Exhibit 99.1
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FOR FURTHER INFORMATION:
At the company:
Wayne W. Schultz
Senior Vice President - Finance
(417) 890-0102
FOR IMMEDIATE RELEASE
Wednesday, November 8, 2000
DT INDUSTRIES REPORTS NET SALES INCREASE 15%, NET LOSS IN Q1
o Record Order Rate, Increasing Backlog Fuel Positive Outlook
o Strengthened Operational, Financial Controls Being Implemented
o Company Identifies Two Businesses for Possible Divestiture
SPRINGFIELD, Mo., November 8, 2000--DT Industries, Inc. (Nasdaq: DTIIE) today
reported a first-quarter net loss of $3.1 million, or 31 cents per diluted
share, compared with a net loss of $2.1 million, or 21 cents per diluted share,
a year earlier. Net sales for the quarter ended September 24, 2000, increased 15
percent to $116.5 million from $101.1 million in the corresponding prior-year
period.
The order inflow continues to remain strong. For the first quarter, orders
totaled a record $167.9 million, compared with $124.7 million in the first three
months last year, an increase of $43.2
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million or 34.6%. Backlog at the end of the quarter was $311.1 million, up from
$206.3 million a year earlier.
"Although the recently reported accounting irregularities at two of our
subsidiaries and the ensuing management changes have been disruptive, we are
encouraged by the strong increase in orders and backlog," said James J. Kerley,
chairman of the board. "We believe this trend, coupled with the operational
improvements we are implementing, will contribute to improved results over the
next few quarters."
Divestitures To Help Pay Down Debt
Kerley also noted that, as previously announced, DT Industries has retained the
investment banking firm of Brown Gibbons Lang & Co. to explore the possible
divestiture of one or more business units. As of the date of this announcement,
two business units, collectively accounting for more than $50 million in annual
sales, have been identified for possible divestiture:
o Detroit Tool Metal Products Co., Lebanon, Missouri, is a stamping and
fabrication business, primarily serving trucking and agricultural
customers, with sales of approximately $38 million in fiscal 2000. It is a
part of the company's "Other Businesses" segment.
o Peer Division, Benton Harbor, Michigan, a manufacturer of welding systems
primarily for automotive industry suppliers, is a part of the Automation
segment. It had fiscal 2000 sales of about $16 million.
""We plan to use the net proceeds from the divestitures to help pay down debt."
Kerley said. "The Company is over-leveraged. The planned pay-down of the current
level of senior debt is a must if we are to be able to put together a
satisfactory new credit facility."
Kerley also said DT Industries has begun discussions with potential lenders to
refinance the Company's senior secured credit facility. That facility matures in
July 2001 and is carried as a current liability on DT Industries' consolidated
balance sheet.
Improved Fiscal 2001 Expected
"The possible divestitures and refinancing are among many steps, including
implementing cost controls and diversifying our customer base, that we believe
will help us achieve results in Fiscal 2001 that will surpass each of the two
previous years," Kerley said.
Sales in the Automation segment increased 38.8 percent to $84.4 million from
$60.8 million a year earlier. The increase is primarily the result of
substantial order activity over the past 15 months from a significant
electronics customer. Kerley said he expects strong revenue recognition from
electronics backlog through fiscal 2001. Several of the Automation segment
divisions are participating in the increased business.
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First-quarter Automation segment margins, however, decreased as a result of a
tremendous ramp-up in production to meet delivery requirements and the resulting
inefficiencies and increased costs. The Company expects that the inefficiencies
will diminish in future quarters.
Sales in the Packaging segment decreased to $22.8 million from $31.9 million.
Sales of plastics-related extrusion equipment were especially soft. The Company
is exploring the profitability of this product line and strategic alternatives.
Sales of other packaging equipment, including rotary presses, fillers, and line
integration, were also lower in the first quarter although the Company expects
improvements over the remainder of fiscal 2001. Packaging gross margins
decreased in the first quarter primarily because of the manufacturing
inefficiencies resulting from the lower sales. Kalish and Sencorp had lower
gross margins in the first quarter from the continuing project issues with
certain larger, custom packaging systems. These projects are substantially
completed and are not expected to significantly impact future quarters.
Overall, DT Industries' gross profit remained constant at about $20 million over
both periods, but gross margin as a percent of sales decreased to 17.2 percent
from 19.8 percent in the first quarter of last year. Kerley said, "Although we
have experienced lower gross margins in both of our primary business segments,
we expect these to improve as the year progresses."
Selling, general and administrative costs were flat in the first quarter. "The
cost controls we began implementing in fiscal 2000 helped maintain the level of
selling, general and administrative expenses in the first quarter", said Kerley.
With the increase in sales, SG&A, as a percent of sales, dropped to 16.9 percent
in the first quarter of fiscal 2001 from 19.6 percent in the prior year quarter.
The Company does expect increases in legal and professional fees in fiscal 2001,
primarily associated with issues arising out of the Kalish and Sencorp
accounting irregularities.
`Stronger Company' Emerging
"While the past few months have been extremely trying for DT Industries and its
shareholders, I firmly believe that we will emerge a much stronger company in
the longer term," Kerley said. "We recognize that we face significant
challenges, but our overriding goal remains to enhance the performance of the
company and the value of an investment in DT Industries. As previously
announced, we have hired Stephen J. Perkins as our new president and chief
executive officer, and we believe that he is the ideal individual to lead the
Company through the challenges facing us in the months and years ahead." The
Company is continuing extensive searches for a chief financial officer for the
corporate staff and top operating management for its Packaging segment.
The Company also announced that Graham Lewis has submitted his resignation from
the Board of Directors, effective immediately. As previously announced, Mr.
Lewis' employment with the Company terminated in early October.
DT Industries is a leading designer, manufacturer and integrator of automated
production systems used to assemble, test or package industrial and consumer
products. The company also produces precision metal components, tools and dies
for a broad range of industrial applications.
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Certain information contained in this press release includes forward- looking
statements. These statements comprising all statements herein which are not
historical are based upon the Company's interpretation of what it believes are
significant factors affecting its businesses, including many assumptions
regarding future events, and are made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. References to "opportunities",
"growth potential", "objectives" and "goals", the words "anticipate", "believe",
"estimate", "expect", and similar expressions used herein indicate such
forward-looking statements. Actual results could differ materially from those
anticipated in any forward-looking statements as a result of various factors,
including economic downturns in industries or markets served, delays or
cancellations of customer orders, delays in shipping dates of products,
significant cost overruns on certain projects, excess product warranty expenses,
collectibility of past due receivables, significant restructuring or other
special, non-recurring charges, foreign currency exchange rate fluctuations,
delays in achieving anticipated cost savings or in fully implementing project
management systems, availability of credit at acceptable terms, changes in
interest rates, increased inflation, the outcome of pending litigation related
to the previously announced accounting irregularities, and the Company's ability
to implement operational and financial systems to manage the Company's
decentralized operations.
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DT Industries, Inc.
Consolidated Statement of Operations
(Dollars in thousands, except per share data)
(unaudited)
Three Months Ended
September 24, September 26,
2000 1999
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<S> <C> <C>
Net sales $ 116,451 $ 101,129
Cost of sales 96,446 81,078
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Gross profit 20,005 20,051
Selling, general and administrative expenses 19,721 19,846
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Operating income 284 205
Interest expense 3,462 1,798
Dividends on Company-obligated, mandatorily
redeemable convertible preferred securities of
subsidiary DT Capital Trust
holding solely convertible junior
subordinated debentures of the
Company, at 7.16% per annum 1,342 1,253
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Loss before benefit for income taxes (4,520) (2,846)
Benefit for income taxes (1,396) (709)
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Net loss $ (3,124) $ (2,137)
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Net loss per common share:
Basic $ (0.31) $ (0.21)
Diluted $ (0.31) $ (0.21)
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Weighted average common shares outstanding:
Basic 10,107,274 10,107,274
Diluted 10,107,274 10,107,274
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DT Industries, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
(unaudited)
September 24, June 25,
2000 2000
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<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 9,634 $ 8,705
Accounts receivable, net 55,110 58,924
Costs and estimated earnings in excess of
amounts billed on uncompleted contracts 104,785 94,925
Inventories, net 56,248 52,926
Prepaid expenses and other 16,214 14,296
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Total current assets 241,991 229,776
Property, plant and equipment, net 71,419 73,218
Goodwill, net 171,843 173,823
Other assets, net 3,906 4,253
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$ 489,159 $ 481,070
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Liabilities and Stockholders' Equity
Current liabilities:
Current portion of other long-term debt $ 700 $ 713
Senior secured term and revolving credit
facility 133,212 ---
Accounts payable 44,196 47,189
Customer advances 22,697 22,411
Accrued liabilities 33,276 35,446
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Total current liabilities 234,081 105,759
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Senior secured term and revolving credit facility --- 119,188
Other long-term debt 8,792 6,956
Deferred income taxes 10,375 10,375
Other long-term liabilities 3,713 3,709
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Total long-term obligations 22,880 140,228
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Commitments and contingencies
Company-obligated, mandatorily redeemable convertible
preferred securities of subsidiary DT Capital Trust
holding solely convertible junior subordinated
debentures of the Company 70,000 70,000
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Stockholders' equity:
Preferred stock, $0.01 par value; 1,500,000
shares authorized; no shares issued and
outstanding
Common stock, $0.01 par value; 100,000,000
shares authorized; 10,107,274 shares
outstanding 113 113
Additional paid-in capital 133,348 133,348
Retained earnings 61,254 64,378
Cumulative translation adjustment (1,739) (1,978)
Less - Treasury stock (1,268,488 shares), at
cost (30,778) (30,778)
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Total stockholders' equity 162,198 165,083
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$489,159 $481,070
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