CMI Reports Fourth-Quarter, Year-End Results

- Fourth-Quarter Revenues Up 25%

- Fourth-Quarter EBITDA Loss Narrows

- Company Sees Positive Signs For Future



Apr 02, 2001, 01:00 ET from CMI Corporation

    OKLAHOMA CITY, April 2 /PRNewswire/ -- CMI Corporation (NYSE:   CMI)
 today reported fourth-quarter revenues increased nearly 25 percent to
 $48.1 million from $38.6 million in 1999.  Including a $14.8 million non-cash
 charge related to accounting for a deferred tax asset, the fourth-quarter net
 loss was $19.4 million, or 89 cents per share, compared with a loss of
 $3.3 million, or 15 cents per share, a year earlier.  Excluding non-recurring
 charges in both quarters, the loss was $4.6 million for the quarter ended
 December 31, 2000, compared with a $2.4 million loss a year earlier.  The
 2000 fourth-quarter earnings before interest, taxes and depreciation (EBITDA)
 improved to a loss of $593,000, compared with a loss of $2.2 million in the
 1999 quarter.
     For the full year, revenues increased to $228.2 million from $218.7 in
 fiscal 1999.  Including the fourth-quarter charge and additional non-recurring
 charges earlier in the year, the net loss was $30.2 million, or $1.39 a share,
 compared with earnings of $2.5 million, or 11 cents a diluted share, in 1999.
 Excluding one-time charges in both years, the net loss would have been
 $5.8 million in 2000, compared with earnings of $3.4 million the prior year.
     "Although the year 2000 proved most difficult for CMI, there are several
 positive signs of improvements coming in the quarters ahead," said Bill
 Swisher, chairman and CEO.  "Fourth-quarter expenses were down sharply from
 1999 and our gross margins are moving toward levels required in order to be
 profitable.  This is evidence that the $8 million in operating cuts announced
 in mid 2000 are beginning to have a favorable effect on our operating
 margins."
     Swisher noted that the increased loss before charges in the 2000 fourth
 quarter compared to the prior year was due primarily to one-time borrowing
 expenses, higher interest rates and higher levels of financing.  He added that
 the company's decision to reverse a previously capitalized deferred tax asset
 on its balance sheet -- resulting in the fourth-quarter charge -- will have a
 positive effect on future reporting periods.
     "In addition to permitting us to be more consistent and appropriate in
 reporting future earnings," Swisher said, "we will be reporting earnings with
 a much more favorable effective tax rate of approximately 4 percent, compared
 with 37 percent, until the company has recovered all its tax loss
 carryforwards."
     Swisher also reported that global market conditions indicate that the
 company may begin accelerating its progress in working through the balance
 of its high-cost inventory.
     "As reported in mid 2000, CMI has been working through a large amount
 of unusually high-cost inventory resulting from abnormally high manufacturing
 costs in 1999 and 2000," Swisher said.  "The widely reported downturn in
 construction machinery capital goods markets during the second half of 2000
 slowed our expected progress in moving this high-cost inventory.
     "However, we are encouraged by both internal and external factors that
 point toward improved operations going forward," Swisher said.  "To begin
 with, CMI is geared for growth in 2001, with expanded product offerings and
 growing markets.  Our year-to-date orders booked to ship in the year 2001 are
 approximately $90 million, compared with $77 million in 2000.
     "We are experiencing growth in export sales, particularly in concrete and
 asphalt paving machines in Latin and South America.  These sales include both
 products produced in the U.S. and by our new company, CMI Cifali, in Brazil.
     "Domestically, the federal highway funding program, TEA-21, will exceed
 $30 billion in 2001 and is budgeted even higher for 2002," Swisher said.
 "This increased funding, combined with AIR-21, which funds new construction at
 airports, and numerous individual state highway capital expansion programs, is
 providing our U.S. customers considerable opportunities for expanding their
 businesses.  Finally, during recent weeks the company has seen an upturn in
 its large landfill compactor business, which had been lagging for over a
 year."
     CMI Corporation is a growing innovator, designer and manufacturer of
 equipment for heavy-duty construction and infrastructure applications.  With
 headquarters in Oklahoma City, the company's leading-edge equipment is used to
 build, maintain and reconstruct roads, highways, bridges and airport runways.
 Recent acquisitions have given CMI capabilities in concrete plant production;
 have extended product offerings in compaction technology for landfills and
 road bases; have enabled the company to offer industrial grinding for
 landfills, construction, land clearing and other disposable applications; and
 have added manufacturing and marketing bases in Europe and South America for
 both concrete and asphalt paving equipment.
     This news release contains forward-looking statements concerning the
 future performance of CMI Corporation, which are subject to a number of
 factors including, but not limited to highway funding, adverse weather
 conditions, general economic conditions and political changes both
 domestically and overseas.
 
                                CMI CORPORATION
                     CONSOLIDATED BALANCE SHEET COMPARISONS
 
                                           *Audited         * Audited
                                         12/31/2000        12/31/1999
 
     Current Assets
       Cash and cash equivalents        $13,637,000        12,681,000
       Receivables, net                  27,972,000        31,257,000
       Inventories
         Finished equipment              43,054,000        43,124,000
         Work-in-process                 16,300,000        20,212,000
         Raw materials and parts         45,841,000        58,566,000
                                        105,195,000       121,902,000
 
       Deferred tax asset                         0         7,400,000
       Other current assets                 696,000           892,000
 
     Total Current Assets               147,500,000       174,132,000
 
     Property, Plant and
      Equipment - net                    32,926,000        31,168,000
 
     Noncurrent Assets
       Deferred tax asset                         -           600,000
       Long-term receivables &
        other noncurrent                 12,474,000         9,575,000
     Total Noncurrent Assets             12,474,000        10,175,000
 
     Total Assets                       192,900,000       215,475,000
 
     Current Liabilities
       Current maturities of
        long term debt                  113,511,000         4,551,000
       Accounts payable                  12,342,000        22,002,000
       Accrued liabilities               18,608,000        16,316,000
     Total Current Liabilities          144,461,000        42,869,000
 
     Long-term debt                               -        94,497,000
 
     Minority Interest                      425,000                 -
 
     Total Shareholders' Equity          48,014,000        78,109,000
 
     Total Liabilities &
      Shareholders' Equity             $192,900,000       215,475,000
 
     * Condensed from audited financial statements.
 
 
                                CMI CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
                     DECEMBER 31, 2000 COMPARISONS TO 1999
                                   (Audited)
 
 
                           THREE MONTHS ENDED           TWELVE MONTHS ENDED
                         12/31/2000     12/31/99*  12/31/2000       12/31/99*
 
     Net Revenues       $48,074,000    38,649,000  228,248,000    218,663,000
 
     Costs and Expenses
       Cost of goods
        sold             40,374,000    29,834,000  191,879,000    163,402,000
       Marketing and
        administrative    8,601,000    10,233,000   38,794,000     37,392,000
       Engineering and
        product
        development       1,842,000     2,196,000    8,929,000      8,293,000
 
                         50,817,000    42,263,000  239,602,000    209,087,000
 
        Earnings from
          operations     (2,743,000)   (3,614,000) (11,354,000)     9,576,000
 
 
       Interest expense   4,319,000     1,801,000   12,248,000      6,573,000
       Interest income     (404,000)     (250,000)  (1,359,000)      (980,000)
       Minority interest    (55,000)            0       (5,000)             0
       Other expense
        (income), net       (18,000)      (68,000)    (117,000)       (18,000)
                          3,842,000     1,483,000   10,767,000      5,575,000
 
     Earnings (loss)
      before income
      taxes              (6,585,000)   (5,097,000) (22,121,000)     4,001,000
 
     Income tax expense
      (benefit)          12,785,000    (1,844,000)   8,074,000      1,512,000
 
     Net earnings
      (loss)           $(19,370,000)   (3,253,000) (30,195,000)     2,489,000
 
     Earnings (loss)
      per share (basic)      $(0.89)        (0.15)       (1.39)          0.12
     Earnings (loss)
      per share (diluted)    $(0.89)        (0.15)       (1.39)          0.11
 
     Average shares
      outstanding
      (basic)            21,691,000    21,612,000   21,683,000     21,566,000
     Average shares
      outstanding
      (diluted)          21,691,000    21,757,000   21,683,000     21,805,000
 
 
     * Reclassifications between prior year amounts have been made in order to
 conform to current year presentation.
 
 

SOURCE CMI Corporation
    OKLAHOMA CITY, April 2 /PRNewswire/ -- CMI Corporation (NYSE:   CMI)
 today reported fourth-quarter revenues increased nearly 25 percent to
 $48.1 million from $38.6 million in 1999.  Including a $14.8 million non-cash
 charge related to accounting for a deferred tax asset, the fourth-quarter net
 loss was $19.4 million, or 89 cents per share, compared with a loss of
 $3.3 million, or 15 cents per share, a year earlier.  Excluding non-recurring
 charges in both quarters, the loss was $4.6 million for the quarter ended
 December 31, 2000, compared with a $2.4 million loss a year earlier.  The
 2000 fourth-quarter earnings before interest, taxes and depreciation (EBITDA)
 improved to a loss of $593,000, compared with a loss of $2.2 million in the
 1999 quarter.
     For the full year, revenues increased to $228.2 million from $218.7 in
 fiscal 1999.  Including the fourth-quarter charge and additional non-recurring
 charges earlier in the year, the net loss was $30.2 million, or $1.39 a share,
 compared with earnings of $2.5 million, or 11 cents a diluted share, in 1999.
 Excluding one-time charges in both years, the net loss would have been
 $5.8 million in 2000, compared with earnings of $3.4 million the prior year.
     "Although the year 2000 proved most difficult for CMI, there are several
 positive signs of improvements coming in the quarters ahead," said Bill
 Swisher, chairman and CEO.  "Fourth-quarter expenses were down sharply from
 1999 and our gross margins are moving toward levels required in order to be
 profitable.  This is evidence that the $8 million in operating cuts announced
 in mid 2000 are beginning to have a favorable effect on our operating
 margins."
     Swisher noted that the increased loss before charges in the 2000 fourth
 quarter compared to the prior year was due primarily to one-time borrowing
 expenses, higher interest rates and higher levels of financing.  He added that
 the company's decision to reverse a previously capitalized deferred tax asset
 on its balance sheet -- resulting in the fourth-quarter charge -- will have a
 positive effect on future reporting periods.
     "In addition to permitting us to be more consistent and appropriate in
 reporting future earnings," Swisher said, "we will be reporting earnings with
 a much more favorable effective tax rate of approximately 4 percent, compared
 with 37 percent, until the company has recovered all its tax loss
 carryforwards."
     Swisher also reported that global market conditions indicate that the
 company may begin accelerating its progress in working through the balance
 of its high-cost inventory.
     "As reported in mid 2000, CMI has been working through a large amount
 of unusually high-cost inventory resulting from abnormally high manufacturing
 costs in 1999 and 2000," Swisher said.  "The widely reported downturn in
 construction machinery capital goods markets during the second half of 2000
 slowed our expected progress in moving this high-cost inventory.
     "However, we are encouraged by both internal and external factors that
 point toward improved operations going forward," Swisher said.  "To begin
 with, CMI is geared for growth in 2001, with expanded product offerings and
 growing markets.  Our year-to-date orders booked to ship in the year 2001 are
 approximately $90 million, compared with $77 million in 2000.
     "We are experiencing growth in export sales, particularly in concrete and
 asphalt paving machines in Latin and South America.  These sales include both
 products produced in the U.S. and by our new company, CMI Cifali, in Brazil.
     "Domestically, the federal highway funding program, TEA-21, will exceed
 $30 billion in 2001 and is budgeted even higher for 2002," Swisher said.
 "This increased funding, combined with AIR-21, which funds new construction at
 airports, and numerous individual state highway capital expansion programs, is
 providing our U.S. customers considerable opportunities for expanding their
 businesses.  Finally, during recent weeks the company has seen an upturn in
 its large landfill compactor business, which had been lagging for over a
 year."
     CMI Corporation is a growing innovator, designer and manufacturer of
 equipment for heavy-duty construction and infrastructure applications.  With
 headquarters in Oklahoma City, the company's leading-edge equipment is used to
 build, maintain and reconstruct roads, highways, bridges and airport runways.
 Recent acquisitions have given CMI capabilities in concrete plant production;
 have extended product offerings in compaction technology for landfills and
 road bases; have enabled the company to offer industrial grinding for
 landfills, construction, land clearing and other disposable applications; and
 have added manufacturing and marketing bases in Europe and South America for
 both concrete and asphalt paving equipment.
     This news release contains forward-looking statements concerning the
 future performance of CMI Corporation, which are subject to a number of
 factors including, but not limited to highway funding, adverse weather
 conditions, general economic conditions and political changes both
 domestically and overseas.
 
                                CMI CORPORATION
                     CONSOLIDATED BALANCE SHEET COMPARISONS
 
                                           *Audited         * Audited
                                         12/31/2000        12/31/1999
 
     Current Assets
       Cash and cash equivalents        $13,637,000        12,681,000
       Receivables, net                  27,972,000        31,257,000
       Inventories
         Finished equipment              43,054,000        43,124,000
         Work-in-process                 16,300,000        20,212,000
         Raw materials and parts         45,841,000        58,566,000
                                        105,195,000       121,902,000
 
       Deferred tax asset                         0         7,400,000
       Other current assets                 696,000           892,000
 
     Total Current Assets               147,500,000       174,132,000
 
     Property, Plant and
      Equipment - net                    32,926,000        31,168,000
 
     Noncurrent Assets
       Deferred tax asset                         -           600,000
       Long-term receivables &
        other noncurrent                 12,474,000         9,575,000
     Total Noncurrent Assets             12,474,000        10,175,000
 
     Total Assets                       192,900,000       215,475,000
 
     Current Liabilities
       Current maturities of
        long term debt                  113,511,000         4,551,000
       Accounts payable                  12,342,000        22,002,000
       Accrued liabilities               18,608,000        16,316,000
     Total Current Liabilities          144,461,000        42,869,000
 
     Long-term debt                               -        94,497,000
 
     Minority Interest                      425,000                 -
 
     Total Shareholders' Equity          48,014,000        78,109,000
 
     Total Liabilities &
      Shareholders' Equity             $192,900,000       215,475,000
 
     * Condensed from audited financial statements.
 
 
                                CMI CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
                     DECEMBER 31, 2000 COMPARISONS TO 1999
                                   (Audited)
 
 
                           THREE MONTHS ENDED           TWELVE MONTHS ENDED
                         12/31/2000     12/31/99*  12/31/2000       12/31/99*
 
     Net Revenues       $48,074,000    38,649,000  228,248,000    218,663,000
 
     Costs and Expenses
       Cost of goods
        sold             40,374,000    29,834,000  191,879,000    163,402,000
       Marketing and
        administrative    8,601,000    10,233,000   38,794,000     37,392,000
       Engineering and
        product
        development       1,842,000     2,196,000    8,929,000      8,293,000
 
                         50,817,000    42,263,000  239,602,000    209,087,000
 
        Earnings from
          operations     (2,743,000)   (3,614,000) (11,354,000)     9,576,000
 
 
       Interest expense   4,319,000     1,801,000   12,248,000      6,573,000
       Interest income     (404,000)     (250,000)  (1,359,000)      (980,000)
       Minority interest    (55,000)            0       (5,000)             0
       Other expense
        (income), net       (18,000)      (68,000)    (117,000)       (18,000)
                          3,842,000     1,483,000   10,767,000      5,575,000
 
     Earnings (loss)
      before income
      taxes              (6,585,000)   (5,097,000) (22,121,000)     4,001,000
 
     Income tax expense
      (benefit)          12,785,000    (1,844,000)   8,074,000      1,512,000
 
     Net earnings
      (loss)           $(19,370,000)   (3,253,000) (30,195,000)     2,489,000
 
     Earnings (loss)
      per share (basic)      $(0.89)        (0.15)       (1.39)          0.12
     Earnings (loss)
      per share (diluted)    $(0.89)        (0.15)       (1.39)          0.11
 
     Average shares
      outstanding
      (basic)            21,691,000    21,612,000   21,683,000     21,566,000
     Average shares
      outstanding
      (diluted)          21,691,000    21,757,000   21,683,000     21,805,000
 
 
     * Reclassifications between prior year amounts have been made in order to
 conform to current year presentation.
 
 SOURCE  CMI Corporation