The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the third quarter and nine months ended September 30, 2011. Results for 2011 include the operations of National Pump Company acquired October 1, 2010.
Net sales during the quarter ended September 30, 2011 increased 22.0% to a third quarter record $90,215,000 compared to $73,953,000 during the same period in 2010. Net income increased 24.4% to a third quarter record $7,655,000 compared to $6,155,000 in the September 30, 2010 quarter. Earnings per share were $0.37 and $0.29 for the respective periods, an increase of 27.6%.
Net sales for the nine months ended September 30, 2011 increased 25.6% to a nine months record $266,448,000 compared to $212,119,000 during the same period in 2010. Net income increased 45.3% to a nine months record $23,699,000 compared to $16,308,000 in the first nine months of 2010. Earnings per share were $1.13 and $0.78 for the respective periods.
Sales during the quarter were positively impacted by the global economy compared to a year ago, plus the addition of National Pump Company. Primary increases were in sales to the industrial, agricultural and construction markets, partially offset by a reduction in fire protection market sales from strong levels last year.
Incoming orders resulted in a record backlog of $157.9 million at September 30, 2011, a 50.9% increase from a year ago and 47.0% higher than the backlog of $107.4 million at December 31, 2010. Current quarter orders included additional flood control pump projects which generally require longer lead times than other Company products.
The comparative increases in earnings for the quarter and nine months principally reflect operating leverage benefits from the higher volume of sales and continuation of a favorable mix of shipments across the Company’s diverse products and markets.
The Company continues to maintain a strong and liquid balance sheet with $27.8 million in cash and short-term investments. Additionally, working capital increased 17.7% from December 31, 2010 to $98.3 million at September 30, 2011. During the quarter, an additional $5.0 million of borrowings used to finance the acquisition of National Pump Company were re-paid.
Jeffrey S. Gorman, President and CEO said, “We are pleased to again announce strong financial results based on current year sales increases across most of the markets the Company serves and related improved operating margins. Additionally, our National Pump Company acquisition in late 2010 continues to perform very well. While confidence in the strength of a solid global economic recovery seems to be fading, we are encouraged by our record backlog and level of business so far this year, and we remain confident as we move into the fourth quarter and the first-half of 2012.”
| The Gorman-Rupp Company and Subsidiaries | |||||||||||||||
| Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||
| (in thousands of dollars, except per share data) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||
| Net sales | $ | 90,215 | $ | 73,953 | $ | 266,448 | $ | 212,119 | |||||||
| Cost of products sold | 67,748 | 55,298 | 198,346 | 160,729 | |||||||||||
| Gross profit | 22,467 | 18,655 | 68,102 | 51,390 | |||||||||||
Selling, general and administrative expenses | 10,941 | 9,401 | 32,436 | 26,535 | |||||||||||
| Operating income | 11,526 | 9,254 | 35,666 | 24,855 | |||||||||||
| Other income (expense) - net | (324 | ) | 3 | (421 | ) | (388 | ) | ||||||||
| Income before income taxes | 11,202 | 9,257 | 35,245 | 24,467 | |||||||||||
| Income taxes | 3,547 | 3,102 | 11,546 | 8,159 | |||||||||||
| Net income | $ | 7,655 | $ | 6,155 | $ | 23,699 | $ | 16,308 | |||||||
| Earnings per share | $ | 0.37 | $ | 0.29 | $ | 1.13 | $ | 0.78 | |||||||
| The Gorman-Rupp Company and Subsidiaries | |||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| (in thousands of dollars) | |||||||
| September 30, | December 31, | ||||||
| 2011 | 2010 | ||||||
| Assets | |||||||
| Cash and short-term investments | $ | 27,774 | $ | 34,246 | |||
| Accounts receivable - net | 54,841 | 51,996 | |||||
| Inventories | 72,003 | 51,449 | |||||
| Deferred income taxes and other current assets | 4,424 | 5,503 | |||||
| Total current assets | 159,042 | 143,194 | |||||
| Property, plant and equipment - net | 114,322 | 113,526 | |||||
| Prepaid pension and other assets | 7,368 | 3,545 | |||||
| Goodwill and other intangible assets | 25,717 | 26,442 | |||||
| Total assets | $ | 306,449 | $ | 286,707 | |||
| Liabilities and shareholders' equity | |||||||
| Accounts payable | $ | 16,321 | $ | 12,042 | |||
| Short-term debt | 15,000 | 25,000 | |||||
| Accrued liabilities and expenses | 29,419 | 22,636 | |||||
| Total current liabilities | 60,740 | 59,678 | |||||
| Postretirement benefits | 22,502 | 22,241 | |||||
| Deferred and other income taxes | 4,952 | 4,954 | |||||
| Shareholders' equity | 218,255 | 199,834 | |||||
| Total liabilities and shareholders' equity | $ | 306,449 | $ | 286,707 | |||
| Shares outstanding | 20,990,893 | 20,984,893 | |||||
Shares outstanding and per share data reflect the 5 for 4 stock split effective June 10, 2011.
Contacts:
David P. Emmens, Corporate Secretary,
419-755-1477
or
Wayne L. Knabel, Chief Financial Officer,
419-755-1397
