Oilgear Reports Fourth Quarter and Year-End Results
MILWAUKEE--March 15, 2001--The Oilgear Company today reported results for the fourth quarter and year ended December 31, 2000.Net earnings for 2000 were $1,374,000 or $0.69 per diluted share, up slightly from earnings of $1,328,000 or $0.67 per diluted share in 1999. Net sales were $92,318,000 in 2000, a 2% increase from sales of $90,709,000 in the prior year.
For the fourth quarter of 2000, net earnings were $237,000 or $0.12 per diluted share, compared to earnings of $204,000 or $0.10 per diluted share for the fourth quarter of 1999. Net sales were $23,039,000 for the fourth quarter of 2000, up slightly from sales of $22,848,000 for the comparable prior period.
"This was a challenging year for us," said David A. Zuege, president and chief executive officer of Oilgear. "Our flat results were primarily due to the adverse effects of the depressed euro and other international currencies on our European and international sales and earnings and a soft United States fluid power market in the second half of the year."
Zuege said systems sales were strong in all of the company's geographic markets, particularly in the U.S. "Our 2000 orders benefited from strong systems activity including a sizeable contract for the hydraulics and electronic controls for the fixed umbilical tower associated with the rocket launch capabilities at Vandenburg Air Force Base. This is the third major order we have received for aerospace equipment of a similar type. We believe that we have developed a solid reputation for delivering sophisticated systems engineering and outstanding fluid power and electrohydraulic components," he said.
Orders for 2000 totaled $94,661,000, an 8% increase from orders of $87,339,000 in 1999. Orders for the fourth quarter of 2000 were $22,123,000, a 27% increase from orders of $17,384,000 for the same period in 1999. This increase was primarily attributable to the Vandenburg order. The backlog was $21,187,000 at December 31, 2000, a 12% increase from the backlog of $18,844,000 at the end of 1999. "Although the backlog is up, a higher than usual portion is attributable to systems orders which, because of their long lead times, will not generate a great deal of revenue in the first quarter. This fact, combined with the general slowness in the economy and the fluid power industry, makes us cautious about the outlook for the first half of 2001," Zuege said.
The Oilgear Company
Consolidated Condensed Earnings Statement
(Unaudited)
Three Months Ended December 31,
--------------------------------
2000 1999
---- ----
Net sales.............................$ 23,039,000 22,848,000
Cost of sales.......................... 17,304,000 17,451,000
-------------- --------------
Gross profit......................... 5,735,000 5,397,000
Operating expenses.................... 5,170,000 4,960,000
-------------- --------------
Operating income..................... 565,000 437,000
Interest expense...................... 448,000 431,000
Other income ......................... 124,000 166,000
-------------- --------------
Earnings before income taxes.......... 241,000 172,000
Income tax expense (benefit).......... 4,000 (111,000)
-------------- --------------
Net earnings before minority
interest............................ 237,000 283,000
Minority interest.................... 0 79,000
-------------- --------------
Net earnings.........................$ 237,000 204,000
============== ==============
Basic earnings per share of common
stock................................$ 0.12 0.10
============== ==============
Diluted earnings per share of common
stock................................ 0.12 0.10
============== ==============
Dividends per share...................$ 0.07 0.07
============== ==============
Basic weighted average outstanding
shares............................... 1,981,000 1,991,000
Diluted weighted average outstanding
shares............................... 1,987,000 1,991,000
Note: Certain amounts reported in 1999 have been reclassified to
conform with the 2000 presentation.
Twelve Months Ended December 31,
--------------------------------
2000 1999
---- ----
Net sales.............................$ 92,318,000 90,709,000
Cost of sales......................... 68,575,000 67,381,000
-------------- --------------
Gross profit......................... 23,743,000 23,328,000
Operating expenses.................... 20,465,000 20,021,000
-------------- --------------
Operating income..................... 3,278,000 3,307,000
Interest expense...................... 1,580,000 1,693,000
Other income.......................... 198,000 250,000
-------------- --------------
Earnings before income taxes.......... 1,896,000 1,864,000
Income tax expense.................... 416,000 370,000
-------------- --------------
Net earnings before minority
interest............................ 1,480,000 1,494,000
Minority interest.................... 106,000 166,000
-------------- --------------
Net earnings.........................$ 1,374,000 1,328,000
============== ==============
Basic earnings per share of common
stock................................$ 0.69 0.67
============== ==============
Diluted earnings per share of common
stock................................ 0.69 0.67
============== ==============
Dividends per share...................$ 0.28 0.28
============== ==============
Basic weighted average outstanding
shares............................... 1,981,000 1,983,000
Diluted weighted average outstanding
shares............................... 1,987,000 1,984,000
Note: Certain amounts reported in 1999 have been reclassified to
conform with the 2000 presentation.
The Oilgear Company
Consolidated Condensed Balance Sheet
(Unaudited)
December 31, 2000 December 31, 1999
----------------- -----------------
ASSETS
Current Assets
Cash and cash equivalents......$ 5,102,000 6,698,000
Accounts receivable............ 19,193,000 17,563,000
Inventories.................... 23,830,000 23,233,000
Other current assets........... 4,585,000 1,867,000
----------------- -----------------
Total current assets.......... 52,710,000 49,361,000
----------------- -----------------
Net property plant and
equipment...................... 24,836,000 26,586,000
Other assets.................... 7,886,000 5,418,000
----------------- ------------------
$ 85,432,000 81,365,000
================= ==================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current debt...................$ 3,273,000 2,173,000
Accounts payable............... 7,727,000 6,219,000
Other current liabilities...... 8,248,000 7,469,000
----------------- ------------------
Total current liabilities..... 19,248,000 15,861,000
----------------- ------------------
Long-term debt.................. 20,058,000 18,546,000
Unfunded employee benefit costs. 11,685,000 11,599,000
Other non-current liabilities... 1,550,000 1,484,000
----------------- ------------------
Total liabilities.............. 52,541,000 47,490,000
----------------- ------------------
Minority interest in
consolidated subsidiary........ 904,000 797,000
----------------- ------------------
Shareholders' equity............ 31,987,000 33,078,000
----------------- ------------------
$ 85,432,000 81,365,000
================= ==================
Note: Certain amounts reported in 1999 have been reclassified to
conform with the 2000 presentation.