SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 2001 Commission File Number 1-6747
Registrant’s telephone number, including area code (419) 755-1011
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
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MARCH 31, 2001
NOTE A — BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2001 are not necessarily indicative of results that may be expected for the year ending December 31, 2001. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2000.
NOTE B — INVENTORIES
The major components of inventories are as follows:
NOTE C — COMPREHENSIVE INCOME
During the first quarter of 2001 and 2000, total comprehensive income amounted to $3,257,000 and $4,087,000.
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First Quarter 2001 vs First Quarter 2000
Net sales were $49,671,000 in 2001, an increase of $647,000 or 1.3% from the $49,024,000 in 2000. Most of the increase was due to increased sales of pumps and fabricated turbine diffusers.
Other income was $262,000 in 2001 compared to $170,000 in 2000. Most of this increase was a result of increased currency exchange gains.
Cost of products sold in 2001 was $37,325,000 compared to $36,341,000 in 2000. The increase was primarily due to the use of materials to support the increased sales. Increases in payroll related expenses and health insurance were other major contributors to the increase. Heating costs were considerably higher than last year. As a percent of net sales, cost of products sold in 2001 was 75.1% compared to 74.1% in 2000.
Selling, general and administrative expenses increased to $6,744,000 in 2001 from $6,149,000 in 2000 principally due to an increase in advertising expenses. These expenses were unusually low in 2000.
Income before income taxes was $5,864,000 in 2001 compared to $6,704,000 in 2000, a decrease of $840,000. Income tax expense decreased from $2,604,000 in 2000 to $2,260,000 in 2001, primarily as a result of the decrease in profit. The effective income tax rate was 38.5% in 2001 and 38.8% in 2000.
Net income in 2001 of $3,604,000 decreased $496,000 from $4,100,000 in 2000. As a percent of net sales, net income was 7.3% in 2001 and 8.4% in 2000. Net income per share was $.42 in 2001, a decrease of $.06 from $.48 in 2000.
FINANCIAL CONDITION
The Company continues to finance most of its capital expenditures and working capital requirements through internally generated funds and bank financing. The ratio of current assets to current liabilities was 3.7 to 1 at March 31, 2001 and 4.3 to 1 at December 31, 2000.
The Company presently has adequate working capital, adequate borrowing capacity and a healthy liquidity position.
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PART II — OTHER INFORMATIONTHE GORMAN-RUPP COMPANY AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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