EX-99.1 2 woodhead043583_ex99-1.txt EXHIBIT 99.1 WOODHEAD INDUSTRIES REPORTS FISCAL THIRD QUARTER RESULTS REVENUE GREW 13% AND INCOME FROM OPERATIONS INCREASED 55% DEERFIELD, IL - July 23, 2004 -- Woodhead Industries, Inc., (Nasdaq: WDHD) today announced financial results for its fiscal third quarter ended June 26, 2004. The company reported third quarter total revenues of $52.7 million, a 12.8% increase over the same period last year. Income from operations totaled $3.6 million in the quarter, compared to $2.3 million for the fiscal third quarter last year. Net income was $1.6 million, or $0.13 a share for the quarter, compared to net income of $2.0 million and $0.17 a share for the same period in 2003. Philippe Lemaitre, Woodhead Industries' President and Chief Executive Officer, commented, "Our underlying business continues to see solid year-over-year growth as both the Connectivity and Electrical segments experienced double digit increases in revenue during the quarter." He added, "Our programs for growth initiated at the beginning of the fiscal year remain on track and we are confident that the company is positioned well for the future." Robert H. Fisher, Vice President of Finance and Chief Financial Officer noted, "Our core businesses continued to perform well in all geographic regions during the third quarter. Asia was up 63% year-over-year and Europe was up 15%. Our international operations represented 45% of total revenues." In the Connectivity segment, third quarter sales were $37.8 million and income from operations totaled $1.6 million versus $33.9 million and $1.7 million, respectively, last year. Sales growth was strong at 12% year-over-year and gross margins were up 1.6 points. Net income was adversely affected by the continued investment in growth initiatives. The Electrical segment experienced robust growth during the quarter, with revenues totaling $14.9 million, up 15.9% from the same period in 2003, even with the lost revenue from two small product lines that were divested. Income from operations in the Electrical Segment totaled $2.3 million, a substantial increase from the same period last year, which included a $1.2 million charge for the restructuring of the company's Aero-Motive subsidiary. Foreign exchange rate changes negatively impacted Other Expenses and earnings per share by $0.05 during the quarter. In comparison, exchange rate changes favorably impacted earnings per share by $0.14 during the same period last year. Cash on hand at the end of the quarter was $22.8 million. Backlog at the end of the third quarter was $18.8 million, up 22% from a year ago. OUTLOOK Lemaitre further commented, "We expect revenues to remain solid in the fiscal fourth quarter; approximately 20-25% higher than 2003 levels. Earnings for the quarter are expected to be in a range between $0.14 - $0.17 per share. We are beginning to see positive results from several of our internal sales, marketing and engineering initiatives. One area we are particularly excited about is the increasing interest in our new gateway products. As a result of these positive forces, we are planning for 15% revenue growth and significant earnings growth in the first half of fiscal 2005." This press release contains statements that are forward-looking. These statements are based on current expectations that are subject to risks and uncertainties. In particular, such risks include future actions, prospective products, future performance or results of current or anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, general economic and business conditions, competition, and other issues discussed in our Form 10-K and other SEC filings. CONFERENCE CALL Woodhead Industries, Inc., will host a conference call today, July 23, 2004, at 11:00 am EDT to discuss performance and financial results for the fiscal third quarter. The dial-in phone number is 800/500-0177 or 719/457-2679, and the access code is 765731. To access a live Internet webcast of the conference call, visit the Company's website at www.woodhead.com and select the webcast icon. A replay of the conference call will be archived and also available on the Company's website following the live event. The replay dial-in phone number is 888/203-1112 or 719/457-0820, and the access code is also 765731. ABOUT WOODHEAD INDUSTRIES, INC. Woodhead Industries develops, manufactures and markets Network and Electrical Infrastructure products engineered for performance in harsh, demanding, and hazardous industrial environments. We are known in the global industrial market by our recognized brands that include Brad Harrison(R), SST(TM), Daniel Woodhead(R), mPm(R), applicom(R), Aero-Motive(R) and RJ-Lnxx(R). Our expertise ranges from mechanical, electrical, and electronics to communication software products and technologies. Woodhead operates from 21 locations in 10 countries spanning North America, Europe and Asia/Pacific. For further information, contact: Robert Fisher, Vice President, Finance and CFO, (847) 317-2400, e-mail: rfisher@woodhead.com. [Tables to Follow] WOODHEAD INDUSTRIES, INC. CONSOLIDATED BALANCE SHEET (Amounts in thousands)
--------------------------- ASSETS 6/26/2004 9/27/2003 --------------------------- CURRENT ASSETS Cash and short-term investments $ 22,832 $ 22,547 Accounts receivable 37,716 31,017 Inventories 17,441 13,020 Prepaid expenses 4,491 4,816 Refundable income taxes 2,036 2,479 Deferred income taxes 3,603 3,390 ------------------------------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 88,119 77,269 Property, plant and equipment, net 58,866 60,391 Goodwill, net 34,061 32,290 Deferred income taxes 2,604 2,584 Other Assets 1,134 1,322 ------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $ 184,784 $ 173,856 ------------------------------------------------------------------------------------------------------------ LIABILITIES AND STOCKHOLDERS' INVESTMENT Current Liabilities Accounts payable $ 10,659 $ 8,343 Accrued expenses 15,558 13,586 Income taxes payable 1,375 1,393 Current portion of long-term debt 5,700 5,700 ------------------------------------------------------------------------------------------------------------ TOTAL CURRENT LIABILITIES 33,292 29,022 Long-term debt 30,900 30,900 Deferred income taxes 3,146 3,049 Other liabilities 2,887 2,435 ------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES 70,225 65,406 STOCKHOLDERS' INVESTMENT: Common stock at par (shares issued: 12,130, at 6/26/04, 12,011 at 9/27/03) 12,130 12,011 Additional paid-in capital 20,032 18,578 Deferred stock compensation (627) (773) Accumulated other comprehensive income 6,223 2,832 Retained earnings 76,801 75,802 ------------------------------------------------------------------------------------------------------------ TOTAL STOCKHOLDERS' INVESTMENT 114,559 108,450 ------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 184,784 $ 173,856 ------------------------------------------------------------------------------------------------------------
WOODHEAD INDUSTRIES, INC. CONSOLIDATED INCOME STATEMENT (Amounts in thousands, except per share data)
QUARTER ENDED: NINE MONTHS ENDED: --------------------- -------- --------------------- -------- 6/26/2004 6/28/2003 % CHANGE 6/26/2004 6/28/2003 % CHANGE --------- --------- -------- --------- --------- -------- NET SALES $ 52,653 $ 46,694 12.8% $148,638 $ 134,736 10.3% Cost of Sales 32,452 30,065 7.9% 92,588 85,469 8.3% --------------------- ---------------------- GROSS PROFIT 20,201 16,629 21.5% 56,050 49,267 13.8% % of Net Sales 38.4% 35.6% 37.7% 36.6% OPERATING EXPENSES 16,496 13,152 25.4% 47,813 41,254 15.9% RESTRUCTURING AND OTHER RELATED CHARGES 113 1,155 1,205 1,155 --------------------- ---------------------- TOTAL OPERATING EXPENSE 16,609 14,307 16.1% 49,018 42,409 15.6% % of Net Sales 31.5% 30.6% 33.0% 31.5% INCOME FROM OPERATIONS 3,592 2,322 54.7% 7,032 6,858 2.5% --------------------- ---------------------- % of Net Sales 6.8% 5.0% 4.7% 5.1% OTHER EXPENSES Interest Expense 605 991 (39.0%) 1,766 2,302 (23.3%) Other (Income)/Expenses, Net 530 (1,523) (1,021) (2,610) --------------------- ---------------------- OTHER (INCOME) / EXPENSES 1,135 (532) 745 (308) INCOME BEFORE TAXES AND DISCONTINUED OPERATIONS 2,457 2,854 (13.9%) 6,287 7,166 (12.3%) % of Net Sales 4.7% 6.1% 4.2% 5.3% PROVISION FOR INCOME TAXES 847 810 4.6% 1,663 2,165 (23.2%) --------------------- ---------------------- INCOME FROM CONTINUING OPERATIONS $ 1,610 $ 2,044 (21.2%) $ 4,624 $ 5,001 (7.5%) % of Net Sales 3.1% 4.4% 3.1% 3.7% --------------------- ---------------------- DISCONTINUED OPERATIONS Income From Discontinued AKAPP Operations (Including Gain on Disposal of $725) - - - 733 Income Tax Expense - - - 3 --------------------- ---------------------- INCOME FROM DISCONTINUED OPERATIONS - - - 730 --------------------- ---------------------- NET INCOME $ 1,610 $ 2,044 (21.2%) $ 4,624 $ 5,731 (19.3%) % of Net Sales 3.1% 4.4% 3.1% 4.3% ===================== ====================== EARNINGS PER SHARE, DILUTED From continued operations $ 0.13 $ 0.17 (23.5%) $ 0.38 $ 0.42 (9.5%) As reported $ 0.13 $ 0.17 (23.5%) $ 0.38 $ 0.48 (20.8%) WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING Diluted 12,188 12,000 1.6% 12,177 11,962 1.8% ===================== ====================== DIVIDENDS PER SHARE $ 0.10 $ 0.09 11.1% $ 0.30 $ 0.27 11.1% ===================== ====================== SEGMENT DATA QUARTER ENDED: NINE MONTHS ENDED: --------------------- -------- --------------------- -------- 6/26/2004 6/28/2003 % CHANGE 6/26/2004 6/28/2003 % CHANGE --------- --------- -------- --------- --------- -------- NET SALES --------- CONNECTIVITY $ 37,790 $ 33,867 11.6% $107,343 $ 94,255 13.9% ELECTRICAL 14,863 12,827 15.9% 41,295 40,481 2.0% --------------------- ---------------------- TOTAL $ 52,653 $ 46,694 12.8% $148,638 $134,736 10.3% ===================== ====================== INCOME FROM OPERATIONS ---------------------- CONNECTIVITY $ 1,553 $ 1,669 (7.0%) $ 2,568 $ 3,198 (19.7%) ELECTRICAL 2,338 25 5,027 3,505 43.4% CORPORATE AND OTHER (299) 628 (563) 155 --------------------- ---------------------- TOTAL $ 3,592 $ 2,322 54.7% $ 7,032 $ 6,858 2.5% ===================== ======================