Bucyrus International, Inc. (Nasdaq:BUCY), a leading designer,
manufacturer and marketer of high productivity mining equipment for
surface and underground mining, announced today its summary
unaudited financial results for the quarter ended March 31, 2011.
Operating Results
On February 19, 2010, Bucyrus completed its previously announced
acquisition of Terex Corporation's mining equipment business
("Terex Mining"). The financial results for the quarter ended March
31, 2010 include the net assets and results of operations of Terex
Mining since the February 19, 2010 date of acquisition as well as
the acquisition accounting adjustments and acquisition costs
related to the Terex Mining acquisition. As a result, the financial
results for the quarter ended March 31, 2011 are not necessarily
comparative to the results for the quarter ended March 31,
2010.
Consolidated Condensed
Statements of Earnings (Unaudited) |
|
|
Quarter Ended March
31, |
|
2011 |
2010 |
|
(Dollars in thousands, except
per share amounts) |
Sales |
$909,671 |
$607,525 |
Cost of products sold |
650,018 |
432,243 |
Gross profit |
259,653 |
175,282 |
Selling, general and administrative
expenses. |
115,131 |
87,134 |
Research and development expenses |
23,814 |
13,243 |
Amortization of intangible assets |
11,550 |
8,990 |
Operating earnings |
109,158 |
65,915 |
Interest income |
(2,062) |
(1,349) |
Interest expense |
19,743 |
11,059 |
Other expense |
2,453 |
1,835 |
Earnings before income taxes |
89,024 |
54,370 |
Income tax expense |
32,690 |
19,356 |
Net earnings |
$56,334 |
$35,014 |
|
|
|
Net Earnings Per Share Data |
|
|
Basic: |
|
|
Net earnings per share |
$0.70 |
$0.45 |
Weighted average shares |
80,923,776 |
77,299,009 |
Diluted: |
|
|
Net earnings per share |
$0.69 |
$0.45 |
Weighted average shares |
82,125,915 |
78,661,173 |
|
|
|
Other Financial Data |
|
|
EBITDA (1) |
$132,387 |
$87,867 |
Non-cash stock compensation expense (2) |
1,964 |
1,948 |
Loss on disposal of fixed assets (3) |
10 |
1,865 |
Terex Mining acquisition costs (4) |
— |
14,068 |
Costs associated with the pending merger with
Caterpillar Inc. (5) |
1,141 |
— |
Inventory fair value adjustment charged to
cost of products sold (6) |
— |
7,019 |
Adjusted EBITDA (7) |
$135,502 |
$112,767 |
|
|
|
(1) EBITDA is defined as net
earnings before interest income, interest expense, income tax
expense, depreciation and amortization. EBITDA is presented
because (i) management uses EBITDA to measure Bucyrus' liquidity
and financial performance and (ii) management believes EBITDA is
frequently used by securities analysts, investors and other
interested parties in evaluating the performance and enterprise
value of companies in general, and in evaluating the liquidity of
companies with significant debt service obligations and their
ability to service their indebtedness. The EBITDA calculation
is not an alternative to net earnings under accounting principles
generally accepted in the United States of America as an indicator
of operating performance or of cash flows as a measure of
liquidity. Additionally, EBITDA is not intended to be a
measure of free cash flow for management's discretionary use, as it
does not consider certain cash requirements such as interest
payments, tax payments and debt service requirements. Because not
all companies use identical calculations, this presentation of
EBITDA may not be comparable to other similarly titled measures of
other companies. |
(2) Reflects non-cash stock
compensation expense related to equity incentive plans. |
(3) Reflects losses on the
disposal of fixed assets in the ordinary course. |
(4) Reflects costs related
to the acquisition of Terex Mining. |
(5) Reflects costs related
to the pending merger with Caterpillar Inc. |
(6) In connection with the
acquisition of Terex Mining, inventories acquired were adjusted to
estimated fair value. This adjustment was charged to cost of
products sold as the inventory was sold. |
(7) Adjusted EBITDA is a
material term in Bucyrus' credit agreement, which management
believes is a material agreement, and is used in the calculation of
the leverage ratio covenant thereunder. |
The following table reconciles net earnings to EBITDA and EBITDA
to net cash provided by operating activities:
|
Quarter Ended March
31, |
|
2011 |
2010 |
|
(Dollars in thousands) |
Net earnings |
$56,334 |
$35,014 |
Interest income |
(2,062) |
(1,349) |
Interest expense |
19,743 |
11,059 |
Income tax expense |
32,690 |
19,356 |
Depreciation |
11,680 |
12,960 |
Amortization |
14,002 |
10,827 |
EBITDA |
132,387 |
87,867 |
Changes in assets and liabilities |
(59,386) |
127,874 |
Non-cash stock compensation expense |
1,964 |
1,948 |
Loss on disposal of fixed assets |
10 |
1,865 |
Interest income |
2,062 |
1,349 |
Interest expense |
(19,743) |
(11,059) |
Income tax expense |
(32,690) |
(19,356) |
Net cash provided by operating
activities |
$24,604 |
$190,488 |
|
|
Consolidated Condensed
Balance Sheets (Unaudited) |
|
|
March 31, 2011 |
December 31, 2010 |
|
(Dollars in thousands) |
Assets |
|
|
Cash and cash equivalents |
$484,371 |
$473,741 |
Receivables - net |
880,066 |
918,828 |
Inventories |
1,334,235 |
1,129,484 |
Deferred income taxes |
75,940 |
80,358 |
Prepaid expenses and other |
78,000 |
61,856 |
Total current assets |
2,852,612 |
2,664,267 |
|
|
|
Goodwill |
949,007 |
927,882 |
Intangible assets - net |
666,419 |
679,131 |
Other assets |
133,169 |
122,397 |
Total other assets |
1,748,595 |
1,729,410 |
Property, plant and equipment - net |
645,334 |
626,151 |
Total assets |
$5,246,541 |
$5,019,828 |
|
|
|
Liabilities and Common Stockholders'
Investment |
|
|
Accounts payable and accrued expenses |
$642,293 |
$746,460 |
Liabilities to customers on uncompleted
contracts and warranties |
467,183 |
322,051 |
Income taxes |
89,969 |
46,386 |
Current maturities of long-term debt and
short-term obligations |
37,553 |
28,113 |
Total current liabilities |
1,236,998 |
1,143,010 |
|
|
|
Deferred income taxes |
95,126 |
92,350 |
Pension and other |
271,350 |
258,010 |
Total long-term liabilities |
366,476 |
350,360 |
Long-term debt, less current maturities |
1,490,038 |
1,487,344 |
Common stockholders' investment |
2,153,029 |
2,039,114 |
Total liabilities and common
stockholders' investment |
$5,246,541 |
$5,019,828 |
|
|
Segment Information
(Unaudited) |
|
|
Quarter Ended March 31,
2011 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total
Assets |
|
(Dollars in thousands) |
Surface mining |
$640,027 |
$101,398 |
$14,746 |
$10,631 |
$3,490,199 |
Underground mining |
269,644 |
22,123 |
8,483 |
5,929 |
1,724,681 |
Total operations |
909,671 |
123,521 |
23,229 |
16,560 |
5,214,880 |
Corporate |
— |
(14,363) |
— |
12,837 |
31,661 |
Consolidated total |
$909,671 |
109,158 |
23,229 |
$29,397 |
$5,246,541 |
Interest income |
|
(2,062) |
— |
|
|
Interest expense |
|
19,743 |
— |
|
|
Other expense |
|
2,453 |
2,453 |
|
|
Earnings before income taxes |
|
$89,024 |
$25,682 |
|
|
|
|
|
|
|
Quarter Ended March 31,
2010 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining (1) |
$397,571 |
$66,588 |
$13,393 |
$4,175 |
$2,878,288 |
Underground mining |
209,954 |
21,268 |
8,558 |
2,549 |
1,470,987 |
Total operations |
607,525 |
87,856 |
21,951 |
6,724 |
4,349,275 |
Corporate |
— |
(21,941) |
— |
— |
— |
Consolidated total |
$607,525 |
65,915 |
21,951 |
$6,724 |
$4,349,275 |
Interest income |
|
(1,349) |
— |
|
|
Interest expense |
|
11,059 |
— |
|
|
Other expense |
|
1,835 |
1,836 |
|
|
Earnings before income taxes |
|
$54,370 |
$23,787 |
|
|
|
|
|
|
|
|
(1) Operating earnings include
inventory fair value adjustments charged to cost of products sold
of $7.0 million. This amount is not included in the
depreciation and amortization column. |
Sales consisted of the following:
|
Quarter Ended March
31, |
|
|
|
2011 |
2010 |
% Change |
|
(Dollars in thousands) |
|
Surface Mining: |
|
|
|
Original equipment |
$324,545 |
$170,169 |
90.7% |
Aftermarket parts and service |
315,482 |
227,402 |
38.7% |
|
640,027 |
397,571 |
61.0% |
Underground Mining: |
|
|
|
Original equipment |
134,733 |
97,826 |
37.7% |
Aftermarket parts and service |
134,911 |
112,128 |
20.3% |
|
269,644 |
209,954 |
28.4% |
Total: |
|
|
|
Original equipment |
459,278 |
267,995 |
71.4% |
Aftermarket parts and service |
450,393 |
339,530 |
32.7% |
|
$909,671 |
$607,525 |
49.7% |
Total sales for the first quarter of 2011 and 2010 were
negatively impacted by the seasonality of aftermarket shipments in
the mining industry in comparison to other quarters throughout the
year. Typically, the first quarter is the slowest quarter in terms
of aftermarket sales. In addition, the flooding in Australia
negatively impacted first quarter 2011 sales. Capacity
utilization at Bucyrus' manufacturing facilities was high during
the first quarter of 2011 resulting in a build-up of
work-in-progress inventory which is expected to be shipped in
future periods.
The increase in surface mining original equipment sales for the
first quarter of 2011 compared to the first quarter of 2010 was
primarily due to increased hydraulic excavator, off-highway haul
truck and electric mining shovel sales. The increase in hydraulic
excavator sales was in the Australian, Mongolian and North African
markets as a result of the continued strength of coal, iron ore and
gold prices. The increase in off-highway haul truck sales was in
the Australian, Chinese and Brazilian markets as a result of higher
demand for coal and iron ore in these markets. The increase in
electric mining shovel sales was in the Indian, Canadian and
Brazilian markets and was driven by continued strong commodity
prices, customers returning to more sustainable levels of capital
expenditures and new shovel technology.
The increase in surface mining aftermarket parts and service
sales for the first quarter of 2011 compared to the first quarter
of 2010 was primarily due to the inclusion of Terex Mining sales
for a partial quarter in 2010. The increase was also due to higher
electric mining shovel part sales in the oil sands region of the
Canadian market.
The increase in underground mining original equipment sales for
the first quarter of 2011 compared to the first quarter of 2010 was
primarily in the longwall product line. This increase was due to
increased sales in the Chinese, United States and Australian
markets due to improving coal prices and growing steel
production.
The increase in underground mining aftermarket parts and service
sales for the first quarter of 2011 compared to the first quarter
of 2010 was primarily in the United States market. The increase in
longwall aftermarket parts and service sales was primarily due to
increased demand as a result of numerous new systems put into
production within the past two years. The increase in room and
pillar aftermarket parts and service sales was primarily due to an
increase in rebuilds and increased demand for transportation
equipment.
Gross profit and gross margin were as follows:
|
Quarter Ended March
31, |
|
|
2011 |
2010 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
Gross profit |
$259,653 |
$175,282 |
48.1% |
Gross margin |
28.5% |
28.9% |
N/A |
Gross margin for the first quarter of 2011 decreased from the
first quarter of 2010 primarily due to the mix of products
sold. Raw material cost increases had a minimal impact on
gross margin for the first quarter of 2011.
Gross profit and gross margin were affected by amortization of
acquisition accounting adjustments related to the acquisition of
Terex Mining as follows:
|
Quarter Ended March
31, |
|
2011 |
2010 |
|
(Dollars in thousands) |
|
|
|
Gross profit increase (reduction) |
$178 |
($6,832) |
Gross margin reduction (percentage
points) |
— |
1.1 |
Operating earnings were as follows:
|
Quarter Ended March
31, |
|
|
2011 |
2010 |
% Change |
|
(Dollars in thousands) |
|
Surface mining |
$101,398 |
$66,588 |
52.3% |
Underground mining |
22,123 |
21,268 |
4.0% |
Total operations |
123,521 |
87,856 |
40.6% |
Corporate |
(14,363) |
(21,941) |
34.5% |
Consolidated total |
$109,158 |
$65,915 |
65.6% |
Operating earnings for the first quarter of 2011 and the first
quarter of 2010 were reduced by $7.0 million and $11.2 million,
respectively, as a result of amortization of acquisition accounting
adjustments related to the acquisition of Terex Mining.
The effective income tax rate for the first quarter of 2011 was
36.7% compared to 35.6% for the first quarter of 2010. The
higher rate in 2011 was primarily due to non-deductible costs
related to the pending merger with Caterpillar Inc. and the rate in
2010 was unfavorably impacted by non-deductible costs related to
the acquisition of Terex Mining.
Net earnings were as follows:
|
Quarter Ended March
31, |
|
|
2011 |
2010 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
Net earnings |
$56,334 |
$35,014 |
60.9% |
Fully diluted net earnings per share |
$0.69 |
$0.45 |
53.3% |
Net earnings were reduced (increased) by amortizations of
acquisition accounting adjustments related to the acquisition of
Terex Mining as follows:
|
Quarter Ended March
31, |
|
2011 |
2010 |
|
(Dollars in thousands) |
|
|
|
Inventory fair value adjustment charged to
cost of products sold |
$— |
$7,019 |
Amortization of intangible assets |
7,276 |
4,462 |
Depreciation of fixed assets. |
(261) |
(234) |
Operating earnings |
7,015 |
11,247 |
Income tax benefit |
(2,445) |
(3,618) |
Total |
$4,570 |
$7,629 |
EBITDA and Adjusted EBITDA were as follows:
|
Quarter Ended March
31, |
|
|
2011 |
2010 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
EBITDA |
$132,387 |
$87,867 |
50.7% |
|
|
|
|
EBITDA as a percent of sales |
14.6% |
14.5% |
N/A |
|
|
|
|
Adjusted EBITDA |
$135,502 |
$112,767 |
20.2% |
|
|
|
|
Adjusted EBITDA as a percent of sales |
14.9% |
18.6% |
N/A |
Capital expenditures for the first quarter of 2011 were $29.4
million. Included in capital expenditures was approximately $7
million related to facility expansions and renovations and
approximately $5 million for the implementation of a global SAP
enterprise resource planning system. Capital expenditures for 2011
are expected to approximate $100 million.
Backlog at March 31, 2011 and December 31, 2010, as well as the
portion of backlog which was then expected to be recognized within
12 months of these dates, was as follows:
|
March 31, 2011 |
December 31, 2010 |
% Change |
|
(Dollars in thousands) |
|
Surface Mining: |
|
|
|
Total |
$2,161,537 |
$1,708,877 |
26.5% |
Next 12 months |
$1,404,961 |
$1,134,105 |
23.9% |
|
|
|
|
Underground Mining: |
|
|
|
Total |
$1,104,062 |
$997,388 |
10.7% |
Next 12 months |
$841,118 |
$752,424 |
11.8% |
|
|
|
|
Total: |
|
|
|
Total |
$3,265,599 |
$2,706,265 |
20.7% |
Next 12 months |
$2,246,079 |
$1,886,529 |
19.1% |
A portion of backlog at March 31, 2011 and December 31, 2010 was
related to multi-year contracts that will generate revenue in
future years.
New orders were as follows:
|
Quarter Ended March
31, |
|
|
2011 |
2010 |
% Change |
|
(Dollars in thousands) |
|
Surface mining: |
|
|
|
Original equipment |
$721,905 |
$168,213 |
329.2% |
Aftermarket parts and service. |
387,782 |
171,197 |
126.5% |
|
1,109,687 |
339,410 |
226.9% |
Underground mining: |
|
|
|
Original equipment |
145,335 |
153,214 |
(5.1%) |
Aftermarket parts and service |
213,983 |
147,014 |
45.6% |
|
359,318 |
300,228 |
19.7% |
Total: |
|
|
|
Original equipment |
867,240 |
321,427 |
169.8% |
Aftermarket parts and service |
601,765 |
318,211 |
89.1% |
|
$1,469,005 |
$639,638 |
129.7% |
The increase in surface mining original equipment new orders for
the first quarter of 2011 compared to the first quarter of 2010 was
primarily due to increased off-highway haul trucks, hydraulic
excavators and dragline new orders. A large order for multiple
off-highway haul trucks, electric mining shovels and draglines in
the Indian market was received in the first quarter of
2011. Other new orders for off-highway haul trucks were
received in the Mongolian and Australian markets. The increase
in hydraulic excavator new orders was primarily in the Australian
market.
The increase in surface mining aftermarket parts and service new
orders for the first quarter of 2011 compared to the first quarter
of 2010 was primarily due to Terex Mining being included for a
partial quarter in 2010 as well as increased new orders in the
Canadian, Indian and Chilean markets. The increase in
Canada was primarily due to dragline rebuild projects in the
Alberta region and large electric mining shovel parts
orders. The increase in India was primarily due to aftermarket
orders received along with new original equipment orders and the
increase in Chile was primarily due to the receipt of a multi-year
maintenance and repair contract in the first quarter of 2011. A
multi-year maintenance and repair contract in the United States
market was canceled in the first quarter of 2010, which reduced new
orders for that period by $29 million.
Total surface mining new orders for the first quarter of 2011
were positively impacted by approximately $22 million due to the
effect of the weaker U.S. dollar on orders and beginning of period
backlog denominated in foreign currencies.
The decrease in underground mining original equipment new orders
for the first quarter of 2011 compared to the first quarter of 2010
was primarily in the room and pillar product line and reflects the
timing of new orders. This decrease was partially offset by an
increase in the belt systems product line as a result of large
projects in China.
The increase in underground mining aftermarket parts and service
new orders for the first quarter of 2011 compared to the first
quarter of 2010 was primarily in the United States market due to a
large longwall rebuild order in the Central Appalachia region in
the first quarter of 2011.
Total underground mining new orders for the first quarter of
2011 were positively impacted by approximately $31 million due to
the effect of the weaker U.S. dollar on orders and beginning of
period backlog denominated in foreign currencies.
Market Conditions
The market for Bucyrus' original equipment is closely correlated
with customer expectations of sustained strength in prices of mined
commodities. Copper and gold prices are at historically high
levels, thermal and especially metallurgical coal prices have
experienced significant price increases in recent periods, oil and
iron ore prices have increased, and all other commodity prices are
holding to positive long-term trend lines. As a result, demand
for virtually all of Bucyrus' original equipment products is
strong. All markets for Bucyrus' original equipment products
currently are strong, particularly Australia (coal and iron ore),
Canada (oil, copper and iron ore), China (coal), Eastern Europe
(coal), India (coal), South Africa (coal), South America (copper
and iron ore) and the United States iron ore
market.
The size of Bucyrus' installed base of surface mining and
underground mining original equipment (approximately $34 billion
and $10 billion, respectively) provides the foundation for its
aftermarket activities. In the surface mining segment, Australia
and Canada remain strong markets for Bucyrus aftermarket parts and
services. Sales growth is expected in the United States market
as electric mining shovels are coming into the life cycle stage
where orders for aftermarket parts and service are expected to
increase. In the underground segment, demand for aftermarket parts
and services is expected to increase from 2010
levels.
Pending Merger with Caterpillar Inc.
The previously announced transaction with Caterpillar Inc. is
expected to close in mid-2011, subject to the completion of certain
competition agency reviews and the satisfaction of other customary
conditions to closing.
Special Note Regarding Online Availability of Bucyrus
Releases and Filings
All Bucyrus financial news releases and SEC filings are posted
to Bucyrus' website, www.bucyrus.com. Automatic email alerts
for these postings, corporate and general releases as well as
product information also are available at www.bucyrus.com.
Forward-Looking Statements and Cautionary
Factors
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements may be identified by the use of predictive, future tense
or forward-looking terminology, such as "believes," "anticipates,"
"expects," "estimates," "intends," "may," "will" or similar
terms. You are cautioned that any such forward-looking
statements are not guarantees of future performance and involve
significant risks and uncertainties, and that actual results may
differ materially from those contained in the forward-looking
statements as a result of various factors, some of which are
unknown. The factors that could cause actual results to differ
materially from those anticipated in such forward-looking
statements and could adversely affect Bucyrus' actual results of
operations and financial condition include, without limitation:
- events, regulatory factors or other circumstances related to
the merger agreement with Caterpillar Inc.;
- the cyclical nature of the sale of original equipment due to
fluctuations in market prices for coal, copper, oil, iron ore and
other minerals, changes in general economic conditions, changes in
interest rates, changes in customers' replacement or repair cycles,
consolidation in the mining industry and competitive
pressures;
- changes in global financial markets and global economic
conditions;
- customers deferring, delaying or canceling capital investments
due to volatility and tightening of credit markets, unprecedented
financial market conditions and a global recession;
- disruption of plant operations due to equipment failures,
natural disasters or other reasons;
- dependence on the commodity price of coal and other conditions
in the coal market;
- the highly competitive nature of the mining industry;
- reliance on significant customers;
- the loss of key customers or key members of management;
- the risks and uncertainties of doing business in foreign
countries, including emerging markets, and foreign currency
risks;
- costs and risks associated with regulatory compliance and
changing regulations affecting the mining industry and/or electric
utilities;
- the ability to attract and retain skilled labor;
- the ability to continue to offer products containing innovative
technology that meets the needs of customers;
- work stoppages at the company, its customers, its suppliers or
providers of transportation;
- the ability to protect intellectual property;
- the availability of operating cash to service indebtedness,
including the substantial indebtedness incurred to acquire Terex
Mining;
- customers' inability to obtain loan guarantees or other credit
enhancements or financing.
- reliance on local partners in foreign countries;
- liabilities relating to Terex Mining which are unknown;
- dependence on Terex Mining internal control systems for
compliance with Section 404 of the Sarbanes-Oxley Act of 2002;
- entering into a new line of business and new geographic markets
in which certain competitors have substantially more experience
than the company does as a result of our acquisition of Terex
Mining;
- the ability to successfully implement a new enterprise resource
planning system in the surface segment;
- the ability to satisfy underfunded pension and postretirement
obligations;
- production capacity;
- product liability, environmental and other potential
litigation; and
- the ability to purchase component parts or raw materials from
key suppliers at acceptable prices and/or on the required time
schedule.
The foregoing factors do not constitute an exhaustive list of
factors that could cause actual results to differ materially from
those anticipated in forward-looking statements, and should be read
in conjunction with the other cautionary statements and risk
factors included in Bucyrus' Form 10-K for the year ended December
31, 2010 as filed with the Securities and Exchange Commission on
March 1, 2011. All forward-looking statements attributable to
Bucyrus are expressly qualified in their entirety by the foregoing
cautionary statements. Bucyrus undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or
otherwise.
CONTACT: Shelley Hickman, Director -
Global Communications
Tel: 414-768-4599 Fax: 414-768-5211
shickman@bucyrus.com www.bucyrus.com
Bucyrus (NASDAQ:BUCY)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Bucyrus (NASDAQ:BUCY)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024