EX-99 2 l24801aexv99.htm EX-99 EX-99
 

Exhibit 99
Page 1
GORMAN-RUPP REPORTS RECORD SALES AND EARNINGS FOR 2006
Mansfield, Ohio — February 15, 2007 — The Gorman-Rupp Company (AMEX:GRC) reports record sales, earnings, backlog of orders and cash dividends paid to shareholders during 2006.
Record net sales were $270,910,000 for the year ended December 31, 2006, an increase of 17.2% over net sales of $231,249,000 during 2005. Net income increased 74.9% to a record $19,072,000 compared to $10,903,000 in 2005. Earnings per share were $1.43 in 2006 compared to $0.82 for 2005, after adjusting for a 5 for 4 split effective December 8, 2006.
Net sales in 2006 reflected growth in sales to the international, water and wastewater, fabricated products and fire protection markets. Sales of dewatering and flood control equipment also contributed to 2006 results.
As previously reported, net income during 2006 was favorably impacted by federal research and development tax credits and reductions in state tax liability estimates. The total impact during 2006 was approximately $1,854,000, or $0.14 per share.
The Company’s backlog of orders was $109.5 million at December 31, 2006 compared to the previous record backlog of $94.1 million at the end of 2005, an increase of $15.4 million or 16.4%. The record backlog includes an order at the Company’s subsidiary Patterson Pump Company of approximately $15.0 million for equipment for a flood control project in New Orleans that is scheduled to ship in the first half of 2007.
Net sales in the fourth quarter 2006 were $65,085,000 compared to $64,123,000 in the fourth quarter 2005. Net income for the fourth quarter 2006 was $2,423,000 compared to $3,237,000 during the fourth quarter of 2005, respectively equal to $0.18 and $0.24 per share. Fourth quarter earnings were affected by product mix, customer-delayed shipments and reduced profitability on one order completed during the fourth quarter which was impacted by an unanticipated increase in material cost on a price quoted more than two years earlier.
During the fourth quarter of 2006 the Company distributed a 5-for-4 stock split to shareholders and paid a quarterly cash dividend of $0.12 per share, an increase of 7.1% compared to the $0.112 post-split equivalent dividend per share paid during the third quarter of 2006. This was the 34th consecutive year that the Company has increased cash dividends to shareholders.
President and CEO Jeffrey Gorman stated, “2006 was a tremendous year for Gorman-Rupp. We are very pleased with the growth in the major markets we serve, especially the international market which has been an area of focus. As we move into 2007, the record backlog positions the Company for another very good year.”
David P. Emmens
Corporate Secretary
The Gorman-Rupp Company
Telephone (419) 755-1477
For information contact Robert E. Kirkendall, Senior Vice President & CFO, Telephone (419) 755-1294.
The Gorman-Rupp Company designs, manufactures and sells pumps and related equipment (pumps and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, heating ventilating and air conditioning (HVAC), military and other liquid handling applications.

 

Exhibit 99
Page 2
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Statements of Income
(Thousands of dollars, except per share data)
                                 
    Three Months Ended December 31,     Twelve Months Ended December 31,  
    (unaudited)              
    2006     2005     2006     2005  
 
                                
Net sales
   $ 65,085     $ 64,123     $ 270,910     $ 231,249  
Cost of products sold
     53,536       50,613       212,234       184,178  
 
                        
 
                                
Gross Profit
     11,549       13,510       58,676       47,071  
 
                                
Selling, general and administrative expenses
     8,483       8,536       32,411       30,368  
 
                        
 
                                
Operating Income
     3,066       4,974       26,265       16,703  
 
                                
Other income (expense) — net
     457       (4 )     1,461       435  
 
                        
 
                                
Income Before Income Taxes
     3,523       4,970       27,726       17,138  
Income taxes
     1,100       1,733       8,654       6,235  
 
                                
 
                        
Net Income
   $ 2,423     $ 3,237     $ 19,072     $ 10,903  
 
                        
 
                                
Basic and Diluted Earnings Per Share
   $ 0.18     $ 0.24     $ 1.43     $ 0.82  
The Gorman-Rupp Company and Subsidiaries
Condensed Consolidated Balance Sheets
(Thousands of dollars)
                 
    December 31,     December 31,  
    2006     2005  
 
                
Assets
                
Cash and short-term investments
   $ 16,855     $ 11,540  
Accounts receivable — net
     45,135       41,473  
Inventories — net
     50,299       52,403  
Deferred income taxes and other current assets
     7,829       5,085  
 
            
 
                
Total Current Assets
     120,118       110,501  
 
                
Property, Plant and Equipment — Net
     52,351       51,505  
Deferred income taxes and other assets
     15,071       17,535  
 
            
 
                
Total Assets
   $ 187,540     $ 179,541  
 
            
 
                
Liabilities and Shareholders’ Equity
                
 
                
Accounts payable
   $ 10,417     $ 9,835  
Accrued liabilities and expenses
     17,229       18,384  
 
            
 
                
Total Current Liabilities
     27,646       28,219  
 
                
Retirement Benefits
     4,185       —  
 
                
Postretirement Benefits
     27,567       23,255  
 
                
Deferred Income Taxes
     —       1,019  
 
                
Shareholders’ Equity
     128,142       127,048  
 
            
Total Liabilities and Shareholders’ Equity
   $ 187,540     $ 179,541  
 
            
 
                
Shares outstanding
     13,360,004       13,356,254