research, development and
product engineering costs 994 970 2,048 1,865
Selling, general and
administrative expenses 4,131 3,562 7,394 6,611
_______ _______ _______ _______
Operating income 6,018 4,735 11,252 9,409
Interest expense 159 175 377 414
Other, net (19) 329 (14) 401
_______ _______ _______ _______
Income before provision
for taxes 5,878 4,231 10,889 8,594
Income tax provision 2,296 1,654 4,253 3,360
_______ _______ _______ _______
Net income $ 3,582 $ 2,577 $6,636 $5,234
_______ _______ _______ _______
_______ _______ _______ _______
Earnings per common share:
Basic:
Weighted average
Shares outstanding 8,957,133 8,939,294 8,948,710 8,939,294
Earnings per common
share: $ 0.40 $ 0.29 $ 0.74 $ 0.59
Diluted:
Weighted average
Shares outstanding 9,042,536 9,014,369 9,035,156 9,009,012
Earnings per common
share: $ 0.40 $ 0.29 $ 0.73 $ 0.58
Gradall Industries Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
Unaudited Audited
_________ _______
June 30, 1998 Dec. 31, 1997
_____________ _____________
ASSETS
______
Current assets:
Cash $ 2,675 $ 1,605
Accounts receivable - trade, net of
allowance for doubtful accounts 27,352 25,290
Inventories 24,718 25,564
Prepaid expenses and deferred charges 243 1,645
Deferred income taxes 742 742
________ _______
Total current assets 55,730 54,846
Deferred income taxes 5,676 5,402
Property, plant and equipment, net 16,299 15,108
Other assets 1,297 1,379
________ _______
Total assets $ 79,002 $ 76,735
________ _______
________ _______
LIABILITIES & STOCKHOLDERS' EQUITY
__________________________________
Current liabilities:
Current portion long term debt $ 264 $ 297
Accounts payable - trade 15,552 17,113
Accrued other expenses 10,182 10,927
________ _______
Total current liabilities 25,998 28,337
________ _______
Long term obligations:
Long-term debt, net of current portion 373 10,015
Accrued post-retirement benefit cost 16,419 15,719
Other long term liabilities 1,445 1,445
________ _______
Total long term obligations 18,237 27,179
________ _______
Total liabilities 44,235 55,516
________ _______
Stockholders' equity:
Common shares, $.001 par value; 18,000,000
shares authorized; 9,508,234 and 8,940,194
issued and outstanding on June 30, 1998,
and Dec. 31, 1997, respectively 10 9
Additional paid-in capital 45,805 38,894
Accumulated deficit (11,048) (17,684)
________ _______
Total stockholders' equity 34,767 21,219
________ _______
Total liabilities and stockholders'
equity $ 79,002 $ 76,735
________ _______
________ _______
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. Jonker, 330/339-8374 |
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