- Q4 and FY 2005 Revenues of $241.7M and $875.5M, from Continuing Operations
- Q4 and FY 2005 Diluted EPS of $0.19 and $0.64, from Continuing Operations
- Cash and Cash Equivalents increase $77M during the quarter to a year end balance of $257M
- Company Completes its Strategic Divestitures with Sale of the Landis Grinding Systems Business
Intermec, Inc. (NYSE:IN) today announced financial results for its fourth quarter and fiscal year which ended December 31, 2005.
Intermec reported 2005 fourth quarter revenues of $241.7 million and earnings from continuing operations of $12.1 million, or $0.19 per diluted share, compared to 2004 fourth quarter revenues of $236.9 million and earnings from continuing operations of $26.4 million, or $0.42 per diluted share. The effective tax rate for the fourth quarter of 2005 was 25 percent. In the fourth quarter of 2004, the Company had recorded a tax benefit from continuing operations of $9.0 million primarily reflecting the recognition of earned tax credits and the benefit of net operating losses resulting from foreign legal entity restructuring. Including discontinued operations, net earnings for the fourth quarter of 2005 were $44.5 million or $0.69 per diluted share compared to net loss of ($71.2) million or ($1.14) per diluted share in the prior years fourth quarter.
Fourth quarter 2005 gross margin was 40.5 percent, compared to the fourth quarter of 2004 of 41.6 percent and compared to the sequential third quarter 2005 of 39.9 percent. This amount was below the company's expectation of 42 percent, primarily due to a higher customer mix of lower margin enterprise accounts during the quarter.
Fiscal year 2005 revenues were $875.5 million and earnings from continuing operations were $40.6 million, or $0.64 per diluted share, compared to 2004 revenues of $811.3 million and earnings from continuing operations of $52.2 million, or $0.84 per diluted share. Revenues and earnings from continuing operations before income taxes for fiscal year 2004 included a settlement for an intellectual property (IP) dispute regarding its smart battery patents in the amount of $19.7 million and $15.6 million, respectively. Including discontinued operations, net earnings for fiscal year 2005 were $64.7 million or $1.02 per diluted share compared to net loss of ($49.1) million or ($0.79) per diluted share in the prior fiscal year.
The Company's cash and cash equivalent position at the end of the fourth quarter was $256.8 million, an increase of $77.2 million during the fourth quarter. The increase in cash primarily reflects the sales of its Landis Grinding Systems business, cash flows from operating activities and the sale of certain assets held for sale. The Company's net cash, defined as cash and cash equivalents less total debt, increased to a record $156.8 million.
Geographically during the fourth quarter, North American revenues increased 8 percent over the comparable prior-year period. Revenues in Europe, Mid-East and Africa (EMEA) decreased 13 percent; and the rest of the world, consisting of Asia Pacific and Latin America, increased 7 percent.
During the fourth quarter, Systems and Solutions revenue decreased 2 percent and Printer and Media revenues increased 7 percent over the comparable prior-year period. Service revenue increased 15 percent over the comparable prior-year period.
Geographically for fiscal year 2005, North American revenues increased 14 percent over the comparable prior-year period. Revenues in Europe, Mid-East and Africa (EMEA) increased 3 percent; and the rest of the world, consisting of Asia Pacific and Latin America, increased 12 percent.
For the full fiscal year 2005, Systems and Solutions revenue increased 9 percent and Printer and Media revenues increased 13 percent over the comparable prior-year period. Service revenue increased 13 percent over the comparable prior-year period.
About Intermec Inc.
Intermec Inc. (NYSE:IN) develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. The company's products and services are used by customers in many industries worldwide to improve the productivity, quality and responsiveness of business operations. For more information about Intermec, visit www.intermec.com or call 800-347-2636. Contact Intermec Investor Relations Director Kevin McCarty at kevin.mccarty@intermec.com , 425-265-2472.
(Forward-looking Statement)
Certain forward-looking statements in this release (as defined by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934) relate to matters that are not historical facts. They include, but are not limited to, statements about the Company's ability to continue to improve profit of its business segments, reduce expenses, improve efficiency, leverage its research and development investment to drive significant future revenue, and the ability to continue operational improvement and year over year growth. Such forward-looking statements involve and are dependent upon certain risks and uncertainties. These include, but are not limited to, other risks and uncertainties described more fully in the Company's filings on Form 10-K and 10-Q with the Securities and Exchange Commission.
Intermec will hold a conference call on February 8, 2006 at 5 p.m. Eastern (2 p.m. Pacific) to review financial results from its fourth fiscal quarter and fiscal year 2005. The call will be hosted by Intermec, Inc. Chairman and Chief Executive Officer, Larry D. Brady, President and COO, Steven J. Winter, Controller and Acting Chief Financial Officer, Rick B. Anderson and Director of Investor Relations, Kevin P. McCarty. The dial-in number for participants is 1-800-988-9454 (US); 1-312-470-7109 (International) (Pass code is "Intermec").
The call will be broadcast on the Internet via a link from the investor's Web page at the Intermec website at www.intermec.com/InvestorRelations
Click here for more details about the financial results announced today, including reported figures .
CONTACT: Intermec, Inc.
Kevin P. McCarty, 425-265-2472
kevin.mccarty@intermec.com
