(Financial statements follow)
Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
||||||||
Net sales |
$ |
230,821 |
|
|
$ |
251,970 |
|
|
$ |
474,668 |
|
|
$ |
500,236 |
|
Cost of sales |
|
151,204 |
|
|
|
165,452 |
|
|
|
315,350 |
|
|
|
328,324 |
|
Gross margin |
|
79,617 |
|
|
|
86,518 |
|
|
|
159,318 |
|
|
|
171,912 |
|
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
|
46,128 |
|
|
|
56,138 |
|
|
|
106,213 |
|
|
|
113,843 |
|
Research and development expenses |
|
8,098 |
|
|
|
8,050 |
|
|
|
17,684 |
|
|
|
16,310 |
|
| Restructuring and impairment charges |
|
3,939 |
|
|
|
677 |
|
|
|
14,440 |
|
|
|
746 |
|
| Other operating (income) expense, net |
|
(6,442 |
) |
|
|
(1,743 |
) |
|
|
(6,661 |
) |
|
|
(2,274 |
) |
| Operating income |
|
27,894 |
|
|
|
23,396 |
|
|
|
27,642 |
|
|
|
43,287 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Equity income in unconsolidated joint ventures |
|
842 |
|
|
|
1,800 |
|
|
|
918 |
|
|
|
3,075 |
|
| Other income (expense), net |
|
(757 |
) |
|
|
319 |
|
|
|
(752 |
) |
|
|
586 |
|
| Interest expense, net |
|
(2,837 |
) |
|
|
(1,548 |
) |
|
|
(6,299 |
) |
|
|
(2,617 |
) |
| Income before income tax expense |
|
25,142 |
|
|
|
23,967 |
|
|
|
21,509 |
|
|
|
44,331 |
|
| Income tax expense (benefit) |
|
7,278 |
|
|
|
6,084 |
|
|
|
7,150 |
|
|
|
9,848 |
|
| Net income |
$ |
17,864 |
|
|
$ |
17,883 |
|
|
$ |
14,359 |
|
|
$ |
34,483 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Basic earnings per share |
$ |
0.96 |
|
|
$ |
0.95 |
|
|
$ |
0.77 |
|
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Diluted earnings per share |
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.77 |
|
|
$ |
1.82 |
|
|
|
|
|
|
|
|
|
|
||||||||
| Shares used in computing: |
|
|
|
|
|
|
|
||||||||
| Basic earnings per share |
|
18,627 |
|
|
|
18,813 |
|
|
|
18,615 |
|
|
|
18,797 |
|
| Diluted earnings per share |
|
18,683 |
|
|
|
18,992 |
|
|
|
18,659 |
|
|
|
18,996 |
|
| Condensed Consolidated Statements of Financial Position (Unaudited) |
|||||||
| (DOLLARS AND SHARES IN THOUSANDS, EXCEPT PAR VALUE) |
June 30, 2023 |
|
December 31, 2022 |
||||
| Assets |
|
|
|
||||
| Current assets |
|
|
|
||||
| Cash and cash equivalents |
$ |
141,452 |
|
|
$ |
235,850 |
|
| Accounts receivable, less allowance for doubtful accounts of $1,003 and $1,007 |
|
186,700 |
|
|
|
177,413 |
|
| Contract assets |
|
42,223 |
|
|
|
38,853 |
|
| Inventories |
|
169,675 |
|
|
|
182,402 |
|
| Prepaid income taxes |
|
3,724 |
|
|
|
4,042 |
|
| Asbestos-related insurance receivables, current portion |
|
3,881 |
|
|
|
3,881 |
|
| Other current assets |
|
35,124 |
|
|
|
17,426 |
|
| Total current assets |
|
582,779 |
|
|
|
659,867 |
|
| Property, plant and equipment, net of accumulated depreciation of $380,363 and $381,584 |
|
346,335 |
|
|
|
358,415 |
|
| Investments in unconsolidated joint ventures |
|
12,760 |
|
|
|
14,082 |
|
| Deferred income taxes |
|
60,165 |
|
|
|
50,649 |
|
| Goodwill |
|
358,641 |
|
|
|
352,365 |
|
| Other intangible assets, net of amortization |
|
130,551 |
|
|
|
133,724 |
|
| Pension assets |
|
5,432 |
|
|
|
5,251 |
|
| Asbestos-related insurance receivables, non-current portion |
|
55,926 |
|
|
|
55,926 |
|
| Other long-term assets |
|
15,788 |
|
|
|
15,935 |
|
| Total assets |
$ |
1,568,377 |
|
|
$ |
1,646,214 |
|
| Liabilities and Shareholders’ Equity |
|
|
|
||||
| Current liabilities |
|
|
|
||||
| Accounts payable |
$ |
51,233 |
|
|
$ |
57,342 |
|
| Accrued employee benefits and compensation |
|
33,591 |
|
|
|
34,158 |
|
| Accrued income taxes payable |
|
7,616 |
|
|
|
5,504 |
|
| Asbestos-related liabilities, current portion |
|
4,968 |
|
|
|
4,968 |
|
| Finance lease obligations, current portion |
|
355 |
|
|
|
498 |
|
| Other accrued liabilities |
|
20,817 |
|
|
|
40,067 |
|
| Total current liabilities |
|
118,580 |
|
|
|
142,537 |
|
| Borrowings under revolving credit facility |
|
130,000 |
|
|
|
215,000 |
|
| Pension and other postretirement benefits liabilities |
|
1,579 |
|
|
|
1,501 |
|
| Asbestos-related liabilities, non-current portion |
|
59,884 |
|
|
|
60,065 |
|
| Finance lease obligations, non-current portion |
|
1,253 |
|
|
|
1,295 |
|
| Non-current income tax |
|
9,450 |
|
|
|
9,985 |
|
| Deferred income taxes |
|
24,443 |
|
|
|
23,557 |
|
| Other long-term liabilities |
|
17,571 |
|
|
|
19,808 |
|
| Shareholders’ equity |
|
|
|
||||
| Capital stock - $1 par value; 50,000 authorized shares; 18,616 and 18,574 shares issued and outstanding |
|
18,616 |
|
|
|
18,574 |
|
| Additional paid-in capital |
|
145,219 |
|
|
|
140,702 |
|
| Retained earnings |
|
1,112,813 |
|
|
|
1,098,454 |
|
| Accumulated other comprehensive loss |
|
(71,031 |
) |
|
|
(85,264 |
) |
| Total shareholders' equity |
|
1,205,617 |
|
|
|
1,172,466 |
|
| Total liabilities and shareholders' equity |
$ |
1,568,377 |
|
|
$ |
1,646,214 |
|
Reconciliation of non-GAAP financial measures to the comparable GAAP measures
