Cascade Corporation Announces Increased Sales and Earnings for Q3
4 December 1998
Cascade Corporation Announces Increased Sales and Earnings for the Third Quarter
PORTLAND, Ore.--Dec. 4, 1998--Robert C. Warren, Jr., President and Chief Executive Officer of Cascade Corporation reported that third quarter revenues increased by 8.3% and that operating earnings increased more than 86% from the prior year quarter due to improved margins and strong business conditions.
Consolidated net sales of $105,660,000 for the third quarter ended October 31, 1998 compared to $97,525,000 for the previous year quarter. Third quarter income of $6,025,000 ($.46 per share) was 86.2% more than the $3,235,000 ($.24 per share) of net income from operations in the prior year third quarter. Reported net income for the third quarter of 1997 was $6,480,000 ($.49 per share) which included $3,245,000 ($.25 per share) for an insurance settlement related to environmental expenses.
Year to date net sales of $317,945,000 represent an increase of 16.6% over sales of $272,590,000 recorded in the first nine months of 1997. Net income for the first nine months of 1998 before a previously announced land sale gain was $16,702,000 ($1.26 per share), 71.6% above 1997 net income, before the insurance settlements, of $9,735,000 ($.74 per share). Year to date net income including these items was $18,330,000 ($1.39 per share), compared to $19,085,000 ($1.46 per share) in 1997.
Warren noted gross margins have improved and administrative costs have been reduced. "North American and European lift truck industry bookings have rebounded and remain strong after slight declines in August and September," Warren said, "and Asian markets offer some reason for encouragement as we see signs that economic conditions are stabilizing in Japan and Korea."
Cascade Corporation, headquartered in Portland, Oregon is a leading international manufacturer of lift truck attachments, forks, tires and accessories.
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 dependent on economic conditions in general including interest rates, on competitive factors in, and on the cyclical nature of the Materials Handling Industry.
Cascade Corporation & Subsidiary Companies Summary of Earnings
(in thousands except share data)
INCOME SUMMARY Three Months Ended Nine Months Ended
October 31 October 31
1998 1997 1998 1997
Net Sales $105,660 $ 97,525 $317,945 $272,590
Operating Expenses:
Cost of Goods Sold 72,340 68,295 219,060 188,980
Depreciation and Amortization 5,450 5,715 16,090 15,740
Selling and Administrative
Expenses 16,835 16,415 51,970 47,125
Environmental Insurance
Settlement, net (4,920) (14,170)
-------- -------- -------- --------
94,625 85,505 287,120 237,675
Operating Income 11,035 12,020 30,825 34,915
Interest Expense 3,050 2,650 8,235 7,125
Interest Income (240) (330) (555) (580)
Other (Income) Expense, net (760) (170) (4,050) (550)
Income Before Income Taxes 8,985 9,870 27,195 28,920
Income Taxes 2,960 3,390 8,865 9,835
Net Income $ 6,025 $ 6,480 $ 18,330 $ 19,085
Basic Earnings Per Share $ 0.50 $ 0.54 $ 1.52 $ 1.58
Diluted Earnings Per Share $ 0.46 $ 0.49 $ 1.39 $ 1.46
Diluted Weighted Average Shares
Outstanding 13,094,833 13,261,704 13,212,987 13,089,873
CONDENSED BALANCE SHEET AS OF OCTOBER 31, 1998
Assets Liabilities and Shareholders' Equity
Current Assets:
Cash $ 17,655 Current Liabilities $ 73,582
Receivables 72,723 Long-Term Liabilities:
Inventories 65,261
Long-Term Debt 145,683
Other Current
Assets 7,217 Accrued Environmental
----- Expenses 8,316
Total Current
Assets 162,856 Other Long-Term
----- Liabilities 4,287
------
Property, Plant
& Equipment,
Net 103,817 Total Liabilities 231,868
Goodwill and
Other Assets,
Net 101,394 Mandatorily Redeemable
--------- Convertible Preferred
Stock 4,575
Minority Interest 15,640
Shareholders' Equity 115,984
-------
Total Assets $368,067 Total Liabilities &
Shareholders' Equity $368,067
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