Gorman-Rupp Reports First Quarter 2021 Financial Results
The Gorman-Rupp Company (NYSE: GRC) reported first-quarter 2021 earnings per share of $0.28, up from $0.21 in Q1 2020. Despite this, net sales decreased by 2.9% to $89.0 million, attributed to a 4.2% decline in domestic sales and challenges in non-water markets, largely due to the COVID-19 pandemic. Incoming orders increased 1.3% YoY, boosting backlog to $125.5 million. SG&A expenses decreased 5.4%, leading to an operating margin of 10.1%. Overall, the company remains cautiously optimistic about recovery and is monitoring supply chain risks.
- Earnings per share increased to $0.28 from $0.21 YoY.
- Operating income improved to $9.0 million with a margin of 10.1%.
- Backlog grew to $125.5 million, indicating positive incoming orders.
- Net sales decreased by 2.9% or $2.7 million compared to Q1 2020.
- Domestic sales fell by 4.2% or $2.7 million.
- Challenges in non-water markets due to COVID-19 impacted sales.
The Gorman-Rupp Company (NYSE: GRC) reports financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Highlights
-
First quarter earnings per share were
$0.28 compared to$0.21 per share for the first quarter of 2020-
First quarter of 2020 included a non-cash pension settlement charge of
$0.04 per share
-
First quarter of 2020 included a non-cash pension settlement charge of
-
Net sales decreased
2.9% or$2.7 million compared to the first quarter of 2020 and increased7.9% or$6.5 million compared to the fourth quarter of 2020 -
Incoming orders increased
1.3% compared to the first quarter of 2020 and increased9.5% compared to the fourth quarter of 2020 -
Backlog improved to
$125.5 million compared to$113.1 million at December 31, 2020
Net sales for the first quarter of 2021 were
Sales in our water markets increased
Sales in our non-water markets decreased
Gross profit was
Selling, general and administrative (“SG&A”) expenses were
Operating income was
Other income (expense), net was
Net income was
The Company’s backlog of orders was
Capital expenditures for the quarter ended March 31, 2021 were
Jeffrey S. Gorman, Chairman and CEO commented, “Although the timing of the global economy fully recovering from the COVID-19 pandemic remains somewhat uncertain, we were pleased to see our incoming orders improve in the first quarter of this year. Our ongoing focus on managing both operating and SG&A expenses resulted in improved earnings compared to the prior year. Our increase in incoming orders has resulted in a strong backlog position as we begin the second quarter. While we continue to believe sales in the first half of this year will be more challenging than in the back half, the change in trend that we saw during the first quarter was encouraging. We continue to monitor developments in our global supply chain related to increased lead times and rising material costs. To the extent that these could impact our financial results, we are taking measures to mitigate risks and to ensure that we are able to continue to meet our customers’ needs. We remain well positioned to maximize the opportunity as the economy recovers while at the same time continuing to focus on our long-term strategic initiatives.”
About The Gorman-Rupp Company
Founded in 1933, The Gorman-Rupp Company is a leading designer, manufacturer and international marketer of pumps and pump systems for use in diverse water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid-handling applications.
Forward-Looking Statements
In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, The Gorman-Rupp Company provides the following cautionary statement: This news release contains various forward-looking statements based on assumptions concerning The Gorman-Rupp Company’s operations, future results and prospects. These forward-looking statements are based on current expectations about important economic, political, and technological factors, among others, and are subject to risks and uncertainties, which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Such factors include, but are not limited to: company specific risk factors including (1) loss of key personnel; (2) intellectual property security; (3) acquisition performance and integration; (4) impairment in the value of intangible assets, including goodwill; (5) defined benefit pension plan settlement expense; and (6) family ownership of common equity; and general risk factors including (7) continuation of the current and projected future business environment, including the duration and scope of the COVID-19 pandemic, the impact of the pandemic and actions taken in response to the pandemic; (8) highly competitive markets; (9) availability and costs of raw materials; (10) cyber security threats; (11) compliance with, and costs related to, a variety of import and export laws and regulations; (12) environmental compliance costs and liabilities; (13) exposure to fluctuations in foreign currency exchange rates; (14) conditions in foreign countries in which The Gorman-Rupp Company conducts business; (15) changes in our tax rates and exposure to additional income tax liabilities; and (16) risks described from time to time in our reports filed with the Securities and Exchange Commission. Except to the extent required by law, we do not undertake and specifically decline any obligation to review or update any forward-looking statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments or otherwise.
For additional information, contact James C. Kerr, Chief Financial Officer, Telephone (419) 755-1548.
| The Gorman-Rupp Company | |||||||
| Condensed Consolidated Statements of Income (Unaudited) | |||||||
| (thousands of dollars, except per share data) | |||||||
| Three Months Ended March 31, | |||||||
2021 |
2020 |
||||||
| Net sales |
|
|
|||||
| Cost of products sold | 65,985 |
68,223 |
|||||
| Gross profit | 23,042 |
23,448 |
|||||
| Selling, general and | |||||||
| administrative expenses | 14,069 |
14,871 |
|||||
| Operating income | 8,973 |
8,577 |
|||||
| Other income (expense), net | 345 |
(1,687) |
|||||
| Income before income taxes | 9,318 |
6,890 |
|||||
| Income taxes | 1,889 |
1,404 |
|||||
| Net income |
|
|
|||||
| Earnings per share |
|
|
|||||
| The Gorman-Rupp Company | |||||||
| Condensed Consolidated Balance Sheets (Unaudited) | |||||||
| (thousands of dollars, except share data) | |||||||
| March 31, | December 31, | ||||||
2021 |
2020 |
||||||
| Assets | |||||||
| Cash and cash equivalents |
|
|
|||||
| Accounts receivable, net | 53,967 |
50,763 |
|||||
| Inventories, net | 79,010 |
82,686 |
|||||
| Prepaid and other | 6,265 |
5,169 |
|||||
| Total current assets | 255,756 |
246,821 |
|||||
| Property, plant and equipment, net | 105,788 |
108,666 |
|||||
| Other assets | 5,789 |
4,795 |
|||||
| Goodwill and other intangible assets, net | 33,852 |
34,175 |
|||||
| Total assets |
|
|
|||||
| Liabilities and shareholders' equity | |||||||
| Accounts payable |
|
|
|||||
| Accrued liabilities and expenses | 30,097 |
29,035 |
|||||
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FAQ
What were Gorman-Rupp's earnings per share for Q1 2021?
Gorman-Rupp reported earnings per share of $0.28 for Q1 2021.
How did net sales for Gorman-Rupp change in Q1 2021?
Net sales decreased by 2.9% to $89.0 million compared to Q1 2020.
What is the backlog for Gorman-Rupp at the end of Q1 2021?
The backlog for Gorman-Rupp increased to $125.5 million by March 31, 2021.
What challenges did Gorman-Rupp face in Q1 2021?
Challenges included a decline in domestic sales and difficulties in non-water markets due to the COVID-19 pandemic.
How did SG&A expenses perform in Q1 2021 for Gorman-Rupp?
SG&A expenses decreased by 5.4% to $14.1 million, improving as a percentage of net sales.
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GRC Stock Data
1.01B
20.70M
21%
63.48%
0.41%
Specialty Industrial Machinery
Pumps & Pumping Equipment
United States of America
MANSFIELD
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