Cascade Corporation Announces Earnings of $0.44 Per Share for the First Fiscal Quarter Ended April 30, 2003
PORTLAND, Ore.--May 28, 2003--Cascade Corporation today reported its financial results for the first fiscal quarter of 2004, ended April 30, 2003.First Quarter Financial Highlights:
| -- | Consolidated net sales were $68.9 million, a 15% increase over consolidated net sales of $59.9 million in the first quarter of fiscal 2003. The increase in net sales was due primarily to stronger sales in all major markets and the strengthening of foreign currencies against the US dollar. Foreign currencies accounted for approximately 8% of the first quarter 2004 sales increase. |
| -- | Gross margin was 32.9% as compared to 35.1% in the first quarter of fiscal 2003. The decrease in gross margin was largely attributable to product mix in North America. |
| -- | Consolidated net income was $5.4 million, or $0.44 per share, compared to net income of $4.2 million, or $0.35 per share in the first quarter of the prior year. |
| -- | The effective tax rate decreased in the first quarter of fiscal 2004 to 32% as compared to approximately 35% in the first quarter of fiscal 2003. The decrease was primarily due to the utilization of foreign tax benefits realized but not recognized in prior years. |
Market Conditions
-- The North American lift truck market improved by 16% during
the first quarter as measured by an increase in lift truck
shipments compared to the same period in the prior year.
Industry shipments are an indicator of the general health of
the industry and do not necessarily correlate with the demand
for Cascade's products. Cascade's North American sales in the
first quarter of fiscal 2004 were up 4.0% to $40.5 million as
compared to $39.0 million in the first quarter of fiscal 2003.
-- European sales improved 40.7% to $18.8 million during the
first quarter of fiscal 2004 as compared to $13.3 million
during the first quarter of fiscal 2003. The improvement was
driven by increased order rates and the strengthening of
European currencies. Approximately 25% of the increase in
European sales is due to the strengthening of currencies.
-- Sales in the Asia Pacific market increased 26.6% in the first
quarter of fiscal 2004 in comparison to the first quarter of
fiscal 2003, largely driven by continued strong sales in
China.
Other Events:
-- The Company acquired FEMA Forks, a small, privately owned
supplier of forks (lifting tines) to Europe's lift truck
manufacturing industry. FEMA Forks is based in Hagen, Germany.
The aggregate purchase price for the acquisition was $5.3
million, which included the assumption of liabilities and
payment of debt. The transaction closed on March 31, 2003.
Robert C. Warren, Jr., President and Chief Executive Officer, remarked, "We're pleased with our quarterly financial performance and encouraged by the results experienced in Europe and the ongoing improvement in North American activity. We continue to be cautiously optimistic about the business climate in our major markets in light of continuing economic uncertainty, but will remain vigilant on cost containment. Overall, the Company doesn't see any significant changes in market conditions going forward."
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 Cascade's 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 lift truck attachments, forks and accessories. Additional information on Cascade is available on its web site, www.cascorp.com.
Cascade Corporation will hold a webcast conference call on Wednesday, May 28, 2003, at 2:00 pm Pacific Time, to discuss first quarter results. The conference call can be accessed in the U.S. and Canada by dialing 877/356-5726; international callers can access the call by dialing 706/643-0183. Participants are encouraged to dial-in 15 minutes prior to the beginning of the call. A replay will be available two hours after the live broadcast and can be accessed through May 30th by dialing 800/642-1687 and entering passcode 864140, or internationally, by dialing 706/645-9291 and entering passcode 864140.
The call will be simultaneously webcast and can be accessed on the investor relation's page of the company's website, www.cascorp.com. Listeners should go to the website at least 15 minutes early to register, download and install any necessary audio software.
Cascade Corporation
Consolidated Statement of Income
(Unaudited - in thousands, except per share data)
Three Months
Ended April 30
----------------------------------
2003 2002
----------------- ----------------
Net sales $68,934 $59,942
Cost of goods sold 46,223 38,879
----------------- ----------------
Gross profit 22,711 21,063
Selling and administrative expenses 14,649 13,303
----------------- ----------------
Operating income 8,062 7,760
Interest expense (1,160) (1,465)
Interest income 268 374
Other income (expense), net 732 (177)
----------------- ----------------
Income before provision for income
taxes 7,902 6,492
Provision for income taxes 2,529 2,272
----------------- ----------------
Net income $5,373 $4,220
================= ================
Basic earnings per share $0.46 $0.37
Diluted earnings per share $0.44 $0.35
Basic weighted average shares
outstanding 11,588 11,292
Diluted weighted average shares
outstanding 12,147 12,209
Cascade Corporation
Consolidated Balance Sheet
(In thousands, except share and per share data)
April 30 January 31
2003 2003
----------------- ----------------
(unaudited)
ASSETS
Current assets:
Cash $24,982 $29,501
Marketable securities 5,503 -
Accounts receivable, less
allowance for doubtful
accounts of $1,687 and $1,801 51,941 42,784
Inventories 30,155 30,431
Deferred income taxes 2,267 2,188
Income taxes receivable 2,082 3,727
Notes receivable, current portion 1,120 1,088
Prepaid expenses and other 3,221 4,279
----------------- ----------------
Total current assets 121,271 113,998
Property, plant and equipment, net 68,528 65,863
Goodwill 63,444 59,355
Notes receivable, net 8,286 8,559
Deferred income taxes 11,710 11,627
Other assets 3,082 2,915
----------------- ----------------
Total assets $276,321 $262,317
================= ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable to banks $925 $1,043
Current portion of long-term debt 12,695 12,695
Accounts payable 15,951 13,763
Accrued payroll and payroll taxes 5,843 5,687
Accrued environmental expenses 808 808
Other accrued expenses 11,470 8,801
----------------- ----------------
Total current liabilities 47,692 42,797
Long-term debt 49,987 50,113
Accrued environmental expenses 9,214 9,389
Deferred income taxes 1,311 1,226
Other liabilities 6,141 5,514
----------------- ----------------
Total liabilities 114,345 109,039
----------------- ----------------
Exchangeable convertible preferred
stock and minority interest 4,265 8,530
----------------- ----------------
Shareholders' equity:
Common stock, $.50 par value,
20,000,000 authorized shares;
11,698,300 and 11,398,300 shares
issued and outstanding 5,849 5,699
Additional paid-in capital 5,583 1,468
Retained earnings 157,711 151,925
Accumulated other comprehensive
loss:
Cumulative foreign currency
translation adjustments (9,820) (14,344)
----------------- ----------------
Total shareholders' equity 157,711 144,748
----------------- ----------------
Total liabilities and
shareholders' equity $276,321 $262,317
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