JOY TECHNOLOGIES ANNOUNCES THIRD QUARTER RESULTS
JOY TECHNOLOGIES ANNOUNCES THIRD QUARTER RESULTS PITTSBURGH, Dec. 19 /PRNewswire/ -- Joy Technologies Inc.
(NYSE: JOY) reported today that net income for the third fiscal quarter ended Nov. 22, 1991, was $2.1 million (after a $0.7 million extraordinary charge for the early extinguishment of company debt) as compared to $7.2 million in the same quarter last year. Net income in the third quarter of last year reflected a non-recurring tax benefit of $5 million. Net sales for the third fiscal quarter were $159.7 million compared to $169.5 million for the same period a year ago.
For the nine-month period ended Nov. 22, 1991, net income was $3.2 million as compared to $13.8 million for the comparable nine month period last year. Net sales for the current nine month period were $445.4 million compared to $473.4 million for the same period a year ago. Marc F. Wray, president and chief executive officer, noted that, although this year's results are down compared to last year when demand for mining machinery was particularly strong, the current third quarter showed notable improvement over the earlier 1991 periods. Wray stated that continued increases in underground mining activity from recent reduced levels should serve to strengthen demand for mining machinery and services. He cautioned, however, that a prolonged downturn in the economy might dampen those prospects by reducing underground mining activity. Wray also cited the improved results of the company's environmental business and the significant future growth opportunities presented by the new Clean Air laws in the United States and Canada. Wray reported that the company had recently both successfully completed an initial public offering of 9.9 million shares of its common stock and entered into a new bank credit facility. With the proceeds of the offering and borrowings made in early December under the new bank facility, the company has called for redemption all of its preferred stock, retired its expensive public debt and contributed to liquidity. Wray noted that these actions will contribute approximately $27 million annually to common shareholders' equity through the elimination of large preferred stock dividends and the reduction of interest expense due to less debt and lower interest rates. Wray advised that the company will report for the fourth fiscal quarter ending Feb. 28, 1992, an extraordinary charge attributable to its recapitalization which is expected to approximate $22 million on an after-tax basis and will consist of premiums and other costs of retiring indebtedness, write-offs of remaining capitalized costs on the retired indebtedness and related transaction expenses. The company is a leader in the worldwide manufacturing and servicing of mining equipment for the underground extraction of coal, with facilities in the United States, South Africa, the United Kingdom and Australia. The company is also a major North American supplier of air pollution control and ash handling equipment used by electrical utilities and other industrial combustion operations. JOY TECHNOLOGIES INC. Business Segment Financial Information - Unaudited (In thousands) Periods Ended Three Months Nine Months Nov. 22 and 23 1991 Pct. 1990(A) Pct. 1991 Pct. 1990(A) Pct. Net sales: Mining machinery $121,856 $134,012 $353,565 $380,527 Environmental systems 37,818 35,493 91,853 92,858 Total net sales 159,674 169,505 445,418 473,385 Operating profit (loss): Mining machinery 22,646 19 24,918 19 56,788 16 73,342 19 Environmental systems 2,164 6 862 2 3,034 3 1,755 2 Corporate expense - net (3,658) - (3,541) - (8,933) - (10,521) - Interest expense (13,308) - (13,435) - (40,306) - (40,787) - Interest income 1,689 - 1,881 - 4,009 - 5,584 - Inc. from cont. opers. bef. inc. taxes & extraord. item 9,533 6 10,685 6 14,592 3 29,373 6 Bookings: Mining machinery 116,899 106,267 340,946 362,085 Environmental systems 30,084 108,398 89,024 163,931 Total bookings 146,983 214,665 429,970 526,016 Backlog: Mining machinery -- -- 84,687 124,088 Environmental systems(B) -- -- 205,876 219,488 Total backlog -- -- 290,563 343,576 Percentage of business segment's net sales. (A) -- Reclassified to conform to current reporting presentation. (B) -- Backlog of both periods includes a single $38.0 million FGD order recognized as a booking on the basis of the receipt of a letter of intent from the customer, which management believes will be converted into a firm purchase order. JOY TECHNOLOGIES INC. (Unaudited) Quarter Ended Nov. 22 and 23 1991 1990 Net sales $159,674,000 $169,505,000 Income before income taxes and extraordinary item 9,533,000 10,685,000 Provision for income taxes 6,712,000 3,501,000 Income before extraordinary item 2,821,000 7,184,000 Extraordinary item (691,000)(A) -- Net income 2,130,000 7,184,000 Preferred stock dividend requirements(3,376,000) (2,970,000) Net income (loss) applicable to common stock (1,246,000) 4,214,000 Income (loss) per common share: Income (loss) before extraordinary item $(.03) $.21 Extraordinary item (.03) -- Net income (loss) per common share (.06) .21 Weighted average number of common shares outstanding used in the calculation of per share amounts 20,614,659 19,654,659 Nine Months Ended Nov. 22 and 23 1991 1990 Net sales $445,418,000 $473,385,000 Income before income taxes and extraordinary item 14,592,000 29,373,000 Provision for income taxes 10,688,000 16,234,000 Income before extraordinary item 3,904,000 13,139,000 Extraordinary item (691,000)(A) 698,000(B) Net income 3,213,000 13,837,000 Preferred stock dividend requirements(9,829,000) (8,716,000) Net income (loss) applicable to common stock (6,616,000) 5,121,000 Income (loss) per common share: Income (loss) before extraordinary item $(.30) $.23 Extraordinary item (.03) .03 Net income (loss) per common share (.33) .26 Weighted average number of common shares outstanding used in the calculation of per share amounts 20,084,110 19,420,923 (A) -- Associated with the redemption of debt and consisted of call premiums and the write-off of related unamortized capitalized financing costs. (B) -- Applicable to the utilization of certain net operating loss carryforwards. -0- 12/19/91 /CONTACT: James Q. Grimshaw, treasurer of Joy Technologies, 412-562-4525/ (JOY) CO: Joy Technologies Inc. ST: Pennsylvania IN: MAC SU: ERN 1129 12-18-91 20:37 EST TS-PS -- NY004 -- 3694 12/19/91 07:36 EST
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|Date:||Dec 19, 1991|
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