Exhibit 99.1
Barnes Group Inc. Corporate Office Bristol, CT 06010 Tel: (860) 583-7070 |
Brian D. Koppy Investor Relations (860) 973-2126 | |
Stephen J. McKelvey Corporate Communications (860) 973-2132 |
BARNES GROUP INC. ANNOUNCES RECORD
FOURTH QUARTER AND FULL YEAR 2006 FINANCIAL RESULTS
· | 2006 annual net sales rise 14 percent to a record $1.3 billion. |
· | 2006 operating income increases 57 percent to $117 million, on an adjusted basis |
· | Net income up 54 percent from adjusted full year 2005; comparable diluted EPS up 42 percent |
· | Fourth quarter operating income increases 86 percent to $29.6 million |
Bristol, Connecticut, February 15, 2007---Barnes Group Inc. (NYSE: B) today announced record financial results for the quarter and year ended December 31, 2006. For the full year 2006, Barnes Group’s net sales were $1.3 billion, up 14 percent from $1.1 billion in 2005. Operating income increased 57 percent to $117.0 million, for the full year 2006, from an adjusted $74.6 million in 2005. Net income for the full year 2006 was $73.8 million or $1.39 per diluted share, up 54 percent from an adjusted $47.9 million or $0.98 per diluted share in 2005.
References in this release to the full year 2005 adjusted net income, adjusted net income per diluted share, and adjusted operating income are non-GAAP financial measures which are detailed on the non-GAAP financial reconciliations at the end of the press release.
Net sales for the fourth quarter 2006 were $328.8 million, up 19 percent from $276.4 million in the fourth quarter 2005. Operating income increased 86 percent to $29.6 million in the fourth quarter 2006 from $16.0 million in the same period last year. Net income in the fourth quarter increased 83 percent to $18.5 million, or $0.34 per diluted share, as compared to net income of $10.1 million or $0.20 per diluted share, in the previous fourth quarter, excluding the cumulative effect of a change in accounting principle.
“Barnes Group continued its sound performance in the fourth quarter. All three of our business units generated double-digit sales growth. Operating income grew as a result of our operational improvements and continued benefits from strategic acquisitions and alliances,” said Gregory F. Milzcik, President and Chief Executive Officer, Barnes Group Inc. “Our full year 2006 results provide us with the momentum to build upon our initiatives to achieve continued growth for Barnes Group and increased value for our stockholders.”
“As we enter 2007, Barnes Group is well positioned for continued growth. The Company’s targeted earnings for the full year 2007 are in the range of $1.53 to $1.60 per dilute share, which is in line with our
Barnes Group Inc. / 2
objective of achieving over time an average of 10 percent to 15 percent annual earnings per share growth,” said William C. Denninger, Senior Vice President, Finance and Chief Financial Officer, Barnes Group Inc.
Fourth quarter 2006 sales at Barnes Distribution were $141.6 million, up 26 percent from $112.8 million in the same period last year. Driving the fourth quarter 2006 sales growth were broad-based increases in Barnes Distribution North America, including double-digit increases in Corporate and Tier II accounts, and gains in Europe and the Raymond division. Barnes Distribution Europe’s fourth quarter sales were positively impacted by $20.8 million from the second quarter acquisition of KENT. Foreign exchange positively affected sales by $1.9 million in the fourth quarter.
Operating profit in the fourth quarter for Barnes Distribution was $4.5 million, up 9 percent from $4.2 million in the fourth quarter of 2005. Operating profits benefited from higher sales volume and a reduction of distribution costs as a percentage of sales and a $1.5 million gain on the sale of a distribution facility in Canada. Results were adversely affected by KENT integration activities, which resulted in a $1.7 million severance charge for the planned closure of a distribution center in France.
Full year 2006 sales at Barnes Distribution were $526.9 million, up 16% from $453.8 million in 2005. Operating profit in 2006 was up 52 percent to $31.5 million, compared to an adjusted 2005 operating profit of $20.8 million. The increase in operating profit was primarily due to higher sales volume and contributions from acquisitions.
“Barnes Distribution surpassed $500 million in sales for the first time,” said Idelle K. Wolf, President, Barnes Distribution. “We achieved this significant milestone by a sustained focus on customer service and strategic initiatives.”
Fourth quarter 2006 sales at Associated Spring were $110.9 million, up 10 percent, from $101.1 million in the fourth quarter of 2005. Included in this sales increase were $7.2 million from the recently acquired Heinz Hänggi GmbH and a $2.6 million favorable impact from foreign exchange. End market sales continued to benefit from strong momentum in telecommunications and heavy duty truck. Associated Spring’s sales within the transportation and industrial markets were essentially flat, excluding the Heinz Hänggi acquisition.
Operating profit was up 190 percent to $13.0 million in the fourth quarter 2006, from $4.5 million in the comparable 2005 quarter. Operating profit in the fourth quarter was positively impacted by contributions from Heinz Hänggi, gross margin improvements and cost containment initiatives.
For all of 2006, sales at Associated Spring were $445.9 million, up 6 percent from $422.4 million in 2005. Operating profit increased 50 percent to $42.9 million, compared to a 2005 operating profit of $28.6 million. Driving this increase were improvements in traditional operations and profit contributions from the recent acquisition of Heinz Hänggi.
“Associated Spring’s fourth quarter results reflect the benefits of our continuing operational improvements throughout the organization,” said Jerry W. Burris, President, Associated Spring. “We are committed to profitable sales growth and improving operational efficiencies in 2007.”
Fourth quarter 2006 sales at Barnes Aerospace were $78.8 million, up 23 percent from $64.2 million in the comparable 2005 quarter as original equipment manufacturer (OEM) and aftermarket sales increased 10 percent and 58 percent, respectively.
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Barnes Aerospace generated orders of $113.7 million in the fourth quarter, up 46 percent from $77.7 million in the same period last year. Commercial OEM orders were $58.4 million and military orders were $26.6 million in the fourth quarter of 2006. Order backlog was $403.0 million, up 10 percent from September 30, 2006.
Operating profit increased 66 percent in the fourth quarter 2006 to $12.2 million, up from $7.3 million in the same period last year. The increase in operating profit was positively impacted by higher sales volume and an increased percentage of higher margin aftermarket activity.
For all of 2006, sales at Barnes Aerospace were $296.9 million, up 26 percent from $235.4 million for the full year 2005. Operating profit for 2006 increased 67 percent to $42.7 million, compared to $25.5 million in 2005.
“Barnes Aerospace achieved another year of solid results in 2006 with historical highs in sales, orders, backlog and operating profit,” said Patrick J. Dempsey, President, Barnes Aerospace. “Barnes Aerospace’s accelerated growth is driven by our continued pursuit of a portfolio strategy that maintains our focus on key aerospace platforms and operational efficiencies that drive sustainable profitable growth.”
“This year, Barnes Group is celebrating the150th anniversary of its founding. Barnes Group has a history of innovation and technological advances in manufacturing and distribution. A business that began as a small manufacturer in Bristol, Connecticut, USA, has become a diversified world leader in engineering and manufacturing of precision industrial components, and a distributor of a broad range of maintenance, repair, operating and production supplies. Though the markets and the environments have changed through the years, Barnes Group’s talented employees and culture of innovation have enabled the Company to serve its customers for a century and a half,” commented Milzcik.
Celebrating its 150th anniversary in 2007, Barnes Group Inc. (NYSE:B) is an international diversified aerospace and industrial components manufacturing and distribution company focused on achieving consistent, sustainable and predictable results. Founded in 1857, Barnes Group consists of three businesses: Barnes Distribution, Associated Spring and Barnes Aerospace. Over 6,600 dedicated employees at more than 65 locations worldwide contribute to Barnes Group Inc.’s success. The Company has paid cash dividends to stockholders on a continuous basis since 1934. For more information, visit www.barnesgroupinc.com.
This release may contain certain forward-looking statements as defined in the Private Securities Litigation and Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in the forward-looking statements. The risks and uncertainties, which are described in our periodic filings with the Securities and Exchange Commission, include, among others, uncertainties arising from the behavior of financial markets; future financial performance of the industries or customers that we serve; changes in market demand for our products and services; integration of acquired businesses; changes in raw material prices and availability; our dependence upon revenues and earnings from a small number of significant customers; uninsured claims; and numerous other matters of global, regional or national scale, including those of a political, economic, business, competitive, regulatory and public health nature. The Company assumes no obligation to update our forward-looking statements.
# # #
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BARNES GROUP INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) Unaudited | |||||||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||||||
2006 | 2005 | % Change | 2006 | 2005 | % Change | ||||||||||||||
(note 1) | (note 1) | ||||||||||||||||||
Net sales | $ | 328,830 | $ | 276,406 | 19 | $ | 1,259,656 | $ | 1,102,174 | 14 | |||||||||
Cost of sales (note 2) | 204,976 | 178,916 | 15 | 797,472 | 705,488 | 13 | |||||||||||||
Selling and administrative expenses | 94,209 | 81,533 | 16 | 345,148 | 320,301 | 8 | |||||||||||||
299,185 | 260,449 | 15 | 1,142,620 | 1,025,789 | 11 | ||||||||||||||
Operating income | 29,645 | 15,957 | 86 | 117,036 | 76,385 | 53 | |||||||||||||
Operating margin | 9.0 | % | 5.8 | % | 9.3 | % | 6.9 | % | |||||||||||
Other income (note 3) | 325 | 384 | (15 | ) | 1,181 | 10,449 | (89 | ) | |||||||||||
Interest expense | 6,785 | 4,659 | 46 | 23,691 | 17,551 | 35 | |||||||||||||
Other expenses | 590 | 416 | 42 | 1,284 | 1,132 | 14 | |||||||||||||
Income before income taxes and cumulative effect of a change in accounting principle | 22,595 | 11,266 | NM | 93,242 | 68,151 | 37 | |||||||||||||
Income taxes (note 2, 3 and 4) | 4,091 | 1,179 | NM | 19,397 | 13,609 | 43 | |||||||||||||
Income before cumulative effect of a change in accounting principle | 18,504 | 10,087 | 83 | 73,845 | 54,542 | 35 | |||||||||||||
Cumulative effect of a change in accounting principle, net of $190 of income taxes (note 5) | - - | (391 | ) | NM | - - | (391 | ) | NM | |||||||||||
Net income | $ | 18,504 | $ | 9,696 | 91 | $ | 73,845 | $ | 54,151 | 36 | |||||||||
Common Dividends | $ | 6,543 | $ | 5,275 | 24 | $ | 24,803 | $ | 19,879 | 25 | |||||||||
Per common share: (note 6) | |||||||||||||||||||
Net income per share - basic: | |||||||||||||||||||
Income before change in accounting principle | $ | 0.35 | $ | 0.21 | 67 | $ | 1.46 | $ | 1.16 | 26 | |||||||||
Cumulative effect of change in accounting principle, net of tax | - - | (0.01 | ) | NM | - - | (0.01 | ) | NM | |||||||||||
Net income | $ | 0.35 | $ | 0.20 | 75 | $ | 1.46 | $ | 1.15 | 27 | |||||||||
Net income per share - diluted: | |||||||||||||||||||
Income before change in accounting principle | $ | 0.34 | $ | 0.20 | 70 | $ | 1.39 | $ | 1.11 | 25 | |||||||||
Cumulative effect of change in accounting principle, net of tax | - - | (0.01 | ) | NM | - - | (0.01 | ) | NM | |||||||||||
Net income | $ | 0.34 | $ | 0.19 | 79 | $ | 1.39 | $ | 1.10 | 26 | |||||||||
Dividends | $ | 0.125 | $ | 0.110 | 14 | $ | 0.485 | $ | 0.420 | 16 | |||||||||
Average common shares outstanding: | |||||||||||||||||||
Basic | 52,230,649 | 47,800,602 | 9 | 50,702,992 | 47,197,650 | 7 | |||||||||||||
Diluted | 54,509,396 | 49,853,582 | 9 | 52,943,494 | 49,018,382 | 8 |
NM- not meaningful
Footnotes:
(1) Adjusted to reflect the change in accounting for stock-based compensation in accordance with SFAS 123R.
(2) Full year 2005 cost of sales includes a $1,814 ($1,141 after tax, or $0.02 diluted EPS) positive adjustment related to accounts payable.
(3) Full year 2005 other income includes the $8,892 gain ($4,030 after tax, or $0.08 diluted EPS) on the sale of the NASCO investment.
(4) Full year 2005 taxes include a $2,553 benefit ($0.05 diluted EPS) of which $1,473 ($0.03 diluted EPS) relates to prior years, relating to the granting of Pioneer tax status in Singapore.
(5) In the fourth quarter of 2005, the Company adopted FIN No. 47, "Accounting for Conditional Asset Retirement Obligations," resulting in a change of $391, net of taxes, or $0.01 per share.
(6) All per share amounts have been adjusted to reflect the effect of the 2-for-1 stock split in the second quarter of 2006.
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BARNES GROUP INC. OPERATIONS BY REPORTABLE BUSINESS SEGMENT (Dollars in thousands) Unaudited | |||||||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||||||
2006 | 2005 | % Change | 2006 | 2005 | % Change | ||||||||||||||
Net Sales | |||||||||||||||||||
Barnes Distribution | $ | 141,586 | $ | 112,848 | 26 | $ | 526,901 | $ | 453,754 | 16 | |||||||||
Associated Spring | 110,888 | 101,120 | 10 | 445,947 | 422,403 | 6 | |||||||||||||
Barnes Aerospace | 78,839 | 64,183 | 23 | 296,887 | 235,420 | 26 | |||||||||||||
Intersegment sales | (2,483 | ) | (1,745 | ) | (42 | ) | (10,079 | ) | (9,403 | ) | (7 | ) | |||||||
Total net sales | $ | 328,830 | $ | 276,406 | 19 | $ | 1,259,656 | $ | 1,102,174 | 14 | |||||||||
Operating profit (note 1) | |||||||||||||||||||
Barnes Distribution (note 2) | $ | 4,531 | $ | 4,175 | 9 | $ | 31,530 | $ | 22,566 | 40 | |||||||||
Associated Spring | 12,997 | 4,480 | NM | 42,909 | 28,576 | 50 | |||||||||||||
Barnes Aerospace | 12,164 | 7,348 | 66 | 42,658 | 25,497 | 67 | |||||||||||||
Total operating profit | 29,692 | 16,003 | 86 | 117,097 | 76,639 | 53 | |||||||||||||
Interest income | 278 | 310 | (10 | ) | 1,070 | 1,213 | (12 | ) | |||||||||||
Interest expense | (6,785 | ) | (4,659 | ) | 46 | (23,691 | ) | (17,551 | ) | 35 | |||||||||
Other income (expense), net (note 3) | (590 | ) | (388 | ) | 52 | (1,234 | ) | 7,850 | NM | ||||||||||
Income before income taxes | $ | 22,595 | $ | 11,266 | NM | $ | 93,242 | $ | 68,151 | 37 |
NM- not meaningful
Footnotes:
(1) Adjusted to reflect the change in accounting for stock-based compensation in accordance with SFAS 123R.
(2) Barnes Distribution full year 2005 operating profit includes a $1,814 positive adjustment to accounts payable.
(3) Full year 2005 other income includes the $8,892 gain on the April sale of the NASCO investment.
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BARNES GROUP INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) Unaudited | |||||||
Assets | December 31, 2006 | December 31, 2005 | |||||
Current assets | (note 1) | ||||||
Cash and cash equivalents | $ | 35,360 | $ | 28,112 | |||
Accounts receivable | 190,775 | 155,595 | |||||
Inventories | 198,960 | 159,238 | |||||
Deferred income taxes | 24,923 | 24,563 | |||||
Prepaid expenses | 11,196 | 11,157 | |||||
Total current assets | 461,214 | 378,665 | |||||
Deferred income taxes | 23,544 | 22,478 | |||||
Property, plant and equipment, net | 209,645 | 157,056 | |||||
Goodwill | 358,600 | 235,299 | |||||
Other intangible assets, net | 236,561 | 163,849 | |||||
Other assets | 46,887 | 48,513 | |||||
Total assets | $ | 1,336,451 | $ | 1,005,860 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Notes payable | $ | 5,600 | $ | 4,000 | |||
Accounts payable | 141,345 | 120,158 | |||||
Accrued liabilities | 102,951 | 93,615 | |||||
Long-term debt-current | 45,164 | 40,084 | |||||
Total current liabilities | 295,060 | 257,857 | |||||
Long-term debt | 376,318 | 241,941 | |||||
Accrued retirement benefits | 114,757 | 88,036 | |||||
Other liabilities | 30,521 | 16,869 | |||||
Stockholders' equity | 519,795 | 401,157 | |||||
Total liabilities and stockholders' equity | $ | 1,336,451 | $ | 1,005,860 |
Footnote:
(1) Periods prior to 1/1/06 adjusted to reflect the change in accounting for stock-based compensation in accordance with SFAS 123R.
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BARNES GROUP INC. NON-GAAP FINANCIAL MEASURE RECONCILIATION (Dollars in thousands, except per share data) Unaudited | ||||||||||
Following is a reconciliation of results excluding adjustments to the Company's reported results: | ||||||||||
Year ended December 31, 2005 | ||||||||||
As reported | Adjustments | As adjusted | ||||||||
(note 1) | ||||||||||
Net sales | ||||||||||
Barnes Distribution | $ | 453,754 | $ | 453,754 | ||||||
Associated Spring | 422,403 | 422,403 | ||||||||
Barnes Aerospace | 235,420 | 235,420 | ||||||||
Intersegment sales | (9,403 | ) | (9,403 | ) | ||||||
Total net sales | $ | 1,102,174 | $ | 1,102,174 | ||||||
Operating profit | ||||||||||
Barnes Distribution (note 2) | $ | 22,566 | $ | (1,814 | ) | $ | 20,752 | |||
5.0 | % | 4.6 | % | |||||||
Associated Spring | 28,576 | 28,576 | ||||||||
6.8 | % | 6.8 | % | |||||||
Barnes Aerospace | 25,497 | 25,497 | ||||||||
10.8 | % | 10.8 | % | |||||||
Total operating profit | $ | 76,639 | $ | (1,814 | ) | $ | 74,825 | |||
Consolidated results: | ||||||||||
Net sales | $ | 1,102,174 | $ | 1,102,174 | ||||||
Cost of sales (note 2) | 705,488 | $ | 1,814 | 707,302 | ||||||
Selling and administrative expenses | 320,301 | 320,301 | ||||||||
1,025,789 | 1,814 | 1,027,603 | ||||||||
Operating income | 76,385 | (1,814 | ) | 74,571 | ||||||
Operating margin | 6.9 | % | 6.8 | % | ||||||
Other income (note 4) | 10,449 | (8,892 | ) | 1,557 | ||||||
Interest expense | 17,551 | 17,551 | ||||||||
Other expenses | 1,132 | 1,132 | ||||||||
Income before income taxes | 68,151 | (10,706 | ) | 57,445 | ||||||
Income taxes (notes 2, 3 and 4) | 13,609 | (4,062 | ) | 9,547 | ||||||
Income before cumulative effect of a change in accounting principle | 54,542 | (6,644 | ) | 47,898 | ||||||
Cumulative effect of a change in accounting principle, net of income taxes of $190 (note 5) | (391 | ) | 391 | - | ||||||
Net income | $ | 54,151 | $ | (6,253 | ) | $ | 47,898 | |||
Net income per common share - diluted | $ | 1.10 | $ | (0.12 | ) | $ | 0.98 | |||
Footnotes: | |||||||||||
(1) Periods prior to January 1, 2006 have been adjusted to reflect the change in accounting for stock-based compensation in accordance with SFAS No. 123R. All per-share amounts have been adjusted to reflect the effect of the 2-for-1 stock split in the second quarter of 2006. | |||||||||||
The Company has presented certain financial measurements, excluding certain discrete items. These discrete items include: | |||||||||||
(2) As part of management's ongoing internal control assessment, during the third quarter of 2005, the Company identified and recorded an adjustment to accounts payable and cost of sales at Barnes Distribution. The Company determined that cost of sales was overstated in prior periods due to inaccuracies in recording inventory receipts from 2000 through 2005. This overstatement was corrected in the third quarter of 2005 as a reduction to cost of sales of $1,814. The after-tax effect of this adjustment was $1,141, or $0.02 per diluted share. Management concluded that such corrections were immaterial, both quantitatively and qualitatively, to the 2005 financial statements and to the previously reported results of the prior years to which they relate. | |||||||||||
(3) During the third quarter of 2005, the Company was granted Pioneer tax status in Singapore and recorded retroactive tax benefits of which $1,473, or $0.03 per diluted share, related to periods prior to January 1, 2005. | |||||||||||
(4) During the second quarter of 2005, the Company sold its 45 percent interest in NHK-Associated Spring Suspension Components Inc. ("NASCO"), resulting in a pre-tax gain of $8,892 and an after-tax gain of $4,030, or $0.08 per diluted share. | |||||||||||
(5) In the fourth quarter of 2005, the Company adopted FIN No. 47, "Accounting for Conditional Asset Retirement Obligations," resulting in a charge of $391, net of taxes, or $0.01 per diluted share. | |||||||||||
These adjustments represent discrete items and an out-of-period adjustment. Management believes that providing results, excluding these items, is useful to investors when comparing year-over-year results of operations. Management does not intend results excluding these adjustments to represent results as defined by GAAP, and the reader should not consider it as an alternative measurement calculated in accordance with GAAP or as an indicator of the Company's operating performance. Accordingly, the measurements have limitations depending on their use. |
Barnes Group Inc. / 8
BARNES GROUP INC. NON-GAAP FINANCIAL MEASURE RECONCILIATION (Dollars in thousands, except per share data) Unaudited | ||||||||||||||||
Following is a reconciliation of results excluding certain adjustments to the Company's reported results: | ||||||||||||||||
Three months ended | ||||||||||||||||
March 31, 2005 | June 30, 2005 | September 30, 2005 | December 31, 2005 | Full year 2005 | ||||||||||||
Net income per common share - diluted, as reported (note 1) | $ | 0.24 | $ | 0.36 | $ | 0.31 | $ | 0.19 | $ | 1.10 | ||||||
Cumulative effect of change in accounting principle (note 2) | - | - | - | 0.01 | 0.01 | |||||||||||
Accounts payable adjustment (note 3) | - | - | (0.02 | ) | - | (0.02 | ) | |||||||||
Singapore tax benefit - prior year (note 4) | - | - | (0.03 | ) | - | (0.03 | ) | |||||||||
Singapore tax benefit - reclassification (note 4) | 0.01 | 0.01 | (0.02 | ) | - | - | ||||||||||
Gain on sale of NASCO (note 5) | - | (0.08 | ) | - | - | (0.08 | ) | |||||||||
Net income per common share - diluted, excluding cumulative effect of change in accounting principle and adjustments | $ | 0.25 | $ | 0.29 | $ | 0.24 | $ | 0.20 | $ | 0.98 |
Footnotes: | ||||||||
(1) Periods prior to January 1, 2006 have been adjusted to reflect the change in accounting for stock-based compensation in accordance with SFAS No. 123R. All per-share amounts have been adjusted to reflect the effect of the 2-for-1 stock split in the second quarter of 2006. | ||||||||
The Company has presented certain per share financial measurements, excluding the cumulative effect of a change in accounting principle, a positive adjustment related to accounts payable, certain retroactive tax benefits and the gain on the sale of NASCO as follows: | ||||||||
(2) In the fourth quarter of 2005, the Company adopted FIN No. 47, "Accounting for Conditional Asset Retirement Obligations," resulting in a charge of $391, or $0.01 per diluted share, net of taxes. | ||||||||
(3) As part of management's ongoing internal control assessment, during the third quarter of 2005, the Company identified and recorded an adjustment to accounts payable and cost of sales at Barnes Distribution. The Company determined that cost of sales was overstated in prior periods due to inaccuracies in recording inventory receipts from 2000 through 2005. This overstatement was corrected in the third quarter of 2005 as a reduction to cost of sales of $1,814. The after-tax effect of this adjustment was $1,141, or $0.02 per diluted share. Management concluded that such corrections were immaterial, both quantitatively and qualitatively, to the 2005 financial statements and to the previously reported results of the prior years to which they relate. | ||||||||
(4) During the third quarter of 2005, the Company was granted Pioneer tax status in Singapore and recorded retroactive tax benefits of $2,553 of which $1,473, or $0.03 per diluted share, related to periods prior to January 1, 2005 and $1,080, or $0.02 per diluted share, related to the first half of 2005 ($0.01 in each of the first and second quarters of 2005). | ||||||||
(5) During the second quarter of 2005, the Company sold its 45 percent interest in NHK-Associated Spring Suspension Components Inc. ("NASCO"), resulting in a pre-tax gain of $8,892 and an after-tax gain of $4,030, or $0.08 per diluted share. | ||||||||
These adjustments represent discrete items and an out-of-period adjustment. Management believes that providing results excluding these items is useful to investors when comparing year-over-year results of operations. Management does not intend results excluding the adjustments to represent results as defined by GAAP, and the reader should not consider it as an alternative measurement calculated in accordance with GAAP, or as an indicator of the Company's operating performance. Accordingly, the measurements have limitations depending on their use. |