CUNO Cuno (MM)

CUNO Reports Record Fourth Quarter and Fiscal 2004 Results -- Record fourth quarter Sales of $103.5 million (up 34%) and record fiscal 2004 Sales of $351.6 million (up 22%) -- Record fourth quarter diluted Earnings Per Share (EPS) of $0.52 (up 18%) and record fiscal 2004 diluted EPS of $1.93 (up 22%) -- Record fourth quarter Orders of $97.0 million (up 28%) MERIDEN, Conn., Dec. 13 /PRNewswire-FirstCall/ -- CUNO Incorporated (NASDAQ:CUNO) today reported record results for the fourth quarter ended October 31, 2004 including sales of $103.5 million, up 34% (up 31% in local currency) from $77.5 million in the same period in 2003. Net income for the fourth quarter increased by 18% to $9.0 million from $7.6 million reported in 2003. Diluted EPS for the period were a record $0.52, up 18% compared to $0.44 in the prior year quarter, and up approximately 11% on a currency- adjusted basis. Commenting on the Company's fourth quarter results, Mark G. Kachur, Chairman and Chief Executive Officer, said "Our record fourth quarter results reflect the strength and effectiveness of our business model. We achieved double-digit Sales growth in each of our primary markets, including Potable Water, Healthcare and Fluid Processing. Our Sales increased 34% (up 31% in local currency); adjusted for the acquisition of WTC Industries (which was completed August 2), our organic Sales growth was 21%. In addition, our New Products continued to be well received, generating $11.0 million or approximately 11% of total sales and contributing to our strong performance in the quarter." For the full year, Sales were a record $351.6 million, up 22% (up 17% in local currency), and net income increased by 23% to $33.1 million from $26.8 million in the prior year. Diluted EPS were a record $1.93, up 22% from $1.58 in 2003, and up approximately 14% on a currency-adjusted basis. Commenting on the fiscal 2005 outlook for CUNO, Mr. Kachur added, "Our business model should enable us to continue to achieve strong financial results. Orders were a record $97.0 million in the fourth quarter and our backlog remains strong. As a result, we are optimistic about our prospects in fiscal 2005 and expect to achieve diluted EPS in the range of $2.12 - $2.22. A conference call will be held Tuesday, December 14 at 10:00 a.m. (EST) to review the Company's fourth quarter financial results and business outlook. The call-in number is 1-877-209-0397 for interested analysts and investors. Alternatively, visit us at http://www.cuno.com/ for additional information about the Company. CUNO is a world leader in the design, manufacture and marketing of a comprehensive line of filtration products for the separation, clarification and purification of liquids and gases. CUNO's products, which include proprietary depth filters and semi-permeable membrane filters, are used in the potable water, healthcare and fluid processing markets. CUNO wants to provide shareowners and prospective investors with more meaningful and useful information and, therefore, this press release includes various comments regarding business conditions and the outlook for CUNO, which reflect currently available information. These forward-looking statements are subject to risks and uncertainties which could cause performance or actual results to differ materially from those expressed herein. Such risks and uncertainties include, among other things: those items described in our reports filed with the SEC as well as volumes of shipments of CUNO's products; changes in product mix and product pricing; relationships with customers and suppliers; costs of raw materials; the rate of economic and industry growth in the U.S. and the other countries in which CUNO conducts business; economic and political conditions in the foreign countries in which CUNO conducts a substantial part of its operations and other risks associated with international operations including exchange rate fluctuations; CUNO's ability to protect its technology, proprietary products and manufacturing techniques; changes in technology; changes in legislative, regulatory or industrial requirements and risks generally associated with new product introductions and applications; and domestic and international competition in CUNO's global markets. CUNO assumes no obligation to update the information contained in this press release. Investor contact: Frederick C. Flynn, Jr. 203/238-8847 CUNO Incorporated Consolidated Statements of Income (dollars in thousands, except share and per-share amounts) (Unaudited) Three Months Ended Twelve Months Ended October 31 October 31 2004 2003 2004 2003 Net sales $103,512 $77,524 $351,611 $288,231 Less costs and expenses: Cost of products sold 59,780 41,423 194,284 157,221 Selling, general and administrative 24,586 20,908 89,608 75,652 Research, development and engineering 4,848 4,080 17,400 14,977 Amortization 593 47 858 156 89,807 66,458 302,150 248,006 Operating income 13,705 11,066 49,461 40,225 Nonoperating income (expense): Interest expense (747) (100) (984) (540) Interest and other income, net 304 101 824 462 (443) 1 (160) (78) Income before income taxes 13,262 11,067 49,301 40,147 Income taxes 4,243 3,430 16,230 13,351 Net income $9,019 $7,637 $33,071 $26,796 Basic earnings per common share $0.54 $0.46 $1.98 $1.61 Diluted earnings per common share $0.52 $0.44 $1.93 $1.58 Basic shares outstanding 16,820,263 16,780,762 16,729,045 16,661,101 Diluted shares outstanding 17,329,757 17,181,961 17,165,890 16,987,792 CUNO Incorporated Consolidated Condensed Balance Sheets (dollars in thousands) October 31 October 31, 2004 2003 Assets Current assets Cash and cash equivalents $23,359 $57,603 Accounts receivable, net 89,593 59,658 Inventories, net 47,275 31,058 Deferred income taxes 12,656 9,020 Prepaid expenses and other current assets 5,974 4,306 Total current assets $178,857 $161,645 Noncurrent assets Deferred income taxes 892 1,340 Goodwill, net 103,977 28,489 Other Intangible assets 32,894 2,075 Prepaid pension costs 9,785 7,923 Other noncurrent assets 4,832 1,476 Property, plant and equipment, net 103,321 85,060 Total assets $434,558 $288,008 Liabilities and Stockholders' Equity Current liabilities Current portion of long-term debt $276 $849 Short-term bank loans 11,048 11,804 Accounts payable 33,469 20,519 Accrued payroll and related taxes 20,329 17,456 Other accrued expenses 11,502 10,443 Accrued income taxes 4,539 2,558 Total current liabilities 81,163 63,629 Noncurrent liabilities Long-term debt, less current portion 75,569 401 Deferred income taxes 16,662 9,862 Accrued pension liability 4,396 5,457 Other long term liabilities 789 331 Total noncurrent liabilities $97,416 $16,051 Stockholders' equity Preferred Stock - - Common Stock 17 17 Treasury Stock, at cost (57) (57) Additional paid-in-capital 63,413 53,787 Unearned compensation (2,164) (784) Accumulated other comprehensive income (loss) -- Foreign currency translation adjustments 7,966 3,282 Minimum pension liability, net (386) (2,049) Fair value of derivative financial instruments, net - 13 7,580 1,246 Retained earnings 187,190 154,119 Total stockholders' equity 255,979 208,328 Total liabilities and stockholders' equity $434,558 $288,008 DATASOURCE: CUNO Inc. CONTACT: Frederick C. Flynn, Jr. of CUNO Inc., +1-203-238-8847, Web site: http://www.cuno.com/ Company News On-Call: http://www.prnewswire.com/comp/126696.html

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