Exhibit 99.1
<TABLE>
BANDAG, INCORPORATED AND SUBSIDIARIES
<CAPTION>
(In thousands except per share data)
-------------------------------- ----------------------------------
Three Months Ended Nine Months Ended
-------------------------------- ----------------------------------
Unaudited Condensed Consolidated
Statements of Earnings 9/30/00 9/30/99 9/30/00 9/30/99
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<S> <C> <C> <C> <C>
Net sales $269,905 $273,240 $743,310 749,498
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Interest income 1,396 1,294 4,368 4,563
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Other income 2,353 1,689 6,978 3,850
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273,654 276,223 754,656 757,911
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Cost of products sold 168,803 170,122 459,795 458,648
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Engineering, selling, administrative
and other expenses 72,092 72,068 210,489 215,123
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Interest expense 2,137 2,239 6,476 7,238
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243,032 244,429 676,760 681,009
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Earnings before income taxes 30,622 31,794 77,896 76,902
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Income taxes 12,708 13,738 32,327 32,683
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Net earnings $ 17,914 $ 18,056 $ 45,569 $ 44,219
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Net earnings per share - Basic $ 0.87 $ 0.83 $ 2.20 $ 2.02
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Net earnings per share - Diluted $ 0.86 $ 0.82 $ 2.19 $ 2.01
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Cash dividends per share $ 0.295 $ 0.285 $ 0.885 $ 0.855
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Depreciation included in expense $ 10,660 $ 9,677 $ 29,877 $ 29,823
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Amortization included in expense $ 2,635 $ 2,493 $ 7,763 $ 7,398
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Average shares outstanding - Basic 20,697 21,873 20,721 21,885
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Average shares outstanding - Diluted 20,793 21,940 20,782 21,957
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</TABLE>
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<TABLE>
<CAPTION>
(In thousands)
-------------------------------
Nine Months Ended
-------------------------------
Unaudited Condensed Consolidated
Statements of Cash Flows 9/30/00 9/30/99
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<S> <C> <C>
Operating Activities
-----------------------------------------------------------------------------------------------------------
Net earnings $ 45,569 $ 44,219
-----------------------------------------------------------------------------------------------------------
Provision for depreciation and amortization 37,640 37,221
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Increase (decrease) in operating
assets and liabilities - net (11,161) 3,302
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Net cash provided by operating activities 72,048 84,742
-----------------------------------------------------------------------------------------------------------
Investing Activities
-----------------------------------------------------------------------------------------------------------
Additions to property, plant and equipment (15,364) (28,147)
-----------------------------------------------------------------------------------------------------------
Purchases of investments (8,425) (11,628)
-----------------------------------------------------------------------------------------------------------
Maturities of investments 7,944 8,715
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Payments for acquisitions of businesses (4,632) (4,357)
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Net cash used in investing activities (20,477) (35,417)
-----------------------------------------------------------------------------------------------------------
Financing Activities
-----------------------------------------------------------------------------------------------------------
Principal payments on short-term notes
payable and other long-term liabilities (692) (7,125)
-----------------------------------------------------------------------------------------------------------
Cash dividends (18,398) (18,744)
-----------------------------------------------------------------------------------------------------------
Purchases of Common Stock and
Class A Common Stock (1,725) (1,212)
-----------------------------------------------------------------------------------------------------------
Net cash used in financing activities (20,815) (27,081)
-----------------------------------------------------------------------------------------------------------
Effect of exchange rate changes
on cash and cash equivalents (2,116) (3,288)
-----------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents 28,640 18,956
-----------------------------------------------------------------------------------------------------------
Cash and cash equivalents at beginning of year 50,633 37,912
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Cash and cash equivalents at end of period $ 79,273 $ 56,868
-----------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
BANDAG, INCORPORATED AND SUBSIDIARIES
<CAPTION>
(In thousands)
---------------------------------------
Sept. 30, Dec. 31,
---------------------------------------
Unaudited Condensed Consolidated Balance Sheets 2000 1999
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
--------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents $ 79,273 $ 50,633
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Investments 9,942 9,461
--------------------------------------------------------------------------------------------------------------------
Accounts receivable - net 194,596 199,710
--------------------------------------------------------------------------------------------------------------------
Inventories:
--------------------------------------------------------------------------------------------------------------------
Finished products 95,808 94,278
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Materials & work-in-process 16,333 16,244
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112,141 110,522
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Other current assets 58,323 57,792
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Total current assets 454,275 428,118
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Property, plant, and equipment 507,958 502,787
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Less accumulated depreciation (323,688) (304,802)
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184,270 197,985
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Other assets, net 98,624 96,318
--------------------------------------------------------------------------------------------------------------------
Total assets $ 737,169 $ 722,421
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LIABILITIES & STOCKHOLDERS' EQUITY:
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Accounts payable $ 24,556 $ 33,472
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Income taxes payable 25,579 18,998
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Accrued employee compensation and benefits 23,269 25,530
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Accrued marketing expenses 27,486 27,190
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Other accrued expenses 45,041 45,823
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Short-term notes payable and current
portion of other obligations 2,536 3,040
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Total current liabilities 148,467 154,053
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Long-term debt and other obligations 110,907 111,151
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Deferred income tax liabilities 2,827 3,142
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Stockholders' equity:
--------------------------------------------------------------------------------------------------------------------
Common Stock; $1 par value; authorized - 21,500,000 shares;
Issued and outstanding - 9,052,676 shares in 2000;
9,088,403 in 1999 9,053 9,088
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Class A Common Stock; $1 par value; authorized -
50,000,000 shares; Issued and outstanding - 9,614,634
shares in 2000; 9,637,187 in 1999 9,615 9,637
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Class B Common Stock; $1 par value; authorized -
8,500,000 shares; Issued and outstanding - 2,039,775
shares in 2000; 2,045,251 in 1999 2,040 2,045
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Additional paid-in capital 7,497 7,476
--------------------------------------------------------------------------------------------------------------------
Retained earnings 481,821 456,247
--------------------------------------------------------------------------------------------------------------------
Equity adjustment from foreign currency translation (35,058) (30,418)
--------------------------------------------------------------------------------------------------------------------
Total equity 474,968 454,075
--------------------------------------------------------------------------------------------------------------------
Total liabilities & stockholders' equity $ 737,169 $ 722,421
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</TABLE>
