Cascade Corporation Announces Earnings of $0.38 Per Share for the Fourth Quarter of Fiscal 2003 and $1.45 Per Share for Fiscal 2003
PORTLAND, Ore.--March 27, 2003--Cascade Corporation today reported its financial results for the fourth quarter ended January 31, 2003 and for the year ended January 31, 2003.Fourth Quarter Financial Highlights:
| -- | Consolidated net sales were $64.4 million, a 21.7% increase over consolidated net sales of $52.9 million in the fourth quarter of fiscal 2002. The increase in net sales was due primarily to stronger sales volume in North America and the strengthening of foreign currencies against the US dollar. |
| -- | Gross margin was 33.0% as compared to 31.4% in the fourth quarter of fiscal 2002. The increase in gross margin was largely attributable to manufacturing efficiencies. |
| -- | Consolidated net income was $ 4.6 million, or $0.38 per share, compared to a net loss of $8.6 million, or ($0.76) per share in the fourth quarter of the prior year. The fourth quarter of fiscal 2003 included the recovery of a portion ($2.5 million pre-tax) of the note receivable written off in fiscal 2002. Prior year results included a goodwill impairment charge, amortization of goodwill expense, and the write-off of a note receivable. |
Year-end Financial Highlights:
-- Consolidated net sales were $258.8 million, a 2.4% increase
from consolidated net sales of $252.7 million for fiscal 2002.
The sales increase was largely due to currency fluctuations.
-- Gross margins increased to 34.4% as compared to 33.5% for
fiscal 2002. The increase was due to the Company's continuing
effort to improve manufacturing processes.
-- Consolidated net income was $17.7 million, or $1.45 per share,
as compared to net income of $4.1 million, or $0.34 per share
for fiscal 2002. Prior year results included goodwill
amortization expense, a goodwill impairment charge and the
write-off of a note receivable.
-- Fiscal 2003 results included a $2.5 million partial recovery
and settlement of a $7.3 million note receivable from Maine
Rubber Company, written off in fiscal 2002, and a $2.1 million
pretax charge reflecting settlement of the City of Portland
litigation during the third quarter.
Market Conditions - Fourth Quarter:
-- The North American lift truck market continued to reflect
marginal improvement during the fourth quarter. Year over
year, lift truck shipments have increased significantly off an
industry low trough. Cascade's North American sales in the
fourth quarter of fiscal 2003 were up 20.9% to $42.8 million
as compared to $35.4 million in the fourth quarter of fiscal
2002.
-- European market conditions remain similar to the third quarter
of fiscal 2003 with overall weak economic conditions and
fluctuating lift truck shipments. Cascade's European sales
improved 17.0% to $15.8 million during the fourth quarter of
fiscal 2003 as compared to $13.5 million during the fourth
quarter of fiscal 2002. The increase is due to improved OEM
order rates and the strengthening Euro.
-- Sales in the Asia Pacific market increased 32.4% in the fourth
quarter of fiscal 2003 in comparison to the fourth quarter of
fiscal 2002, largely driven by continued strong sales in
China.
Significant Events in Fiscal 2003:
-- City of Portland Settlement Agreement: Cascade settled
litigation brought by the City of Portland, resolving the
final outstanding environmental issue related to groundwater
contamination in the area of its Portland plant site.
-- Dividend Declaration and Share Repurchase: Cascade's Board of
Directors declared a quarterly dividend of $0.10 per share on
November 21, 2002 to shareholders of record on December 3,
2002. A quarterly dividend was last paid in the second quarter
of fiscal 2001. The Board also extended for twelve months the
prior authorization to repurchase up to 600,000 shares as
market conditions warrant. A total of 248,700 shares have been
purchased to date under the authorization.
"The fourth quarter was a continuation of our third quarter experience with an improvement in North America, a challenging European market and a positive trend in Asia, particularly China," remarked Robert C. Warren, Jr., President and Chief Executive Officer. "North American activity continues to show steady improvement over the prior year but has yet to reach business levels experienced in 2001. Europe is still characterized by a high degree of uncertainty and overcapacity in several national markets."
Forward Looking Statements:
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that a number of factors could cause Cascade's actual results to differ materially from any results indicated in this release or in any other forward-looking statements made by, or on behalf of Cascade. These include among others factors related to general economic conditions, interest rates, the demand for materials handling products, performance of its manufacturing facilities, and the cyclical nature of the Materials Handling Industry. Further, historical information should not be considered an indicator of future performance. Additional considerations and important risk factors are described in Cascade's reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission.
About Cascade Corporation:
Cascade Corporation, headquartered in Portland, Oregon, is a leading international manufacturer of load handling devices for lift trucks and related accessories. Additional information on Cascade is available on its web site, www.cascorp.com.
Cascade Corporation
(unaudited - in thousands, except per share data)
CONSOLIDATED STATEMENTS OF Three Months Ended Year Ended
INCOME January 31 January 31
--------------------------- ------------------ -------------------
2003 2002 2003 2002
-------- --------- --------- ---------
Net sales $64,375 $52,911 $258,829 $252,715
Cost of goods sold 43,105 36,294 169,755 168,015
-------- --------- --------- ---------
Gross profit 21,270 16,617 89,074 84,700
Selling and administrative
expenses 15,051 12,087 56,730 52,960
Environmental expenses -- 1,500 2,100 1,500
Loss on goodwill impairment -- 5,100 -- 5,100
Allowance for (recovery of)
note receivable (2,500) 7,308 (2,500) 7,308
Amortization -- 1,172 -- 4,399
-------- --------- --------- ---------
Operating income (loss) 8,719 (10,550) 32,744 13,433
Interest expense, net (1,173) (1,314) (5,713) (6,366)
Interest income 371 218 1,485 1,044
Other (income) expense (194) 166 (329) 102
-------- --------- --------- ---------
Income (loss) from continuing
operations before provision
for income taxes 7,723 (11,480) 28,187 8,213
Income tax provision (benefit) 3,113 (4,569) 10,480 2,911
-------- --------- --------- ---------
Income from continuing
operations 4,610 (6,911) 17,707 5,302
Discontinued operations:
Income from discontinued
operations, net of
income taxes -- 9 -- 485
Loss on sale of discontinued
operations, net of Income
taxes -- (1,660) -- (1,660)
-------- --------- --------- ---------
Net income $4,610 ($ 8,562) $17,707 $4,127
======== ========= ========= =========
Basic earnings (loss) per
share:
Continuing operations $0.40 ($ 0.61) $1.55 $0.47
Discontinued operations -- -- -- 0.04
Loss on sale of discontinued
operations -- (0.15) -- (0.15)
-------- --------- --------- ---------
$0.40 ($ 0.76) $1.55 $0.36
======== ========= ========= =========
Diluted earnings (loss) per
share:
Continuing operations $0.38 ($ 0.61) $1.45 $0.44
Discontinued operations -- -- -- 0.04
Loss on sale of discontinued
operations -- (0.15) -- (0.14)
-------- --------- --------- ---------
$0.38 ($ 0.76) $1.45 $0.34
======== ========= ========= =========
CONSOLIDATED BALANCE SHEETS
---------------------------
Assets
------
January 31, January 31,
2003 2002
----------- ------------
Current assets:
Cash and cash equivalents $ 29,501 $ 25,611
Receivables, net 42,784 39,312
Inventories 30,431 30,817
Other current assets 10,194 10,317
----------- ------------
Total current assets 112,910 106,057
Property, plant and equipment, net 65,863 61,412
Goodwill and other assets 83,544 79,817
----------- ------------
Total assets $262,317 $247,286
=========== ============
Liabilities and Shareholders' Equity
------------------------------------
Current liabilities:
Notes payable and current portion of
long term debt $13,738 $13,989
Accounts payable 13,763 10,575
Accrued environmental expenses 808 2,291
Other current liabilities 14,488 13,191
----------- ------------
Total current liabilities 42,797 40,046
Long-term liabilities:
Long-term debt 50,113 65,679
Other long-term liabilities 16,129 16,920
----------- ------------
Total liabilities 109,039 122,645
Exchangeable preferred stock
and minority interest 8,530 11,374
Shareholders' equity 144,748 113,267
----------- ------------
Total liabilities and shareholders' equity $262,317 $247,286
=========== ============