Portec Rail Products, Inc. Reports 2008 First Quarter Operating Results
(Unaudited)
PITTSBURGH, May 1 /PRNewswire-FirstCall/ -- Portec Rail Products, Inc.
(Nasdaq: PRPX) today announced unaudited net income of $1,344,000 or $0.14 per
share on average basic and diluted shares outstanding of 9,601,779 for the
three months ended March 31, 2008. This compares to unaudited net income of
$1,205,000 or $0.13 per share on average basic and diluted shares outstanding
of 9,601,779 for the three months ended March 31, 2007. Net sales for the
first quarter of 2008 were $24.8 million compared to $27.5 million for the
first quarter 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040119/PRPILOGO )
Richard J. Jarosinski, President and Chief Executive Officer said, "We are
pleased with our financial results for this period, despite our sales level
being affected by a slower roll-out of new orders by our Canadian and United
States Class 1 railroad customers. Challenging weather conditions in the
current quarter also delayed the start-up of many of our customers' capital
expenditure and track maintenance programs. Our earnings growth in the
current quarter reflects lower administrative expenses, a better product mix,
and lower interest expense."
"Our Shipping Systems Division and Salient Systems, in particular,
achieved good results this quarter. The WinChock(TM) Uni-Level vehicle
securement system, a relatively new product used to transport Class VIII
vehicles to market, made a significant financial contribution to the Shipping
Systems Division's results for the quarter. Salient Systems benefited from
more Wheel Impact Load Detection product installations done in early 2008.
Our friction management product lines in the United Kingdom, specifically
solid stick lubrication, wayside gage face and top of rail application
equipment, also had strong customer demand this period."
Mr. Jarosinski concluded, "In summary, our new order bookings increased as
the quarter progressed, which has resulted in a larger backlog at quarter-end
than the same period last year. We believe that a favorable business
environment for Portec Rail exists within our industry. We have made
significant operational improvements and implemented measures to control costs
and to improve our position with key product lines, and our customers continue
to demonstrate interest in our products and services, which is resulting in
our continued optimism about the future."
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 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 September 30, 2007 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
March 31
2008 2007
(Unaudited)
Net sales $24,843 $27,484
Cost of sales 17,133 19,438
Gross profit 7,710 8,046
Selling, general and administrative 5,409 5,663
Amortization expense 298 306
Operating income 2,003 2,077
Interest expense 226 317
Other income, net (78) (70)
Income before income taxes 1,855 1,830
Provision for income taxes 511 625
Net income $1,344 $1,205
Earnings per share - basic and diluted $0.14 $0.13
Average basic and diluted shares outstanding 9,601,779 9,601,779
Consolidated Condensed Balance Sheets
(In thousands)
March 31 December 31
2008 2007
(Unaudited) (Audited)
Assets
Current assets $44,675 $45,635
Property, plant and equipment, net 11,392 11,121
Goodwill and other intangibles, net 45,883 46,601
Other assets 883 869
Total assets $102,833 $104,226
Liabilities and Shareholders' Equity
Current liabilities $21,486 $21,190
Other liabilities and long-term debt obligations 21,148 23,139
Shareholders' equity 60,199 59,897
Total liabilities and shareholders' equity $102,833 $104,226
SOURCE Portec Rail Products, Inc.
Richard J. Jarosinski, President and Chief Executive Officer, Portec Rail
Products, Inc., +1-412-782-6000, ext. 4230
