Robbins & Myers Announces Fourth Quarter & Fiscal Year 2012 Results And Dividend

HOUSTON, Oct. 19, 2012 /PRNewswire/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share from continuing operations (DEPS) of $0.76 for its fiscal fourth quarter ended August 31, 2012, or $0.92 after adjusting for unfavorable costs of $0.16 related to its pending merger with National Oilwell Varco, the estimated settlement of an export investigation matter, settlement of the work stoppage at its Springfield, Ohio, pump manufacturing plant and the impact of the hurricane in the Gulf of Mexico the last week of August. This compares with $0.77 from continuing operations in the prior year fourth quarter, or $0.79, after adjusting for restructuring charges related to the Company's Process & Flow Control segment.  Excluding the impact of these items, DEPS was $0.92 compared with $0.79 in the prior year period, an increase of 16%.

For the full fiscal year, Robbins & Myers reported DEPS of $3.39 compared with $1.94 for fiscal year 2011, fiscal 2011 included $0.44 of restructuring and T-3 acquisition related charges.

Consolidated sales were $275 million in the fourth quarter of 2012 as compared with $259 million in the fourth quarter of 2011.  Excluding the impact of currency translation, sales grew $23 million, or 9%, over the prior year period.  The Company reported fourth quarter 2012 orders of $267 million, an increase of 5% over the prior year period excluding the impact of currency translation.  Fourth quarter ending backlog increased to $308 million from $251 million at the end of the prior fiscal year. 

Fourth quarter 2012 earnings before interest and taxes (EBIT) were $47 million, or adjusted EBIT of $56 million, adjusting for $9 million in unfavorable costs related to its pending merger with National Oilwell Varco, the potential settlement of an export investigation matter, settlement of the work stoppage at our Springfield, Ohio, pump manufacturing plant and the impact of the hurricane in the Gulf of Mexico the last week of August. 

Fourth Quarter Results by Segment

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

The Company's Energy Services segment reported orders of $173 million, an increase of $8 million over the prior year period excluding the impact of currency.  Sales were $176 million in the fourth quarter of fiscal 2012 and $10 million over the prior year period, excluding currency impacts. EBIT was $45 million, which included the unfavorable impact of the Gulf of Mexico hurricane of $2 million, compared with EBIT of $51 million in the prior year period.  Product mix had a negative impact on the current quarter's EBIT, as the sales of profitable drilling system products were lower compared with the prior year.  Ending backlog was $170 million, significantly higher than the $121 million at the end of the prior year.

The Process & Flow Control segment reported orders of $94 million, which were $4 million, or 4%, over the prior year period excluding currency impacts.  The increase was primarily due to improving demand for capital goods in the chemical markets.  Sales of $99 million were $13 million, or 14%, higher than the prior year excluding currency impacts.  The segment reported $12 million of EBIT in the fourth quarter of 2012, including costs related to the settlement of the work stoppage at the Springfield, Ohio, pump manufacturing plant, or 11.9% of sales, as compared with $7 million of adjusted EBIT, or 7.1%, of sales in the prior year period.  Backlog rose to $138 million from $130 million at the end of the prior fiscal year.

"We are pleased with performance in both of our business segments," said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc.  "The Energy Services segment has been impacted by a reduction in U.S. rig count and lower drilling activity during the quarter, but still demonstrated excellent performance. In the Process & Flow Control segment, we experienced stronger demand in the chemical and industrial markets.  We have steadily improved operating performance in this segment by leveraging incremental sales volume and recovering margin with a sharper focus on regional pricing opportunities and cost controls resulting in operating margin of nearly 12% for the quarter, including the effect of the work stoppage settlement."

Share Repurchase

During the fourth quarter and prior to June 19, 2012 the Company repurchased 0.5 million of its shares for a total of $24 million.  For the fiscal year of 2012 the Company repurchased 4.0 million shares for a total of $187 million

Conference Call

The Company will not be holding a webcast or conference call due to the pending merger with National Oilwell Varco.

Dividend Declared

Robbins & Myers also announced today that its Board of Directors approved its regular quarterly cash dividend payment of $0.05 per share.  The dividend is payable on November 20, 2012 to shareholders of record as of October 29, 2012.

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, adjusted EBIT, and adjusted DEPS which are non-GAAP measures.  The Company uses these measures to evaluate its performance and believes these measures are helpful to investors in assessing its performance.  A reconciliation of these amounts to net income from continuing operations is included herein.  EBIT is not a measure of cash available for use by the Company.

Forward-Looking Statements

Statements set forth in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws.  These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the control of Robbins & Myers, which could cause actual benefits, results, effects and timing to differ materially from the results predicted or implied by the statements.  These risks and uncertainties include, but are not limited to:  the failure of our shareholders to approve the merger; satisfaction of the conditions to the closing of the merger (including the receipt of regulatory approvals and completion of certain compliance due diligence); uncertainties as to the timing of the merger; costs and difficulties relating to the proposed merger; inability to retain key personnel; changes in the demand for or price of oil and/or natural gas; and other important risk factors discussed more fully in Robbins & Myers' preliminary proxy statement filed with the SEC on August 31, 2012 in connection with the merger, its Annual Report on Form 10-K for the year ended August 31, 2011; its recent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K; and other reports filed by it with the SEC from time to time (including the final proxy statement relating to the proposed merger).  Robbins & Myers undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

Additional Information and Where to Find It

In connection with the proposed merger, Robbins & Myers filed a preliminary proxy statement with the SEC on August 31, 2012 and may file other relevant materials with the SEC as well.  INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT AND ANY OTHER MATERIALS REGARDING THE PROPOSED MERGER (INCLUDING THE FINAL PROXY STATEMENT) WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN AND WILL CONTAIN IMPORTANT INFORMATION ABOUT ROBBINS & MYERS AND THE PROPOSED MERGER.  The final proxy statement will be mailed to Robbins & Myers shareholders.  Investors and security holders may obtain a free copy of the proxy statement (when it is available) and other documents containing information about Robbins & Myers, without charge, at the SEC's web site at www.sec.gov.  Copies of Robbins & Myers' SEC filings also may be obtained for free by directing a request to Robbins & Myers, Inc., 10586 Highway 75 North, Willis, Texas 77378, (936) 890-1064.

Participants in the Solicitation

Robbins &Myers, National Oilwell Varco, and certain of their respective directors and executive officers may be deemed, under SEC rules, to be participants in the solicitation of proxies from Robbins & Myers' shareholders in connection with the proposed merger.  Information about Robbins & Myers' directors and executive officers and the special interests of these persons in connection with the proposed merger can be found in the preliminary proxy statement filed by Robbins & Myers with the SEC on August 31, 2012.  Information about National Oilwell Varco's directors and executive officers can be found in National Oilwell Varco's Annual Report on Form 10-K for its fiscal year ended December 31, 2011, as filed with the SEC on February 23, 2012, and National Oilwell Varco's proxy statement relating to its 2012 Annual Meeting of Shareholders, as filed with the SEC on April 5, 2012.  These documents can be obtained, without charge, at the SEC's website at www.sec.gov.

 

ROBBINS & MYERS, INC. AND SUBSIDIARIES





CONDENSED CONSOLIDATED BALANCE SHEET





(Unaudited)












(in thousands)


August 31, 2012


August 31, 2011

ASSETS






Current Assets:







Cash and cash equivalents


$166,925


$230,606



Accounts receivable


180,047


166,511



Inventories 


162,713


151,463



Other current assets


11,206


11,247



Deferred taxes


21,169


18,674



  Total Current Assets


542,060


578,501









Goodwill & Other Intangible Assets


773,604


798,719


Deferred Taxes


25,200


26,344


Other Assets


12,663


13,776


Property, Plant & Equipment


169,736


165,626





$1,523,263


$1,582,966

LIABILITIES AND EQUITY






Current Liabilities:







Accounts payable


$95,698


$84,761



Accrued expenses


99,319


91,253



Current portion of long-term debt


153


421



  Total Current Liabilities


195,170


176,435









Long-Term Debt - Less Current Portion


-


24


Deferred Taxes


134,758


131,697


Other Long-Term Liabilities


102,056


108,391


Total Equity


1,091,279


1,166,419





$1,523,263


$1,582,966








 

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,  except per share data)


2012


2011


2012


2011













Sales




$275,197


$258,998


$1,034,783


$820,640

Cost of sales


173,424


158,687


632,058


515,574

Gross profit


101,773


100,311


402,725


305,066

Selling, general and administrative expenses


51,788


46,892


181,150


156,571

Other expense


2,959


1,012


2,959


17,152

Income before interest and income taxes (EBIT)


47,026


52,407


218,616


131,343

Interest expense (income), net


116


(235)


102


(196)

Income from continuing operations before income taxes 

46,910


52,642


218,514


131,539

Income tax expense


14,270


17,110


67,523


50,260

Net income from continuing operations


32,640


35,532


150,991


81,279

Income from discontinued operations, net of tax


-


-


-


53,637

Net income including noncontrolling interest


32,640


35,532


150,991


134,916

Less: Net income attributable to noncontrolling interest

240


108


991


904

Net income attributable to Robbins & Myers, Inc. 


$32,400


$35,424


$150,000


$134,012













Net income per share from continuing operations:









Basic



$0.77


$0.77


$3.41


$1.96


Diluted


$0.76


$0.77


$3.39


$1.94













Net income per share:










Basic



$0.77


$0.77


$3.41


$3.26


Diluted


$0.76


$0.77


$3.39


$3.24













Weighted average common shares outstanding:










Basic



42,195


45,852


44,015


41,063


Diluted


42,356


46,114


44,197


41,420













 

 

ROBBINS & MYERS, INC. AND SUBSIDIARIES









CONDENSED BUSINESS SEGMENT INFORMATION FOR CONTINUING OPERATIONS






(Unaudited)



















Three Months Ended


Twelve Months Ended









August 31,


August 31,


August 31,


August 31,



(in thousands)



2012


2011


2012


2011



















Customer Sales














Energy Services



$175,716


$166,702


$665,487


$477,198





Process & Flow Control


99,481


92,296


369,296


343,442





Total




$275,197


$258,998


$1,034,783


$820,640



















Income Before Interest and Income Taxes (EBIT) (5)











Energy Services



$44,807


$51,218


$198,025


$130,968

(3)




Process & Flow Control


11,843


5,542

(2)

41,429


26,812

(2)




Corporate and Eliminations


(9,624)

(1)

(4,353)


(20,838)

(1)

(26,437)

(4)




Total




$47,026


$52,407


$218,616


$131,343



















Depreciation and Amortization













Energy Services



$6,780


$6,293


$23,401


$23,560





Process & Flow Control


1,992


2,185


8,176


8,392





Corporate and Eliminations


83


93


342


336





Total




$8,855


$8,571


$31,919


$32,288



















Customer Orders














Energy Services



$172,765


$165,740


$714,367


$517,755





Process & Flow Control


94,176


96,258


386,617


358,495





Total




$266,941


$261,998


$1,100,984


$876,250



















Backlog















Energy Services



$169,723


$121,254


$169,723


$121,254





Process & Flow Control


138,067


129,810


138,067


129,810





Total




$307,790


$251,064


$307,790


$251,064



















(1)

Includes NOV merger-related costs of $3.0 million for legal, advisory and professional fees.









(2)

Includes restructuring costs of $1.0 million related to employee termination benefits at our German facility.





















(3)

Includes merger-related costs of $3.0 million associated with employee termination benefits, $7.2 million related to backlog amortization; and $9.5 million of expense due to inventory write-up values recorded in cost of sales.





















(4)

Includes costs of $5.9 million due to merger-related professional fees and accelerated equity compensation expense.





















(5)

EBIT is 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. EBIT is not a measure of cash available for use by the Company.




















 

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)






2012


2011


2012


2011















Operating activities:












   Net income including noncontrolling interest


$32,640


$35,532


$150,991


$134,916

   Depreciation and amortization




8,855


8,571


31,919


33,961

   Gain on sale of businesses




-


-


-


(53,357)

   Working capital 





5,711


16,896


(12,052)


(36,546)

   Other changes, net





5,746


14,341


(10,426)


22,074

Cash provided by operating activities



52,952


75,340


160,432


101,048















Investing activities:












   Business acquisition, net of cash acquired


-


-


-


(90,410)

   Proceeds from sale of businesses



-


-


-


89,247

   Capital expenditures, net of nominal disposals


(8,658)


(14,084)


(29,464)


(28,307)

Cash used by investing activities



(8,658)


(14,084)


(29,464)


(29,470)















Financing activities:












   Payments of debt, net





(48)


(750)


(292)


(3,847)

   Share repurchase program




(23,971)


-


(187,249)


-

   Dividends paid





(2,110)


(2,064)


(8,581)


(7,557)

   Proceeds from issuance of common stock and other, net


1,075


(964)


7,520


21,941

Cash (used) provided by financing activities


(25,054)


(3,778)


(188,602)


10,537

Exchange rate impact on cash




1,008


1,062


(6,047)


(722)

Increase (decrease) in cash




20,248


58,540


(63,681)


81,393

Cash and cash equivalents at beginning of period


146,677


172,066


230,606


149,213

Cash and cash equivalents at end of period


$166,925


$230,606


$166,925


$230,606















 

ROBBINS & MYERS, INC. AND SUBSIDIARIES

RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EBIT AND ADJUSTED EBIT

RECONCILIATION OF DILUTED EARNINGS PER SHARE (DEPS) FROM CONTINUING OPERATIONS TO ADJUSTED DEPS FROM CONTINUING OPERATIONS 

   (Unaudited)















Three Months Ended









August 31,


August 31,



( $ in thousands, except per share data)


2012


2011










Per Share 



Per Share 



CONSOLIDATED:










Net income from cont. operations attributable to R&M / Diluted EPS from cont. operations

$32,400

$0.76


$35,424

$0.77




Net income attributable to noncontrolling interest


240



108





Income tax expense


14,270



17,110





Interest expense (income), net


116



(235)





EBIT 




47,026



52,407


















Special items:











Pending merger-related costs related to NOV


2,959



-






Restructuring costs at our German facility  (Process & Flow Control segment)

-



1,012





Unusual operating items:











Potential settlement costs for export investigation

1,800



-






Settlement costs of work stoppage at manufacturing plant (Process & Flow Control segment)

2,500



-






Impact of hurricane in the Gulf of Mexico (Energy Services segment)

2,000



-










9,259

0.16


1,012

0.02




Adjusted EBIT


$56,285

$0.92


$53,419

$0.79





























PROCESS & FLOW CONTROL SEGMENT:










EBIT




$11,843



$5,542





Special item: Restructuring costs at our German facility 

-



1,012





Adjusted EBIT


$11,843



$6,554





Adjusted EBIT margin


11.9%



7.1%

























































EBIT, adjusted EBIT, adjusted EBIT margin %, and adjusted diluted EPS from continuing operations are non-GAAP financial measures. The Company uses these measures to evaluate its businesses, and allocates resources to its 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 our operating results. EBIT and adjusted EBIT are not a measure of cash available for use by the Company. Adjusted diluted EPS from continuing operations should not be considered as an alternative to reported net income as an indicator of performance.


 

 

 

 

SOURCE Robbins & Myers, Inc.




Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.