GORMAN RUPP CO - FORM 8-K - EX-99 - EXHIBIT 99 - October 31, 2011

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Exhibit 99
GORMAN-RUPP REPORTS RECORD BACKLOG AND RECORD THIRD
QUARTER AND NINE MONTHS 2011 REVENUE AND EARNINGS
Mansfield, Ohio — October 27, 2011 — 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.”
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
NYSE Amex: GRC
For additional information contact Wayne L. Knabel, Chief Financial Officer, Telephone (419) 755-1397.
The Gorman-Rupp Company designs, manufactures and sells pumps and related equipment (pumps and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid handling applications.

 

 

 

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.

 

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GORMAN RUPP CO Reports