Oilgear Revises Fourth Quarter and Year-End Results
MILWAUKEE--March 28, 2001--The Oilgear Company today announced it has revised previously reported results for the fourth quarter and year ended December 31, 2000. The adjustments are the result of a large customer in the United Kingdom being placed into receivership on March 22, 2001."The impact on earnings of the total amount of the adjustment is approximately $600,000 or $0.30 per share," said David A. Zuege, president and chief executive officer of Oilgear. Zuege indicated that the balance due Oilgear represented the final payments on a $1.5 million contract for Oilgear's work as a second-tier subcontractor to a British firm providing hydraulics and controls for equipment used to weld submarine hulls for the British Ministry of Defense. "We have had a long relationship with this customer and we received payments on this project through the end of February."
"While we believe that we will recover some of our receivable, at this time we do not have enough information to estimate the amount of any recovery, so we feel it is in the best interest of our shareholders to increase the reserve for doubtful accounts by the entire amount at this time," said Zuege. "Any recovered amounts will be reflected in our 2001 results."
Revised net earnings for 2000 were approximately $774,000 or $0.39 per diluted share, compared to earnings of approximately $1,328,000 or $0.67 per diluted share in 1999. Prior to the revision, Oilgear had reported net earnings for 2000 of $1,374,000 or $0.69 per diluted share.
For the revised fourth quarter, the company reported a loss of $363,000 or $0.18 per diluted share, compared to earnings of $204,000 or $0.10 per diluted share for the fourth quarter of 1999. Prior to the adjustment, fourth quarter 2000 net earnings were $237,000 or $0.12 per diluted share.
A leader in the fluid power industry, The Oilgear Company provides advanced technology in the design and production of unique fluid power components, systems and electronic controls. The company serves customers in the primary metals, machine tool, automobile, petroleum, construction equipment, chemical, plastic, glass, lumber, rubber and food industries. Its products are sold as individual components or integrated into high performance systems.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company "believes," "anticipates," "expects" or words of similar import. Similarly, statements that describe the company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated. Shareholders, potential investors and other readers are urged to consider these factors and those set forth in its filings with the SEC carefully in evaluating the forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
The Oilgear Company
Consolidated Condensed Earnings Statement
(Unaudited)
Three Months Ended December 31,
--------------------------------------
Revised As previously reported
------------ -------------------------
2000 2000 1999
------------ ------------ ------------
Net sales $ 23,039,000 $ 23,039,000 22,848,000
Cost of sales 17,304,000 17,304,000 17,451,000
------------ ------------ ------------
Gross profit 5,735,000 5,735,000 5,397,000
Operating expenses 5,770,000 5,170,000 4,960,000
------------ ------------ ------------
Operating income (loss) (35,000) 565,000 437,000
Interest expense 448,000 448,000 431,000
Other income 124,000 124,000 166,000
------------ ------------ ------------
Earnings (loss) before income
taxes and minority interest (359,000) 241,000 172,000
Income tax expense (benefit) 4,000 4,000 (111,000)
------------ ------------ ------------
Net earnings (loss) before
minority interest (363,000) 237,000 283,000
Minority interest 0 0 79,000
------------ ------------ ------------
Net earnings (loss) $ (363,000)$ 237,000 204,000
============ ============ ============
Basic earnings (loss) per share
of common stock $ (0.18)$ 0.12 0.10
============ ============ ============
Diluted earnings (loss) per
share of common stock (0.18) 0.12 0.10
============ ============ ============
Dividends per share 0.07 $ 0.07 0.07
============ ============ ============
Basic weighted average
outstanding shares 1,981,000 1,981,000 1,991,000
Diluted weighted average
outstanding shares 1,987,000 1,987,000 1,991,000
Note: Certain amounts reported in 1999 have been reclassified to
conform with the 2000 presentation.
Year Ended December 31,
--------------------------------------
Revised As previously reported
------------ -------------------------
2000 2000 1999
------------ ------------ ------------
Net sales $ 92,318,000 $ 92,318,000 90,709,000
Cost of sales 68,575,000 68,575,000 67,381,000
------------ ------------ ------------
Gross profit 23,743,000 23,743,000 23,328,000
Operating expenses 21,065,000 20,465,000 20,021,000
------------ ------------ ------------
Operating income 2,678,000 3,278,000 3,307,000
Interest expense 1,580,000 1,580,000 1,693,000
Other income 198,000 198,000 250,000
------------ ------------ ------------
Earnings before income taxes and
minority interest 1,296,000 1,896,000 1,864,000
Income tax expense 416,000 416,000 370,000
------------ ------------ ------------
Net earnings before minority
interest 880,000 1,480,000 1,494,000
Minority interest 106,000 106,000 166,000
------------ ------------ ------------
Net earnings $ 774,000 $ 1,374,000 1,328,000
============ ============ ============
Basic earnings per share of
common stock $ 0.39 $ 0.69 0.67
============ ============ ============
Diluted earnings per share of
common stock 0.39 0.69 0.67
============ ============ ============
Dividends per share $ 0.28 $ 0.28 0.28
============ ============ ============
Basic weighted average
outstanding shares 1,981,000 1,981,000 1,983,000
Diluted weighted average
outstanding shares 1,987,000 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)
At December 31,
--------------------------------------
Revised As previously reported
------------ -------------------------
2000 2000 1999
------------ ------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 5,102,000 $ 5,102,000 6,698,000
Accounts receivable 18,593,000 19,193,000 17,563,000
Inventories 23,830,000 23,830,000 23,233,000
Other current assets 4,585,000 4,585,000 1,867,000
------------ ------------ ------------
Total current assets 52,110,000 52,710,000 49,361,000
------------ ------------ ------------
Net property plant and equipment 24,836,000 24,836,000 26,586,000
Other assets 7,886,000 7,886,000 5,418,000
------------ ------------ ------------
$ 84,832,000 $ 85,432,000 81,365,000
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current debt $ 3,273,000 $ 3,273,000 2,173,000
Accounts payable 7,727,000 7,727,000 6,219,000
Other current liabilities 8,248,000 8,248,000 7,469,000
------------ ------------ ------------
Total current
liabilities 19,248,000 19,248,000 15,861,000
------------ ------------ ------------
Long-term debt 20,058,000 20,058,000 18,546,000
Unfunded employee benefit costs 11,685,000 11,685,000 11,599,000
Other non-current liabilities 1,550,000 1,550,000 1,484,000
------------ ------------ ------------
Total liabilities 52,541,000 52,541,000 47,490,000
------------ ------------ ------------
Minority interest in
consolidated subsidiary 904,000 904,000 797,000
------------ ------------ ------------
Shareholders' equity 31,387,000 31,987,000 33,078,000
------------ ------------ ------------
$ 84,832,000 $ 85,432,000 81,365,000
============ ============ ============
Note: Certain amounts reported in 1999 have been reclassified to
conform with the 2000 presentation.
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