UNOVA Announces First Quarter Results
WOODLAND HILLS, Calif--April 30, 2001--UNOVA, Inc. :| -- | UNOVA achieves most significant progress to date in turnaround efforts |
| -- | ADS segment reports second sequential quarter revenue increase and improved cost structure |
| -- | IAS segments show improved profit on lower revenues |
UNOVA, Inc. (www.unova.com) today announced results for the first quarter of 2001 indicating continued revenue growth and cost reductions at its Automated Data Systems (ADS) segment and increased profits despite lower revenues for its Industrial Automation Systems (IAS) segments.
"This quarter presented the strongest evidence yet that our ADS businesses are improving momentum, in terms of both top-line revenue growth and costs," said Larry D. Brady, president and chief executive officer. "The continuing recovery of key mobile computing markets has enabled us to translate improved internal execution and customer confidence into financial results.
"Our IPS segment posted higher profits on lower revenues, benefiting from improved contract margins and a lower overall cost structure," Brady added. "This should benefit UNOVA when aerospace and automotive markets recover."
For the first quarter of 2001, UNOVA reported a loss of $10.0 million, or $(0.18) per share on revenues of $403.0 million. This compares with a loss of $0.5 million, or $(0.01) per share on revenues of $484.8 million for the first quarter of 2000.
Automated Data Systems
At ADS, comprising Intermec Technologies, revenues for the first quarter of 2001 were $170.0 million, representing a second sequential quarterly improvement. ADS revenues for the comparable first quarter of 2000 were $209.6 million, including Amtech Transportation Systems, which was divested in June 2000. Average quarterly revenues for Amtech were $20 million.
The segment recorded an operating loss of $5.7 million for the first quarter of 2001, compared with an operating profit of $4.4 million for the first quarter of 2000, and operating losses in excess of $20 million in each of the remaining three quarters of 2000.
Higher sales and significant manufacturing cost reductions at Intermec resulted in the highest gross profit levels, and highest gross margin percentage, since the first quarter of 2000. Reductions in selling, general and administrative expenses contributed to an improvement of more than four points in operating expenses as a percent of sales compared with the average level for the year 2000.
During the quarter, Intermec saw continuing recovery in its Direct Store Delivery (DSD) markets as returning order strength from beverage customers joined the earlier results from the bakery sector. Intermec expanded beyond its traditional industrial markets with new orders from major retailers for warehouse and distribution systems.
The division also saw a notable increase in "mobile IT" market activities including orders from a large home-DSD delivery company, a large specialty gas distributor and a major pest-elimination company. Intermec anticipates further mobile activities as it rolls out its ArciTech(TM) software application to automate field service workers.
The quarter also benefited from the continued strength of Intermec's new low-priced printer line including a major order from the Korean National Library.
Consolidation of the Cedar Rapids, Iowa manufacturing activities into the Everett, Wash. facility was largely completed by the end of the first quarter. The combination proceeded smoothly and on-time delivery performance was maintained throughout the transition. The lower overhead structure is expected to benefit future quarters.
Service operations maintained their excellent on-time performance level achieved in the fourth quarter of 2000 and further improved their margins.
Industrial Automation Systems
UNOVA's IAS segments recorded improved operating profit of $12.9 million on revenues of $233.0 million for the first quarter 2001, compared with $10.4 million operating profit on revenues of $275.3 million for the first quarter 2000.
Individually, the company's Integrated Production Systems (IPS) segment earned operating profit of $13.4 million on revenues of $176.6 million for the first quarter of 2001, compared with $8.1 million operating profit on $207.2 million of revenues for the first quarter of 2000.
The Advanced Manufacturing Equipment (AME) segment, comprising Cincinnati Machine, reported an operating loss of $0.5 million on $56.4 million of revenues for the first quarter of 2001, compared with $2.3 million operating profit on $68.1 million of revenues for the comparable 2000 quarter.
Compared with the first quarter of 2000, results at the IPS segment were aided by better overall contract margins and an improved balance of business between the company's United States and United Kingdom grinding operations. The performance of the company's AME segment continues to reflect weak market conditions for machine tools.
Backlog for all IAS businesses was $511 million at March 31, 2001, compared with $515 million at the end of the 2000. Bookings activity remained soft, indicating continued capital investment uncertainty on the part of automotive companies and their suppliers.
Corporate expenses in the first quarter were higher than in the first quarter of 2000, primarily due to charges related to certain up-front costs associated with the company's recent financing agreements.
During the quarter, the company concluded its activities with Credit Suisse First Boston to evaluate strategic alternatives. In management's judgment, initial discussions with potential buyers did not adequately reflect the value of the businesses. The company remains open to value-creating opportunities and continues to aggressively pursue improvements in operating performance.
First Quarter 2001 Results
UNOVA, INC.
(thousands of dollars,
except per share amounts)
Three Months Three Months
Ended Ended
March 31, March 31,
2001 2000
CONSOLIDATED STATEMENTS OF OPERATIONS
(Preliminary)
Sales and Service Revenues $403,009 $484,827
Costs and Expenses
Cost of sales and service 294,741 363,385
Selling, general and administrative 98,291 97,615
Depreciation and amortization 15,952 17,019
Interest, net 8,661 7,612
Total Costs and Expenses 417,645 485,631
Loss before Income Taxes (14,636) (804)
Benefit for Income Taxes 4,684 310
Net Loss $ (9,952) $ (494)
Basic and Diluted Loss per Share $ (0.18) $ (0.01)
Shares Used in Computing Loss Per Share
Basic 56,472,843 55,552,772
Diluted 56,472,843 55,552,772
SELECTED SEGMENT INFORMATION (Preliminary)
Sales and Service Revenues
Automated Data Systems $ 170,046 $209,553 (a)
Industrial Automation Systems:
Integrated Production Systems 176,550 207,170
Advanced Manufacturing Equipment 56,413 68,104
Total Sales and Service Revenues $ 403,009 $ 484,827
Segment Operating Profit (Loss)
Automated Data Systems $ (5,669) $ 4,431 (a)
Industrial Automation Systems:
Integrated Production Systems 13,414 8,113
Advanced Manufacturing Equipment (522) 2,267
Total Segment Operating Profit $ 7,223 $ 14,811
Note(a): includes Amtech.
UNOVA, INC.
CONSOLIDATED BALANCE
SHEETS (Preliminary)
(thousands of dollars)
March 31, Dec. 31,
2001 2000
Assets
Current Assets
Cash and cash equivalents $ 35,558 $ 106,836
Accounts receivable, net 528,356 453,734
Inventories, net
of progress billings 225,062 237,487
Deferred tax assets 70,234 79,845
Other current assets 17,602 17,202
Total Current Assets 876,812 895,104
Property, Plant and Equipment, Net 217,649 228,242
Goodwill and Other Intangibles, Net 365,206 369,949
Deferred Tax Assets 101,743 87,698
Other Assets 142,596 139,685
Total Assets $ 1,704,006 $ 1,720,678
Liabilities and
Shareholders' Investment
Current Liabilities
Accounts payable and
accrued expenses $ 335,388 $ 396,506
Payroll and related expenses 88,145 85,340
Notes payable and current
portion of long-term
obligations 287,013 235,372
Total Current Liabilities 710,546 717,218
Long-term Obligations 213,500 213,503
Other Long-term Liabilities 109,840 102,173
Shareholders' Investment
Common stock 568 568
Additional paid-in capital 661,418 660,132
Retained earnings 41,506 51,458
Accumulated other comprehensive
loss -- cumulative currency
translation adjustment (33,372) (24,374)
Total Shareholders'
Investment 670,120 687,784
Total Liabilities and
Shareholders' Investment $ 1,704,006 $ 1,720,678
UNOVA, INC.
CONSOLIDATED STATEMENT
OF CASH FLOWS (Preliminary)
Three Months Ended
March 31, 2001
(thousands of dollars)
Cash and Cash Equivalents
at Beginning of Period $ 106,836
Cash Flows from Operating Activities:
Net Loss (9,952)
Adjustments to reconcile net loss to net
cash used in operating activities:
Decrease in accounts receivable sold (90,500)
Depreciation and amortization 15,952
Changes in working capital
and other operating activities (38,531)
Net Cash Used in Operating Activities (123,031)
Cash Flows from Investing Activities:
Capital expenditures (3,496)
Other investing activities 2,302
Net Cash Used in Investing Activities (1,194)
Cash Flows from Financing Activities:
Net increase in borrowings 52,890
Other financing activities 57
Net Cash Provided by Financing Activities 52,947
Resulting Decrease in Cash
and Cash Equivalents (71,278)
Cash and Cash Equivalents
at End of Period $ 35,558