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CLARCOR Reports Record First Quarter Results

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements made in this press release other than statements of historical fact, are forward-looking statements. These statements may be identified from use of the words “may,” “should,” “could,” “potential,” “continue,” “plan,” “forecast,” “estimate,” “project,” “believe,” “intent,” “anticipate,” “expect,” “target,” “is likely,” “will,” or the negative of these terms, and similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, among other things: statements and assumptions relating to anticipated future growth and results of operations, including the anticipated 2012 performance of the Company and each of its segments, our projections with respect to 2012 estimated sales growth and 2012 estimated operating margins for the Company and each of its segments, and our projections with respect to 2012 cash from operations, 2012 capital expenditures and 2012 effective tax rates; statements regarding management's short-term and long-term performance goals; statements regarding anticipated order patterns from our customers or the anticipated economic conditions of the industries and markets that we serve; statements related to the performance of the U.S. and other economies generally; statements relating to the anticipated effects on results of operations or financial condition from recent and expected developments or events; statements regarding our ability to achieve our long-term operating margin goal of 15% in our Industrial/Environmental Filtration segment in the next three or four years; statements regarding our culture of managing administrative costs prudently while supporting profitable growth; statements regarding our expectations of growth in Europe for the remainder of 2012 as we introduce new products and to continue to expand our geographic presence from our European operations; statements regarding ongoing uncertainty in China and our expectation of sales in China for full year 2012; statements regarding our belief regarding the transitory nature of some sales issues in our Packaging segment, and our ability to procure several significant sales opportunities in our pipeline in the Packaging segment for 2012; statements regarding our ability to develop our capability to support the natural gas extraction and transportation from shale formations; and any other statements or assumptions that are not historical facts. The Company believes that its expectations are based on reasonable assumptions. However, these forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Company's actual results, performance or achievements, or industry results, to differ materially from the Company's expectations of future results, performance or achievements expressed or implied by these forward-looking statements. The Company's past results of operations do not necessarily indicate its future results. The Company’s future results may differ materially from the Company’s past results as a result of various risks and uncertainties, including the risk factors discussed in the “Risk Factors” section of the Company’s 2011 Form 10-K and other risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release. Except as otherwise required by applicable laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements or the risk factors described in this press release, including estimated sales growth and estimated operating margin levels for 2012 for the Company and its business segments, whether as a result of new information, future events, changed circumstances or any other reason after the date of this press release.

TABLES FOLLOW

 
CLARCOR INC. 2012 UNAUDITED FIRST QUARTER RESULTS
       

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS

(Dollars in thousands except per share data)
 

Three Months Ended

March 3, February 26,
2012 2011
 
Net sales $ 257,264 $ 245,720
Cost of sales   171,049     164,767  
 
Gross profit 86,215 80,953
 
Selling and administrative expenses   51,903     49,662  
 
Operating profit   34,312     31,291  
 
Other income (expense):
Interest expense (100 ) (44 )
Interest income 134 37
Other, net   612     (200 )
 
  646     (207 )
 
Earnings before income taxes 34,958 31,084
 
Provision for income taxes   11,466     9,163  
 
Net earnings 23,492 21,921
 

Net earnings attributable to noncontrolling interests

(13 ) (40 )
 
Net earnings attributable to CLARCOR Inc $ 23,479   $ 21,881  
 
Net earning per share attributable to CLARCOR Inc. - Basic $ 0.47   $ 0.43  
Net earning per share attributable to CLARCOR Inc. - Diluted $ 0.46   $ 0.43  
 
Weighted average number of shares outstanding - Basic   50,411,196     50,568,499  
Weighted average number of shares outstanding - Diluted   51,094,385     51,287,238  
 
Dividends paid per share $ 0.1200   $ 0.1050  
 
CLARCOR INC. 2012 UNAUDITED FIRST QUARTER RESULTS, continued
       

CONSOLIDATED CONDENSED BALANCE SHEETS

(Dollars in thousands)
March 3, December 3,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 142,063 $ 155,999
Restricted cash 1,007 1,105

Accounts receivable, less allowance for losses of $10,489 and $9,795, respectively

201,758 206,664
Inventories 208,578 200,274
Deferred income taxes 25,580 25,974

Income taxes receivable

704 3,373
Prepaid expenses and other current assets   7,596     7,510  
Total current assets   587,286     600,899  
 

Plant assets, at cost, less accumulated depreciation of $299,454 and $293,111, respectively

188,134 184,992
Assets held for sale 2,000 2,000
Goodwill 235,941 235,530
Acquired intangible assets, less accumulated amortization 97,636 98,674
Deferred income taxes 621 749
Other noncurrent assets   14,120     12,089  
Total assets $ 1,125,738   $ 1,134,933  
 
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 1,176 $ 1,289
Accounts payable and accrued liabilities 133,342 155,585
Income taxes payable   2,846     3,176  
Total current liabilities   137,364     160,050  
 
Long-term debt, less current portion 16,026 15,981
Long-term pension and postretirement healthcare benefits liabilities 61,317 74,524
Deferred income taxes 40,264 36,194
Other long-term liabilities   10,340     11,069  
Total liabilities   265,311     297,818  
 
Contingencies
Redeemable noncontrolling interests 1,585 1,557
 
SHAREHOLDERS' EQUITY
Capital stock 50,262 50,145
Capital in excess of par value 21,981 19,453
Accumulated other comprehensive loss (41,331 ) (44,391 )
Retained earnings   827,083     809,520  
Total CLARCOR Inc. equity   857,995     834,727  
Noncontrolling interests   847     831  
Total shareholders' equity   858,842     835,558  
Total liabilities and shareholders' equity $ 1,125,738   $ 1,134,933  
 
CLARCOR INC. 2012 UNAUDITED FIRST QUARTER RESULTS, continued
       

CONSOLIDATED CONDENSED CASH FLOWS

(Dollars in thousands)
 
Three Months Ended
March 3, February 26,
2012 2011
Cash flows from operating activities:
Net earnings $ 23,492 $ 21,921
Depreciation 6,568 6,998
Amortization 1,426 1,331
Other noncash items (102 ) (94 )

Net loss (gain) on disposition of plant assets

16 (3 )
Stock-based compensation expense 2,906 2,605
Excess tax benefit from stock-based compensation (2,302 ) (657 )
Deferred income taxes 9,522 (367 )
Changes in assets and liabilities, excluding short-term investments   (40,301 )   (22,904 )
Net cash provided by operating activities   1,225     8,830  
 
Cash flows from investing activities:
Restricted cash 51 46
Business acquisitions, net of cash acquired (2,144 ) (10,455 )
Additions to plant assets (9,797 ) (3,492 )
Proceeds from disposition of plant assets 59 34
Investment in affiliates   (132 )   -  
Net cash used in investing activities   (11,963 )   (13,867 )
 
Cash flows from financing activities:
Payments on long-term debt (26 ) (1,574 )
Sale of capital stock under stock option and employee purchase plans 2,958 2,508
Purchase of treasury stock (3,635 ) (1,947 )
Excess tax benefits from stock-based compensation 2,302 657
Cash dividends paid   (6,046 )   (5,308 )
Net cash used in financing activities   (4,447 )   (5,664 )
 
Net effect of exchange rate changes on cash   1,249     1,048  
 
Net change in cash and cash equivalents (13,936 ) (9,653 )
 
Cash and cash equivalents, beginning of period   155,999     117,022  
 
Cash and cash equivalents, end of period $ 142,063   $ 107,369  
 
Cash paid during the period for:
Interest $ 68   $ 36  
Income taxes, net of refunds $ 2,879   $ 1,740  
 
CLARCOR INC. 2012 UNAUDITED FIRST QUARTER RESULTS, continued
       
QUARTERLY INCOME STATEMENT DATA BY SEGMENT
(Dollars in thousands)
 
Three Months
March 3 February 26
2012 2011
Net sales by segment:
Engine/Mobile Filtration $ 120,283 $ 111,328
Industrial/Environmental Filtration 121,114 112,119
Packaging   15,867     22,273  
$ 257,264   $ 245,720  
 
Operating profit by segment:
Engine/Mobile Filtration $ 23,297 $ 21,202
Industrial/Environmental Filtration 10,705 7,248
Packaging   310     2,841  
$ 34,312   $ 31,291  
 
 
Operating margin by segment:
Engine/Mobile Filtration 19.4 % 19.0 %
Industrial/Environmental Filtration 8.8 % 6.5 %
Packaging   2.0 %   12.8 %
  13.3 %   12.7 %




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