Robbins & Myers Announces Second Quarter 2012 Results and Dividend

HOUSTON, March 27, 2012 /PRNewswire/ -- Robbins & Myers, Inc. (NYSE: RBN) today reported diluted net earnings per share (DEPS) of $0.84 for its fiscal second quarter ended February 29, 2012. This is compared with $0.28, or $0.58 from continuing operations adjusting for one-time charges relating to the acquisition of T-3 Energy Services, Inc. (T-3), in the prior year second quarter.

Consolidated sales were $256 million in the second quarter of 2012 as compared with $184 million in the second quarter of 2011.  Excluding the impact of currency translation and T-3, sales grew 24% over the prior year period.  The Company reported second quarter 2012 orders of $294 million, which included orders of $96 million for T-3.  Excluding the impact of currency translation and T-3, orders increased 35% over the prior year period.  Second quarter ending backlog was $301 million, compared to $221 million at the end of the prior year period and $260 million at the end of the prior quarter.  Each of Robbins & Myers' business segments achieved strong growth.  

Second quarter 2012 earnings before interest and taxes (EBIT) were $57 million, significantly higher than the adjusted EBIT of $34 million reported in the second quarter of 2011, which excluded the one-time charges relating to the acquisition of T-3.  EBIT margin was 22.3% for the second quarter of 2012, substantially higher than the 18.3% adjusted EBIT margin in the prior year period, as a result of improved profitability in each business segment.  The Company reported EBITDA of $65 million in the second quarter of 2012, compared with adjusted EBITDA of $39 million in the second quarter of fiscal 2011.  Each business segment showed improved profitability, primarily related to additional volume, T-3 synergy benefits in the Energy Services segment and cost savings in the Process & Flow Control segment.

"We are pleased with the continued order strength and performance in both of our business segments," said Peter C. Wallace, President and Chief Executive Officer of Robbins & Myers, Inc.  "We continue to see strong end market demand in the energy sector, with any weakness attributable to low natural gas prices being offset with demand in the oil sector.  While most of the cost synergies related to the T-3 acquisition have been achieved, we are now seeing the benefits in selling opportunities with key account relationships and other functional areas as the Energy Services segment continues to become more cohesive.  We should also reap the benefit of the manufacturing capacity expansion coming on board in our third quarter for power section relines.  In the Process & Flow Control segment we are seeing stronger demand in the developing areas of the world, as we expected last quarter, and continue to see the cost benefits from the restructuring actions in Europe the last two years."

Robbins & Myers reported that it generated $17 million of cash from operating activities, after a $10 million discretionary pension contribution, in the second quarter of fiscal 2012.  In the same period of the prior year the Company used $10 million in operating activities.  The increase is attributable to higher net income in 2012 and payments related to the T-3 acquisition in the prior year.  In the second quarter of fiscal 2012 the Company purchased 1.7 million of its outstanding shares for $79 million.

Updated Guidance

Based on recent financial performance, Robbins & Myers increased its fiscal 2012 adjusted DEPS forecast from $3.00-$3.20 to $3.40-$3.60 and expects to earn $0.80-$0.90 in its third quarter of 2012.  This guidance assumes a diluted share count of 43.4 million for the second half of fiscal 2012, which gives effect to the share purchase activity to date.

Second 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 $196 million, an increase of $85 million over the prior year period.  Excluding T-3, orders increased $36 million, or 55% over the prior year period.  Sales were $168 million in the second quarter, or $94 million excluding T-3, an increase of 36% over the prior year period.  EBIT was $50 million or 30.1% of sales.  Ending backlog of $172 million compared with $121 million at the end of the prior year.

The Process & Flow Control segment reported orders of $98 million, an increase of 17% due to improving demand for capital goods in certain regional chemical markets.  Sales of $88 million were 11% higher then the prior year.  The business reported $10 million of EBIT in the second quarter of 2012, 10.8% of sales as compared with $6 million and 7.0% of sales in the prior year period.  Backlog was $129 million as of February 29, 2012.

Conference Call to Be Held Tomorrow, March 28 at 1:00 PM (Central)

A conference call to discuss second quarter 2012 financial results is scheduled for 1:00 PM Central on Wednesday, March 28, 2012.  The call can be accessed at www.robn.com or by dialing 800-561-2718 (US/Canada) or +1-617-614-3525, using conference ID #33957130.  Replays of the call can be accessed by dialing 888-286-8010 (US/Canada) or +1-617-801-6888, both using replay ID #34098963.

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 May 4, 2012 to shareholders of record as of April 9, 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 and EBITDA, 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 EBIT and EBITDA to net income from continuing operations is included herein.  EBIT and EBITDA are not measures of cash available for use by the Company.

Forward-Looking Statements  

Statements set forth in this press release that are not historical facts, including statements regarding future financial performance, future market demand, future benefits to shareholders, future economic and industry conditions, 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 Company's control, 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: changes in the demand for or the price of oil and/or natural gas; a significant decline in capital expenditures within the markets served by the Company; the failure of our Energy Services products used in oil and gas exploration, development and production; the possibility of product liability lawsuits that could harm our businesses; inability to retain key personnel; the ability to realize the benefits of restructuring programs; increases in competition; changes in the availability and cost of raw materials; foreign exchange rate fluctuations as well as economic or political instability in international markets and performance in hyperinflationary environments, such as Venezuela; work stoppages related to union negotiations; customer order cancellations; events or circumstances which result in an impairment of, or valuation against, assets; the potential impact of U.S. and foreign legislation, government regulations, and other governmental action, including those relating to offshore drilling and hydraulic fracturing, and export and import of products and materials, and changes in the interpretation and application of such laws and regulations; the outcome of audit, compliance, administrative or investigatory reviews; proposed changes in U.S. tax law which could impact our future tax expense and cash flow and decline in the market value of our pension plans' investment portfolios; and other important risk factors discussed more fully in Robbins & Myers' 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 from time to time with the SEC.  Robbins & Myers does not undertake any obligation to revise or update publicly any forward-looking statements for any reason.

SOURCE Robbins & Myers, Inc.