Wabtec Reports 4Q And Full Year Results; 2009 Cash From Operations Of $161 Million, Exceeding Net Income For 12th Straight Year; Affirms 2010 Guidance
WILMERDING, Pa., Feb. 23 /PRNewswire-FirstCall/ — Wabtec Corporation (NYSE: WAB) today reported its 2009 fourth quarter and full-year results, including the following:
- In the fourth quarter, earnings per diluted share were 56 cents, excluding a previously announced charge of 6 cents per diluted share for an arbitration ruling. Including the charge, earnings per diluted share were 50 cents. Sales decreased to $359 million, as increased sales in the Transit Group were offset by lower sales in the Freight Group. Compared to the third quarter of 2009, sales were 9 percent higher, with both groups showing an increase.
- During the fourth quarter, Wabtec completed the acquisition of Unifin International, a leading manufacturer of cooling systems and related equipment for the power generation and transmission industry, for $93 million.
- For the full year, Wabtec had earnings per diluted share of $2.39, on sales of $1.4 billion. The company generated strong cash flow from operations of $161 million, or 11.5 percent of sales, marking the 12th consecutive year that Wabtec’s cash flow from operations exceeded net income. At year-end, the company had cash of $189 million and debt of $392 million. With its strong balance sheet and cash flow, Wabtec believes it has ample capacity to invest in future growth opportunities.
- During the year, Wabtec repurchased 669,700 shares of company stock for $20 million.
Also today, Wabtec affirmed its 2010 earnings per diluted share guidance of $2.35-$2.50, with revenues expected to be flat to slightly up.
Albert J. Neupaver, Wabtec’s president and chief executive officer, said: “Faced with very challenging market conditions in 2009, the company performed well, generating strong cash flow from operations and improving margins, after adjusting for one-time items. These results were due to our diversified business model and the hard work of employees at all levels of the company. Market conditions will continue to be challenging in 2010, but we expect to benefit from our 2009 restructuring actions and other growth initiatives. We are optimistic about the company’s future growth opportunities around the world, given our strong balance sheet, diversified business model and continued application of the Wabtec Performance System principles.”
Wabtec Corporation (www.wabtec.com) is a global provider of value-added, technology-based products and services mainly for the freight rail and passenger transit industry.
This release contains forward-looking statements, such as statements regarding the company’s expectations about future earnings. Actual results could differ materially from the results suggested in any forward-looking statement. Factors that could cause or contribute to these material differences include, but are not limited to, an economic slowdown in the markets we serve; a decrease in freight or passenger rail traffic; an increase in manufacturing costs; and other factors contained in the company’s filings with the Securities and Exchange Commission. The company assumes no obligation to update these statements or advise of changes in the assumptions on which they are based.
Wabtec will host a call with analysts and investors at 10 a.m., eastern time, today. To listen via webcast, go to www.wabtec.com and click on “Webcasts” in the “Investor Relations” section.
Set forth below is the calculation of the non-GAAP performance measure included in this press release. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec’s reported results prepared in accordance with United States GAAP.
Reconciliation of fourth quarter earnings per diluted share
Net income per diluted share 50 cents
Add back charge for arbitration ruling 6 cents
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Net income per diluted share excluding charge 56 cents
WABTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
Fourth Fourth For the For the
Quarter Quarter Year Year
2009 2008 2009 2008
---- ---- ---- ----
Net sales $359,188 $405,211 $1,401,616 $1,574,749
Cost of sales (259,526) (299,415) (1,008,290) (1,147,563)
-------- -------- ---------- ----------
Gross profit 99,662 105,796 393,326 427,186
Gross profit as a % of Net
Sales 27.7% 26.1% 28.1% 27.1%
Selling, general and
administrative expenses (43,171) (44,275) (160,998) (170,597)
Engineering expenses (10,966) (9,656) (42,447) (38,981)
Amortization expense (3,727) (1,611) (9,849) (5,092)
------ ------ ------ ------
Total operating expenses (57,864) (55,542) (213,294) (214,670)
Operating expenses as a
% of Net Sales 16.1% 13.7% 15.2% 13.6%
Income from operations 41,798 50,254 180,032 212,516
Income from operations
as a % of Net Sales 11.6% 12.4% 12.8% 13.5%
Interest (expense) income,
net (4,526) (3,791) (16,674) (8,508)
Other (expense) income, net (648) 1,471 1 292
---- ----- ---- ----
Income from continuing
operations before income
taxes 36,624 47,934 163,359 204,300
Income tax expense (12,419) (16,825) (48,304) (73,746)
------- ------- ------- -------
Effective tax rate 33.9% 35.1% 29.6% 36.1%
Income from continuing
operations 24,205 31,109 115,055 130,554
Discontinued operations
Income (loss) from
discontinued operations
(net of tax) - - - (3)
------- ------- ------- -------
Net income $24,205 $31,109 $115,055 $130,551
======= ======= ======== ========
Earnings Per Common Share
Basic
Income from continuing
operations $0.51 $0.64 $2.41 $2.69
Income from discontinued
operations - - $- $-
Net income $0.51 $0.64 $2.41 $2.69
Diluted
Income from continuing
operations $0.50 $0.64 $2.39 $2.66
Income from discontinued
operations - - - $-
Net income $0.50 $0.64 $2.39 $2.66
Weighted average shares
outstanding
Basic 47,331 48,034 47,499 48,232
====== ====== ====== ======
Diluted 47,803 48,640 47,977 48,847
====== ====== ====== ======
Sales by Segment
Freight Group $147,920 $198,850 $588,399 $773,523
Transit Group 211,268 206,361 813,217 801,226
------- ------- ------- -------
Total $359,188 $405,211 $1,401,616 $1,574,749
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SOURCE Wabtec Corporation