UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Commission File Number 1-5109
TODD SHIPYARDS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 91-1506719
(State or other jurisdiction of (IRS Employer I.D. No.)
incorporation or organization)
1801- 16th AVENUE SW, SEATTLE, WASHINGTON 98134-1089
(Street address of principal executive offices - Zip Code)
Registrant's telephone number: (206) 623-1635
Item 5. Other Events
On June 16, 1999, the Company announced financial results
for the fiscal year and fourth quarter ending March 28,
1999. For the fiscal year, the Company reported net income
of $17.4 million or $1.75 per diluted share on revenue of
$106.2 million. For the quarter ending March 28, 1999, the
Company reported net income of $19.1 million or $1.92 per
diluted share on revenue of $45.7 million.
Item 7. Financial Statements and Exhibits
(c) Exhibits
28-1 Press Release dated June 16, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
Dated: June 16, 1999.
______________________________
By: Michael G. Marsh
On Behalf of the Registrant as
Secretary and General Counsel
VIA FACSIMILE CONTACTS: CAROL LOUIE DRUXMAN
TOTAL PAGES - 4 SHAREHOLDER RELATIONS
(206) 623-1635 Ext. 106
STEPHEN G. WELCH
INVESTORS
(206) 623-1635 Ext. 118
SEATTLE, WASHINGTON...June 16 , 1999...Todd Shipyards Corporation (the
"Company") announced financial results for the fiscal year and fourth
quarter ending March 28, 1999. For the fiscal year, the Company reported net
income of $17.4 million or $1.75 per diluted share on revenue of $106.2
million. For the quarter ending March 28, 1999, the Company reported net
income of $19.1 million or $1.92 per diluted share on revenue of $45.7
million. In the prior fiscal year ending March 29, 1998, the Company reported
net income of $8.1 million or $0.82 per diluted share on revenue of $109.5
million. For the quarter ending March 29, 1998, the Company reported net
income of $6.6 million or $0.67 per diluted share on revenue of $20.9 million.
Revenue and net income for both the fiscal year and fourth quarter were
significantly influenced by the Company's recently disclosed settlement with
the Washington State Ferry System relating to unpriced engineering and
production changes issued by the Ferry System during construction of the Mark
II Ferries. Under the terms of this settlement, the contract price for the
three ferries was increased $23.5 million to $205.5 million. In addition to
the increased contract price, the Company was able to record $1.2 million in
revenue associated with tasks completed under the original contract value that
it had not been able to recognize previously. These amounts contributed $24.7
million to reported revenue for both the fiscal year and fourth quarter ended
March 28, 1999, allowing the Company to reverse $22.8 million in previously
disclosed contract losses. In announcing the year-end results, Stephen G.
Welch, Chief Executive Officer of Todd, stated that "We are delighted to
reach a prompt and reasonable settlement with the Ferry System concerning the
engineering and production changes. This settlement will permit us to focus
the Company's resources on its primary business strategy of commercial and
government repair and overhaul activities." The Company expects to receive
payment of all outstanding Mark II contract receivables ($26.2 million) in
July 1999.
The Company's full year revenue of $106.2 million reflects a decrease of $3.3
million (3%) from 1998 levels. Revenue decreases for fiscal year 1999 are
attributable to the completion of the Mark II Ferry project, offset by revenue
increases in other new construction projects and commercial and government
repair and overhaul activities. Fiscal year 1999 fourth quarter revenue of
$45.7 million reflects an increase of $24.8 million (119%) compared to 1998
fourth quarter results. Fourth quarter revenue increases are primarily
attributable to the settlement the Company reached with the Ferry System on
the construction of the Mark II Ferries.
For the fiscal year and quarter ending March 28, 1999, the Company reported
operating income of $10.2 million and $19.0 million, respectively. Operating
income results for the 1999 periods were primarily attributable to the
completion and settlement of the Mark II Ferry project, causing a $17.4
million reduction in cost of revenues for the year which was only partially
offset by the $3.3 million reduction in revenue. Consequently, gross margins
for fiscal year 1999 improved.
For the preceding fiscal year and quarter ending March 29, 1998, the Company
reported operating income of $3.2 million and $4.2 million, respectively.
Operating income results for the 1998 periods were attributable to a non-
recurring $6.1 million insurance settlement that the Company reached in the
fourth quarter with one of its carriers for property damage occurring in
previous fiscal years. In addition, operating income during fiscal year 1998
was impacted by additional Mark II Ferry program loss reserves of $6.5 million
that fully offset improved margins in commercial repair operations.
The Company reported investments and other income of $9.0 million for the full
year ending March 28, 1999. For the quarter then ending, the Company had
investment and other income of $2.0 million. Fiscal year 1999 results include
the recognition of the remaining $4.5 million gain on the 1993 sale of the
Company's Galveston shipyard facility. In the prior year periods ending March
29, 1998, the Company had investment and other income of $3.4 million for the
full year and fourth quarter investment and other income of $0.9 million.
1998 results included the sale of the Company's radio stations that were
operated by Elettra Broadcasting, Inc., for $5.3 million, which resulted in a
gain of $1.0 million.
In the fiscal year ending March 28, 1999, the Company recorded $1.8 million in
federal income tax expense after applying available net operating loss
carryforwards and business tax credits. In the fiscal year 1998 the Company
received a federal income tax refund of $1.5 million in the quarter ending
March 29, 1998. This refund resulted from net operating losses incurred in
fiscal year 1997 that the Company elected to carryback three prior fiscal
years. This election, allowed recovery of previously recorded income tax
expense.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
Statements contained in this Release which are not historical facts or
information are "forward-looking statements." Words such as "believe,"
"expect," "intend," "will," "should," and other expressions that
indicate future events and trends identify such forward-looking statements.
These forward-looking statements involve risks and uncertainties which could
cause the outcome to be materially different than stated. Such risks and
uncertainties include both general economic risks and uncertainties and
matters which relate directly to the Company's operations and properties and
are discussed in the Company's filings with the Securities & Exchange
Commission. The Company cautions that any forward-looking statement reflects
only the belief of the Company or its management at the time the statement was
made. Although the Company believes such forward-looking statements are based
upon reasonable assumptions, such assumptions may ultimately prove to be
inaccurate or incomplete. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which the statement was made.
The results of operations and balance sheet are as follows:
TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Periods ended March 28, 1999 and March 29, 1998
(in thousands of dollars, except per share data)
Quarter Ended Year Ended
3/28/99 3/29/98 3/28/99 3/29/98
Revenue $ 45,685 $20,856 $106,189 $109,537
Operating expenses:
Cost of Revenue 19,704 18,569 73,393 90,818
Administrative and manufacturing
overhead expenses 6,251 4,256 25,880 27,168
Provision for environmental reserves - 536 - 536
Contract reserves 738 (603) (3,306) (6,056)
Other - Insurance - (6,126) - (6,126)
Total operating expenses 26,693 16,632 95,967 106,340
Operating income 18,992 4,224 10,222 3,197
Gain on sales of available-for 1,455 - 2,225 190
-sale security
Investment and other income 505 869 6,777 3,239
Income before income taxes 20,952 5,093 19,224 6,626
Income tax benefit (expense) (1,830) 1,477 (1,830) 1,477
Net income $19,122 $6,570 $17,394 $8,103
Income per common share:
Diluted $ 1.92 $ 0.67 $ 1.75 $ 0.82
Number of shares used in the
calculation of earnings per share
(thousands) 9,944 9,919 9,962 9,919
A copy of the Company's financial statements for the year ended March 28, 1999
will be filed with the Securities & Exchange Commission as part of its annual
report on Form 10-K when approved by the Audit Committee of the Board of
Directors. The Company's Form 10-K should be read in conjunction with this
earnings report.
TODD SHIPYARDS CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
Periods ended March 28, 1999 and March 29, 1998
(in thousands of dollars)
Year Ended
3/28/99 3/29/98
ASSETS
Cash and cash equivalents $ 17,839 $12,328
Securities available-for-sale 23,823 29,524
Accounts receivable, net 32,244 7,133
Other 6,910 17,793
Total Current Assets 80,816 66,778
Property, plant and equipment, net 19,026 21,565
Deferred pension asset 24,782 21,786
Other 4,832 6,744
Total Assets $129,456 $116,873
LIABILITIES AND
STOCKHOLDERS EQUITY
Accounts payable and accruals
including tax $16,699 $14,583
Other 6,561 7,795
Total Current Liabilities 23,260 22,378
Environmental reserves 14,416 16,065
Accrued postretirement benefits 20,692 21,617
Total Liabilities 58,368 60,060
Total stockholders equity 71,088 56,813
Total liabilities and
stockholders equity $129,456 $116,873
A copy of the Company's financial statements for the year ended March 28, 1999
will be filed with the Securities & Exchange Commission as part of its annual
report on Form 10-K when approved by the Audit Committee of the Board of
Directors. The Company's Form 10-K should be read in conjunction with this
balance sheet statement.
