Cascade Corporation Announces Operating Results for Its Third Quarter
PORTLAND, Ore.--Nov. 29, 2001--Robert C. Warren, Jr., President and Chief Executive Officer of Cascade Corporation , reported net income for the third quarter ended October 31, 2001 of $3.6 million ($.30 per share), compared to net income of $792,000 ($.06 per share) in the third quarter of the prior year.Consolidated net sales were $70.5 million, a 17.4% decrease when compared to consolidated net sales of $85.4 million posted in the prior year third quarter. Third quarter results of the prior year included $5.4 million ($3.1 million after tax) of restructuring costs, environmental expenses and special board committee costs.
Net income for the nine months ended October 31, 2001 was $12.7 million ($1.04 per share), compared to $10.6 million ($.86 per share) in the first nine months of the prior year. Net income for the nine months ended October 31, 2000 included $7.9 million ($4.6 million after tax) of restructuring costs, environmental expenses and special board committee costs which have not been incurred in the comparable current year period. Consolidated net sales were $226.7 million, a 13.6% decrease when compared to consolidated net sales of $262.4 million in the first nine months of the prior year.
Warren attributed the decrease in the Company's net sales to decreases in both order and shipment rates in the lift truck industry, particularly in North America, in the first nine months of the year. North American lift truck order and shipment rates have decreased 43% and 20%, respectively, in the first nine months of the current year in comparison with the first nine months of the prior year. The Company's sales in North America for the third quarter and nine month period ended October 31, 2001 decreased 19.7% and 14.2%, respectively, in comparison with the comparable prior year period.
Warren added that while the Company has found that changes in its net sales do not correspond directly to percentage changes in lift truck industry order rates and shipments, the industry statistics do provide a strong indication of market activity. Based on industry statistics and Company order rates to date, the Company expects net sales through the fourth quarter of fiscal 2002 (year ending January 31, 2002) to trail the prior year. The Company also expects net income for the fourth quarter of fiscal 2002 to be lower than fiscal 2001 net income for the same period, after excluding the impact of restructuring costs, special board committee costs and environmental expenses incurred in fiscal 2001.
Reductions in selling and administrative costs partially offset the Company's lower sales levels. In the nine months ended October 31, 2001, the Company's selling and administrative expenses decreased 24.8% as compared to the first nine months of the prior year. The decreased level of selling and administrative expenses reflects the benefits of the Company's restructuring efforts in Europe and Australia that occurred throughout the prior year and continuing efforts to reduce current year expenses to reflect the reduced sales activity, as well as environmental expenses and special board committee costs incurred in fiscal 2001.
On September 17, 2001, the Company's Board of Directors authorized the repurchase of up to 600,000 shares of the Company's common stock over the next twelve months. As of November 19, 2001 the Company has repurchased 148,700 shares.
Cascade Corporation, headquartered in Portland, Oregon, is a leading international manufacturer of lift truck attachments, forks and accessories. Additional information on Cascade is available on its web site, www.cascorp.com.
Under the "safe harbor provision" of the Private Securities Litigation Act, Cascade Corporation is required to advise you that this news release contains "forward looking statements" based on assumptions as to future sales and earnings, which in turn are dependant on economic conditions in general including interest rates, and on competitive factors in and on the cyclical nature of the Materials Handling Industry.
Cascade Corporation
(In thousands except share and per share data)
INCOME STATEMENT Three Months Ended Nine Months Ended
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October 31, October 31,
(Unaudited) 2001 2000 2001 2000
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Net sales $70,536 $85,386 $226,728 $262,431
Cost and expenses:
Cost of goods sold 49,299 58,522 156,346 178,108
Amortization 1,080 1,169 3,269 3,355
Selling and
administrative
expenses 13,236 20,848 42,332 56,318
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63,615 80,539 201,947 237,781
Operating income 6,921 4,847 24,781 24,650
Interest expense 1,592 2,004 5,052 6,120
Interest income (331) (298) (863) (994)
Other expense, net (180) 561 126 1,304
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Income before income
taxes 5,840 2,580 20,466 18,220
Income taxes 2,219 1,788 7,777 7,653
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Net income $ 3,621 $ 792 $12,689 $10,567
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Basic earnings per
share $ 0.32 $ 0.06 $ 1.12 $ 0.90
Diluted earnings per
share $ 0.30 $ 0.06 $ 1.04 $ 0.86
Diluted weighted
average shares
outstanding 12,129,324 12,320,158 12,161,480 12,261,753
CONDENSED BALANCE SHEET
Oct. 31, Jan. 31,
Assets 2001 2001
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(Unaudited)
Current assets:
Cash $ 19,473 $ 12,418
Receivables 48,281 53,846
Inventories 36,618 40,278
Other current assets 6,681 7,397
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Total current assets 111,053 113,939
Property, plant and equipment, net 71,679 77,235
Goodwill and other assets, net 83,082 91,446
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Total assets $265,814 $282,620
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Liabilities and Shareholders' Equity
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Current liabilities $ 36,062 $ 49,192
Long-term debt 77,970 87,513
Other long-term liabilities 17,936 18,038
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Total liabilities 131,968 154,743
Exchangeable preferred stock and
minority interest 11,374 11,374
Shareholders' equity 122,472 116,503
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Total liabilities and shareholders' equity $265,814 $282,620
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