UDI FY 1996 Financial Data Released Today.
February 3, 1997
UNITED DOMINION INDUSTRIES LTD ("UDI-TMBDNQ")
- Record Fourth-quarter Results
United Dominion Industries Ltd. reported record fourth-quarter net income of $37.4 million, or 83
cents a share, compared with $21.9 million, or 55 cents a share, in the fourth quarter of 1995. Latest
results included an after-tax gain of $7.5 million, or 17 cents a share, from the sale of Bredel, a
hosepump manufacturer based in the Netherlands. Per share results in the 1996 fourth quarter were
calculated on an average of 5.6 million additional common shares outstanding.
Sales in the latest quarter increased 5 percent to $507 million compared with $485 million in the prior
year, reflecting strong operating momentum in most of the company's businesses.
For the year ended Dec. 31, United Dominion reported record net income of $94.9 million ($2.13 a
share) on sales of $1.889 billion, compared with $78.5 million ($1.91 cents a share) and sales of $1.805
billion in 1995. Per share results in 1996 included the one-time gain of 17 cents from the Bredel sale, a
4 cent charge in the third quarter related to the company's failed bid for Commercial Intertech Corp.,
and an average of 5 million additional common shares outstanding. Net income in 1995 included 3
cents a share from discontinued operations.
The company's operating income in the fourth quarter increased 29 percent to $48.6 million, reflecting
strong improvement in both the industrial products and building products segments versus the same
quarter of 1995. For the year, United Dominion reported record operating income of $155.5 million, a
seven percent increase over 1995. These improved results stemmed from an 11% increase in segment
income to $189.8 million, partially offset by higher corporate expenses related to the company's
growth initiatives and Commercial Intertech.
William R. Holland, chairman and chief executive officer, said that the company achieved double-digit
operating margins in 1996 for the first time, as "3X3" margin improvement efforts throughout the
company produced positive results.
"Despite relatively slow growth in several markets during much of the year, we continued to advance
all facets of our Vision '99 strategic plan and completed another good year in 1996," Mr. Holland said.
"The company generated more than $100 million of free cash flow in 1996 and ended the year with net
debt representing only 18 percent of total capital after consummating several product-line acquisitions
and joint ventures," he said.
"The company entered 1997 with a sound financial position, strong operating momentum and a
growing backlog. With the U.S. economy continuing to grow and through recent product-line
acquisitions, we anticipate double-digit revenue growth in the year ahead. Given the top line growth
programs under way in all the company's businesses and margin improvement initiatives continuing to
increase operating results, year-over-year earnings should grow at an even faster rate," he said.
United Dominion manufactures diversified engineered products primarily for industrial and
commercial customers worldwide. The company employs approximately 11,000 people at 64 plants in
16 countries.
Following is a tabulation of the company's latest results and financial statements:
Consolidated Statements of Income (In Thousands of U.S. Dollars)
Quarters Ended Dec. 31, Years Ended Dec. 31,
1996 1995 1996 1995
Sales $ 507,494 $ 485,470 $1,888,757 $1,804,950
Costs and expenses
Cost of sales 369,145 352,141 1,392,554 1,339,438
Selling, general and administrative
expenses 89,775 95,789 340,682 320,405
Total costs
and expenses 458,920 447,930 1,733,236 1,659,843
Operating income 48,574 37,540 155,521 145,107
Other income (expense)
Interest - net (4,121) (7,167) (19,657) (24,757)
Gain on sale
of business 11,792 - 11,792 -
Income from continuing operations before
income taxes 56,245 30,373 147,656 120,350
Income tax provision 18,823 8,459 52,736 43,100
Income from continuing
operations 37,422 21,914 94,920 77,250
Income (loss) from discontinued operations
Earnings, net of tax - - - 1,820
Provision for loss,
net of tax - - - (551)
- - - 1,269
Net income 37,422 21,914 94,920 78,519
Preferred
share dividends - - - (2,875)
Earnings applicable
to common shares $37,422 $21,914 $94,920 $75,644
Earnings per common share Continuing
operations $0.83 $0.55 $2.13 $1.88
Discontinued
operations 0.00 0.00 0.00 0.03
Net earnings $0.83 $0.55 $2.13 $1.91
Average common shares outstanding
(thousands) 45,236 39,617 44,513 39,529
Consolidated Statements of Financial Position (In Thousands of U.S.
Dollars) December 31, December 31,
1996 1995
Current assets
Cash and short-term investments $166,269 $107,174
Accounts and notes receivable 282,477 239,414
Inventories 272,170 297,454
Other current assets 33,875 34,496
Total current assets 754,791 678,538
Fixed assets 285,091 265,449
Goodwill and other intangibles 466,488 449,595
Other assets 111,895 108,368
$1,618,265 $1,501,950
Current liabilities
Notes payable to banks $45,461 $68,266
Current portion of long-term debt 13,687 2,257
Accounts payable
and accrued liabilities 315,184 301,951
Customer advances 18,025 22,002
Total current liabilities 392,357 394,476
Long-term debt 288,561 389,290
Other liabilities 116,056 100,329
796,974 884,095
Shareholders' equity
Common shares 616,538 495,919
Contributed surplus 1,409 736
Retained earnings 229,472 147,080
847,419 643,735
Equity adjustment from
foreign currency translation (26,128) (25,880)
Total shareholders' equity 821,291 617,855
$1,618,265 $1,501,950
Operating Information - Segment Results (In millions of U.S. dollars)
Quarters Ended Dec. 31, Years Ended Dec. 31,
1996 1995 1996 1995
SALES
Industrial Products $336 $317 $1,239 $1,149
Building Products 168 165 638 644
Totals $505 $483 $1,876 $1,792
OPERATING INCOME
Industrial Products $38.5 $33.9 $135.3 $128.1
Building Products 17.4 12.1 53.2 41.5
Totals $ 55.9 $ 46.0 $188.5 $169.6
BACKLOG Dec. 31, 1996 Dec. 31, 1995
Industrial Products $222 $220
Building Products 133 124
Totals $355 $344
NOTE: Amounts shown relate to the company's ongoing operations.
Consolidated Statements of Cash Flows
(In Thousands of U.S. Dollars) Years Ended Dec. 31,
1996 1995
---------------------------------------------------------------
Cash provided from (used by) operating activities
Continuing operations
Income from continuing operations $94,920 $77,250
Add (deduct) items not affecting cash
Depreciation 37,757 35,034
Amortization 14,161 11,844
Gain on sale of business (11,792) -
Deferred income taxes 33,709 25,590
Other (1,866) (780)
Net decrease (increase) in
working capital other than cash (4,659) 10,262
Asset securitization 7,600 3,270
169,830 162,470
Cash used by discontinued operations - (2,393)
169,830 160,077
Cash provided from (used by) investing activities
Additions to fixed assets (57,923) (48,992)
Acquisition of businesses (51,180) (223,270)
Net proceeds from disposal of assets 5,522 59,222
Cash balances related
to discontinued operations - (15,724)
Proceeds from (investments in)
other assets 7,373 (27)
Other (9,495) (114)
(105,703) (228,905)
Cash provided from (used by) financing activities
Net addition to (repayment of)
borrowings (111,518) 131,364
Issuance of common stock 113,036 1,870
Repurchase of preferred shares - (47,686)
Dividends (9,050) (10,785)
Other 2,500 (600)
(5,032) 74,163
Net increase in cash 59,095 5,335
Cash at beginning of year 107,174 101,839
Cash at end of year $166,269 $107,174
TEL: (704) 347-6875 Robert L. Shaffer, United Dominion Industries Ltd.
TEL: (704) 347-6873 Glenn A. Eisenberg |
