PITTSBURGH, March 15 /PRNewswire-FirstCall/ -- Portec Rail
Products, Inc. (Nasdaq: PRPX) today announced unaudited net income
of $1,443,000 or $0.15 per share for the fourth quarter ended
December 31, 2009, and unaudited net
income of $6,805,000 or $0.71 per share for the year ended December 31, 2009. These amounts compare to
unaudited net income of $1,515,000 or
$0.16 per share for the fourth
quarter ended December 31, 2008 and
unaudited net income of $7,779,000 or
$0.81 per share for the year ended
December 31, 2008. Per share
values are shown as average basic and diluted shares outstanding of
9.6 million for all periods. Net sales during the fourth quarter
2009 were $19.2 million, compared to
$24.3 million during the fourth
quarter 2008. Net sales for the year ended December 31, 2009 were $92.2 million compared to net sales of
$109.0 million for the year ended
December 31, 2008.
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Richard J. Jarosinski, President
and Chief Executive Officer, said, "We believe that our financial
results for the fourth quarter and full year 2009 are respectable,
considering that we continued to operate in a very challenging
economy. During 2009, we succeeded in significantly reducing
inventory levels and generated good operational cash flow.
During the fourth quarter, we also recognized income tax
benefits of $0.02 per share related
primarily to the recapture of research and development credits from
prior years, and we continued to benefit from a lower interest rate
environment. We also developed new product and service
features for further expansion of our friction management product
group and positioned the company in new markets like China."
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, Pennsylvania. 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
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 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, 2008 and Form 10-Q for the period
ended September 30, 2009 under the
heading "Cautionary Statement Relevant to Forward-looking
Statements." Unaudited information at and for the year ended
December 31, 2009 is subject to
adjustment as a result of the year-end audit. 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 Twelve Months Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited) (Audited)
Net sales $19,242 $24,336 $92,221 $109,017
Cost of sales 12,197 16,305 60,871 73,445
--- --- --- ---
Gross profit 7,045 8,031 31,350 35,572
Selling, general and
administrative 5,355 5,368 21,626 22,635
Amortization expense 310 308 1,116 1,199
- -
Operating income 1,380 2,355 8,608 11,738
Interest expense 81 165 298 805
Other (income) expense, net (108) (10) (191) (87)
---- --- ---- ---
Income before income taxes 1,407 2,200 8,501 11,020
Provision (benefit) for
income taxes (36) 685 1,696 3,241
--- --- ----- -----
Net income $1,443 $1,515 $6,805 $7,779
====== ====== ====== ======
Earnings per share
Basic and diluted $0.15 $0.16 $0.71 $0.81
Average basic and
diluted shares
outstanding 9,602,029 9,602,029 9,602,029 9,601,928
Consolidated Condensed Balance Sheets
(In thousands)
December 31, December 31,
2009 2008
---- ----
(Unaudited) (Audited)
Assets
Current assets $48,267 $44,638
Property, plant and equipment, net 10,260 10,203
Goodwill and other intangibles, net 42,970 41,145
Other assets 1,045 837
Total assets $102,542 $96,823
======== =======
Liabilities and Shareholders’ Equity
Current liabilities $19,157 $20,832
Other liabilities and long-term debt
obligations 17,637 17,815
Shareholders’ equity 65,748 58,176
Total liabilities and shareholders’
equity $102,542 $96,823
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SOURCE Portec Rail Products, Inc.