SOURCE: LYDALL, INC.

November 06, 2007 17:00 ET

Lydall Adjusts Financial Results for the Third Quarter and Nine Months Ended September 30, 2007

MANCHESTER, CT--(Marketwire - November 6, 2007) - LYDALL, INC. (NYSE: LDL) today announced that its net income for the quarter ended September 30, 2007 was $1.9 million, or $.12 per basic share and $.11 per diluted share, and net income year-to-date was $6.7 million, or $.41 per basic and diluted share. The Company previously announced, in a press release on October 26, 2007, that net income for the quarter ended September 30, 2007 was $1.7 million, or $.11 per basic and diluted share, and net income year-to-date was $6.5 million, or $.40 per basic and diluted share. The previously announced financial results were impacted by an adjustment to a current liability and cost of sales, which occurred subsequent to the Company's previous earnings announcement. Due to rounding, diluted earnings per share was unchanged for the quarter ended September 30, 2007 as compared to the previously announced financial results.

Gross margin as a percent of net sales for the third quarter of 2007 was 21.5 percent compared to 21.2 percent previously announced.

Operating income for the Thermal/Acoustical segment increased by $0.5 million for the current quarter compared with the third quarter of 2006. The Company previously announced an increase of $0.2 million in operating income for the Thermal/Acoustical segment.

Updated summary information is attached.

Lydall, Inc. is a New York Stock Exchange listed company, headquartered in Manchester, Connecticut. The Company, with operations in the U.S., France, and Germany and sales offices in the U.S., Europe, and Asia, focuses on specialty engineered products for the thermal/acoustical and filtration/separation markets.

Cautionary Note Concerning Factors That May Affect Future Results

Stockholders are referred to Lydall's 2006 Annual Report on Form 10-K, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Cautionary Note Concerning Factors That May Affect Future Results," and "Risk Factors" which outline certain risks regarding the Company's forward-looking statements. Such risks include, among others: a major downturn of the automotive market, which accounted for approximately 52 percent of Lydall's 2007 year-to-date net sales, dependence on large customers, pricing pressures from OEM automotive customers, changes in raw material pricing and supply, specifically, aluminum and other metals used in most of the Company's heat-shield products, various fibers used in thermal/acoustical and filtration/separation products and copper used in active thermal products. In addition, increases in energy pricing, inherent risks at international operations, expansion into new geographic regions, the timing and performance of new-product introductions, compliance with environmental laws and regulations, outcomes of legal contingencies and strategic transactions can impact Lydall's projected results. For further details on these risks and other pertinent information on Lydall, copies of the Company's Forms 10-K, 10-Q and 8-K are available on Lydall's web site, www.lydall.com. Information may also be obtained from the Company Contact: Thomas P. Smith, Vice President, Chief Financial Officer and Treasurer, at One Colonial Road, Manchester, CT 06042; Telephone 860-646-1233, email: investor@lydall.com

Summary of Operations
In thousands except per share data
(Unaudited)


                                    Quarter Ended       Nine Months Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2007       2006       2007       2006
                                =========  =========  =========  =========

Net sales                       $  81,567  $  80,124  $ 253,036  $ 245,757
Cost of sales                      64,055     62,498    197,285    191,353
                                ---------  ---------  ---------  ---------
Gross margin                       17,512     17,626     55,751     54,404
Selling, product development
 and administrative expenses       13,410     13,570     43,771     42,536
                                ---------  ---------  ---------  ---------
Operating income                    4,102      4,056     11,980     11,868
Interest expense                      131        261        352      1,138
Other income, net                     (76)       (24)       (48)       (41)
                                ---------  ---------  ---------  ---------
Income before income taxes          4,047      3,819     11,676     10,771
Income tax expense                  2,157        101      4,989      2,668
                                ---------  ---------  ---------  ---------
Net income                      $   1,890  $   3,718  $   6,687  $   8,103
                                =========  =========  =========  =========

Basic earnings per common share $    0.12  $    0.23  $    0.41  $    0.50
Diluted earnings per common
 share                          $    0.11  $    0.23  $    0.41  $    0.50

Weighted average common shares
 outstanding                       16,354     16,168     16,267     16,148
Weighted average common shares
 and equivalents outstanding       16,447     16,209     16,488     16,199





Summary of Segment Information
In thousands
(Unaudited)                         Quarter Ended       Nine Months Ended
                                    September 30,         September 30,
                                --------------------  --------------------
                                  2007       2006       2007       2006
                                =========  =========  =========  =========
         Net Sales

         Thermal/Acoustical     $  54,057  $  54,144  $ 169,833  $ 167,771
         Filtration/Separation     20,910     18,870     61,961     55,751
         Other Products and
          Services                  7,079      7,733     23,012     24,116
         Reconciling Items           (479)      (623)    (1,770)    (1,881)
                                ---------  ---------  ---------  ---------
         Consolidated Totals    $  81,567  $  80,124  $ 253,036  $ 245,757
                                =========  =========  =========  =========

         Operating Income

         Thermal/Acoustical     $   5,334  $   4,874  $  15,837  $  17,752
         Filtration/Separation      1,954      1,971      7,010      3,772
         Other Products and
          Services                    470        697      1,482      2,296
         Corporate Office
          Expenses                 (3,656)    (3,486)   (12,349)   (11,952)
                                ---------  ---------  ---------  ---------
         Consolidated Totals    $   4,102  $   4,056  $  11,980  $  11,868
                                =========  =========  =========  =========





Financial Position
                                              September 30,  December 31,
In thousands except ratio data                    2007           2006
(Unaudited)                                   =============  =============
         Cash and cash equivalents            $       9,742  $       6,402
         Working capital                      $      64,425  $      50,610
         Total debt                           $       9,971  $      10,106
         Stockholders' equity                 $     175,210  $     161,217
         Total capitalization                 $     185,181  $     171,323
         Current ratio                                 2.45           2.16
         Total debt to total capitalization             5.4%           5.9%




Cash Flows
In thousands                        Quarter Ended       Nine Months Ended
(Unaudited)                         September 30,         September 30,
                                --------------------  --------------------
                                  2007       2006       2007       2006
                                =========  =========  =========  =========

         Net cash provided by
          operating activities  $   9,569  $  10,517  $  10,223  $  25,004
         Net cash used for
          investing activities  $  (3,479) $  (3,467) $  (8,780) $  (7,496)
         Net cash (used for)
          provided by financing
          activities            $  (2,399) $  (8,475) $   1,564  $ (18,384)
         Depreciation and
          amortization          $   3,804  $   3,797  $  11,411  $  11,729
         Capital expenditures   $   3,479  $   3,467  $   8,780  $   7,496




Common Stock Data
Quarter Ended September, 30                                  2007    2006
                                                            ======= =======

         High                                               $ 15.50 $  9.35
         Low                                                $  8.68 $  8.08
         Close                                              $  9.28 $  8.90



During the third quarter of 2007, 6,397,100 shares of Lydall common stock
(LDL) were traded on the New York Stock Exchange.

Contact Information

  • Company Contact:
    Thomas P. Smith
    Vice President, Chief Financial Officer and Treasurer
    One Colonial Road
    Manchester, CT 06042
    Telephone 860-646-1233
    email: investor@lydall.com