DALLAS, Nov. 12, 2001 (PRIMEZONE) -- Dresser, Inc. today announced financial results for the third quarter ended September 30, 2001. The Company recorded revenues of $403.3 million for the period, an increase of 16% over the $347.5 million recorded for the same period last year. Operating income for the quarter ended September 30, 2001 was $45.1 million compared to $45.2 million for the third quarter last year. EBITDA for the three months this year was $58.9 million, compared to $57.5 million for the same period last year. Third quarter results include the consolidation of the Entech acquisition, reported earlier, which was completed during the quarter. Entech contributed $20.5 million in revenues and $1.8 million in EBITDA.
Patrick Murray, president and chief executive officer of Dresser, Inc., said, "Strength in our Power Systems segment offset softness in Measurement Systems, as we produced record revenues and EBITDA."
Gross margin for the quarter was 30.4%, compared to 32.3% for the same period last year, primarily as a result of lower margins in Measurement Systems. SG&A was 19.2% of revenues, compared to 19.3% for the year ago quarter. Backlog at September 30, 2001 stood at $440.5 million, up from $401.9 million at the end of the quarter ended June 30, and up from $321.5 million at September 30, 2000.
For the nine months ended September 30, revenues were $1,138.2 million, compared to $1,043.2 million for the same period in 2000. Operating income for the first nine months of 2001 was $125.3 million, compared to $124.0 million for the year ago period. EBITDA for the nine months ended September 30 was $165.9 million, compared to $161.3 million last year.
"Although we have a substantial backlog," Murray said, "the weak economic outlook could have an effect on energy consumption over the next several quarters. There's no doubt that we are operating in much tougher markets."
The Company filed a registration statement on Form S-4/A with the Securities and Exchange Commission on September 27, 2001, that provides for the exchange of Dresser's unregistered 9 3/8% Senior Subordinated Notes due 2011 for publicly-registered notes having the same economic terms. During the quarter, the Company also completed the acquisition of the assets of Elliott Valve, Ltd., for an undisclosed amount of cash.
Conference Call
The Company's earnings conference call will be Monday, November 12, at 12:00 p.m. EST, 11:00 a.m. CST. Following a brief presentation, participants will have the opportunity to ask questions. To participate in the call, dial 1-877-362-3954 (international dial 706-634-5869), ten minutes before the conference call begins and ask for the Dresser conference. There will be no phone replay of the conference call.
There will also be a real-time audio webcast of the conference call by Vcall. To listen to the live call, select the Vcall icon from http://www.dresser.com/pages/investorRelations.cfm?sm=6 , at least 15 minutes before the start of the call to register, download, and install any necessary audio software. Individuals accessing the audio webcast will be "listen only" and will not have the capability to take part in the Q&A session.
A digital replay will be available one hour after the conclusion of the call. Interested individuals can access the webcast replay at http://www.dresser.com/pages/investorRelations.cfm?sm=6 by pressing the Vcall icon.
Headquartered in Dallas, Texas, Dresser, Inc. is a worldwide leader in the design, manufacture and marketing of highly engineered equipment and services sold primarily to customers in the flow control, measurement, and power systems segments of the energy industry. Dresser has a widely distributed global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide. The company's website can be accessed at www.dresser.com.
Dresser, Inc.
Consolidated Statement of Earnings
(Unaudited)
(In Millions)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------- ----------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues $ 403.3 $ 347.5 $ 1,138.2 $ 1,043.2
Cost of revenues 280.6 235.3 788.2 714.8
------- ------- ------- -------
Gross earnings 122.7 112.2 350.0 328.4
Selling,
engineering,
administrative
and general
expenses 77.6 67.0 224.7 204.4
------- ------- ------- -------
Operating Income 45.1 45.2 125.3 124.0
Other income
(deductions) (21.1) 0.2 (43.7) 2.0
------- ------- ------- -------
Earnings before
taxes 24.0 45.4 81.6 126.0
Income taxes (12.9) (6.9) (32.3) (40.3)
------- ------- ------- -------
Net earnings $ 11.1 $ 38.5 $ 49.3 $ 85.7
Dresser, Inc.
Information by Business Segment
(Unaudited)
(In Millions)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------- ----------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues:
Flow Control $ 176.3 $ 140.9 $ 463.2 $ 412.4
Measurement
Systems 136.8 128.8 410.9 413.0
Power Systems 91.3 79.1 268.1 221.3
Eliminations (1.1) (1.3) (4.0) (3.5)
------- ------- ------- -------
$ 403.3 $ 347.5 $ 1,138.2 $ 1,043.2
Operating income:
Flow Control $ 18.9 $ 18.1 $ 54.4 $ 59.5
Measurement
Systems 14.5 17.1 36.0 42.9
Power Systems 15.6 10.9 44.5 30.5
Eliminations (3.9) (0.9) (9.6) (8.9)
------- ------- ------- -------
$ 45.1 $ 45.2 $ 125.3 $ 124.0
Supplemental
Information:
Depreciation
and
Amortization $ 13.8 $ 12.3 $ 40.6 $ 37.3
Capital
Expenditures $ 11.6 $ 6.0 $ 24.4 $ 20.4
Backlog $ 440.5 $ 321.5 $ 440.5 $ 321.5
September 30, December 31,
2001 2000
------------- -------------
Balance Sheet:
Cash and Cash Equivalents $ 82.5 $ 19.7
Working Capital* $ 485.0 $ 437.5
Total Assets $ 1,543.8 $ 1,077.1
Long-Term Debt $ 998.7 $ 0.2
* Accounts receivable and inventories less accounts payable only.