Cascade Corporation Announces Increased Earnings for the First Quarter
11 June 1999
Cascade Corporation Announces Increased Earnings for the First Quarter
PORTLAND, Ore.--June 10, 1999--Robert C. Warren, Jr., President and Chief Executive Officer of Cascade Corporation reported that first quarter earnings increased 35% from the fourth quarter due to improved margins and lower administrative costs.The lower consolidated net sales of $89,500,000 for the first quarter ended April 30, 1999 compared to $107,125,000 for the previous year first quarter, primarily reflected the divestiture of the mast business unit in January 1999. First quarter net income of $4,110,000 ($.33 per share) was 39.7% lower than the $6,815,000 ($.51 per share) of net income in the prior year first quarter, but was 35.2% higher than the $3,040,000 ($.24 per share) in the fourth quarter of 1998.
Of significance, Warren noted that earnings from operations resumed the improvement shown through three quarters of last year. After adjusting for charges to after tax income from the sale of the Industrial Tire Division, first quarter earnings from operations were $.41 per share. This compares favorably to the $.39 per share earnings from operations reported in the prior year first quarter before the $.12 per share gain on sale of property. Gross margins in the first quarter improved by 10% when compared to both the prior year first quarter and to the fourth quarter of 1998. Warren also noted that not only have gross margins improved, but selling and administrative costs have been reduced by 8% from first quarter of the prior year.
"North American lift truck industry bookings remain strong and have actually improved somewhat since the beginning of our fiscal year," Warren said, "and it now appears that some Asian markets are beginning to rebound. Our operations in Korea are seeing new orders at higher levels than anytime during the past year and a half, and Australian prospects are particularly encouraging."
Cascade Corporation, headquartered in Portland, Oregon is a leading international manufacturer of lift truck attachments, forks, 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, and 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 April 30,
1999 1998
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Net Sales $ 89,500 $ 107,125
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Operating Expenses:
Cost of Goods Sold 58,830 73,635
Depreciation and Amortization 5,220 5,405
Selling and Administrative Expenses 16,215 17,600
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80,265 96,640
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Operating Income 9,235 10,485
Interest Income (115) (190)
Interest Expense 2,385 2,560
Other (Income) Expense, net 695 (2,020)
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Income Before Income Taxes 6,270 10,135
Income Taxes 2,160 3,320
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Net Income $ 4,110 $ 6,815
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Basic Earnings Per Share $ 0.35 $ 0.56
Diluted Earnings Per Share $ 0.33 $ 0.51
Diluted Weighted Average Shares
Outstanding 12,639,138 13,297,768
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CONDENSED BALANCE SHEET AS OF APRIL 30, 1999
Assets
Current Assets:
Cash $17,808
Receivables 62,491
Inventories 48,507
Other Current Assets 8,967
Total Current Assets 137,773
Property, Plant & Equipment, Net 87,455
Goodwill and Other Assets, Net 91,836
Total Assets $317,064
Liabilities and Shareholders' Equity
Current Liabilities $ 45,379
Long-Term Liabilities:
Long-Term Debt 124,225
Accrued Environmental Expenses 7,228
Other Long-Term Liabilities 4,005
Total Liabilities 180,837
Mandatorily Redeemable Convertible
Preferred Stock & Minority Interest 15,949
Shareholders' Equity 120,278
Total Liabilities & Shareholders' Equity $317,064