UNOVA Announces First Quarter 2003 Results
WOODLAND HILLS, Calif.--April 25, 2003--UNOVA, Inc. :| -- | Intermec achieves double-digit percent sales growth on a comparable quarter basis for the third successive quarter |
| -- | Industrial Automation Systems (IAS) backlog shows first quarterly improvement in more than three years |
| -- | Net debt of $20.9 million represents another record low |
UNOVA, Inc. (www.unova.com) today announced financial results for the first quarter 2003.
UNOVA reported 2003 first quarter revenues of $273.7 million and a net loss of $14.9 million, or ($0.25) per share, compared to revenues of $292.4 million and a net loss of $18.2 million, or ($0.32) per share for the first quarter 2002.
2003 first quarter results include $1.0 million of special charges related to the IAS restructuring and the relocation of UNOVA headquarters. 2002 first quarter results included $4.7 million in special charges related to a loss on the sale of a non-core industrial business.
UNOVA's net debt (defined as total debt less cash) decreased $25.5 million to $20.9 million during the first quarter 2003, primarily due to positive cash generation from operations.
"We are pleased with Intermec's growth and its ability to translate growth to superior bottom-line performance," said Larry Brady, Chairman and CEO. "Both our business segments are producing results beyond what we might expect in this weak economy and we continue to use those results to drive cash flows."
Automated Data Systems (ADS)
Intermec Technologies reported revenues of $162.9 million and a segment operating profit of $9.0 million for the quarter, compared to $140.3 million and a segment operating loss of $0.7 million for the 2002 first quarter.
The majority of product revenue improvement came from the core 'Systems and Solutions' business, which grew 27 percent. Geographically, the strongest performance was in international markets, where Europe grew at 31 percent and the rest of the world grew at 71 percent. Approximately $7.0 million of the revenue increase on a comparable quarter basis is due to changes in foreign currency exchange rates.
Profit improvement was the result of the volume increase and continuing productivity improvement. Gross margin improved by more than two points and selling, general and administrative costs decreased four points versus the comparable first quarter 2002.
First-quarter ADS product and service operating margins were 5.5 percent, the highest in more than three years. Coupled with annualized capital utilization turns of 5.5 times during the quarter, pre-tax return on capital utilized at ADS for the quarter exceeded 30 percent.
The quarter was marked by several important wireless product developments. One of the nation's largest convention centers, the new 1.8-million square foot Mandalay Bay Convention Center in Las Vegas, selected Intermec's 802.11b wireless access points for wireless connectivity to exhibitors and visitors. Intermec also introduced the industry's first wireless access point with an embedded RADIUS authentication server for enhanced security and network administration.
Intermec also launched its new rugged Tablet PC, the CT60, powered by Microsoft Windows XP Tablet PC Edition.
Industrial Automation Systems (IAS)
The Company will now report the results of the former Integrated Production Systems (IPS) and Advanced Manufacturing Equipment (AME) segments as the Industrial Automation Systems (IAS) segment due to the previously announced merger of AME with the Company's Lamb operations.
Accordingly, the IAS segment, comprising Lamb Machining Systems, Lamb Body & Assembly, Cincinnati Machine and Landis, reported revenues of $110.8 million and an operating loss of $10.4 million for the first quarter 2003, compared to revenues of $152.1 million and a loss of $0.1 million for the 2002 first quarter.
Backlog was $239.1 million at March 31, 2003, approximately $4 million greater than at December 31, 2002, representing the first sequentially positive improvement in three and one-half years.
Corporate Developments
During the quarter, the Company announced that Allen J. Lauer, CEO of Varian, Inc., joined its board of directors.
UNOVA is a leading supplier of mobile computing and wireless network products for non-office applications and of manufacturing systems technologies primarily for the automotive and aerospace industries.
www.unova.com
(Forward-looking Statements)
UNOVA, INC. FIRST QUARTER 2003 - EARNINGS CONFERENCE CALL
UNOVA, INC.
(amounts in thousands of dollars, except per share amounts)
Three Months Ended
March 31,
-------------------
2003 2002
--------- ---------
CONSOLIDATED STATEMENTS OF OPERATIONS (Preliminary)
Sales and Service Revenues $273,667 $292,381
--------- ---------
Costs and Expenses
Cost of sales and service 197,210 217,366
Selling, general and administrative 77,715 73,942
Depreciation and amortization 7,165 9,002
Special charges 998 4,688
--------- ---------
Total Costs and Expenses 283,088 304,998
--------- ---------
Operating Loss (9,421) (12,617)
Interest, net (3,862) (5,541)
--------- ---------
Loss before Income Taxes (13,283) (18,158)
Provision for Income Taxes (1,600) -
--------- ---------
Net Loss $(14,883) $(18,158)
========= =========
Basic and Diluted Loss per Share $(0.25) $(0.32)
========= =========
Shares Used in Computing
Basic and Diluted Loss Per Share 58,413 57,547
SELECTED SEGMENT INFORMATION (Preliminary)
Sales and Service Revenues
Automated Data Systems $162,882 $140,325
Industrial Automation Systems 110,785 152,056
--------- ---------
Total Sales and Service Revenues $273,667 $292,381
========= =========
Operating Loss
Segment Operating Profit (Loss)
Automated Data Systems $9,002 $(734)
Industrial Automation Systems (10,399) (72)
--------- ---------
Total Segment Operating Profit (Loss) (1,397) (806)
Corporate and Other (7,026) (7,123)
Special Charges (998) (4,688)
--------- ---------
Operating Loss $(9,421) $(12,617)
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UNOVA, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Preliminary)
Three Months Ended March 31, 2003
(amounts in thousands)
Cash and Cash Equivalents at Beginning of Period $178,269
---------
Cash Flows from Operating Activities:
Net loss (14,883)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 7,165
Changes in working capital and other
operating activities 33,723
---------
Net Cash Provided by Operating Activities 26,005
---------
Cash Flows from Investing Activities:
Capital expenditures (4,387)
Other investing activities 3,959
---------
Net Cash Used in Investing Activities (428)
---------
Cash Flows from Financing Activities:
Repayment of long-term obligations (16,200)
Other financing activities (19)
---------
Net Cash Used in Financing Activities (16,219)
---------
Resulting Increase in Cash and Cash Equivalents 9,358
---------
Cash and Cash Equivalents at End of Period $187,627
=========
UNOVA, INC.
CONSOLIDATED BALANCE SHEETS (Preliminary)
(amounts in thousands)
March 31, December 31,
2003 2002
----------- -----------
Assets
Current Assets
Cash and cash equivalents $187,627 $178,269
Accounts receivable, net 293,601 341,171
Inventories, net of progress billings 139,962 138,468
Deferred tax assets 74,311 78,612
Other current assets 11,359 9,247
----------- -----------
Total Current Assets 706,860 745,767
Property, Plant and Equipment, Net 120,896 126,936
Goodwill and Other Intangibles, Net 75,411 75,345
Deferred Tax Assets 107,710 103,559
Other Assets 66,306 73,174
----------- -----------
Total Assets $1,077,183 $1,124,781
=========== ===========
Liabilities and Shareholders' Investment
Current Liabilities
Accounts payable and accrued expenses $277,631 $286,715
Payroll and related expenses 62,290 72,211
----------- -----------
Total Current Liabilities 339,921 358,926
Long-term Obligations 208,500 224,700
Other Long-term Liabilities 125,191 123,257
Shareholders' Investment
Common stock 587 586
Additional paid-in capital 674,954 674,715
Retained deficit (253,182) (238,299)
Accumulated other comprehensive loss (18,788) (19,104)
----------- -----------
Total Shareholders' Investment 403,571 417,898
----------- -----------
Total Liabilities and Shareholders' Investment $1,077,183 $1,124,781
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