ROBBINS & MYERS, INC. 
By HOUSTON, Jan. 6, 2012 /PRNewswire/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share (DEPS) of $0.77 for its fiscal first quarter ended November 30, 2011, compared with $0.44 in the prior year first quarter from continuing operations. Robbins & Myers achieved significant year-over-year growth in orders, sales, operating income and backlog.
Consolidated sales were $237 million in the first quarter of fiscal 2012. Orders outpaced sales and were $254 million for the first quarter of fiscal 2012. Backlog continued to grow and ended the quarter at $260 million, a $9 million increase for the quarter. Excluding the impact of currency translation and T-3 Energy Services, Inc. ("T-3"), which was acquired in the second quarter of fiscal year 2011, sales grew $30 million, or 21%, over the comparable period of the prior year.
The Company reported first quarter fiscal 2012 earnings before interest and taxes (EBIT) of $53 million, significantly higher than the $24 million reported in the first quarter of fiscal 2011. The inclusion of T-3, higher organic sales and cost reduction actions drove this increase. Operating margins grew 510 basis points to 22.2%. Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $60 million, 25% of sales, compared to $27 million, 19% of sales, in the same prior year quarter.
First quarter fiscal 2012 cash from operations was $29 million, an improvement of $31 million from the same prior year period. Under the Company's share repurchase program the Company bought 351 thousand shares for $16 million during the quarter. The Company ended the first quarter of 2012 with $231 million of cash, slightly higher than the ending balance of the last quarter despite the share repurchase program.
"We continue to be well situated with our expanded Energy Services product offering following the acquisition of T-3. We have taken steps to bring on additional capacity and leverage existing assets to take greater advantage of growing end-market demand," said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. "While sequential orders in the Process and Flow Control segment softened in the quarter, we continue to see general signs of improving markets and demand."
Based on the strength of served energy and fine chemical end markets, the Company is increasing its fiscal 2012 DEPS forecast from $2.85-$3.05 to $3.00-$3.20. The Company expects to earn $0.68-$0.78 in its second quarter of fiscal 2012 after considering seasonal holiday plant shut-down inefficiencies and additional investments in personnel to support our growth programs.
Segment Realignment
Mr. Wallace also commented, "With our acquisition of T-3 in fiscal 2011, we have realigned our segments around the primary end markets we serve. The Energy Services segment will be focused on increasing sales in the growing oil and gas upstream energy markets, while the Process and Flow Control segment will be focused on the specialty chemical, pharmaceutical and general industrial markets." All results included in this press release have been recast to reflect the new operating and reporting structure. A recasting of quarterly segment data for fiscal 2009 through 2011 is attached and also can be viewed in the "Investor Relations" section of the Company's website, www.robn.com.
First Quarter Results by Segment
All comparisons are to the comparable period of the prior year unless otherwise stated.
The Company's Energy Services segment reported orders of $169 million. Excluding T-3, orders were $95 million, up 31% due to strength in the oil and gas markets. Sales were $147 million in the first quarter of fiscal 2012. Excluding T-3, sales were $80 million, a 29% increase from the same period of the prior year. EBIT was $47 million or 32.2% of sales. Ending backlog was $143 million, an increase of $22 million for the quarter.
The Process and Flow Control segment reported orders of $85 million, an increase of approximately 1% over the prior year. Sales of $90 million were 14% over prior year. EBIT was $10 million, the highest level since the first quarter of fiscal 2009. EBIT as a percentage of sales increased 290 basis points to 11.1% in the first quarter of fiscal 2012. Ending backlog was $117 million.
Dividend Increase
Robbins & Myers also announced today that its Board of Directors approved an increase in the quarterly cash dividend payment from $0.045 to $0.050 per share. The dividend is payable on February 17, 2012 to shareholders of record as of January 20, 2012.
Mr. Wallace commented, "I am pleased to announce our sixth consecutive annual dividend increase, reflecting our strong financial position, successful business performance, and strategy to create long-term shareholder value."
Conference Call to Be Held Today, January 6, at 9:00 AM Central (10:00 AM Eastern)
A conference call to discuss first quarter 2012 financial results has been scheduled for 9:00 AM Central (10:00 AM Eastern) on Friday, January 6, 2012. The call can be accessed at www.robn.com or by dialing 866-271-6130 (US/Canada) or +1-617-213-8894, using conference ID #42720825. Replays of the call can be accessed by dialing 888-286-8010 (U.S./Canada) or +1-617-801-6888, both using replay ID #15620837.
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 and EBITDA, 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 EBIT and EBITDA to net income from continuing operations is included herein. EBIT and EBITDA are not measures of cash available for use by the Company.
Forward-Looking Statements
Statements set forth in this press release that are not historical facts, including statements regarding future financial performance, future market demand, future benefits to shareholders, future economic and industry conditions, 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 Company's control, 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: changes in the demand for or price of oil and/or natural gas; a significant decline in capital expenditures within the markets served by the Company; the failure of our Energy Services products used in oil and gas exploration, development and production; the possibility of product liability lawsuits that could harm our businesses; the sale of the Romaco businesses (including its benefits and effects); costs and difficulties related to the integration of T-3; dilution of earnings per share due to merger-related issuance of common shares; the inability to or delay in obtaining cost savings and synergies from the T-3 merger; inability to retain key personnel; the ability to realize the benefits of restructuring programs; increases in competition; changes in the availability and cost of raw materials; foreign exchange rate fluctuations as well as economic or political instability in international markets and performance in hyperinflationary environments, such as Venezuela; work stoppages related to union negotiations; customer order cancellations; events or circumstances which result in an impairment of, or valuation against, assets; the potential impact of U.S. and foreign legislation, government regulations, and other governmental action, including those relating to offshore drilling and hydraulic fracturing, and 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; and other important risk factors discussed more fully in Robbins & Myers' 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 from time to time with the SEC. Robbins & Myers does not undertake any obligation to revise or update publicly any forward-looking statements for any reason.
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands) November 30, 2011 August 31, 2011
------------- ----------------- ---------------
ASSETS
Current Assets:
Cash and cash equivalents $231,453 $230,606
Accounts receivable 172,260 166,511
Inventories 154,717 151,463
Other current assets 9,461 11,247
Deferred taxes 18,479 18,674
------
Total Current Assets 586,370 578,501
Goodwill & Other Intangible Assets 783,975 798,719
Deferred Taxes 25,728 26,344
Other Assets 14,686 13,776
Property, Plant & Equipment 164,079 165,626
$1,574,838 $1,582,966
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LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $80,435 $84,761
Accrued expenses 92,702 91,253
Current portion of long-term debt 742 421
Total Current Liabilities 173,879 176,435
Long-Term Debt - Less Current Portion 23 24
Deferred Taxes 131,326 131,697
Other Long-Term Liabilities 104,720 108,391
Total Equity 1,164,890 1,166,419
$1,574,838 $1,582,966
========== ==========
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENT
(Unaudited)
Three Months Ended
------------------
November 30, November 30,
(in thousands, except per share data) 2011 2010
------------------------------------- ---- ----
Sales $237,323 $140,770
Cost of sales 141,782 87,421
------- ------
Gross profit 95,541 53,349
Selling, general and administrative expenses 42,960 29,245
Income before interest and income taxes (EBIT) 52,581 24,104
Interest (income), net (61) (25)
--- ---
Income from continuing operations before income taxes 52,642 24,129
Income tax expense 17,187 9,104
Net income from continuing operations 35,455 15,025
Income from discontinued operations, net of tax - 67
Net income including noncontrolling interest 35,455 15,092
Less: Net income attributable to noncontrolling interest 198 396
--- ---
Net income attributable to Robbins & Myers, Inc. $35,257 $14,696
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Net income per share from continuing operations:
Basic $0.77 $0.44
Diluted $0.77 $0.44
Net income per share:
Basic $0.77 $0.45
Diluted $0.77 $0.44
Weighted average common shares outstanding:
Basic 45,842 32,971
Diluted 46,060 33,087
ROBBINS & MYERS, INC. AND SUBSIDIARIES
CONDENSED BUSINESS SEGMENT INFORMATION FOR CONTINUING OPERATIONS
(Unaudited)
Three Months Ended
------------------
November 30, November 30,
(in thousands) 2011 2010
------------- ---- ----
Customer Sales
Energy Services $146,988 $61,827
Process and Flow Control 90,335 78,943
Total $237,323 $140,770
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Income Before Interest and Income Taxes (EBIT)
Energy Services $47,298 $22,746
Process and Flow Control 10,070 6,538
Corporate and Eliminations (4,787) (5,180)
------ ------
Total $52,581 $24,104
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Depreciation and Amortization
Energy Services $5,789 $1,126
Process and Flow Control 2,019 2,034
Corporate and Eliminations 84 72
--- ---
Total $7,892 $3,232
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Orders
Energy Services $169,465 $72,316
Process and Flow Control 84,573 83,955
Total $254,038 $156,271
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Backlog
Energy Services $142,971 $36,720
Process and Flow Control 116,948 116,849
Total $259,919 $153,569
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Note: 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
------------------
November 30, November 30,
(in thousands) 2011 2010
------------- ---- ----
Operating activities:
Net income including noncontrolling interest $35,455 $15,092
Depreciation and amortization 7,892 3,891
Working capital (16,036) (24,485)
Other changes, net 1,610 2,992
Cash provided (used) by operating activities 28,921 (2,510)
Investing activities:
Capital expenditures, net of nominal disposals (6,813) (3,100)
Cash used by investing activities (6,813) (3,100)
Financing activities:
Proceeds (payments) of long-term debt, net 450 (47)
Share repurchase program (15,607) -
Dividends paid (2,067) (1,405)
Proceeds from issuance of common stock and other, net 970 323
---
Cash used by financing activities (16,254) (1,129)
Exchange rate impact on cash (5,007) 1,735
------ -----
Increase (decrease) in cash 847 (5,004)
Cash and cash equivalents at beginning of period 230,606 149,213
Cash and cash equivalents at end of period $231,453 $144,209
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ROBBINS & MYERS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EBIT AND EBITDA
(Unaudited)
Three Months Ended
------------------
November 30, November 30,
( $ in thousands) 2011 2010
---------------- ---- ----
Consolidated
------------
Net income from continuing operations $35,455 $15,025
Income tax expense 17,187 9,104
Interest (income), net (61) (25)
--- ---
EBIT (operating profit) 52,581 24,104
EBIT margin 22.2% 17.1%
Depreciation and amortization 7,892 3,232
EBITDA $60,473 $27,336
======= =======
EBITDA margin 25.5% 19.4%
EBIT (operating profit), EBIT margin %, EBITDA and EBITDA margin % 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. Neither EBIT nor EBITDA are measures of cash available for use by management.
Robbins & Myers, Inc.
Historical Segment Results Reflecting Realigned Operating Structure
(In thousands)
Fiscal 2009 Fiscal 2010 Fiscal 2011
Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
--- --- --- --- ----- --- --- --- --- ----- --- --- --- --- -----
Sales:
Energy Services $62,901 $56,795 $43,822 $39,729 $203,247 $41,522 $44,428 $53,903 $61,739 $201,592 $61,827 $104,433 $144,236 $166,702 $477,198
Process and Flow Control 91,653 78,579 75,093 78,773 324,098 70,199 62,409 65,808 78,185 276,601 78,943 79,381 92,822 92,296 343,442
$154,554 $135,374 $118,915 $118,502 $527,345 $111,721 $106,837 $119,711 $139,924 $478,193 $140,770 $183,814 $237,058 $258,998 $820,640
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Depreciation and Amortization:
Energy Services $1,114 $1,164 $1,192 $1,119 $4,589 $1,138 $1,152 $1,148 $1,108 $4,546 $1,126 $8,033 $8,108 $6,293 $23,560
Process and Flow Control 2,367 2,259 2,205 2,336 9,167 2,392 2,236 2,109 1,754 8,491 2,034 2,129 2,044 2,185 8,392
Corporate and Eliminations 130 132 98 97 457 86 71 74 73 304 72 74 97 93 336
--- --- --- --- --- --- --- --- --- --- --- ---
$3,611 $3,555 $3,495 $3,552 $14,213 $3,616 $3,459 $3,331 $2,935 $13,341 $3,232 $10,236 $10,249 $8,571 $32,288
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EBIT:
Energy Services $20,967 $19,309 $12,933 $7,407 $60,616 $12,822 $11,489 $17,429 $19,962 $61,702 $22,746 $21,728 $35,276 $51,218 $130,968
Process and Flow Control 10,542 4,911 6,466 6,022 27,941 2,261 (394) 780 2,243 4,890 6,538 5,574 9,158 5,542 26,812
Corporate and Eliminations (3,672) (3,827) (6,540) (2,442) (16,481) (4,589) (4,889) (6,488) (3,708) (19,674) (5,180) (11,152) (5,752) (4,353) (26,437)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------- ------ ------
$27,837 $20,393 $12,859 $10,987 $72,076 $10,494 $6,206 $11,721 $18,497 $46,918 $24,104 $16,150 $38,682 $52,407 $131,343
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Special Items (Income) Expense:
Energy Services--cost of sales $ - $ - $ - $4,103 $5,396 $ - $9,499
Energy Services--other expense 7,428 2,828 10,256
Process and Flow Control--other expense - 2,764 2,764 - - - 1,012 1,012
Corporate and Eliminations--other expense - - - 5,884 - - 5,884
--- --- --- ---
$ - $ - $ - $ - $ - $ - $ - $ - $2,764 $2,764 $ - $17,415 $8,224 $1,012 $26,651
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Adjusted EBIT:
Energy Services $20,967 $19,309 $12,933 $7,407 $60,616 $12,822 $11,489 $17,429 $19,962 $61,702 $22,746 $33,259 $43,500 $51,218 $150,723
Process and Flow Control 10,542 4,911 6,466 6,022 27,941 2,261 (394) 780 5,007 7,654 6,538 5,574 9,158 6,554 27,824
Corporate and Eliminations (3,672) (3,827) (6,540) (2,442) (16,481) (4,589) (4,889) (6,488) (3,708) (19,674) (5,180) (5,268) (5,752) (4,353) (20,553)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
$27,837 $20,393 $12,859 $10,987 $72,076 $10,494 $6,206 $11,721 $21,261 $49,682 $24,104 $33,565 $46,906 $53,419 $157,994
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Orders:
Energy Services $71,546 $41,697 $29,656 $33,850 $176,749 $42,219 $53,695 $58,791 $63,702 $218,407 $72,316 $111,549 $168,150 $165,740 $517,755
Process and Flow Control 86,562 65,480 62,095 60,424 274,561 67,802 70,965 73,516 91,258 303,541 83,955 83,766 94,516 96,258 358,495
$158,108 $107,177 $91,751 $94,274 $451,310 $110,021 $124,660 $132,307 $154,960 $521,948 $156,271 $195,315 $262,666 $261,998 $876,250
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Backlog:
Energy Services $44,399 $30,155 $16,821 $11,384 $12,213 $20,393 $25,197 $27,063 $36,720 $98,093 $122,196 $121,254
Process and Flow Control 131,524 114,714 103,642 83,454 83,244 89,557 95,126 109,735 116,849 122,878 125,722 129,810
$175,923 $144,869 $120,463 $94,838 $95,457 $109,950 $120,323 $136,798 $153,569 $220,971 $247,918 $251,064
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SOURCE Robbins & Myers, Inc.
