Westinghouse Air Brake Technologies Corp : Wabtec Reports 4Q and Full Year Results; Record Cash From Operations of $249 Million Exceeds Net Income for 14th Straight Year; Issues 2012 Earnings Guidance of About $4.30
02/21/2012| 08:10am US/Eastern
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WILMERDING, Pa., Feb. 21, 2012 /PRNewswire/ -- Wabtec Corporation (NYSE: WAB) today reported its 2011 fourth quarter and full-year results, including the following highlights:
-- In the fourth quarter, earnings per diluted share were 96 cents, 50
percent higher than the year-ago quarter. Sales increased 36 percent to
a record $535 million, mainly driven by higher sales in the Freight
Group.
-- Income from operations in the fourth quarter was $72.5 million, or 13.6%
of sales, including $5.5 million of restructuring and contract charges
in the Transit Group.
-- For the full year, Wabtec had sales of $1.97 billion and GAAP earnings
per diluted share of $3.51, both records. For the full year, non-GAAP
EPS was $3.70, excluding the special items recorded and previously
disclosed in the second quarter of the year. See below for a
reconciliation of GAAP and non-GAAP EPS.
-- For the full year, the company generated a record cash flow from
operations of $249 million, or 12.7 percent of sales, marking the 14th
straight year that cash flow from operations exceeded net income.
-- At year-end, Wabtec's multi-year backlog was a record $1.55 billion, 44
percent higher than at year-end 2010. Net debt at year-end was $109
million.
Also today, Wabtec issued 2012 guidance for earnings per diluted share of about $4.30, with revenues expected to increase about 10 percent for the year.
Albert J. Neupaver, Wabtec's president and chief executive officer, said: "By any measure, our company finished the year strong, and we are well positioned for another record performance in 2012. With our diversified business model, balanced growth strategies and rigorous application of the Wabtec Performance System, we will continue to drive Wabtec to take full advantage of its growth opportunities around the world."
As previously disclosed, in the second quarter of this year Wabtec recorded the following special items: a charge of 25 cents per diluted share for a court ruling, a benefit of 3 cents per diluted share for an acquisition settlement, and a tax benefit of 3 cents per diluted share. Excluding these items, the company's 2011 non-GAAP EPS was $3.70. We believe this non-GAAP measure provides useful supplemental information to assess our operating performance and to evaluate period-to-period comparisons. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with GAAP.
Wabtec (www.wabtec.com) is a global provider of technology-based products and services for rail and industrial markets. This release contains forward-looking statements, such as statements regarding the company's expectations about future earnings. Actual results could differ materially from the results suggested in any forward-looking statement. Factors that could cause or contribute to these material differences include, but are not limited to, an economic slowdown in the markets we serve; a decrease in freight or passenger rail traffic; an increase in manufacturing costs; and other factors contained in the company's filings with the Securities and Exchange Commission. The company assumes no obligation to update these statements or advise of changes in the assumptions on which they are based.
Wabtec will host a call with analysts and investors at 10 a.m., eastern time, today. To listen via webcast, go to www.wabtec.com and click on "Webcasts" in the "Investor Relations" section.
WABTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2011 AND
2010
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
Fourth Fourth For the For the
Quarter Quarter Year Ended Year Ended
2011 2010 2011 2010
---- ---- ---- ----
Net
sales $534,639 $393,241 $1,967,637 $1,507,012
Cost
of
sales (387,305) (275,253) (1,397,213) (1,057,934)
-------- -------- ---------- ----------
Gross
profit 147,334 117,988 570,424 449,078
Gross
profit
as
a
%
of
Net
Sales 27.6% 30.0% 29.0% 29.8%
Selling,
general
and
administrative
expenses (61,099) (53,414) (247,534) (195,892)
Engineering
expenses (9,279) (9,721) (37,193) (40,203)
Amortization
expense (4,447) (3,504) (14,996) (10,173)
------ ------ ------- -------
Total
operating
expenses (74,825) (66,639) (299,723) (246,268)
Operating
expenses
as
a
%
of
Net
Sales 14.0% 16.9% 15.2% 16.3%
Income
from
operations 72,509 51,349 270,701 202,810
Income
from
operations
as
a
%
of
Net
Sales 13.6% 13.1% 13.8% 13.5%
Interest
(expense)
income,
net (3,766) (3,923) (15,007) (15,923)
Other
income
(expense),
net 1,099 366 (380) (60)
----- --- ---- ---
Income
from
operations
before
income
taxes 69,842 47,792 255,314 186,827
Income
tax
expense (23,579) (16,812) (85,165) (63,728)
------- ------- ------- -------
Effective
tax
rate 33.8% 35.2% 33.4% 34.1%
Net
income
attributable
to
Wabtec
shareholders $46,263 $30,980 $170,149 $123,099
======= ======= ======== ========
Earnings Per
Common Share
Basic
Net
income
attributable
to
Wabtec
shareholders $0.96 $0.64 $3.54 $2.57
Diluted
Net
income
attributable
to
Wabtec
shareholders $0.96 $0.64 $3.51 $2.56
Weighted average
shares
outstanding
Basic 47,690 47,683 47,820 47,597
====== ====== ====== ======
Diluted 48,268 48,143 48,329 48,005
====== ====== ====== ======
Sales by Segment
Freight
Group $349,330 $220,820 $1,210,059 $784,504
Transit
Group 185,309 172,421 $757,578 $722,508
------- ------- -------- --------
Total $534,639 $393,241 $1,967,637 $1,507,012
======== ======== ========== ==========
SOURCE Wabtec Corporation
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