FOURTH QUARTER AND YEAR-END RESULTS ANNOUNCED BY JOY TECHNOLOGIES INC.
PITTSBURGH, March 30 /PRNewswire/ -- Joy Technologies Inc. (NYSE: JOY) today announced net sales for the fourth quarter ending Feb. 26, 1993, of $156.6 million and a net loss of $3.9 million ($0.13 per share). The loss was caused by an $8.4 million after-tax ($0.27 per share) provision for increases in the Environmental Group's share of estimated costs to complete a wet scrubber project in Canada. The Mining Machinery Group reported significant increases from the third to fourth quarter of 13.1 percent in net sales, 39.8 percent in operating profit and 26.4 percent in bookings. Bookings for the Environmental Group also improved. In the fourth quarter of the previous year, net sales were $163.2 million and a net loss of $15.9 million ($0.52 per share) was recorded after preferred stock dividend requirements and extraordinary charges associated with the company's financial restructuring. For the year ending Feb. 26, 1993, net sales were $581.1 million and the net loss was $2.6 million ($0.08 per share) after increased charges associated with the Canadian wet scrubber project and other previously disclosed one-time charges. For the prior year, net sales were $608.6 million and the net loss was $19.5 million ($0.85 per share) after preferred stock dividend requirements and extraordinary charges for recapitalization. Net sales for the Mining Machinery Group in the fourth quarter ending Feb. 26, 1993, were $107.4 million, up significantly from sales in each of the three prior quarters of this past year. Marc F. Wray, chairman and CEO, stated: "The improvement in sales by the Mining Machinery Group from the depressed levels of the first three quarters of fiscal 1993 was achieved despite the slippage of about $11 million of sales from the fourth quarter to next year's first quarter resulting from the work stoppage which ended Jan. 4, 1993, at Joy's Franklin facility. Although operating profits improved by 39.8 percent from the third quarter, the impacts of the strike prevented the return of operating profit margin percentages to the levels experienced prior to this fiscal year. While we anticipate continuing improvement in the market for traditional equipment, which had been severely depressed in previous periods, we also expect incremental volume from new markets and new products which Joy has developed over the past few years." Net sales by the Environmental Group for the fourth quarter ending Feb. 26, 1993, were $49.2 million, up slightly on a comparable basis from the same quarter last year. The operating loss reflects the significant increase in the re-estimated costs to complete a large wet scrubber project at Ontario Hydro's Lambton generating station. Wray stated: "The $8.4 million after-tax provision for these costs is substantially greater than that given to Joy in mid-January by Morrison Knudsen, the project manager and Joy's co-partner in this project. This provision allows for an increase in the estimate to complete the project based on additional evaluations by the project manager between January and March, Joy's own review of the project and the addition of appropriate contingencies and allowances. "The design engineering is complete, the procurement of all major equipment is committed, the major building structures are enclosed and the remaining uncertainties in the project relate primarily to the construction labor associated with piping and electrical trades. Given the present state of completion of the project, the detailed re-estimate and the contingencies in our provision, Joy believes the project should be completed within our projected cost," concluded Wray. Wray also noted, "Construction activities, which are causing the overruns at Lambton, are not part of Joy's involvement on the Taichung installation, Joy's only other large wet scrubber project." Including the previously reported sale of Joy Power Products, a net gain of $2.2 million was recorded in the fourth quarter for current and future restructuring actions to strengthen and improve the profitability of the Environmental Group. "With evidence of improved market conditions for the Mining Machinery Group and the planned return to profitability for the Environmental Group during the coming year, Joy management expects fiscal 1994 to show marked improvement over the year just ended," concluded Wray. In addition, the company announced plans to adopt SFAS 106, "Employers' Accounting for Postretirement Benefits Other than Pensions," in the first quarter of fiscal year 1994. The company intends to amortize the transition obligation over a 20-year period. The transition obligation as of the beginning of fiscal year 1994 is expected to be approximately $33 million net of previously recorded reserves; however, if contemplated standardization of post-retirement medical plans could be achieved immediately, the company-wide net transition obligation would have been approximately $23 million pursuant to SFAS 106. Consequently, Joy expects the effects of amortization of the transition obligation to decline over the next three years as the company negotiates changes in collectively bargained medical plans. The company estimates that the post-retirement medical pretax expense accrual for fiscal 1994 will be approximately $1.3 million higher than would have been recognized on the existing pay-as-you-go basis. The company also announced that the basis for financial segment reporting has been changed. Beginning with the enclosed fourth quarter results, the reported results for the Mining Machinery Group segment will be for the mining machinery business only and will no longer include those for the fan and incineration businesses. Reported results for the fan and incineration businesses will now be included in the Environmental Group segment. This new reporting structure parallels the integration of these businesses into the Environmental Systems Group. Joy is a leader in the worldwide manufacturing and servicing of mining equipment for the underground extraction of coal and other bedded materials. The company is also a large supplier of air pollution and ash handling equipment used for utilities and other industrial operations. JOY TECHNOLOGIES INC. Financial Data (Unaudited) Quarter Ended Feb. 26 and 28 1993 1992(A) Net sales $156,631,000 $163,178,000 Income (loss) before income taxes and extraordinary item (8,048,000) 12,683,000 Provision for income taxes (4,100,000) 5,411,000 Income (loss) before extraordinary item (3,948,000) 7,272,000 Extraordinary item -- (22,125,000)(B) Net income (loss) (3,948,000) (14,853,000) Preferred stock dividend requirements -- (1,037,000) Net income (loss) applicable to common stock (3,948,000) (15,890,000) Income (loss) per common share: Income (loss) before extraordinary item $ (.13) $ .20 Extraordinary item -- (.72) Net income (loss) per common share $ (.13) $ (.52) Weighted average number of common shares outstanding used in the calculation of per share amounts 31,452,235 30,607,449 Year Ended Feb. 26 and 28 1993 1992 Net sales $581,125,000 $608,596,000 Income (loss) before income taxes and extraordinary item (5,044,000) 27,275,000 Provision for income taxes (2,408,000) 13,119,000 Income (loss) before extraordinary item (2,636,000) 14,156,000 Extraordinary item -- (22,816,000)(B) Net income (loss) (2,636,000) (8,660,000) Preferred stock dividend requirements -- (10,866,000) Net income (loss) applicable to common stock $ (2,636,000) $(19,526,000) Income (loss) per common share: Income (loss) before extraordinary item $ (.08) $ .15 Extraordinary item -- (1.00) Net income (loss) per common share $ (.08) $ (.85) Weighted average number of common shares outstanding used in the calculation of per share amounts 31,469,385 22,863,860 (A) Restated to conform to current reporting presentation to reflect the adoption of Statement of Financial Accounting Standard No. 109. (B) Associated with the redemption of debt and consisted of call premiums, net interest deposited, the write-off of related unamortized capitalized financing fees and transaction costs. Feb. 26, Feb. 28, 1993 1992(C) Cash $ 31,188,000 $ 76,918,000 All other current assets 277,530,000 253,633,000 Total current assets 308,718,000 330,551,000 Other assets 225,684,000 241,461,000 Total assets $534,402,000 $572,012,000 Short-term borrowings and current long-term debt $ 33,539,000 $ 46,541,000 All other current liabilities 148,042,000 131,205,000 Total current liabilities 181,581,000 177,746,000 Long-term debt 285,357,000 306,489,000 Other liabilities 46,667,000 55,785,000 Total stockholders' equity 20,797,000 31,992,000 Total liabilities and stockholders' equity $534,402,000 $572,012,000 (C) Restated to reflect the adoption during the quarter ended May 29, 1992, of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes". Analysis of Business Segments (Unaudited) Fiscal 1993 Old Basis New Reporting Basis FY 1993 FY 1993 Q4 Q1 Q2 Q3 Q4 Net Sales: Mining Machinery $124,879 $96,364 $92,001 $95,013 $107,442 Environmental 31,752 43,226 51,022 46,868 49,189 Total Net Sales $156,631 $139,590 $143,023 $141,881 $156,631 Operating Profit(Loss): Mining Machinery $14,922 $16,210 $13,677 $10,056 $14,063 Environmental (15,617) 2,040 (1,782) (1,334) (14,758) Unusual Items 2,211 0 (2,559) 0 2,211 Corporate Expense - (3,259) (3,062) (4,033) (5,998) (3,259) Interest Income 369 1,040 435 211 369 Interest Expense (6,674) (7,248) (7,362) (7,287) (6,674) Income(Loss) from Continuing Operations before Income Taxes ($8,048) $8,980 ($1,624) ($4,352) ($8,048) Bookings: Mining Machinery $129,988 $103,570 $87,616 $89,053 $112,533 Environmental 35,425 24,093 136,793 51,283 52,880 Total Bookings $165,413 $127,663 $224,409 $140,336 $165,413 Backlog: Mining Machinery $68,777 $57,631 $53,246 $47,286 $52,377 Environmental 222,049 163,006 248,777 253,192 238,449 Total Backlog $290,826 $220,637 $302,023 $300,478 $290,826 New Reporting Basis FY 1993 FY 1992 Full Year Q4 Full Year Net Sales: Mining Machinery $390,820 $114,259 $425,416 Environmental 190,305 48,919 183,180 Total Net Sales $581,125 $163,178 $608,596 Operating Profit(Loss): Mining Machinery $54,006 $21,828 $77,390 Environmental (15,834) 2,450 6,710 Unusual Items (348) 0 0 Corporate Expense - (16,352) (3,343) (12,276) Interest Income 2,055 1,414 5,423 Interest Expense (28,571) (9,666) (49,972) Income(Loss) from Continuing Operations before Income Taxes ($5,044) $12,683 $27,275 Bookings: Mining Machinery $392,772 $118,099 $409,741 Environmental 265,049 32,505 170,833 Total Bookings $657,821 $150,604 $580,574 Backlog: Mining Machinery $50,425 Environmental 182,139 Total Backlog $232,564 -0- 3/30/93 /CONTACT: John F. Moynahan, vice president and treasurer of Joy Technologies, Inc., 412-562-4540/ (JOY)
CO: Joy Technologies, Inc. ST: Pennsylvania IN: MNG SU: ERN
CD-KC -- PG007 -- 1263 03/30/93 18:05 EST
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|Date:||Mar 30, 1993|
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