PITTSBURGH, Aug. 1 PA-PortecRail-2Q-erns
PITTSBURGH, Aug. 1 /PRNewswire-FirstCall/ -- Portec Rail Products, Inc.
(Nasdaq: PRPX) today announced record unaudited net income of $2,403,000 or
$0.25 per share for the three months ended June 30, 2008, a 27% increase over
second quarter 2007 net income of $1,887,000 or $0.20 per share. Average
basic and diluted shares outstanding were 9.6 million for both periods. Net
sales for the second quarter 2008 totaled $30.2 million, a 4% increase over
second quarter 2007 net sales of $29.1 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040119/PRPILOGO )
Net income for the six months ended June 30, 2008 grew to $3,747,000 or
$0.39 per share, a 21% increase over net income of $3,092,000 or $0.32 per
share for the six months ended June 30, 2007. Average basic and diluted
shares outstanding were 9.6 million for both periods. Net sales for the six
months ended June 30, 2008 were $55.0 million, compared to $56.6 million for
the six months ended June 30, 2007.
Richard J. Jarosinski, President and Chief Executive Officer said, "We are
pleased with our overall performance for the second quarter and first half of
the year. Our second quarter results were significantly and positively
affected by sales and gross margin contributions from our friction management
and load securement product lines. In particular, our divisions in Montreal,
Canada, and Sheffield, England, had very strong friction management product
demand this quarter, while sales of load securement products at our Shipping
Systems Division for the second quarter rose by more than 70% due mostly to
sales of the WinChock(TM) Uni-Level Vehicle Securement System."
Mr. Jarosinski continued, "Our overall sales volume for the first half of
this year has been affected mostly by lower sales of our track component
product line and a softening demand for our non-rail related CI Logistics
material handling equipment division located in Leicester, England, due mostly
to a United Kingdom economic slowdown. Year to date sales of our track
component product line are lower due to the slow first quarter start, some
market share loss due to competitive price pressure, and lower demand in
certain market segments. However, we are confident that the variety of
strategies we have implemented across our product lines will enable us to make
progress towards our short term and long term sales growth. These strategies
include research and development efforts for developing new products and
improving existing products, aggressive marketing campaigns in China,
Australia, and South America, focusing efforts on controlling our
manufacturing and administrative costs, and an ever-vigilant effort for adding
synergistic acquisitions."
Mr. Jarosinski concluded, "Looking forward we continue to be optimistic.
We have recently secured multi-year contracts that are expected to contribute
to net sales in the near future. Overall rail freight traffic in North
America continues to be strong, worldwide infrastructure spending is
continuing at high levels, and rail passenger ridership is increasing. We
believe that these trends will continue into the near future, which are
contributing to our optimism."
Portec Rail Products, Inc., headquartered in Pittsburgh, Pennsylvania,
manufactures, supplies and distributes a broad range of railroad products,
including rail joints, rail anchors and spikes, railway friction management
products, railway wayside data collection and data management systems and load
securement systems. The Company's largest business unit, the Railway
Maintenance Products Division, operates a manufacturing and assembly plant in
Huntington, West Virginia, an engineering and assembly facility in Dublin,
Ohio (Salient Systems), and is also headquartered in Pittsburgh. The Company
also has two Canadian subsidiaries, one of which is headquartered near
Montreal with a manufacturing operation in St. Jean, Quebec and the other
headquartered in Vancouver, British Columbia that is a technology and
manufacturing facility (Kelsan Technologies). In addition, the Company sells
load securement systems to the railroad freight car market through its
Shipping Systems Division located near Chicago, Illinois. The Company also
manufactures railway products and material handling equipment in the United
Kingdom with operations in Leicester, England and Sheffield, England. Portec
Rail Products, Inc.'s web site address is http://www.portecrail.com.
The foregoing information contains forward-looking statements. The
Company cautions that such statements are subject to a number of
uncertainties. The Company identifies below important factors that could
affect the Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any opinions or
statements expressed with respect to future periods in any current statements.
In particular, the Company's future results could be affected by a variety of
factors, such as customer demand for our products; competitive dynamics in the
North American and worldwide railroad and railway supply industries; capital
expenditures by the railway industry in North America and worldwide; the
development and retention of sales representation and distribution agreements
with third parties; fluctuations in the cost and availability of raw materials
and supplies; currency rate fluctuations; and exposure to pension liabilities.
Additional cautions regarding forward-looking statements are provided in the
Company's Form 10-K for the year ended December 31, 2007 and Form 10-Q for the
period ended March 31, 2008 under the heading "Cautionary Statement Relevant
to Forward-looking Statements." The Company does not undertake, and
specifically disclaims, any obligation to update or revise any forward-looking
statement, whether written or oral, that may be made from time to time by or
on behalf of the Company.
Portec Rail Products, Inc.
Consolidated Statements of Income
(In thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited)
Net sales$30,194 $29,090 $55,037 $56,574
Cost of sales 20,276 19,987 37,409 39,425
Gross profit 9,9189,103 17,628 17,149
Selling, general and
administrative5,9865,649 11,395 11,312
Amortization expense 297 303 595 609
Operating income 3,6353,1515,6385,228
Interest expense 210 307 436 624
Other (income)
expense, net(43) 168(121) 98
Income before income
taxes 3,4682,6765,3234,506
Provision for income
taxes 1,065 7891,5761,414
Net income$2,403 $1,887 $3,747 $3,092
Earnings per share
Basic and diluted $ 0.25 $ 0.20 $ 0.39 $ 0.32
Average basic shares
outstanding 9,601,8729,601,7799,601,8269,601,779
Average diluted shares
outstanding 9,602,3099,601,7799,601,8269,601,779
Consolidated Condensed Balance Sheets
(In thousands)
June 30,December 31,
2008 2007
(Unaudited) (Audited)
Assets
Current assets $48,597$45,635
Property, plant and equipment, net12,085 11,121
Goodwill and other intangibles, net 45,814 46,601
Other assets 923869
Total assets $107,419 $104,226
Liabilities and Shareholders' Equity
Current liabilities $25,025$21,190
Other liabilities and long-term debt
obligations 20,241 23,139
Shareholders' equity 62,153 59,897
Total liabilities and shareholders' equity$107,419 $104,226
SOURCE Portec Rail Products, Inc.
