MANCHESTER, Conn., Aug. 1, 2013 (GLOBE NEWSWIRE) -- LYDALL, INC. (NYSE:LDL) today announced financial results for the second quarter and six months ended June 30, 2013.
Second Quarter 2013 ("Q2 2013") highlights compared to Second Quarter 2012 ("Q2 2012")
Net sales for Q2 2013 increased $3.5 million, or 3.6%, compared to Q2 2012, primarily from higher sales volumes in the Thermal/Acoustical Metals ("T/A Metals") and Thermal/Acoustical Fibers ("T/A Fibers") segments of $3.2 million and $3.0 million, respectively, and to a lesser extent, improved Life Sciences – Vital Fluids net sales (included in Other Products and Services) of $0.5 million, which were partially offset by lower net sales in the Performance Materials segment of $3.6 million. The increase in net sales for the T/A Metals segment was primarily due to greater tooling revenues of $3.0 million in North America and Europe to support the launch of new vehicle platforms. The T/A Fibers segment continued to benefit from increased production of vehicles on Lydall's platforms in North America, which contributed to higher fiber automotive parts net sales of $2.3 million in Q2 2013 compared to Q2 2012. The remaining increase in T/A Fibers net sales was attributable to tooling. Lower net sales for the Performance Materials segment in Q2 2013 were primarily due to lower industrial thermal insulation product net sales of $2.5 million, including a reduction of $1.5 million in net sales of electrical paper products attributable to the divestiture of a product line in a prior year, and lower net sales of life sciences products of $0.8 million in Q2 2013 compared to Q2 2012.
Operating income in Q2 2013 was $9.5 million, or 9.4% of net sales, compared to operating income of $8.7 million, or 9.0% of net sales, in Q2 2012. This increase of $0.8 million was driven primarily by the T/A Fibers segment that reported an increase of $2.1 million, due to higher sales volume and improved gross margin from lower raw material costs, reductions in scrap, material usage and labor costs. T/A Metals segment operating income increased by $0.4 million in Q2 2013 compared to Q2 2012, primarily due to higher gross margin from automotive parts from lower raw material costs and improved scrap and material usage rates that were partially offset by the mix between higher margin automotive parts and lower margin tooling. Performance Materials segment operating income was $3.3 million in Q2 2013, a reduction of $1.7 million compared to Q2 2012, primarily due to lower net sales. Also, Q2 2012 included a gain of $0.4 million from services completed under a license agreement.
Dale Barnhart, President and Chief Executive Officer, stated, "Overall, I am pleased with Lydall's results for the second quarter of 2013 as our consolidated operating margin was at the highest level of any quarterly period in recent history. We continue to benefit from strong demand for our T/A Fibers automotive parts in North America on existing platforms and new platform launches. This quarter we also saw improvement in European demand for Lydall's T/A Metals automotive parts and industrial filtration products in our Performance Materials segment compared to the first quarter of 2013.
"In the third quarter of 2013, we expect favorable conditions to continue in the North American automotive market and anticipate demand to be consistent with the first half of 2013. In the Performance Materials segment, we anticipate that positive trends in volume in both North America and Europe will continue."
Lydall will host a conference call today at 11:00 a.m. Eastern Time to discuss results for its second quarter and six months ended June 30, 2013 as well as general matters related to its businesses and markets. The call may be accessed at (888) 317-6016, from within the U.S., or (412) 317-6016, internationally, and will be webcast live on the Company's web site www.lydall.com under the Investor Relations' section. A recording of the call will be available from 1:00 p.m. Eastern Time on August 1, 2013 through 9:00 a.m. Eastern Time, Friday August 9, 2013 at (877) 344-7529, from within the U.S., or (412) 317-0088, internationally, conference number 10031971. Also, additional information including a presentation outlining key financial data supporting today's conference call can be found on the Company's website www.lydall.com under the Investor Relations' section.
Lydall, Inc. is a New York Stock Exchange listed company, headquartered in Manchester, Connecticut. The Company, with operations in the U.S., France, the Netherlands and Germany and sales offices in the U.S., Europe, and Asia, focuses on manufacturing specialty engineered products for the thermal/acoustical, filtration/separation and bio/medical markets. Lydall(R) is a registered trademark of Lydall, Inc. in the U.S. and other countries. All product names are trademarks of Lydall, Inc. or Charter Medical, Ltd.
Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management's current expectations for the future operating and financial performance of the Company based on current expectations and assumptions relating to the Company's business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as "believes," "anticipates," "may," "should," "will," "plans," "projects," "expects," "estimates," "forecasts," "predicts," "targets," "prospects", "strategy," "signs," and other words of similar meaning in connection with the discussion of future operating or financial performance. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others, worldwide economic cycles that affect the markets which the Company's businesses serve which could have an effect on demand for the Company's products and impact the Company's profitability, disruptions in the global credit and financial markets, including diminished liquidity and credit availability, swings in consumer confidence and spending, unstable economic growth, raw material pricing and supply issues, fluctuations in unemployment rates, and increases in fuel prices, which could cause economic instability and could have a negative impact on the Company's results of operations and financial condition. Accordingly, the Company's actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our filings with the Securities and Exchange Commission, including the risks and uncertainties identified in Part I, Item 1A - Risk Factors of Lydall's Annual Report on Form 10-K for the year ended December 31, 2012.
These forward-looking statements speak only as of the date of this press release, and Lydall does not assume any obligation to update or revise any forward-looking statement made in this press release or that may from time to time be made by or on behalf of the Company. Information may also be obtained from the Company Contact: David D. Glenn, Director of Business Development and Investor Relations, One Colonial Road, Manchester, CT 06042; Telephone 860-646-1233, email: email@example.com.
|Summary of Operations|
|In thousands except per share data|
|Quarter Ended||Six Months Ended|
|June 30,||June 30,|
|Net sales||$ 101,051||$ 97,535||$ 200,080||$ 194,289|
|Cost of sales||78,014||75,542||155,678||153,055|
|Selling, product development and administrative expenses||13,516||13,655||28,364||27,899|
|Gain on sale of product line||--||(405)||--||(810)|
|Other expense (income), net||18||(27)||60||16|
|Income before income taxes||9,427||8,683||15,824||13,952|
|Income tax expense||3,472||2,091||5,377||3,448|
|Net income||$ 5,955||$ 6,592||$ 10,447||$ 10,504|
|Earnings per share:|
|Basic||$ 0.36||$ 0.39||$ 0.63||$ 0.63|
|Diluted||$ 0.35||$ 0.39||$ 0.62||$ 0.62|
|Weighted average number of common shares outstanding||16,612||16,770||16,674||16,799|
|Weighted average number of common shares and equivalents outstanding||16,831||16,962||16,927||16,939|
|Summary of Segment Information and Other Products|
|(Unaudited)||Quarter Ended||Six Months Ended|
|June 30,||June 30,|
|Performance Materials Segment||$ 28,968||$ 32,523||$ 56,451||$ 61,611|
|Thermal/Acoustical Metals Segment||40,920||37,685||81,122||79,798|
|Thermal/Acoustical Fibers Segment||27,959||24,910||55,886||47,082|
|Other Products and Services:|
|Life Sciences Vital Fluids||4,263||3,749||8,570||7,980|
|Eliminations and Others||(1,059)||(1,332)||(1,949)||(2,182)|
|Consolidated Net Sales||$ 101,051||$ 97,535||$ 200,080||$ 194,289|
|Performance Materials Segment||$ 3,271||$ 4,982||$ 4,548||$ 7,102|
|Thermal/Acoustical Metals Segment||4,431||4,050||7,449||9,117|
|Thermal/Acoustical Fibers Segment||5,432||3,382||11,586||5,611|
|Other Products and Services:|
|Life Sciences Vital Fluids||125||211||481||520|
|Corporate Office Expenses||(3,738)||(3,882)||(8,026)||(8,205)|
|Consolidated Operating Income||$ 9,521||$ 8,743||$ 16,038||$ 14,145|
|In thousands except ratio data||June 30, 2013||December 31, 2012|
|Cash and cash equivalents||$ 58,542||$ 63,623|
|Working capital||$ 114,265||$ 105,451|
|Total debt||$ 2,007||$ 2,411|
|Stockholders' equity||$ 179,651||$ 174,496|
|Total capitalization||$ 181,658||$ 176,907|
|Total debt to total capitalization||1.1%||1.4%|
|In thousands||Quarter Ended||Six Months Ended|
|(Unaudited)||June 30,||June 30,|
|Net cash provided by operating activities||$ 9,697||$ 11,914||$ 6,480||$ 12,527|
|Net cash (used for) provided by investing activities||$ (3,210)||$ (2,823)||$ (5,673)||$ 6,230|
|Net cash used for financing activities||$ (5,707)||$ (2,724)||$ (5,511)||$ (3,082)|
|Depreciation and amortization||$ 3,196||$ 3,425||$ 6,541||$ 6,989|
|Capital expenditures||$ (3,052)||$ (2,823)||$ (5,515)||$ (5,785)|
|Common Stock Data|
|Quarter Ended June 30,||2013||2012|
|High||$ 15.38||$ 13.62|
|Low||$ 13.29||$ 9.94|
|Close||$ 14.60||$ 13.52|
|During the second quarter of 2013, 2,868,400 shares of Lydall common stock (LDL) were traded on the New York Stock Exchange.|
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