Gorman-Rupp Reports Record Backlog And Record Third Quarter And Nine Months 2011 Revenue And Earnings

The Gorman-Rupp Company (NYSE Amex: GRC) reports net sales and earnings for the third quarter and nine months ended September 30, 2011. Results for 2011 include the operations of National Pump Company acquired October 1, 2010.

Net sales during the quarter ended September 30, 2011 increased 22.0% to a third quarter record $90,215,000 compared to $73,953,000 during the same period in 2010. Net income increased 24.4% to a third quarter record $7,655,000 compared to $6,155,000 in the September 30, 2010 quarter. Earnings per share were $0.37 and $0.29 for the respective periods, an increase of 27.6%.

Net sales for the nine months ended September 30, 2011 increased 25.6% to a nine months record $266,448,000 compared to $212,119,000 during the same period in 2010. Net income increased 45.3% to a nine months record $23,699,000 compared to $16,308,000 in the first nine months of 2010. Earnings per share were $1.13 and $0.78 for the respective periods.

Sales during the quarter were positively impacted by the global economy compared to a year ago, plus the addition of National Pump Company. Primary increases were in sales to the industrial, agricultural and construction markets, partially offset by a reduction in fire protection market sales from strong levels last year.

Incoming orders resulted in a record backlog of $157.9 million at September 30, 2011, a 50.9% increase from a year ago and 47.0% higher than the backlog of $107.4 million at December 31, 2010. Current quarter orders included additional flood control pump projects which generally require longer lead times than other Company products.

The comparative increases in earnings for the quarter and nine months principally reflect operating leverage benefits from the higher volume of sales and continuation of a favorable mix of shipments across the Company’s diverse products and markets.

The Company continues to maintain a strong and liquid balance sheet with $27.8 million in cash and short-term investments. Additionally, working capital increased 17.7% from December 31, 2010 to $98.3 million at September 30, 2011. During the quarter, an additional $5.0 million of borrowings used to finance the acquisition of National Pump Company were re-paid.

Jeffrey S. Gorman, President and CEO said, “We are pleased to again announce strong financial results based on current year sales increases across most of the markets the Company serves and related improved operating margins. Additionally, our National Pump Company acquisition in late 2010 continues to perform very well. While confidence in the strength of a solid global economic recovery seems to be fading, we are encouraged by our record backlog and level of business so far this year, and we remain confident as we move into the fourth quarter and the first-half of 2012.”

The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income (Unaudited)
(in thousands of dollars, except per share data)
       
Three Months Ended September 30, Nine Months Ended September 30,
2011 2010 2011 2010
 
 
Net sales $ 90,215 $ 73,953 $ 266,448 $ 212,119
Cost of products sold   67,748     55,298   198,346     160,729  
 
Gross profit 22,467 18,655 68,102 51,390
 

Selling, general and administrative expenses
  10,941     9,401   32,436     26,535  
 
Operating income 11,526 9,254 35,666 24,855
 
Other income (expense) - net   (324 )   3   (421 )   (388 )
 
Income before income taxes 11,202 9,257 35,245 24,467
Income taxes   3,547     3,102   11,546     8,159  
 
Net income $ 7,655   $ 6,155 $ 23,699   $ 16,308  
 
Earnings per share $ 0.37 $ 0.29 $ 1.13 $ 0.78
 
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands of dollars)
     
September 30, December 31,
2011 2010
Assets
Cash and short-term investments $ 27,774 $ 34,246
Accounts receivable - net 54,841 51,996
Inventories 72,003 51,449
Deferred income taxes and other current assets   4,424   5,503
 
Total current assets 159,042 143,194
 
Property, plant and equipment - net 114,322 113,526
 
Prepaid pension and other assets 7,368 3,545
 
Goodwill and other intangible assets   25,717   26,442
 
Total assets $ 306,449 $ 286,707
 
Liabilities and shareholders' equity
 
Accounts payable $ 16,321 $ 12,042
Short-term debt 15,000 25,000
Accrued liabilities and expenses   29,419   22,636
 
Total current liabilities 60,740 59,678
 
Postretirement benefits 22,502 22,241
 
Deferred and other income taxes 4,952 4,954
 
Shareholders' equity   218,255   199,834
 
Total liabilities and shareholders' equity $ 306,449 $ 286,707
 
Shares outstanding 20,990,893 20,984,893
 

Shares outstanding and per share data reflect the 5 for 4 stock split effective June 10, 2011.

Copyright Business Wire 2010

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