Wabtec Reports 4Q And Full Year Results; 2009 Cash From Operations Of $161 Million, Exceeding Net Income For 12th Straight Year;
February 23 2010 - 8:06AM
PR Newswire (US)
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 (http://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 http://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 ------- 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 ======== ======== ==========
========== DATASOURCE: Wabtec Corporation CONTACT: Tim Wesley,
Wabtec Corporation, +1-412-825-1543, Web Site:
http://www.wabtec.com/
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