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PMFG, Inc. (Parent Of Peerless Mfg. Co.) Reports Second Quarter Fiscal Year 2013 Financial Results

Stocks in this article: PMFG

The PMFG, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5676

Safe Harbor Under The Private Securities Litigation Reform Act of 1995

Certain statements contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. The words "anticipate," "preliminary," "expect," "believe," "intend" and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for these forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results to differ materially from the anticipated results expressed in these forward-looking statements. The risks and uncertainties that may affect the Company's results include the growth rate of the Company's revenue and market share; the receipt of new, and the non-termination of existing, contracts; the Company's ability to effectively manage its business functions while growing its business in a rapidly changing environment; the Company's ability to achieve financial and nonfinancial covenants and requirements of our debt agreements; the Company's ability to adapt and expand its services in such an environment; the quality of the Company's plans and strategies; and the Company's ability to execute such plans and strategies. Other important information regarding factors that may affect the Company's future performance is included in the public reports that the Company files with the Securities and Exchange Commission, including the information under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, 2012. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of other events. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.

PMFG, Inc.
Condensed Financial Information
(In thousands, except per share amounts)
             
  Three Months Ended December 29, Three Months Ended December 31,
  2012 2011
Operating Results GAAP Adjustments Non-GAAP GAAP Adjustments(b) Non-GAAP
             
Revenues  $ 31,452  $ --   $ 31,452  $ 37,721  $ --   $ 37,721
Cost of goods sold  19,923  --   19,923  25,245  (34)  25,211
Gross profit  11,529  --   11,529  12,476  34  12,510
Operating expenses  10,669  --   10,669  11,498  (2,064)  9,434
Operating income (loss)  860  --   860  978  2,098  3,076
Other income (expense):            
Interest income  7  --   7  7  --   7
Interest expense  (210)  --   (210)  (443)  --   (443)
Loss on extinguishment of debt  --   --   --   --   --   -- 
Foreign exchange gain (loss)  117  --   117  (211)  --   (211)
Other income  32  --   32  3  --   3
Income (loss) before income taxes  806  --   806  334  2,098  2,432
Income tax (expense) benefit  (213)  --   (213)  (292)  (713)  (1,005)
Net earnings (loss)  $ 593  $ --   $ 593  $ 42  $ 1,385  $ 1,427
Less net earnings (loss) attributable to noncontrolling interest  127  --   127  (30)  --   (30)
Net earnings (loss) attributible to PMFG  $ 466  $ --   $ 466  $ 72  $ 1,385  $ 1,457
Earnings (loss) applicable to PMFG common stockholders  $ 466  $ --   $ 466  $ 72  $ 1,385  $ 1,457
             
Basic loss per share  $ 0.02    $ 0.02  $ 0.00    $ 0.08
Diluted loss per share  $ 0.02    $ 0.02  $ 0.00    $ 0.08
             
Weighted-average shares outstanding            
Basic   20,920    20,920  17,679    17,679
Diluted  20,935    20,935  18,327    18,327
             
Adjusted EBITDA            
Net earnings (loss)      $ 593      $ 1,427
Depreciation and amortization      693      634
Interest expense, net      203      436
Income tax expense (benefit)      213      1,005
Adjusted EBITDA      $ 1,702      $ 3,502
             
  Six Months Ended December 29, Six Months Ended December 31,
  2012 2011
Operating Results GAAP Adjustments(a) Non-GAAP GAAP Adjustments(b) Non-GAAP
             
Revenues  $ 64,429  $ --   $ 64,429  $ 66,809  $ --   $ 66,809
Cost of goods sold  41,508  --   41,508  45,625  (34)  45,591
Gross profit  22,921  --   22,921  21,184  34  21,218
Operating expenses  21,601  --   21,601  21,353  (2,064)  19,289
Operating income (loss)  1,320  --   1,320  (169)  2,098  1,929
Other income (expense):            
Interest income  17  --   17  16  --   16
Interest expense  (315)  --   (315)  (870)  --   (870)
Loss on extinguishment of debt  (291)  291  --   --   --   -- 
Foreign exchange gain (loss)  35  --   35  (668)  --   (668)
Other income  33  --   33  24  --   24
Income (loss) before income taxes  799  291  1,090  (1,667)  2,098  431
Income tax (expense) benefit  (212)  (99)  (311)  539  (713)  (174)
Net earnings (loss)  $ 587  $ 192  $ 779  $ (1,128)  $ 1,385  $ 257
Less net earnings (loss) attributable to noncontrolling interest  432  --   432  (49)  --   (49)
Net earnings (loss) attributible to PMFG  $ 155  $ 192  $ 347  $ (1,079)  $ 1,385  $ 306
Earnings (loss) applicable to PMFG common stockholders  $ 155  $ 192  $ 347  $ (1,079)  $ 1,385  $ 306
             
Basic loss per share  $ 0.01    $ 0.02  $ (0.06)    $ 0.02
Diluted loss per share  $ 0.01    $ 0.02  $ (0.06)    $ 0.02
             
Weighted-average shares outstanding            
Basic   20,919    20,919  17,675    17,675
Diluted  20,934    20,934  17,675    18,276
             
Adjusted EBITDA            
Net earnings (loss)      $ 779      $ 257
Depreciation and amortization      1,397      1,312
Interest expense, net      298      854
Income tax expense (benefit)      311      174
Adjusted EBITDA      $ 2,785      $ 2,597
             
    December 29, June 30,      
Condensed Balance Sheet Information   2012 2012      
             
Current assets    $ 122,540  $ 122,286      
Non-current assets    62,447  60,993      
Total assets    $ 184,987  $ 183,279      
             
Current liabilities    $ 42,791  $ 45,019      
Other non current liabilities    8,720  7,374      
Total equity    133,476  130,886      
Total liabilities and equity    $ 184,987  $ 183,279      
             
(a) Adjustments in the six months ended December 29, 2012 relate to the loss on extinguishment of debt.
(b) Adjustments in the three and six months ended December 31, 2011 relate to the accelerated vesting of restricted stock grants

STATEMENT REGARDING NON-GAAP RESULTS

PMFG, Inc. has provided a reconciliation of non-GAAP measures in order to provide the users of this financial information with a better understanding of the impact on our financial results resulting from the loss of extinguishment of debt in the six months ended December 29, 2012 and from the accelerated vesting of restricted stock grants in the three and six months ended December 31, 2011. Management believes that excluding this item from the Company's financial results provides investors with a clearer perspective of the current underlying operating performance of the Company, a clearer comparison between results in different periods and greater transparency regarding supplemental information used by management in its financial and operational decision making. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measures should be considered in addition to, but not as a substitute for, the information contained in our financial statements prepared in accordance with GAAP.

CONTACT: Mr. Peter J. Burlage, Chief Executive Officer
         Mr. Ronald L. McCrummen, Chief Financial Officer
         PMFG, Inc.
         14651 North Dallas Parkway, Suite 500
         Dallas, Texas 75254
         Phone: (214) 353-5545
         Fax: (214) 351-4172
         www.peerlessmfg.com
         
         or
         
         Kevin McGrath, Managing Partner
         Cameron Associates
         (212) 245-4577
         Kevin@cameronassoc.com

PMFG, Inc. Logo

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