Twin Disc Announces Financial Results for Fiscal 2002 Third Quarter and Nine Months
RACINE, Wis.--April 22, 2002--Twin Disc, Inc. , today announced financial results for the fiscal 2002 third quarter and nine months ended March 31, 2002.Net sales for the fiscal 2002 third quarter declined 12 percent to $41,928,000 from $47,642,000 for the same period last year. The Company reported a net loss of $37,000, or $0.01 per diluted share. This compares with earnings of $4,033,000, or $1.44 per diluted share, in the year-ago quarter, which included an after-tax gain of $2,288,000 or $0.81 per share related to the sale of the Company's minority ownership position in Niigata Converter Company of Tokyo, Japan, to Niigata Engineering Company, Ltd.
For the fiscal 2002 nine-months, net sales of $126,545,000 slipped five percent compared with 2001's $133,016,000, while net earnings declined to $658,000, or $0.23 per diluted share, versus $5,899,000, or $2.10 per diluted share, for the same period a year ago, which also included the aforementioned $0.81 per share gain.
Chairman and Chief Executive Officer Michael E. Batten stated, "During the fiscal third quarter, the impact of the general economic downturn on our major markets intensified. The cumulative effect of markedly weaker demand and unusual items during the period magnified the challenges we have been facing since the fiscal year began."
He continued, "By far the largest contributor to the quarter's revenue decline was the persistent reduction in demand for marine pleasure craft, a market that is not anticipated to revive until next fiscal year. Overall volumes contracted and expenses, primarily related to corporate development and new-product introductions, escalated.
"While our third-quarter results were a disappointment, current economic data seem to indicate that a recovery is in progress. Still, the pace and robustness of the recovery remain elusive. In the short-term, we can expect some of the prior periods' challenges to linger, but stable sales and increasing orders are encouraging. Although it is still too early to say we have completely turned the corner, we remain confident in our longer-term growth prospects and believe our Company is strongly positioned to benefit from an improving economic environment," Batten concluded.
Twin Disc, Inc., designs, manufactures and internationally distributes heavy-duty off-highway power transmission equipment for the industrial, government, marine, and energy and natural resources markets.
This press release may contain statements that are forward looking as defined by the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors including those identified in the Company's most recent periodic report and other filings with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that the results expressed therein will be achieved.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share data; unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2002 2001 2002 2001
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Net sales $ 41,928 $ 47,642 $126,545 $133,016
Cost of goods sold 32,314 35,764 98,423 100,938
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Gross profit 9,614 11,878 28,122 32,078
Marketing, engineering and
administrative expenses 9,238 8,376 25,784 23,954
Interest expense 423 675 1,355 2,118
Minority interest 49 0 83 0
Other income, net (588) (4,094) (879) (4,325)
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Earnings before income taxes 492 6,921 1,779 10,331
Income taxes 529 2,888 1,121 4,432
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Net (loss) earnings $ (37) $ 4,033 $ 658 $ 5,899
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(Loss) Earnings per share:
Basic $ (0.01) $ 1.44 $ 0.23 $ 2.10
Diluted $ (0.01) $ 1.44 $ 0.23 $ 2.10
Average shares outstanding:
Basic 2,808 2,808 2,808 2,808
Diluted 2,808 2,808 2,808 2,808
Dividends per share $ 0.175 $ 0.175 $ 0.525 $ 0.525