Cascade Corporation Announces Financial Results for the Fourth Quarter and Year Ended January 31, 20

Cascade Corporation Announces Financial Results for the Fourth Quarter and Year Ended January 31, 2013

PORTLAND, Ore.--(BUSINESS WIRE)-- Cascade Corporation (NYS: CASC) today reported its financial results for the fourth quarter ended January 31, 2013.

Fourth Quarter Fiscal 2013 Summary

  • Summary financial results are outlined below (in thousands, except earnings per share):

Three Months Ended January 31

2013

2012

% Change

Net sales

$

123,570

$

125,924

(2

%)

Gross profit

34,926

36,420

(4

%)

Gross profit %

28

%

29

%

SG&A

22,551

20,759

9

%

Environmental

4,000

-

-

Australia flood proceeds, net

-

(2,871

)

-

Operating income

8,375

18,532

(55

%)

Operating income %

7

%

15

%

Interest expense (income), net

(36

)

65

-

Foreign currency loss, net

55

16

-

Income before taxes

8,356

18,451

(55

%)

Provision for income taxes

2,642

5,255

(50

%)

Effective tax rate

32

%

28

%

Net income

$

5,714

$

13,196

(57

%)

Diluted earnings per share

$

0.50

$

1.16

(57

%)

  • Consolidated net sales during the fourth quarter of fiscal 2013 decreased compared to the fourth quarter of fiscal 2012, excluding the impact of foreign currency changes, primarily due to lower sales volumes in Europe. Details of the net sales decrease over the prior year fourth quarter follow (in thousands):

2013

Change%

Net sales change

$

(2,176

)

(2

%)

Foreign currency change

(178

)

0

%

Total

$

(2,354

)

(2

%)

  • Our consolidated gross profit percentage was slightly lower during the fourth quarter of fiscal 2013 compared to fiscal 2012 primarily as a result of decreased sales volumes.

  • Selling and administrative expense increased during the fourth quarter of fiscal 2013 due to additional costs related to the pending acquisition by Toyota Industries Corporation ($0.8 million) and other costs in the Americas and China.

  • During the fourth quarter of fiscal 2013, we recorded a $4.0 million charge related to the expansion of our existing long-term environmental remediation plans at our Fairview, Oregon and Springfield, Ohio locations.

  • Our facility in Australia was significantly damaged by flooding in January 2011. During the fourth quarter of fiscal 2012, we received net flood insurance proceeds of $2.9 million. The after tax impact of the proceeds was $2.0 million ($.18 per diluted share).

  • The effective income tax rate was higher primarily due to a larger reduction in the valuation allowance on The Netherlands deferred tax assets in fiscal 2012.


Market Conditions

  • Percentage changes in lift truck industry shipments and orders, by region, as compared to the prior year are outlined below. Although lift truck unit data provides an indicator of the general health of the industry and our business over a six to twelve month period, they do not necessarily correlate directly with the demand for our products on a quarterly basis.

Shipments

Orders

Q4 FY13 vs Q4 FY12

Q4 FY13 vs Q4 FY12

Americas

(1%)

5%

Europe

(8%)

(12%)

Asia Pacific

(2%)

(7%)

China

(8%)

6%

Global

(5%)

(2%)

Fiscal Year Ended January 31, 2013 Summary

  • Summary financial results for the fiscal years ended January 31, 2013 and 2012 are as follows (in thousands, except earnings per share):

Year Ended January 31

2013

2012

% Change

Net sales

$

538,408

$

535,767

-

Gross profit

162,368

169,287

(4

%)

Gross profit %

30

%

32

%

SG&A

90,833

85,009

7

%

Environmental

4,000

-

-

Australia flood proceeds, net

-

(3,137

)

-

Operating income

67,535

87,415

(23

%)

Operating income %

13

%

16

%

Interest expense, net

119

542

(78

%)

Foreign currency loss, net

312

1,053

(70

%)

Income before taxes

67,104

85,820

(22

%)

Provision for income taxes

20,252

22,774

(11

%)

Effective tax rate

30

%

27

%

Net income

$

46,852

$

63,046

(26

%)

Diluted earnings per share

$

4.10

$

5.58

(27

%)

  • SG&A expenses in fiscal 2013 were 9% higher, excluding the impact of currency changes, primarily due to costs related to the pending acquisition by Toyota Industries Corporation ($2.7 million), our new subsidiary in Brazil and increased personnel, insurance and consulting costs.

  • The effective income tax rate was higher primarily due to a larger reduction in the valuation allowance on The Netherlands deferred tax assets in fiscal 2012.

Forward Looking Statements:

This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that a number of factors could cause our actual results to differ materially from results expressed or implied by forward-looking statements in this release or in any other forward-looking statements made by us, or on our behalf. These factors include among others, the effects of general economic conditions, interest rates, demand for materials handling products and construction equipment, performance of our manufacturing facilities and the cyclical nature of the materials handling and construction equipment industries, and any failure to satisfy the conditions to the completion of our transaction with TICO or otherwise complete the transaction. Further, historical information should not be considered an indicator of future performance. Additional considerations and important risk factors are described in our reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission.

About Cascade Corporation:

Cascade Corporation, headquartered in Fairview, Oregon, is a leading international manufacturer of materials handling products used primarily on lift trucks. Additional information on Cascade is available on its website, www.cascorp.com.

CASCADE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited -- in thousands, except per share amounts)

Three Months Ended January 31

Twelve Months Ended January 31

2013

2012

2013

2012

Net sales

$

123,570

$

125,924

$

538,408

$

535,767

Cost of goods sold

88,644

89,504

376,040

366,480

Gross profit

34,926

36,420

162,368

169,287

Selling and administrative expenses

22,551

20,759

90,833

85,009

Environmental

4,000

-

4,000

-

Australia flood proceeds, net

-

(2,871

)

-

(3,137

)

Operating income

8,375

18,532

67,535

87,415

Interest expense (income), net

(36

)

65

119

542

Foreign currency loss, net

55

16

312

1,053

Income before provision for income taxes

8,356

18,451

67,104

85,820

Provision for income taxes

2,642

5,255

20,252

22,774

Net income

$

5,714

$

13,196

$

46,852

$

63,046

Basic earnings per share

$

0.51

$

1.20

$

4.22

$

5.74

Diluted earnings per share

$

0.50

$

1.16

$

4.10

$

5.58

Basic weighted average shares outstanding

11,126

11,017

11,099