Cascade Corporation Announces Earnings of 36 Cents Per Share for the Third Quarter of Fiscal 2003 Ended October 31, 2002
PORTLAND, Ore.----Dec. 4, 2002--Cascade Corporation (NYSE:CAE) today reported its financial results for the quarter ended Oct. 31, 2002.
Third Quarter Financial Highlights:
-- Consolidated net sales of $70.2 million, a 13% increase from
consolidated net sales of $62.1 million in the third quarter
of fiscal 2002.
-- Gross margin of 35.5% as compared to 33.6% in the third
quarter of fiscal 2002, largely attributable to improvements
in manufacturing processes and measures to reduce costs.
-- Consolidated net income of $4.4 million ($.36 per share),
compared to net income of $3.6 million ($.30 per share) in the
third quarter of the prior year. Excluding the impact of the
elimination of goodwill amortization recognized during the
prior year quarter; and the settlement of litigation with the
City of Portland during the quarter just ended, net income
would have been $5.8 million in the third quarter of fiscal
2003 versus $4.4 million in the third quarter of fiscal 2002.
Market Conditions:
-- Cascade manufactures materials handling devices for all brands
of lift trucks sold in each of its major markets. The North
American lift truck market improved during the third quarter
of fiscal 2003 as measured by a 15% increase in lift truck
shipments over the same period in fiscal 2002. Industry
shipments are a strong indicator of the business environment
and broad trends. Although sales and industry shipments do not
necessarily correlate, Cascade's North American sales
increased 10.8% in Q3 fiscal 2003 to $44.4 million as compared
to $40.1 million in Q3 of fiscal 2002.
-- European lift truck shipments have continued to fluctuate.
Cascade's European sales improved 18% to $16.1 million during
Q3 of fiscal 2003 as compared to $13.6 million during Q3 of
fiscal 2002. The increase is primarily due to improved OEM
order rates and also to the strengthening of the Euro. Overall
weak economic conditions in Europe continue to create
uncertainty as to future lift truck shipments.
-- Sales in the Asia Pacific market increased 15.9% in Q3 of
fiscal 2003 in comparison to Q3 of fiscal 2002, largely driven
by strong sales in China.
Significant Events:
-- Settlement Agreement: The Company entered into a settlement
agreement with the City of Portland during the third quarter
of fiscal 2003. The $3.6 settlement, net of a $1.5 million
charge recorded in the fourth quarter of fiscal 2002, resulted
in a $2.1 million charge in the current quarter.
-- Dividend Reinstatement and Share Repurchase: The Company's
Board of Directors reinstated and declared a quarterly
dividend of $.10 per share as announced November 21, 2002. A
quarterly dividend was last paid in Q2 of fiscal 2001. The
Board also extended the prior authorization to repurchase up
to 600,000 shares for twelve months as market conditions
warrant. A total of 248,700 shares have been purchased to date
under the authorization.
Robert C. Warren, Jr., president and chief executive officer, stated, "We're pleased with the quarterly financial performance and encouraged by the continuing uptick in North American activity. We continue to be cautiously optimistic about the business climate in North America. The European market continues to suffer from overcapacity and general economic uncertainty and is not expected to improve in the near future. Our focus is currently on internal initiatives and increasing market share."
Warren further commented, "This quarter was important to Cascade in several ways. The City of Portland litigation settlement was positively resolved and we're now able to concentrate on our future business. In addition, the reinstatement of the quarterly dividend validates our financial performance and commitment to our shareholders."
Forward Looking Statements:
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that a number of factors could cause Cascade's actual results to differ materially from any results indicated in this release or in any other forward-looking statements made by, or on behalf of Cascade. These include among others factors related to general economic conditions, interest rates, the demand for materials handling products, performance of its manufacturing facilities, and the cyclical nature of the Materials Handling Industry. Further, historical information should not be considered an indicator of future performance. Additional considerations and important risk factors are described in Cascade's reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission.
About Cascade Corporation:
Cascade Corporation, headquartered in Portland, Ore., is a leading international manufacturer of lift truck attachments, forks and accessories. Additional information on Cascade is available on its web site, www.cascorp.com.
Cascade Corporation
(unaudited - in thousands, except per share data)
CONSOLIDATED STATEMENTS OF Three Months Nine Months
INCOME Ended October 31 Ended October 31
-------------------------- -------------------------------------
2002 2001 2002 2001
-------- -------- --------- ---------
Net sales $70,241 $62,140 $194,455 $199,804
Cost of goods sold 45,298 41,232 126,650 131,722
-------- -------- --------- ---------
Gross profit 24,943 20,908 67,805 68,082
Selling and administrative
expenses 14,411 12,786 41,679 40,872
Environmental expenses 2,100 -- 2,100 --
Amortization -- 1,067 -- 3,228
-------- -------- --------- ---------
Operating income 8,432 7,055 24,026 23,982
Interest expense, net 1,238 1,273 3,426 4,226
Other (income) expense 291 (225) 136 64
-------- -------- --------- ---------
Income from continuing
operations before provision for
income taxes 6,903 6,007 20,464 19,692
Income tax provision 2,485 2,279 7,367 7,479
-------- -------- --------- ---------
Income from continuing
operations 4,418 3,728 13,097 12,213
Discontinued operations:
Income (loss) from discontinued
operations, net of
income taxes -- (107) -- 476
-------- -------- --------- ---------
Net income $4,418 $3,621 $13,097 $12,689
======== ======== ========= =========
Basic earnings per share:
Continuing operations $0.39 $0.33 $1.15 $1.08
Discontinued operations -- (0.01) -- 0.04
-------- -------- --------- ---------
$0.39 $0.32 $1.15 $1.12
======== ======== ========= =========
Diluted earnings per share:
Continuing operations $0.36 $0.31 $1.07 $1.00
Discontinued operations -- (0.01) -- 0.04
-------- -------- --------- ---------
$0.36 $0.30 $1.07 $1.04
======== ======== ========= =========
CONSOLIDATED BALANCE SHEETS
---------------------------
Assets
------ Oct. 31, 2002 Jan. 31, 2002
-------------- -------------
Current Assets:
Cash and Cash Equivalents $ 33,007 $ 25,611
Marketable Securities 10,200 --
Receivables, Net 46,383 39,312
Inventories 28,802 30,817
Other Current Assets 10,269 10,317
-------------- -------------
Total Current Assets 128,661 106,057
Property, Plant & Equipment, Net 62,349 61,412
Goodwill and Other Assets, Net 80,977 79,817
-------------- -------------
Total Assets $271,987 $247,286
============== =============
Liabilities and Shareholders' Equity
-----------------------------------------
Current Liabilities $48,491 $40,046
Long-Term Liabilities:
Long-Term Debt 62,627 65,679
Other Long-Term Liabilities 17,091 16,920
-------------- -------------
Total Liabilities 128,209 122,645
Exchangeable Preferred Stock
and Minority Interest 8,530 11,374
Shareholders' Equity 135,248 113,267
-------------- -------------
Total Liabilities & Shareholders' Equity $271,987 $247,286
============== ============= Note: Certain reclassifications have been made to the prior year consolidated financial statements to conform to the current year presentation. Such reclassifications had no impact on results of operations or shareholders' equity.
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