SOURCE: TB Wood's Corporation

November 02, 2005 20:00 ET

TB Wood's Reports Results for the Third Quarter of 2005

CHAMBERSBURG, PA -- (MARKET WIRE) -- November 2, 2005 -- TB Wood's Corporation (NASDAQ: TBWC) announced today that net income for the third quarter ended September 30, 2005 was $0.6 million, or $0.11 per share compared to a net loss of $1.3 million, or ($0.26) per share, for the third quarter 2004. Revenues for the third quarter 2005 were $27.7 million, a 9% increase from $25.3 million for the prior year's third quarter.

For the nine months ended September 30, 2005 net income was $1.4 million, or $0.28 per share compared to a net loss of $1.1 million, or ($0.22) per share, for the nine months ended October 1, 2004. Year to date revenues through the end of the third quarter 2005 were $83.2 million, an 8% increase from $76.8 million for the prior year.

William T. Fejes, President and CEO, said, "We are pleased to report continued improvement in the Company's financial performance. Our third quarter earnings increased 37 cents per share year-over-year on a 9.5% revenue increase. Excluding one-time charges incurred in the third quarter of 2004 our quarterly earnings increased 15 cents per share. Sequentially our quarterly net income was up one cent per share or 10% on a slight decrease in quarterly sales. We continue to accelerate our lean initiatives and invest in appropriate capital expenditures to support the improvement of our financial results."

TB Wood's (www.tbwoods.com) is an established designer, manufacturer and marketer of electronic and mechanical industrial power transmission products, which are sold to North American and international manufacturers and users of industrial equipment. Headquartered in Chambersburg, Pennsylvania, the Company operates production facilities in the United States, Mexico, Germany, Italy and India.

This press release contains statements that are forward looking within the meaning of applicable securities laws. These statements include or imply projections of future performance that are based upon the Company's expectations and assumptions. These expectations and assumptions, as well as the Company's future performance are subject to a number of risks and uncertainties. Factors that could cause actual results to differ from projected results are discussed in various Company documents filed with the SEC.

                         TB Wood's Corporation
        Condensed Consolidated Statements of Income (Unaudited)
                (in thousands, except per share amounts)

                            Third quarter ended        Nine months ended
                        September 30, October 1,  September 30, October 1,
                            2005         2004         2005         2004
                          --------     --------     --------     --------

Net sales                 $ 27,673     $ 25,279     $ 83,228     $ 76,819
Cost of goods sold          19,419       19,231       58,545       55,309
                          --------     --------     --------     --------

Gross profit                 8,254        6,048       24,683       21,510

Selling, general and
 administrative expense      6,899        7,211       20,633       21,301
                          --------     --------     --------     --------

Operating income             1,355       (1,163)       4,050          209

Interest expense and other
 finance charges               489          460        1,629        1,207
                          --------     --------     --------     --------

Income before provision for
 income taxes                  866       (1,623)       2,421         (998)

Provision for income taxes     301         (277)         987          119
                          --------     --------     --------     --------

Net income                $    565     $ (1,346)    $  1,434     $ (1,117)
                          ========     ========     ========     ========

Per share amounts -
 Basic and Diluted:

   Basic net income per
    common share          $   0.11     $  (0.26)    $   0.28     $  (0.22)
                          ========     ========     ========     ========

   Diluted net income per
    common share          $   0.11     $  (0.26)    $   0.28     $  (0.22)
                          ========     ========     ========     ========

   Basic weighted average
    shares of common stock
    and equivalents
    outstanding              5,189        5,166        5,185        5,166
                          ========     ========     ========     ========

   Diluted weighted
    average shares of
    common stock
    and equivalents
    outstanding              5,189        5,166        5,185        5,166
                          ========     ========     ========     ========

Contact Information

  • Contact:

    Joseph C. Horvath
    Chief Financial Officer
    (717) 264-7161, Extension 4465