Omniquip Reports Record Fourth Quarter and Fiscal 1998 Results
Business Wire - November 06, 1998 08:30
PORT WASHINGTON, Wis.--(BUSINESS WIRE)--Nov. 6, 1998--OmniQuip International, Inc. (NASDAQ/NMS:OMQP), the largest North American manufacturer of telescopic material handlers, today announced record sales and earnings for the fourth quarter and year ended September 30, 1998.
Net sales for the fourth quarter of fiscal 1998 were $132.0 million, a 97% increase from sales of $66.9 million for the same quarter in the prior year. Net income was $8.0 million or $0.56 per diluted share for the fourth quarter of fiscal 1998, up 34% from net income of $6.0 million or $0.41 per diluted share for the comparable prior period.
For the fiscal year ended September 30, 1998, OmniQuip reported net sales of $455.7 million, a 72% increase from sales of $264.2 million for the comparable prior period. Net income before extraordinary items was $27.3 million or $1.90 per diluted share, up 28% from net income before extraordinary items of $21.4 million or $1.66 per diluted share for the comparable prior period.
"Fiscal 1998 was a year of progress for OmniQuip, both in terms of financial performance and in positioning the company for future growth," said P. Enoch Stiff, president and chief executive officer of OmniQuip. "The substantial increase in sales is a result of our acquisition of the Snorkel line of aerial work platforms in November 1997, along with continuing growth in sales of telescopic material handlers. A major benefit of the Snorkel acquisition is that it enables us to offer customers a broader product line, giving us a competitive advantage in the marketplace," said Stiff.
"We have also taken a number of steps to position the company for continuing growth. To meet the increased demand for our products, we are significantly expanding our manufacturing capacity and moving toward more efficient continuous flow processes. In addition, we've introduced several company-wide initiatives including strategic purchasing alliances and corporate national accounts sales programs to maximize the synergies between our business units," said Stiff.
"In the fourth quarter, we benefitted from the continued strong demand for our products as well as improvements in manufacturing capacity," said Stiff. Sales of commercial telescopic material handlers were $66.9 million for the quarter, up 19% from the same quarter last year. The ATLAS military program recorded sales of $5.5 million, compared to sales of $1.5 million in the fourth quarter of the prior year when ATLAS production was just ramping up. Sales of compact products were up 8% in the fourth quarter as a result of the successful introduction of a new line of mini-excavators. The Snorkel business gained momentum during the quarter, generating sales of $48.9 million compared to $41.9 million in the third quarter of fiscal 1998.
The backlog at September 30, 1998, was $173 million, up 98% from the same time a year ago, pro forma for the Snorkel acquisition. The higher backlog reflects increased market demand for both aerial work platforms and commercial telescopic material handlers. "While the current backlog is unusually strong for this time of the year, it did decline from the backlog of $215 million at June 30, 1998, due to normal seasonal patterns and catch-up in production of past due orders," Stiff noted.
"The markets for all of our products remain strong and we continue to be optimistic about fiscal 1999 subject to any unforeseen change in general economic conditions. Our focus during the next year will be to continue to move forward with our growth strategy and to improve our manufacturing processes and increase production capacity to meet the rising customer demand for telescopic handlers and aerial work platforms," added Stiff.
Headquartered in Port Washington, Wisconsin, OmniQuip International is the largest North American producer of telescopic material handlers, which are marketed under the SKY TRAK and LULL brand names. The company also manufactures aerial work platforms under the Snorkel name, skid steer loaders and power loaders and haulers. OmniQuip's products are used in a wide variety of applications by commercial and residential building contractors, as well as by customers in other construction, military, industrial and agricultural markets.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors including cyclical fluctuation in demand, manufacturing capacity constraints and production inefficiencies, stiffer competition from larger and better capitalized companies, the effects on price and margin of the rapid consolidation of distributors, field warranty campaigns for certain products, loss of, or reduced orders under the company's contract for the sales of ATLAS vehicles, the inability to make complementary acquisitions, or to integrate such acquisitions effectively, and risks associated with the substantial borrowings that have been and may be necessary to finance acquisitions. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements. Reference is made to the company's filing of Form 10-K for the fiscal year ended September 30, 1997 and Form 10-Q for the quarter ended June 30, 1998 for more complete information concerning forward-looking statements and the risks and uncertainties attendant thereto. The forward-looking statements made herein are only made as of the date of this press release and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances
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OMNIQUIP INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended Year ended
September 30, September 30,
1998 1997 1998 1997
------ ------ ------ ------
Net sales $ 132,046 $ 66,887 $ 455,653 $ 264,213
Cost of sales 102,108 47,743 349,584 192,270
--------- -------- --------- ----------
Gross profit 29,938 19,144 106,069 71,943
Selling, general
and administrative
expenses 13,057 7,568 47,365 27,717
--------- -------- --------- ----------
Operating profit 16,881 11,576 58,704 44,226
Other expenses:
Interest expense 2,726 839 10,261 6,106
Other finance
charges 682 660 2,597 2,259
Other, net 90 54 (44) (77)
--------- -------- --------- ----------
3,498 1,553 12,814 8,288
--------- -------- --------- ----------
Income before income
taxes and
extraordinary
item 13,383 10,023 45,890 35,938
Provision for income
taxes 5,418 4,059 18,547 14,556
--------- -------- --------- ----------
Income before
extraordinary item 7,965 5,964 27,343 21,382
Extraordinary item,
net of tax (1) (2) -- -- (545) (782)
--------- -------- --------- ----------
Net income $ 7,965 $ 5,964 $ 26,798 $ 20,600
--------- -------- --------- ----------
--------- -------- --------- ----------
Basic earnings
per share:
Income before
extraordinary
item $ 0.56 $ 0.42 $ 1.92 $ 1.66
Extraordinary
item(1) (2) -- -- (0.04) (0.06)
--------- -------- --------- ----------
Net income $ 0.56 $ 0.42 $ 1.88 $ 1.60
--------- -------- --------- ----------
--------- -------- --------- ----------
Weighted average
shares (basic) 14,270 14,250 14,261 12,845
--------- -------- --------- ----------
--------- -------- --------- ----------
Diluted earnings per
share:
Income before
extraordinary
item $ 0.56 $ 0.41 $ 1.90 $ 1.66
Extraordinary
item(1) (2) -- -- (0.04) (0.06)
--------- -------- --------- ----------
Net income $ 0.56 $ 0.41 $ 1.86 $ 1.60
--------- -------- --------- ----------
--------- -------- --------- ----------
Weighted average
shares (diluted) 14,275 14,405 14,392 12,905
--------- -------- --------- ----------
--------- -------- --------- ----------
(1)In 1998, write-off of deferred financing charges, net of
related tax benefits, resulting from debt prepayment with
proceeds from financing related to Snorkel acquisition.
(2)In 1997, prepayment penalties and write-off of deferred
financing charges, net of tax benefits, resulting from debt
prepayments with the proceeds from the initial public offering.
OMNIQUIP INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
September 30, September 30,
1998 1997
(unaudited)
Assets:
Cash $ 4,684 $ 5
Accounts receivable 66,580 22,689
Inventories 71,065 30,956
Other current assets 10,085 6,640
Property, plant and
equipment 41,375 17,130
Goodwill 120,746 65,359
Other assets 1,992 1,519
--------------- --------------
Total Assets $ 316,527 $ 144,298
--------------- --------------
--------------- --------------
Liabilities and Stockholders' Equity:
Accounts payable $ 47,834 $ 20,433
Accrued liabilities 30,664 16,830
Current portion of
long-term debt 13,750 8,625
Long-term debt 124,250 25,609
Deferred income taxes 4,642 1,981
Other non-current
liabilities 418 422
Stockholders' equity 94,969 70,398
--------------- --------------
Total Liabilities and
Stockholders' Equity $ 316,527 $ 144,298
--------------- --------------
--------------- --------------
CONTACT: OmniQuip
Phil Franklin, 414/268-3101
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