- Email: [email protected]
Ionics Inc, USA
Filtration Industry Analyst
December 2003
Groupe Laperrière & Verreault, Canada
Ionics Inc, USA
Key Figures (C$ million) Second quarter ended 30.9 2003
2002
134.3
78.9
51.4 89.7 4.8
58.6 22.9 6.1
101.5
54.7
R&D Expenses
32.8
24.2
EBITDA1
8.5
6.3
Earnings before Income Taxes
4.8
3.4
Net Earnings
3.8
2.5
Revenues Of Which: Pulp and Paper Group Process Group Manufacturing Cost of Contracts and Goods Sold
2003
2002
90.6
83.5
39.3 26.7 6.4
41.4 25.2 6.6
117.9
83.5
1.8
1.6
Income/(Loss) from Continuing Operations
(27.2)
0.03
Net Income/(Loss)
(22.0)
0.4
Revenues Of Which: Equipment Business Ultrapure Water Consumer Water Costs and Expenses
Gross Margin
COMPANY WATCH
Key Figures (US$ million) Third quarter ended 30.9
Nine months ended 30.9
Six months ended 30.9 2003
2002
255.1
153.4
100.6 165.0 9.9
111.4 46.0 13.4
188.6
107.4
Gross Margin
66.6
EBITDA1
Revenues Of Which: Pulp and Paper Group Process Group Manufacturing Cost of Contracts and Goods Sold
2003
2002
Revenues Of Which: Equipment Business Ultrapure Water Consumer Water
260.4
235.9
109.4 75.5 17.9
112.4 75.4 18.7
Costs and Expenses
288.0
233.4
R&D Expenses
5.5
4.8
46.0
Income/(Loss) from Continuing Operations
(27.7)
2.5
17.3
11.2
Net Income
(26.4)
3.1
Earnings Before Income Taxes
8.3
6.0
Net Earnings
6.5
4.4
1 Earnings
before depreciation and amortization, financial expenses and income taxes.
COMMENT GL&V’s November 2002 acquisition of Eimco (FIA, September 2002), together with the Process Group’s internal growth, saw it post a 70.2% increase in sales and 48.6% rise in net earnings for its second quarter compared with a year earlier. Since the beginning of the current year, GL&V has recorded revenues of C$45 million in the water treat-
8
ment industry, having recently been awarded orders by the Canadian city of Toronto and two US municipalities. To accelerate its growth in this area, the company has recently set up the entity Eimco Water Technologies, which will be entirely dedicated to developing and managing GL&V’s assets in the municipal and industrial water treatment sector. ■
COMMENT Ionics posted third quarter revenues of US$90.6 million, up 8.5% from the same period in 2002. The net loss for the quarter of US$22.0 million compared with net income of US$0.4 million a year ago. The loss reflected charges of US$12.7 million in goodwill impairment and US$5.0 million in restructuring and impairment expense. The latter charge included US$2.5 million for severance costs associated with the company’s restructuring plan, and US$2.5 million for asset impairment charges. Also included in the results for the quarter were charges of US$4.8 million
related to a product retrofit programme and charges of US$1.7 million related to Ionics’ decision to shut down its European Home Water business. Additionally, the company incurred US$0.8 million in charges associated with the decision to shut down operations in its Watertec Australia business, and US$0.8 million in charges for the write-off of a receivable that is currently in litigation. As the Elite Consumer Product business is to be sold, the results for that business have been reclassified as discontinued operations. This amounted to a taxeffected loss of US$3.7 million for the quarter. ■
December 2003
Groupe Laperrière & Verreault, Canada
Ionics Inc, USA
Key Figures (C$ million) Second quarter ended 30.9 2003
2002
134.3
78.9
51.4 89.7 4.8
58.6 22.9 6.1
101.5
54.7
R&D Expenses
32.8
24.2
EBITDA1
8.5
6.3
Earnings before Income Taxes
4.8
3.4
Net Earnings
3.8
2.5
Revenues Of Which: Pulp and Paper Group Process Group Manufacturing Cost of Contracts and Goods Sold
2003
2002
90.6
83.5
39.3 26.7 6.4
41.4 25.2 6.6
117.9
83.5
1.8
1.6
Income/(Loss) from Continuing Operations
(27.2)
0.03
Net Income/(Loss)
(22.0)
0.4
Revenues Of Which: Equipment Business Ultrapure Water Consumer Water Costs and Expenses
Gross Margin
COMPANY WATCH
Key Figures (US$ million) Third quarter ended 30.9
Nine months ended 30.9
Six months ended 30.9 2003
2002
255.1
153.4
100.6 165.0 9.9
111.4 46.0 13.4
188.6
107.4
Gross Margin
66.6
EBITDA1
Revenues Of Which: Pulp and Paper Group Process Group Manufacturing Cost of Contracts and Goods Sold
2003
2002
Revenues Of Which: Equipment Business Ultrapure Water Consumer Water
260.4
235.9
109.4 75.5 17.9
112.4 75.4 18.7
Costs and Expenses
288.0
233.4
R&D Expenses
5.5
4.8
46.0
Income/(Loss) from Continuing Operations
(27.7)
2.5
17.3
11.2
Net Income
(26.4)
3.1
Earnings Before Income Taxes
8.3
6.0
Net Earnings
6.5
4.4
1 Earnings
before depreciation and amortization, financial expenses and income taxes.
COMMENT GL&V’s November 2002 acquisition of Eimco (FIA, September 2002), together with the Process Group’s internal growth, saw it post a 70.2% increase in sales and 48.6% rise in net earnings for its second quarter compared with a year earlier. Since the beginning of the current year, GL&V has recorded revenues of C$45 million in the water treat-
8
ment industry, having recently been awarded orders by the Canadian city of Toronto and two US municipalities. To accelerate its growth in this area, the company has recently set up the entity Eimco Water Technologies, which will be entirely dedicated to developing and managing GL&V’s assets in the municipal and industrial water treatment sector. ■
COMMENT Ionics posted third quarter revenues of US$90.6 million, up 8.5% from the same period in 2002. The net loss for the quarter of US$22.0 million compared with net income of US$0.4 million a year ago. The loss reflected charges of US$12.7 million in goodwill impairment and US$5.0 million in restructuring and impairment expense. The latter charge included US$2.5 million for severance costs associated with the company’s restructuring plan, and US$2.5 million for asset impairment charges. Also included in the results for the quarter were charges of US$4.8 million
related to a product retrofit programme and charges of US$1.7 million related to Ionics’ decision to shut down its European Home Water business. Additionally, the company incurred US$0.8 million in charges associated with the decision to shut down operations in its Watertec Australia business, and US$0.8 million in charges for the write-off of a receivable that is currently in litigation. As the Elite Consumer Product business is to be sold, the results for that business have been reclassified as discontinued operations. This amounted to a taxeffected loss of US$3.7 million for the quarter. ■