Robbins & Myers Reports Record Second Quarter Results
Company Achieves Second Quarter Records in Sales, Orders, Backlog, Profits and Cash Flow
DAYTON, Ohio, March 26 /PRNewswire-FirstCall/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share (DEPS) of $0.47 for its fiscal second quarter ended February 29, 2008, more than double the $0.23 of DEPS reported in the prior year comparable period. The year-over-year increase in DEPS was attributed to higher sales, an improved cost structure, and a lower tax rate. Current year quarter results include approximately $0.02 per share of benefit from the sale of a facility, as well as approximately $0.01 per share of benefit from the favorable resolution of a tax matter. All reported results reflect the Company's recent 2-for-1 stock split of its common shares.
Robbins & Myers reported second quarter 2008 sales of $185 million, $22 million or 14% higher than in the prior year comparable period. Orders were $216 million in the second quarter of 2008, $33 million or 18% higher than in the prior year second quarter. Excluding the impact from acquired and disposed product lines and currency translation, sales increased 7% and orders increased 8%. The Company ended the quarter with backlog of $264 million.
'Market conditions remain favorable in our key end markets with notable sales growth in global energy and chemical sectors,' said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc. 'We continue to improve our capabilities to meet rising customer demand, not only by making targeted investments in capital and people, but also through greater integration of our operations and process improvements associated with our lean enterprise initiatives. These improved capabilities are also helping to improve our profitability and cash flow.'
The Company achieved $26 million of earnings before interest, taxes and minority interest (EBIT) in the second quarter of 2008, 66% higher than the comparable prior year quarter. The EBIT margin of 14.2% in the quarter represents an increase of 450 basis points. Excluding special items, which included a facility sale gain in the second quarter of 2008 and restructuring costs in the second quarter of 2007, adjusted EBIT margins increased 270 basis points to 13.6% due largely to increased sales and restructuring activities completed in the prior year. Trailing twelve-month EBITDA has grown to $123 million, 60% higher than the year-ago comparable figure.
'Robbins & Myers' strong profitability in the quarter was amplified by improvements in working capital, enabling us to achieve $26 million of cash flow from operating activities,' said Mr. Wallace. 'During the quarter we also sold a facility related to a previously-disposed product line, and we continue to look for other opportunities to reduce the complexity and capital- intensity of our business. We ended the quarter with $131 million of cash, substantially higher than our debt levels. The Company is well-positioned for the remainder of fiscal 2008.'
The Company announced that it is increasing its full year 2008 DEPS guidance from $1.78-$1.88 to $1.82-$1.92. The Company also established third quarter 2008 DEPS guidance of $0.42-$0.47, as compared with actual results of $0.39 in the third quarter of 2007. On March 31, 2008, the escrow period related to the Company's fiscal 2006 sale of certain product lines will conclude, as will certain contingency obligations, which could result in a one-time benefit to third quarter 2008 earnings and cash flow. The Company's guidance excludes any potential impact from this matter.
Second Quarter Results by Segment
All comparisons are made against the comparable year-ago quarterly period unless otherwise stated.
The Company's Fluid Management segment reported second quarter sales of $77 million, a 12% increase, and orders of $74 million, a 7% decrease. Excluding currency exchange rate effects, sales increased 8% and orders declined 11%. The prior year quarter included an $8 million international order for annual requirements of a single customer which did not repeat in the current year. EBIT grew 22% to $21 million, and EBIT margins expanded 220 basis points to 27.4%.
The Process Solutions segment reported sales of $75 million in the second quarter, a 19% increase, and orders of $94 million, a 35% increase. Excluding the effects of currency exchange rates and an acquisition, sales increased 7% and orders climbed 22%, primarily on continued strength in global chemical markets. The segment earned $7 million of EBIT in the second quarter, and EBIT margins improved 260 basis points to 10.0%. In January 2008, the Company's 51%-owned Indian subsidiary acquired Mavag AG, a small manufacturer of processing equipment for the pharmaceutical market.
The Romaco segment reported that sales grew 7% to $33 million in the second quarter, and orders were up 43% to $48 million. Excluding the impact from a disposed product line and currency exchange rates, sales increased 5% and orders increased 26% as a result of several recent large project wins for packaging and secondary processing applications. Excluding facility sale gains and restructuring costs, Romaco reported that adjusted EBIT margins jumped 440 basis points to 3.0% as a result of increased sales and restructuring activities completed in the prior year.
Conference Call to Be Held at 2:00 PM (EDT) Thursday, March 27, 2008
A conference call to discuss these results has been scheduled for 2:00 p.m. EDT on Thursday, March 27, 2008, which can be accessed at www.robn.com or by dialing (866) 383-8009 (US/Canada) or +1-617-597-5342, using conference ID #84383242. Replays of the call can be accessed by dialing +1-888-286-8010 (U.S./Canada) or +1-617-801-6888, both using replay ID #30887500.
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.
