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CLARCOR Reports Record First Quarter Diluted Earnings Per Share

Stocks in this article: CLC

CLARCOR will be holding a conference call to discuss the first quarter 2013 results at 10:00 a.m., Central Time, on March 21, 2013. Interested parties can listen to the conference call at www.clarcor.com or www.viavid.net. A replay will be available on these websites and also at 1-877-870-5176 or 1-858-384-5517 by providing confirmation code 3604721. The replay will be available through April 4, 2013 by telephone and for 30 days on the Internet.

CLARCOR is based in Franklin, Tennessee, and is a diversified marketer and manufacturer of mobile, industrial and environmental filtration products and consumer and industrial packaging products sold in domestic and international markets. Common shares of CLARCOR are traded on the New York Stock Exchange under the symbol CLC.

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 2013 performance of the Company and each of its segments, our projections with respect to 2013 estimated sales growth and 2013 estimated operating margins for the Company and each of its segments, and our projections with respect to 2013 cash from operations, 2013 capital expenditures and 2013 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 which 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 anticipation that U.S. heavy-duty engine filtration aftermarket sales will return to low single-digit year-over-year quarterly growth as we head into the second quarter of 2013; statements regarding our anticipation that natural gas vessel sales will translate into a stream of higher margin aftermarket elements sales going forward; statements regarding our belief that the natural gas filtration market has as much long-term potential as any other filtration market; statements regarding our expectation that global energy needs should continue to significantly expand going forward, and our belief that natural gas will play a prominent role in satisfying these expanding needs; statements that, with continued improved financial performance in our environmental air markets coupled with continued growth at our higher margin liquid markets, we believe we are on track to meet our 15% operating margin goal at our Industrial/Environmental Filtration segment in the next several years; statements regarding the long-term outlook in our core filtration markets, and the promotion of strategic initiatives to drive long-term profitable growth; statements regarding our belief that our commitment of $40.0 million to build a new warehouse and distribution center at our facility in Kearney, Nebraska, and the development of on-line additional capacity at our manufacturing facility in Yankton, South Dakota, including automated production capabilities, will enhance our continuous drive to improve our operating efficiencies and will provide additional capacity and infrastructure to supported our expected growth in heavy-duty engine filtration growth over the next decade; statements regarding our belief that the new oil and gas filtration research center in Mineral Wells, Texas should support our continued leadership in developing innovative technologies to address the most rigorous filtration needs in oil and gas extraction, transmission and processing; statements regarding our belief that these significant investments demonstrate our strong commitment to protect and develop our competitive position in our core filtration markets; 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 2012 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 2013 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. 2013 UNAUDITED FIRST QUARTER RESULTS
 
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands except per share data)
   
Three Months
March 2, March 3,
  2013     2012  
 
Net sales $ 256,271 $ 257,264
Cost of sales   174,785     171,049  
 
Gross profit 81,486 86,215
 
Selling and administrative expenses   47,671     51,903  
 
Operating profit   33,815     34,312  
 
Other income (expense):
Interest expense (150 ) (100 )
Interest income 139 134
Other, net   -     612  
 
  (11 )   646  
 
Earnings before income taxes 33,804 34,958
 
Provision for income taxes   10,276     11,466  
 
Net earnings 23,528 23,492
 

Net earnings attributable to noncontrolling interests, net of tax

  (66 )   (13 )
 

Net earnings attributable to CLARCOR Inc.

$ 23,462   $ 23,479  
 
Net earning per share attributable to CLARCOR Inc. - Basic $ 0.47   $ 0.47  
Net earning per share attributable to CLARCOR Inc. - Diluted $ 0.47   $ 0.46  
 
Weighted average number of shares outstanding - Basic   49,834,701     50,411,196  
Weighted average number of shares outstanding - Diluted   50,409,464     51,094,385  
 
Dividends paid per share $ 0.1350   $ 0.1200  
 
CLARCOR INC. 2013 UNAUDITED FIRST QUARTER RESULTS
     
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands except per share data)
 
Three Months Ended
March 2, March 3,
  2013     2012  
 
Net earnings $ 23,528 $ 23,492
 
Other comprehensive income:
Pension and other postretirement benefits --
Pension and other postretirement benefits liability adjustments 1,321 1,727
Pension and other postretirement benefits liability adjustments tax amounts   (510 )   (646 )
Pension and other postretirement benefits liability adjustments, net of tax   811     1,081  
 
Foreign currency translation --
Translation adjustments (2,225 ) 2,010
Translation adjustments tax amounts   -     -  
Translation adjustments, net of tax   (2,225 )   2,010  
 
Comprehensive earnings 22,114 26,583
 
Comprehensive earnings attributable to non-redeemable noncontrolling interests (62 ) (16 )
 
Comprehensive earnings attributable to redeemable noncontrolling interests (21 ) (28 )
   
Comprehensive earnings attributable to CLARCOR Inc $ 22,031   $ 26,539  
 
CLARCOR INC. 2013 UNAUDITED FIRST QUARTER RESULTS, continued
 
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
    March 2,   December 1,
  2013     2012  
ASSETS
Current assets:
Cash and cash equivalents $ 173,264 $ 185,496
Restricted cash 470 566

Accounts receivable, less allowance for losses of $9,301 and $9,554, respectively

200,599 214,474
Inventories 219,485 211,251
Deferred income taxes 32,759 34,693
Income tax receivable - -
Prepaid expenses and other current assets   9,590     8,114  
Total current assets   636,167     654,594  
 
 

Property, plant and equipment, at cost, less accumulated depreciation of $318,855 and $315,018, respectively

196,951 195,101
Assets held for sale 2,000 2,000
Goodwill 241,288 241,924
Acquired intangible assets, less accumulated amortization 94,063 95,681
Deferred income taxes - -
Other noncurrent assets   15,701     16,202  
Total assets $ 1,186,170   $ 1,205,502  
 
LIABILITIES
Current liabilities:
Current portion of long-term debt $ 201 $ 201
Accounts payable and accrued liabilities 138,043 172,262
Income taxes payable   970     2,428  
Total current liabilities   139,214     174,891  
 
Long-term debt, less current portion 16,407 16,391
Long-term pension and postretirement healthcare benefits liabilities 49,066 50,680
Deferred income taxes 54,081 51,385
Other long-term liabilities   8,832     8,571  
Total liabilities   267,600     301,918  
 
Contingencies
Redeemable noncontrolling interests 1,775 1,754
 
SHAREHOLDERS' EQUITY
Capital stock 49,698 49,653
Capital in excess of par value 372 -
Accumulated other comprehensive loss (53,139 ) (51,708 )
Retained earnings   918,816     902,899  
Total CLARCOR Inc. equity   915,747     900,844  
Noncontrolling interests   1,048     986  
Total shareholders' equity   916,795     901,830  
Total liabilities and shareholders' equity $ 1,186,170   $ 1,205,502  
 
CLARCOR INC. 2013 UNAUDITED FIRST QUARTER RESULTS, continued
   
CONSOLIDATED CASH FLOWS
(Dollars in thousands)
 
Three Months Ended
March 2, March 3,
  2013     2012  
Cash flows from operating activities:
Net earnings $ 23,528 $ 23,492
Depreciation 6,581 6,568
Amortization 1,500 1,426
Other noncash items 24 (102 )
Net gain on disposition of plant assets (276 ) 16
Stock-based compensation expense 1,146 2,906
Excess tax benefit from stock-based compensation (1,731 ) (2,302 )
Deferred income taxes 8,424 9,522
Changes in assets and liabilities, excluding short-term investments   (32,748 )   (40,301 )
Net cash provided by operating activities   6,448     1,225  
 
Cash flows from investing activities:
Restricted cash 76 51
Business acquisitions, net of cash acquired (2,281 ) (2,144 )
Additions to plant assets (8,644 ) (9,797 )
Proceeds from disposition of plant assets 25 59
Investment in affiliates   (223 )   (132 )
Net cash used in investing activities   (11,047 )   (11,963 )
 
Cash flows from financing activities:
Cash dividends paid (6,725 ) (6,046 )
Payments on long-term debt (55 ) (26 )
Sale of capital stock under stock option and employee purchase plans 3,628 2,958
Purchase of treasury stock (5,964 ) (3,635 )
Excess tax benefits from stock-based compensation   1,731     2,302  
Net cash used in financing activities   (7,385 )   (4,447 )
 
Net effect of exchange rate changes on cash   (248 )   1,249  
 
Net change in cash and cash equivalents (12,232 ) (13,936 )
 
Cash and cash equivalents, beginning of period   185,496     155,999  
 
Cash and cash equivalents, end of period $ 173,264   $ 142,063  
 
Cash paid during the period for:
Interest $ 78   $ 68  
Income taxes, net of refunds $ 5,742   $ 2,879  
CLARCOR INC. 2013 UNAUDITED FIRST QUARTER RESULTS, continued
   
QUARTERLY INCOME STATEMENT DATA BY SEGMENT
(Dollars in thousands)
 
Three Months
March 2 March 3
  2013     2012  
Net sales by segment:
Engine/Mobile Filtration $ 117,675 $ 120,283
Industrial/Environmental Filtration 122,626 121,114
Packaging   15,970     15,867  
$ 256,271   $ 257,264  
 
Operating profit by segment:
Engine/Mobile Filtration $ 23,449 $ 23,297
Industrial/Environmental Filtration 9,678 10,705
Packaging   688     310  
$ 33,815   $ 34,312  
 
 
Operating margin by segment:
Engine/Mobile Filtration 19.9 % 19.4 %
Industrial/Environmental Filtration 7.9 % 8.8 %
Packaging   4.3 %   2.0 %
  13.2 %   13.3 %




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