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Robbins & Myers Announces Fourth Quarter and Full Year 2009 Results
Date:10/5/2009

DAYTON, Ohio, Oct. 5 /PRNewswire-FirstCall/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share (DEPS) of $0.39 for its fiscal fourth quarter ended August 31, 2009 and $1.66 for the full fiscal year. In the prior year, the Company reported record DEPS of $0.88 in the fourth quarter and $2.52 for the full year.

The Company noted that it achieved an effective tax rate of 23.5% for fiscal 2009, primarily as a result of tax strategies implemented during the year. The fourth quarter effective tax rate of 10.5% reflects the benefits of these strategies and the favorable effects from finalizing tax estimates.

The Company reported $122 million of customer orders in the fourth quarter, consistent with order levels for the two preceding quarters, and 38% lower than the prior year comparable period. Excluding currency translation effects, orders declined 35% in the quarter. For the full year, orders of $554 million represent a 32% decline. Excluding currency translation effects, full year orders declined 26%.

Robbins & Myers also reported fourth quarter 2009 sales of $155 million, 32% lower than the comparable prior year results. Full year fiscal 2009 sales of $640 million were 19% lower than the prior year. Excluding currency translation effects, sales declined 28% in the quarter and 13% in the year.

Fourth quarter 2009 earnings before interest, taxes and minority interest (EBIT) were $15 million, 64% less than in the prior year fourth quarter primarily as a result of lower sales levels. Full year EBIT of $74 million represents a 43% decline from prior year levels, which included $8 million of benefit from asset sales. The Company generated $28 million of cash from operating activities in its fourth quarter of 2009 and $53 million for the full year, ending the year with $108 million of cash and $30 million of debt.

"Robbins & Myers achieved profitability in each of its businesses and remains well-capitalized during these challenging times," said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. "We started fiscal 2009 in a favorable economic environment with significant backlog, but during the year order levels were negatively impacted by the global recession. We responded to these changing business conditions by cutting more than $15 million of annualized costs, and we developed plans to restructure our business for more permanent cost reductions."

"We have initiated the first two of our restructuring actions which should reduce annualized costs by $3 million when completed later this fiscal year, and several others that are actionable in the near term should deliver an additional $3-4 million of annualized savings by fiscal year-end. We expect these projects to reduce manufacturing capacity, increase activities in lower cost regions, and more tightly integrate our businesses. Over the long-term, these restructuring actions should further improve our competitiveness and profitability, especially when market conditions improve."

"As a result of recent customer order levels, we expect fiscal 2010 to start slowly but improve throughout the year as the global economy recovers. Our financial performance in the new fiscal year hinges on the pace and scope of this recovery." The Company expects full year 2010 DEPS of $0.80-$1.00 and first quarter DEPS of $0.05-$0.15, excluding the cost of restructuring actions.

Mr. Wallace commented, "Over the past five years, Robbins & Myers made impressive strides to improve its operating and financial capabilities. We reduced complexity throughout our businesses, launched our lean journey, invested in profitable growth initiatives, and refocused everyone on better serving our customers. We are committed to our long-term strategy of profitable growth to create shareholder value."

Fourth Quarter Results by Segment

All comparisons are made against the comparable year-ago quarterly period unless otherwise stated.

The Company's Fluid Management segment orders of $48 million represent a 52% decline from the record performance in the prior year. Continued softness in energy and industrial markets also contributed to a 39% decline in sales, with the segment reporting $55 million in its fiscal fourth quarter of 2009. EBIT fell 64% to $10 million on lower sales, and EBIT margins of 17.5% included a 260 basis point impact from lower valuation of certain operating assets.

The Process Solutions segment reported orders of $47 million, 32% lower due to continued weakness in chemical, pharmaceutical and industrial markets. Excluding currency translation effects, orders declined 27%. Sales of $64 million were 27% lower, or 21% lower before currency translation effects, contributing to a 68% reduction in EBIT. The segment reported fourth quarter 2009 EBIT of $4 million and EBIT margins of 6.0%.

The Romaco segment reported orders of $28 million, 6% below the comparable prior year quarter or 1% lower excluding currency translation effects. Sales in the quarter were $37 million, 27% lower, or 22% lower excluding currency translation effects. Romaco earned $4 million of EBIT in the fourth quarter of 2009 as compared with $9 million in the prior year fourth quarter.

Conference Call to Be Held Tomorrow, October 6 at 10:00 AM (Eastern)

A conference call to discuss these results has been scheduled for 10:00 AM Eastern on Tuesday, October 6, 2009, which can be accessed at www.robn.com or by dialing 866-713-8562 (US/Canada) or +1-617-597-5310, using conference ID #48211363. Replays of the call can be accessed by dialing 888-286-8010 (U.S./Canada) or +1-617-801-6888, both using replay ID #29226735.

About Robbins & Myers

Robbins & Myers, Inc. is a leading supplier of engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets.

In this release the Company refers to EBIT, a non-GAAP measure. The Company uses this measure to evaluate its performance and believes this measure is helpful to investors in assessing its performance. A reconciliation of this measure to net income is included in our Condensed Consolidated Income Statement.

In addition to historical information, this press release contains forward-looking statements identified by use of words such as "expects," "anticipates," "believes," and similar expressions. These statements reflect management's current expectations and involve known and unknown risks, uncertainties, contingencies and other factors that could cause actual results, performance or achievements to differ materially from those stated. The most significant of these risks and uncertainties are described in our Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission and include, but are not limited to: the cyclical nature of some of our markets; a significant decline in capital expenditures in our primary markets; a major decline in oil and natural gas prices; reduced demand due to the general worldwide economic downturn and general credit market crises; our ability to realize the benefits of our restructuring programs; increases in competition; changes in the availability and cost of our raw materials; foreign exchange rate fluctuations; work stoppages related to union negotiations; customer order cancellations; the possibility of product liability lawsuits that could harm our business; events or circumstances which result in an impairment of assets; the potential impact of U.S. and foreign legislation, government regulations, and other governmental action, including those relating to export and import of products and materials, and changes in the interpretation and application of such laws and regulations; the outcome of audit, compliance, administrative or investigatory reviews; proposed changes in U.S. tax law which could impact our future tax expense and cash flow; and decline in the market value of our pension plans' investment portfolios affecting our financial condition and results of operations. Except as otherwise required by law, we do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date hereof.


                         ROBBINS & MYERS, INC. AND SUBSIDIARIES
                          CONDENSED CONSOLIDATED BALANCE SHEET
                                     (Unaudited)




      (in thousands)                          August 31, 2009 August 31, 2008
      --------------                          --------------- ---------------
      ASSETS
        Current Assets:
          Cash and cash equivalents                $108,169        $123,405
          Accounts receivable                       114,191         153,648
          Inventories                               105,772         109,797
          Other current assets                       11,573           8,017
          Deferred taxes                             12,519          13,476
                                                     ------          ------
            Total Current Assets                    352,224         408,343

        Goodwill & Other Intangible Assets          273,476         285,759
        Deferred Taxes                               26,477          21,969
        Other Assets                                  9,490          10,931
        Property, Plant & Equipment                 135,187         137,715
                                                    -------         -------
                                                   $796,854        $864,717
                                                   ========        ========
      LIABILITIES AND SHAREHOLDERS' EQUITY
        Current Liabilities:
          Accounts payable                          $55,918         $86,012
          Accrued expenses                           68,059         102,876
          Current portion of long-term debt          30,194           3,192
                                                     ------           -----
            Total Current Liabilities               154,171         192,080

        Long-Term Debt - Less Current Portion           265          30,435
        Deferred Taxes                               44,194          44,628
        Other Long-Term Liabilities                 129,273          97,557
        Shareholders' Equity                        468,951         500,017
                                                    -------         -------
                                                   $796,854        $864,717
                                                   ========        ========



                       ROBBINS & MYERS, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED INCOME STATEMENT
                                   (Unaudited)


                          Three Months Ended     Twelve Months Ended
                          ------------------     -------------------
                         August 31, August 31,  August 31, August 31,
    (in thousands,          2009       2008        2009       2008
     except per share       ----       ----        ----       ----
     data)
    -----------------

    Sales                 $155,187   $227,754    $640,358   $787,168
    Cost of sales          105,235    143,413     415,861    496,906
                           -------    -------     -------    -------
    Gross profit            49,952     84,341     224,497    290,262
    SG&A expenses           35,208     44,114     150,129    167,229
    Other income                 0       (835)          0     (7,631)
                               ---       ----         ---     ------
    Income before
     interest, income
     taxes and
     minority interest      14,744     41,062      74,368    130,664
    Interest expense,
     net                       140        268         382      2,031
                               ---        ---         ---      -----
    Income before
     income taxes and
     minority interest      14,604     40,794      73,986    128,633
    Income tax expense       1,537      9,812      17,412     39,099
    Minority interest          260        350       1,210      2,132
                               ---        ---       -----      -----
    Net income             $12,807    $30,632     $55,364    $87,402
                           =======    =======     =======    =======



    Net Income Per Share:
      Basic                  $0.39      $0.88       $1.67      $2.53
      Diluted                $0.39      $0.88       $1.66      $2.52


    Weighted Average Common
     Shares Outstanding:
      Basic                 32,853     34,685      33,227     34,524
      Diluted               32,941     34,836      33,261     34,718




                    ROBBINS & MYERS, INC. AND SUBSIDIARIES
                    CONDENSED BUSINESS SEGMENT INFORMATION
                                 (Unaudited)


                                 Three Months Ended      Twelve Months Ended
                                 ------------------      -------------------
                                August 31,  August 31,  August 31,  August 31,
    (in thousands)                 2009        2008        2009        2008
    --------------                 ----        ----        ----        ----

      Sales
        Fluid Management          $54,841     $90,499    $268,761    $322,868
        Process Solutions          63,661      87,021     258,584     313,604
        Romaco                     36,685      50,234     113,013     150,696
                                   ------      ------     -------     -------
        Total                    $155,187    $227,754    $640,358    $787,168
                                 ========    ========    ========    ========


      Income Before Interest,
       Income Taxes and Minority
       Interest (EBIT)
        Fluid Management           $9,587     $26,671     $69,139     $91,319
        Process Solutions           3,842      11,956      19,418      37,570
        Romaco                      3,757       9,046       2,292      20,603
        Corporate and
         Eliminations              (2,442)     (6,611)    (16,481)    (18,828)
                                   ------      ------     -------     -------
        Total                     $14,744     $41,062     $74,368    $130,664
                                  =======     =======     =======    ========


      Depreciation and Amortization
        Fluid Management           $1,897      $1,970      $7,117      $6,993
        Process Solutions           1,558       1,595       6,639       6,753
        Romaco                        530         491       2,013       1,869
        Corporate and
         Eliminations                  97         131         457         634
                                       --         ---         ---         ---
        Total                      $4,082      $4,187     $16,226     $16,249
                                   ======      ======     =======     =======


      Orders
        Fluid Management          $47,534     $99,174    $232,415    $343,079
        Process Solutions          46,740      68,872     218,895     324,542
        Romaco                     27,862      29,754     103,039     145,377
                                   ------      ------     -------     -------
        Total                    $122,136    $197,800    $554,349    $812,998
                                 ========    ========    ========    ========


      Backlog
        Fluid Management          $22,579     $63,168     $22,579     $63,168
        Process Solutions          72,259     123,529      72,259     123,529
        Romaco                     40,139      51,283      40,139      51,283
                                   ------      ------      ------      ------
        Total                    $134,977    $237,980    $134,977    $237,980
                                 ========    ========    ========    ========


    Note: EBIT is a non-GAAP measure.  We use this measure to evaluate our
    businesses, and we allocate resources to our businesses  based on EBIT.
    EBIT is not, however, a measure of performance calculated in accordance
    with accounting principles generally accepted in the United States and
    should not be considered as an alternative to net income as a measure of
    operating results.  EBIT is not a measure of cash available for use by
    management.



                       ROBBINS & MYERS, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                    (Unaudited)


                              Three Months Ended       Twelve Months Ended
                              ------------------       -------------------
                            August 31,  August 31,  August 31,    August 31,
    (in thousands)            2009        2008        2009          2008
    --------------            ----        ----        ----          ----

    Operating activities:
       Net income           $12,807     $30,632     $55,364       $87,402
       Depreciation and
        amortization          4,082       4,187      16,226        16,249
       Other, net            11,114       5,985     (18,502)      (14,091)
                             ------       -----      -------       -------
    Cash provided by
     operating
     activities              28,003      40,804      53,088        89,560

    Investing activities:
       Capital
        expenditures,
        net of nominal
        disposals            (4,780)     (9,331)    (17,694)      (22,114)
       Proceeds from
        sales of product
        lines/
        facilities                0       1,291           0         8,484
       Acquisition of
        business, net of
        cash acquired        (2,325)          0      (2,325)       (5,061)
                              ------        ---       ------        ------
    Cash used by
     investing
     activities              (7,105)     (8,040)    (20,019)      (18,691)

    Financing activities:
       (Payments)
        proceeds of long-
        term debt,
        net                    (133)        667      (3,168)      (69,448)
       Share buyback
        program                   0           0     (39,114)            -
       Other, net            (1,396)        344      (4,079)        3,576
                              ------        ---       ------        -----
    Cash (used)
     provided by
     financing
     activities              (1,529)      1,011     (46,361)      (65,872)
    Exchange rate
     impact on cash             254      (2,114)     (1,944)        2,298
                                ---       ------      ------        -----
     Increase
      (Decrease) in
      cash                   19,623      31,661     (15,236)        7,295
    Cash at
     beginning of
     period                  88,546      91,744     123,405       116,110
                             ------      ------     -------       -------
    Cash at end of
     period                $108,169    $123,405    $108,169      $123,405
                           ========    ========    ========      ========

SOURCE Robbins & Myers, Inc.


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SOURCE Robbins & Myers, Inc.
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