Cascade Announces Sales and Earnings for Q4 and Year 1999
25 March 1999
Cascade Announces Sales and Earnings for the Fourth Quarter and the Year Ended January 31, 1999
PORTLAND, Ore.--March 24, 1999--Robert C. Warren, Jr., President and Chief Executive Officer of Cascade Corporation reported that revenues increased by 10.3% due to acquisitions and strong business conditions, and that operating earnings jumped by nearly 70% in the year ended January 31, 1999 compared to the prior year.Consolidated net sales of $407,930,000 for fiscal 1998 compare to $369,865,000 for 1997. Fourth quarter sales of $89,985,000 were down 7.5% from the $97,275,000 reported in the prior year fourth quarter, however, reflecting some market softening in Europe and delayed shipments to two major OEM customers in North America.
Net income for the year of $21,370,000 ($1.63 per share) was 1.6% higher than the $21,040,000 ($1.60 per share) for the year ended January 31, 1998. This year's results include a gain of $2,345,000 ($0.18 per share) from sale of two parcels of land and the sale of the world mast product line, while last year's results included $9,770,000 ($0.74 per share) as a result of settlement of claims against insurers in connection with environmental matters. Operating earnings of $19,025,000 ($1.45 per share) represents an increase of 68.8% from prior year earnings of $11,270,000.
Fourth quarter net income of $3,040,000 ($0.24 per share) compared to $1,955,000 ($0.15 per share) in the fourth quarter last year. Results were impacted by seasonal issues including weather related disruptions, as well as delay in shipments at the request of two major North American OEM customers
Warren noted that fiscal 1998 produced record net earnings from operations for the company despite the disappointing fourth quarter. "We continue to be very positive about our direction," said Warren. "Our efforts are focused on margins, operating costs and working capital as we take fullest advantage of our growth in the past several years. While industry forecasts of lift truck markets in Europe and North America indicate little growth in the coming year, we will strive for continued improvement in our key statistics such as return on sales and return on assets."
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. -0-
Cascade Corporation & Subsidiary Companies Summary of Earnings
(in thousands except share amounts)
(Unaudited)
INCOME SUMMARY 3 Months Ended 12 Months Ended
-------------- January 31 January 31
1999 1998 1999 1998
Net Sales $ 89,985 $ 97,275 $ 407,930 $ 369,865
--------- --------- --------- ---------
Operating Expenses:
Cost of Goods Sold 62,135 70,625 281,195 259,605
Depreciation and
Amortization 5,460 4,540 21,550 20,280
Selling and
Administrative
Expenses 16,530 16,975 68,500 64,100
Environmental Insurance
Settlement, net (720) (14,890)
--------- --------- --------- ---------
84,125 91,420 371,245 329,095
--------- --------- --------- ---------
Operating Income 5,860 5,855 36,685 40,770
Interest Expense 2,705 2,315 10,940 9,440
Interest Income (200) (30) (755) (610)
Other (Income) Expense, net (705) 400 (4,755) (150)
--------- --------- --------- ---------
Income Before Income Taxes 4,060 3,170 31,255 32,090
Income Taxes 1,020 1,215 9,885 11,050
--------- --------- --------- ---------
Net Income $ 3,040 $ 1,955 $ 21,370 $ 21,040
========= ========= ========= =========
Basic Earnings Per Share $ 0.25 $ 0.15 $ 1.77 $ 1.73
Diluted Earnings Per Share $ 0.24 $ 0.15 $ 1.63 $ 1.60
Diluted Weighted Average
Shares Outstanding 12,957 13,280 13,148 13,190
========= ========= ========= =========
CONDENSED BALANCE SHEET AS OF JANUARY 31, 1999
Assets
------
Current Assets:
Cash $11,460
Receivables 72,354
Inventories 62,015
Other Current Assets 7,894
-----
Total Current Assets 153,723
Property, Plant & Equipment, Net 100,075
Goodwill and Other Assets, Net 94,059
------
Total Assets $347,857
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Liabilities and Shareholders' Equity
------------------------------------
Current Liabilities $ 59,175
Long-Term Liabilities:
Long-Term Debt 142,783
Accrued Environmental Expenses 7,076
Other Long-Term Liabilities 3,380
-----
Total Liabilities 212,414
Mandatorily Redeemable Convertible
Preferred Stock & Minority Interest 15,949
Shareholders' Equity 119,494
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Total Liabilities &
Shareholders' Equity $347,857
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