Oilgear Reports First Quarter Results
19 April 2000
Oilgear Reports First Quarter Results
MILWAUKEE--April 18, 2000--The Oilgear Company (NASDAQ/NMS:OLGR) today reported record-high first quarter sales, record orders, and an increase in earnings for the quarter ended March 31, 2000.The manufacturer of fluid power components, systems and electronic controls posted sales of $24,465,000 for the first quarter of 2000, up 5.4% from sales of $23,210,000 for the same period in 1999. Net earnings were $539,000 or $0.27 per share for the first quarter of 2000, an 11.8% increase from earnings of $482,000 or $0.25 per share in the first quarter of 1999.
"Our first quarter sales were a record for the company, reflecting strong systems sales in the domestic segment and also in our international operations," said David A. Zuege, president and chief executive officer. "U.S. sales were up 10.4%, reflecting a rebound in the domestic market with particular strength in electro hydraulic systems. Our international segment sales, which covers all of the world except the U.S. and Europe, were up 26% with very strong sales from the Mexican market. Our increased sales illustrate the benefits of our geographic diversity and technical leadership."
Zuege said the $28.7 million record level of orders exceeded shipments in the first quarter of 2000, with backlog reaching $23.1 million at the end of the first quarter, up from $18.8 million at the end of fiscal 1999. "We're pleased to see the U.S. market rebounding," Zuege said. "Shipments during the first quarter included a large portion of the hydraulics and electronic controls for the fixed umbilical tower associated with the rocket launch capabilities at Cape Canaveral Air Station. We feel confident that we are close to getting another major contract for the same program."
"The increase in earnings is especially significant because it was achieved in spite of continuing pressure on margins, particularly in the small pump market," Zuege said.
Oilgear serves customers in the primary metals, machine tool, automobile, petroleum, construction equipment, chemicals, plastics, glass, lumber, rubber and food industries. Products include piston pumps, motors, valves, manifolds, hydraulic and electric systems, as well as aftermarket sales and service.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company "believes," "anticipates," "expects" or words of similar import. Similarly, statements that describe the company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
News releases and product information from The Oilgear Company
are available 24 hours a day on-line at:
http://www.oilgear.com
The Oilgear Company
Consolidated Condensed Earnings Statement
(Unaudited)
(In Thousands)
Three Months Ended March 31,
----------------------------
2000 1999
---- ----
Net sales $ 24,465,000 23,210,000
Cost of sales 17,759,000 16,591,000
--------------- ----------------
Gross profit 6,706,000 6,619,000
Operating expenses 5,611,000 5,603,000
--------------- ----------------
Operating income 1,095,000 1,016,000
--------------- ----------------
Interest expense 342,000 448,000
Other income 32,000 87,000
--------------- ----------------
Earnings before income taxes 785,000 655,000
Income taxes 190,000 152,000
--------------- ----------------
Net earnings from
minority interest 56,000 21,000
--------------- ----------------
Net earnings $ 539,000 482,000
=============== ================
Basic earnings per
share of common
stock $ 0.27 0.25
=============== ================
Diluted earnings per
share of common
stock $ 0.27 0.25
=============== ================
Dividends per share $ 0.07 0.07
=============== ================
Basic weighted average
outstanding shares 1,981,570 1,966,160
Diluted weighted average
outstanding shares 1,985,321 1,966,440
The Oilgear Company
Consolidated Condensed Balance Sheet
(Unaudited)
(In Thousands)
March 31, 2000 December 31, 1999
-------------- -----------------
ASSETS
Current Assets
Cash and cash equivalents $ 5,270,00 $ 6,698,000
Accounts receivable 17,400,000 17,563,000
Inventories 21,734,000 23,233,000
Other current assets 4,775,000 1,867,000
-------------- -----------------
Total current assets 49,179,000 49,361,000
-------------- -----------------
Net property plant
and equipment 26,316,000 26,586,000
Other assets 5,353,000 5,418,000
-------------- -----------------
$ 80,848,000 $ 81,365,000
============== =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current debt $ 1,925,000 $ 2,173,000
Accounts payable 6,647,000 6,219,000
Other current liabilities 8,017,000 7,469,000
-------------- -----------------
Total current liabilities 16,589,000 15,861,000
-------------- -----------------
Long-term debt 18,104,000 18,546,000
Unfunded employee benefit costs 11,599,000 11,599,000
Other non-current liabilities 1,601,000 1,484,000
-------------- -----------------
Total liabilities 47,893,000 47,490,000
-------------- -----------------
Minority interest in
consolidated subsidiary 855,000 797,000
Shareholders' equity 32,100,000 33,078,000
-------------- -----------------
$ 80,848,000 $ 81,365,000
============== =================