Cuno (NASDAQ:CUNO)
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CUNO Reports Record First Quarter Results
* Record first quarter Sales of $99.4 million (up 32%) * Record first quarter
diluted EPS of $0.45 (up 10%) * Record first quarter Net Income of $7.8 million
(up 12%) * Record first quarter Orders of $101.6 million (up 33%)
MERIDEN, Conn., Feb. 23 /PRNewswire-FirstCall/ -- CUNO Incorporated
(NASDAQ:CUNO) today reported record first quarter results for the period ended
January 31, 2005. Sales were $99.4 million, up 32% versus the same period in
2004 and up 29% in local currency. Net income for the first quarter increased
by 12% to $7.8 million from $7.0 million reported in the same period in 2004.
Diluted earnings per share for the period were a first quarter record $0.45, up
10% compared to $0.41 in the prior year period and up approximately 5% on a
currency-adjusted basis.
Commenting on the Company's first quarter results, Mark G. Kachur, Chairman and
Chief Executive Officer, said, "Our strong first quarter results reflect the
effectiveness of our business model. We achieved double-digit sales growth in
all three of our primary markets -- Potable Water, Healthcare and Fluid
Processing. Our sales increased 32% (up 29% in local currency); adjusted for
the acquisition of WTC Industries (which was completed on Aug. 2, 2004), our
organic sales growth was 20%. Furthermore, the Company's international
operations contributed significantly to our overall results, as international
sales increased by 19% (up 13% in local currency), led by strong growth in
Europe, Asia and Japan." First quarter margins were negatively impacted by the
change in sales mix in the Potable Water market (including the impact of the
acquisition of WTC and increased sales to retailers, both of which generally
carry lower gross margins) and start-up costs involving a new manufacturing
facility in Mexico.
Commenting on business conditions and the outlook for CUNO, Mr. Kachur added,
"Our incoming orders were a first quarter record $101.6 million and our backlog
remains strong. Despite the sales mix change in the Potable Water market and
additional expected start-up costs in Mexico near term, we are optimistic about
our full year performance outlook in fiscal 2005 and remain comfortable with
our previous EPS guidance in the $2.12 - $2.22 range for the year." [Note:
EPS guidance excludes impact of expensing cost of stock options per FAS 123R,
which will apply in our fourth quarter of fiscal 2005].
A conference call will be held Thursday, February 24 at 10:00 a.m. (EST) to
review the Company's first quarter financial results and business outlook. The
call-in number is 1-800-762-4717 for interested analysts and investors.
Alternatively, visit us at http://www.cuno.com/investors for a live webcast of
our conference call. Also, 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: volumes of shipments of CUNO's
products; changes in product mix and product pricing; 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 (unaudited)
(dollars in thousands, except share
and per-share amounts)
Three Months Ended
January 31,
2005 2004
Net sales $99,376 $75,409
Less costs and expenses:
Cost of products sold 56,930 40,553
Selling, general and
administrative expenses 24,664 20,174
Research, development and
engineering 4,924 4,189
Amortization expense 653 64
87,171 64,980
Operating income 12,205 10,429
Nonoperating income (expense):
Interest expense (523) (83)
Interest and other income, net 223 150
(300) 67
Income before income taxes 11,905 10,496
Provision for income taxes 4,074 3,491
Net income $7,831 $7,005
Basic earnings per common share $0.46 $0.42
Diluted earnings per common share $0.45 $0.41
Basic shares outstanding 16,904,543 16,687,240
Diluted shares outstanding 17,380,874 17,215,135
CUNO Incorporated
Consolidated Balance Sheets
(in thousands, except share amounts)
(unaudited)
January 31, October 31,
2005 2004
Assets
Current assets
Cash and cash equivalents $16,728 $23,359
Accounts receivable, less
allowances for
doubtful accounts of $2,123 and
$2,230, respectively 86,416 89,593
Inventories, net 49,177 47,275
Deferred income taxes 14,733 12,656
Prepaid expenses and other
current assets 6,846 5,974
Total current assets 173,900 178,857
Noncurrent assets
Deferred income taxes 803 892
Goodwill, net 104,197 103,977
Other intangible assets 32,552 32,894
Prepaid pension costs 9,786 9,785
Other noncurrent assets 5,676 4,832
Property, plant and equipment,
net 108,831 103,321
Total assets $435,745 $434,558
Liabilities and Stockholders' Equity
Current liabilities
Current portion of long-term debt $326 $276
Bank loans 13,371 11,048
Accounts payable 30,869 33,469
Accrued payroll and related taxes 13,414 20,329
Other accrued expenses 10,309 11,502
Accrued income taxes 3,715 4,539
Total current liabilities 72,004 81,163
Noncurrent liabilities
Long-term debt, less current
portion 70,636 75,569
Deferred income taxes 20,199 16,662
Retirement benefits 4,537 4,396
Other noncurrent liabilities 955 789
Total noncurrent liabilities 96,327 97,416
Stockholders' equity
Preferred Stock, $.001 par value;
2,000,000 shares
authorized, no shares issued -- --
Common Stock, $.001 par value;
50,000,000 shares authorized,
17,199,923 and 17,122,698
shares issued and
outstanding 17 17
Treasury Stock, at cost (2,747
shares) (57) (57)
Additional paid-in-capital 66,174 63,413
Unearned compensation (3,711) (2,164)
Accumulated other comprehensive
loss --
Foreign currency
translation adjustments 10,406 7,966
Minimum pension liability (386) (386)
Change in fair value of
derivative financial
instruments (50) --
9,970 7,580
Retained earnings 195,021 187,190
Total stockholders' equity 267,414 255,979
Total liabilities and
stockholders' equity $435,745 $434,558
DATASOURCE: CUNO Incorporated
CONTACT: Frederick C. Flynn, Jr. of CUNO, +1-203-238-8847,
Company News On-Call: http://www.prnewswire.com/comp/126696.html