- International sales increase 41% over the third quarter of fiscal
2008 CHICAGO, April 30 /PRNewswire-FirstCall/ -- Quixote
Corporation (NASDAQ: QUIX) today reported results for its fiscal
2009 third quarter ended March 31, 2009. For the fiscal 2009 third
quarter, net sales were $22,105,000, a decrease of 3% compared to
net sales of $22,869,000 in the third quarter of fiscal 2008.
Including a non-cash goodwill asset impairment charge of
$9,246,000, or $0.74 per diluted share, and severance costs of
$329,000, or $0.02 per diluted share, the operating loss for the
fiscal 2009 third quarter was $11,156,000, compared to an operating
loss of $323,000 for the third quarter of fiscal 2008. The net loss
for the third quarter of fiscal 2009 including the abovementioned
charges was $8,583,000, or $0.93 per diluted share, compared with a
net loss for the third quarter of fiscal 2008 of $1,164,000, or
$0.13 per diluted share. The net loss for the third quarter of
fiscal 2008 included a loss from discontinued operations of
$509,000, or $0.06 per diluted share, related to the divested
Intersection Control segment. The Company performed an interim
assessment of goodwill impairment in the fiscal 2009 third quarter
due to the recent decline in the Company's stock price and current
economic conditions. Accordingly, as noted above, the Company
recorded a non-cash asset impairment charge of $9,246,000 during
the quarter representing the remaining portion of the goodwill
recorded for its Inform segment. Excluding the impairment and
severance charges, the Company would have reported an operating
loss of $1,581,000, compared to an operating loss for the third
quarter of fiscal 2008 of $323,000. Please refer to the attached
tables for a reconciliation of operating profit on a GAAP to
non-GAAP basis. The results for the third quarter of 2009 reflected
strong international performance with international sales
increasing 41% compared to the third quarter last year. However,
the Company continued to see soft domestic sales volume, which
decreased 14% compared to the third quarter last year, primarily
due to the effects of the economic downturn. Net sales for the
first nine months of fiscal 2009 decreased to $67,301,000 from
$73,252,000 for the first nine months of fiscal 2008. The operating
loss for the first nine months of fiscal 2009 was $13,233,000,
compared to operating profit of $4,387,000 for the first nine
months of fiscal 2008. The net loss for the first nine months of
fiscal 2009 was $11,734,000, or $1.27 per diluted share, which
included the asset impairment charge mentioned above of $9,246,000,
or $0.74 per diluted share; severance costs totaling $1,172,000, or
$0.08 per diluted share; and a loss from discontinued operations of
$758,000, or $0.08 per diluted share. Net earnings for the first
nine months of fiscal 2008 were $65,000, or $0.01 per diluted
share, which included a loss from discontinued operations of
$815,000, or $0.09 per diluted share. Excluding the non-cash asset
impairment charge and severance costs, the operating loss for the
first nine months of fiscal 2009 was $2,815,000, compared to
operating profit of $4,387,000, for the first nine months of fiscal
2008. Please refer to the attached tables for a reconciliation of
operating profit on a GAAP to non-GAAP basis. Bruce Reimer,
President and Chief Executive Officer, commented, "As expected, our
results for the quarter reflect improvement in our business over
the fiscal second quarter, despite the continuing difficult
economic conditions. Sales in our Protect and Direct segment
decreased 9% compared to our fiscal 2008 third quarter. While the
first two months of the quarter were affected by a weak market
environment and delays in customer spending as they waited for
enactment of the economic stimulus package, we were encouraged to
see a sharp rebound in order and sales levels in March.
Additionally, our Inform segment sales increased 15% compared to
the third quarter of last year, driven by both domestic and
international growth. Including both segments, total backlog was up
20% from last year to $18 million and we continued to see the
benefits of our investments in international markets." Mr. Reimer
continued, "During the quarter, we continued to focus on improving
our cash flow by reducing our headcount, overhead costs, and
inventory levels to meet current market conditions. Along with
actions taken previously this year, we estimate that we have
removed approximately $7 million in annualized cash expenditures,
which will benefit us going forward." Mr. Reimer concluded,
"Looking ahead, we are well-positioned to benefit in both our
international and domestic markets as stimulus funding ramps up in
both the U.S. and abroad. Domestically, approximately $27 billion
in stimulus funding was allocated toward highways and bridges. In
the third quarter, we received a few initial orders funded by the
stimulus package, and we expect to see additional stimulus-funded
projects going forward. Looking ahead to the fourth quarter, we
expect the seasonality of our business, combined with the impact of
global stimulus funding, to result in performance that is notably
stronger than the results for this third quarter. We believe we
have the right strategy and have positioned the Company to benefit
from opportunities across all markets and emerge from the current
cycle as a stronger, more efficient business." Quixote Corporation
will be hosting a telephone conference call at 10 a.m., Eastern
Time, today, April 30, 2009, to further discuss its quarterly
results and corporate developments. This conference call will be
broadcast simultaneously over the Internet at
http://www.quixotecorp.com/ and may be accessed and listened to by
clicking the icon on the Company's homepage. Quixote Corporation,
(http://www.quixotecorp.com/), through its wholly-owned
subsidiaries, Quixote Transportation Safety, Inc. and Quixote
Transportation Technologies, Inc., is the world's leading
manufacturer of energy-absorbing highway crash cushions, electronic
wireless measuring and sensing devices, road weather information
systems, computerized highway advisory radio transmitting systems,
flexible post delineators and other transportation safety products.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements include statements regarding our expectations, beliefs,
intentions, plans, projections, objectives, goals, strategies,
future events or performance and underlying assumptions and other
statements which are not historical facts, including statements
concerning our position with respect to net operating losses and
possible limitations on their use. Actual results may differ
materially from those expressed or implied by the forward-looking
statements contained in this release. Forward-looking statements
are subject to numerous risks, uncertainties and assumptions about
us and our business. Important factors that could cause actual
results to differ materially from those in the forward looking
statements include the risks and uncertainties discussed in our
Form 10-Q Report for the quarter ended December 31, 2008, under the
caption "Forward-Looking Statements" in Management's Discussion and
Analysis of Financial Condition and Results of Operations and the
caption "Risk Factors" at Item 1A of Part II, which discussion is
incorporated herein by this reference. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. We do not undertake to release
publicly any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events. For those statements, we
claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. Quixote Corporation Earnings Summary (Unaudited) Three
Months Ended Nine Months Ended March 31, March 31, 2009 2008 2009
2008 ---- ---- ---- ---- Net sales $22,105,000 $22,869,000
$67,301,000 $73,252,000 Cost of sales 16,448,000 15,720,000
48,303,000 47,699,000 Gross profit 5,657,000 7,149,000 18,998,000
25,553,000 Operating (income) expenses: Selling &
administrative 6,564,000 6,597,000 19,419,000 18,563,000 Research
& development 674,000 875,000 2,394,000 2,603,000 Severance
costs 329,000 1,172,000 Asset impairment charge 9,246,000 9,246,000
16,813,000 7,472,000 32,231,000 21,166,000 Operating profit (loss)
(11,156,000) (323,000) (13,233,000) 4,387,000 Other income
(expense): Interest income 7,000 336,000 7,000 338,000 Interest
expense (848,000) (1,068,000) (2,630,000) (3,306,000) (841,000)
(732,000) (2,623,000) (2,968,000) Earnings (loss) from continuing
operations before income taxes (11,997,000) (1,055,000)
(15,856,000) 1,419,000 Income tax provision (benefit) (3,414,000)
(400,000) (4,880,000) 539,000 Earnings (loss) from continuing
operations (8,583,000) (665,000) (10,976,000) 880,000 Discontinued
Operations: Loss from operations, net of income taxes (509,000)
(46,000) (815,000) Loss on sale of discontinued operations, net of
income taxes (712,000) Loss from discontinued operations, net of .
income taxes (509,000) (758,000) (815,000) Net earnings (loss)
($8,583,000) ($1,164,000) ($11,734,000) $65,000 Per share data -
basic: Earnings (loss) from continuing operations ($0.93) ($0.07)
($1.19) $0.10 Loss from discontinued operations ($0.06) ($0.08)
($0.09) Net earnings (loss) ($0.93) ($0.13) ($1.27) $0.01 Average
common shares outstanding 9,265,533 9,113,751 9,226,818 9,087,053
Per share data - diluted: Earnings (loss) from continuing
operations ($0.93) ($0.07) ($1.19) $0.10 Loss from discontinued
operations ($0.06) ($0.08) ($0.09) Net earnings (loss) ($0.93)
($0.13) ($1.27) $0.01 Average diluted common shares outstanding
9,265,533 9,113,751 9,226,818 9,138,763 Quixote Corporation Balance
Sheet (Unaudited) As of March 31, As of June 30, 2009 2008 ----
---- Assets Current assets Cash and cash equivalents $128,000
$408,000 Accounts receivable, net 17,996,000 23,801,000
Inventories, net 18,537,000 19,389,000 Other current assets
3,698,000 3,112,000 Assets of business held for sale 20,161,000
40,359,000 66,871,000 Property, plant and equipment, net 16,081,000
16,711,000 Intangible assets and other, net 10,620,000 20,481,000
Deferred tax assets 18,599,000 13,371,000 Assets of business held
for sale 4,109,000 $85,659,000 $121,543,000 Liabilities and
Shareholders' Equity Current liabilities $51,390,000 $31,127,000
Liabilities of business held for sale 5,520,000 Long-term debt, net
40,000,000 Other long-term liabilities 1,032,000 1,059,000
Shareholders' equity 33,237,000 43,837,000 $85,659,000 $121,543,000
Quixote Corporation Other Information (Unaudited) Nine Months Ended
March 31, 2009 2008 ---- ---- Depreciation and amortization expense
$2,800,000 $2,700,000 Capital expenditures $1,400,000 $3,000,000
Quixote Corporation Reconciliation of GAAP to Non-GAAP Measurements
(Unaudited) Three Months Ended Nine Months Ended March 31, March
31, 2009 2008 2009 2008 ---- ---- ---- ---- Operating profit (loss)
($11,156,000) ($323,000) ($13,233,000) $4,387,000 Add: Asset
impairment charge 9,246,000 9,246,000 Severance costs 329,000
1,172,000 Operating profit excluding asset impairment charge and
severance costs (a) ($1,581,000) ($323,000) ($2,815,000) $4,387,000
(a) The Company believes that the asset impairment charge and
severance costs affect the comparability of the results of
operations of the 2009 third quarter and the first nine months of
fiscal 2009 to the results of operations of the 2008 third quarter
and the first nine months of fiscal 2008. The Company also believes
that disclosing operating profit excluding those items will allow
investors to more easily compare the results of the 2009 third
quarter and the first nine months of fiscal 2009 to the results of
the 2008 third quarter and the first nine months of fiscal 2008.
DATASOURCE: Quixote Corporation CONTACT: Daniel P. Gorey, Chief
Financial Officer, or Joan R. Riley, Director of Investor
Relations, +1-312-467-6755, both of Quixote Corporation; Investor
Relations: Eric Boyriven, or Alexandra Tramont, both of FD,
+1-212-850-5600 Web Site: http://www.quixotecorp.com/
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