Todd Shipyards Corporation Announces Quarterly Financial Results for October3, 2004

 

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SEATTLE, WASHINGTON...November 4, 2004...Todd ShipyardsCorporation (the "Company") announced financial results for the second quarterended October 3, 2004. In accordance with the Company's policy of ending itsfiscal year on the Sunday nearest March 31, the Company's fiscal year 2005 willend on April 3, 2005 and include 53 weeks. Accordingly, the Company's quarterending October 3, 2004 contains 14 weeks rather than the 13 week duration of theprior quarterly periods to which this year's second quarter results arecompared.

For the quarter, the Company reported net income of $2.4million or $0.43 per diluted share on revenue of $36.6 million. For the sixmonth period then ended, the Company reported net income of $3.7 million or$0.65 per diluted share on revenue of $68.7 million. For the prior year secondquarter ended September 28, 2003, the Company reported net income of $2.0million or $0.35 per diluted share on revenue of $44.4 million. For the sixmonth period then ended, the Company reported a net loss of $0.2 million or($0.05) per diluted share on revenue of $65.6 million.

The Company's second quarter revenue of $36.6 million reflectsa decrease of $7.8 million (17.6%) from the same period last fiscal year. Thequarter-to-quarter decrease is primarily attributable to lower Navy volumesrelated to the transfer of AOE work to MSC, partially offset by increases inother Navy work, and lower volumes of US Coast Guard and commercial ship repairactivity. Revenues for the first six months of fiscal year 2005 of $68.7 millionreflect an increase of $3.1 million (4.8%) from fiscal year 2004 comparableperiods. The increase in the first six months of fiscal year 2005 isattributable tohigher Navy work volumes,partially offset by lower volumes of US Coast Guard and commercial ship repairactivity. 

For the quarter ended October 3, 2004, the Company reportedoperating income of $3.2 million. In the prior year quarter ended September 28,2003, the Company reported operating income of $2.6 million. The increase inoperating income for the second quarter of fiscal year 2005 from the secondquarter of fiscal year 2004 is attributable to an increase in work for the Navy.

For the six month period then ended, the Company reportedoperating income of $4.9 million, an increase of $6.0 million from operatingincome reported during the comparable prior six month period. As previouslyreported, the increase in operating income during the first six months of fiscalyear 2005 is attributable to two factors. First, the above mentioned increase inNavy work volumes. Second, the $2.5 million charge that was recorded in thefirst quarter of fiscal year 2004 related to the unanticipated bankruptcy of oneof the Company's former workers compensation carriers.

For the second quarter and six month periods ending October 3,2004, the Company reported net gains on the sale of available-for-salesecurities, investment income and other income of $0.2 million and $0.4 million,respectively. During the same periods ending September 28, 2003, the Companyreported net gains on the sale of available-for-sale securities, investmentincome and other income of $0.4 million and $0.7 million, respectively.

For the quarter ended October 3, 2004, the Company recorded$1.0 million in federal income tax expense. During the six month period thenended, the Company recorded $1.7 million in federal income tax expense. Duringthe same periods ended September 28, 2003, the Company recorded $1.0 million infederal income tax expense and a $0.1 million in federal income tax benefit,respectively. 

The results of operations are as follows:

TODD SHIPYARDS CORPORATION