Baldwin Technology Company, Inc. (NYSE Amex: BLD), a global leader in process automation technology for the printing industry, today reported financial results for its fiscal third quarter ended March 31, 2011.
• Orders up 19% compared to the third quarter of prior year
• Backlog increased 15% over prior quarter
• Reorganized operations and reduced global headcount by 9%
• Restated financials for Fiscal 2010 and Q1 and Q2 of Fiscal 2011 to be filed
• Ivan R. Habibe elected Vice President and CFO effective April 4, 2011
• New President of Baldwin Japan appointed effective March 16, 2011
Third Quarter Financial Results
The Company reported net sales of $36.4 million for the third quarter, a 1.4% decline compared to net sales of $37.0 million for the third quarter of the prior fiscal year. Currency effects increased sales by $1.1 million, or 3.1% from the same quarter of the prior year. Sales from the entities acquired on June 30, 2010 contributed $3.6 million. Orders for the quarter were approximately $43 million, compared to approximately $36 million in the third quarter of the prior year, an increase of 19%. Backlog as of March 31, 2011 was $39 million compared to $34 million at December 31, 2010.
Net loss from continuing operations was $2.9 million or $0.18 per diluted share, compared to net income from continuing operations of $25,000 or $0.0 per diluted share for the third quarter of Fiscal 2010.
EBITDA, a non-GAAP financial measure, after adjustment for restructuring costs recorded during the quarter was a loss of $0.9 million, compared to EBITDA of $1.0 million for the same quarter of the prior year. Cash flow from operations in the quarter was a use of $1.7 million compared to a use of $0.6 million in the third quarter of the prior year.
Please refer to the attached schedule, “Non-GAAP Statements of Operations,” for a reconciliation of GAAP results to adjusted results.
On April 5, 2011, the Company announced a strategic reorganization of the Company’s operations and a 9% reduction in global employment levels. The total cost of implementing the Q3 FY2011 restructuring plan will be approximately $2.4 million and will result in an annual savings of approximately $5 million. Coupled with actions taken earlier in the current fiscal year, the total impact of all restructurings is expected to result in savings of over $6.6 million annually.
Additionally, on April 5, 2011, the Company announced the planned exit of its U.S. food blending and packaging business (which currently represents approximately 3% of total annual revenues). The Company has classified its non-core food blending and packaging business as discontinued operations. In connection with the exit of that business, the Company recorded an impairment of goodwill and other intangible assets in the third quarter of approximately $2.5 million. Information presented for both current and prior year periods in the financial statements has been modified to reflect the discontinued operations.