Robbins & Myers Announces Fourth Quarter & Fiscal Year 2012 Results And Dividend

HOUSTON, Oct. 19, 2012 /PRNewswire/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share from continuing operations (DEPS) of $0.76 for its fiscal fourth quarter ended August 31, 2012, or $0.92 after adjusting for unfavorable costs of $0.16 related to its pending merger with National Oilwell Varco, the estimated settlement of an export investigation matter, settlement of the work stoppage at its Springfield, Ohio, pump manufacturing plant and the impact of the hurricane in the Gulf of Mexico the last week of August. This compares with $0.77 from continuing operations in the prior year fourth quarter, or $0.79, after adjusting for restructuring charges related to the Company's Process & Flow Control segment.  Excluding the impact of these items, DEPS was $0.92 compared with $0.79 in the prior year period, an increase of 16%.

For the full fiscal year, Robbins & Myers reported DEPS of $3.39 compared with $1.94 for fiscal year 2011, fiscal 2011 included $0.44 of restructuring and T-3 acquisition related charges.

Consolidated sales were $275 million in the fourth quarter of 2012 as compared with $259 million in the fourth quarter of 2011.  Excluding the impact of currency translation, sales grew $23 million, or 9%, over the prior year period.  The Company reported fourth quarter 2012 orders of $267 million, an increase of 5% over the prior year period excluding the impact of currency translation.  Fourth quarter ending backlog increased to $308 million from $251 million at the end of the prior fiscal year. 

Fourth quarter 2012 earnings before interest and taxes (EBIT) were $47 million, or adjusted EBIT of $56 million, adjusting for $9 million in unfavorable costs related to its pending merger with National Oilwell Varco, the potential settlement of an export investigation matter, settlement of the work stoppage at our Springfield, Ohio, pump manufacturing plant and the impact of the hurricane in the Gulf of Mexico the last week of August. 

Fourth Quarter Results by Segment

All comparisons are made against the comparable year-ago quarterly period unless otherwise stated.

The Company's Energy Services segment reported orders of $173 million, an increase of $8 million over the prior year period excluding the impact of currency.  Sales were $176 million in the fourth quarter of fiscal 2012 and $10 million over the prior year period, excluding currency impacts. EBIT was $45 million, which included the unfavorable impact of the Gulf of Mexico hurricane of $2 million, compared with EBIT of $51 million in the prior year period.  Product mix had a negative impact on the current quarter's EBIT, as the sales of profitable drilling system products were lower compared with the prior year.  Ending backlog was $170 million, significantly higher than the $121 million at the end of the prior year.

The Process & Flow Control segment reported orders of $94 million, which were $4 million, or 4%, over the prior year period excluding currency impacts.  The increase was primarily due to improving demand for capital goods in the chemical markets.  Sales of $99 million were $13 million, or 14%, higher than the prior year excluding currency impacts.  The segment reported $12 million of EBIT in the fourth quarter of 2012, including costs related to the settlement of the work stoppage at the Springfield, Ohio, pump manufacturing plant, or 11.9% of sales, as compared with $7 million of adjusted EBIT, or 7.1%, of sales in the prior year period.  Backlog rose to $138 million from $130 million at the end of the prior fiscal year.

"We are pleased with performance in both of our business segments," said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc.  "The Energy Services segment has been impacted by a reduction in U.S. rig count and lower drilling activity during the quarter, but still demonstrated excellent performance. In the Process & Flow Control segment, we experienced stronger demand in the chemical and industrial markets.  We have steadily improved operating performance in this segment by leveraging incremental sales volume and recovering margin with a sharper focus on regional pricing opportunities and cost controls resulting in operating margin of nearly 12% for the quarter, including the effect of the work stoppage settlement."

Share Repurchase

During the fourth quarter and prior to June 19, 2012 the Company repurchased 0.5 million of its shares for a total of $24 million.  For the fiscal year of 2012 the Company repurchased 4.0 million shares for a total of $187 million. 

Conference Call

The Company will not be holding a webcast or conference call due to the pending merger with National Oilwell Varco.

Dividend Declared

Robbins & Myers also announced today that its Board of Directors approved its regular quarterly cash dividend payment of $0.05 per share.  The dividend is payable on November 20, 2012 to shareholders of record as of October 29, 2012.

About Robbins & Myers

Robbins & Myers, Inc. is a leading supplier of engineered equipment and systems for critical applications in global energy, industrial, chemical and pharmaceutical markets.

In this release the Company refers to EBIT, adjusted EBIT, and adjusted DEPS which are non-GAAP measures.  The Company uses these measures to evaluate its performance and believes these measures are helpful to investors in assessing its performance.  A reconciliation of these amounts to net income from continuing operations is included herein.  EBIT is not a measure of cash available for use by the Company.

Forward-Looking Statements

Statements set forth in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws.  These forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond the control of Robbins & Myers, which could cause actual benefits, results, effects and timing to differ materially from the results predicted or implied by the statements.  These risks and uncertainties include, but are not limited to:  the failure of our shareholders to approve the merger; satisfaction of the conditions to the closing of the merger (including the receipt of regulatory approvals and completion of certain compliance due diligence); uncertainties as to the timing of the merger; costs and difficulties relating to the proposed merger; inability to retain key personnel; changes in the demand for or price of oil and/or natural gas; and other important risk factors discussed more fully in Robbins & Myers' preliminary proxy statement filed with the SEC on August 31, 2012 in connection with the merger, its Annual Report on Form 10-K for the year ended August 31, 2011; its recent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K; and other reports filed by it with the SEC from time to time (including the final proxy statement relating to the proposed merger).  Robbins & Myers undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

Additional Information and Where to Find It

In connection with the proposed merger, Robbins & Myers filed a preliminary proxy statement with the SEC on August 31, 2012 and may file other relevant materials with the SEC as well.  INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT AND ANY OTHER MATERIALS REGARDING THE PROPOSED MERGER (INCLUDING THE FINAL PROXY STATEMENT) WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN AND WILL CONTAIN IMPORTANT INFORMATION ABOUT ROBBINS & MYERS AND THE PROPOSED MERGER.  The final proxy statement will be mailed to Robbins & Myers shareholders.  Investors and security holders may obtain a free copy of the proxy statement (when it is available) and other documents containing information about Robbins & Myers, without charge, at the SEC's web site at www.sec.gov.  Copies of Robbins & Myers' SEC filings also may be obtained for free by directing a request to Robbins & Myers, Inc., 10586 Highway 75 North, Willis, Texas 77378, (936) 890-1064.

Participants in the Solicitation

Robbins &Myers, National Oilwell Varco, and certain of their respective directors and executive officers may be deemed, under SEC rules, to be participants in the solicitation of proxies from Robbins & Myers' shareholders in connection with the proposed merger.  Information about Robbins & Myers' directors and executive officers and the special interests of these persons in connection with the proposed merger can be found in the preliminary proxy statement filed by Robbins & Myers with the SEC on August 31, 2012.  Information about National Oilwell Varco's directors and executive officers can be found in National Oilwell Varco's Annual Report on Form 10-K for its fiscal year ended December 31, 2011, as filed with the SEC on February 23, 2012, and National Oilwell Varco's proxy statement relating to its 2012 Annual Meeting of Shareholders, as filed with the SEC on April 5, 2012.  These documents can be obtained, without charge, at the SEC's website at www.sec.gov.

SOURCE Robbins & Myers, Inc.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED