Companies news of 2009-10-29 (page 1)

  • Mohawk Industries, Inc. Announces Third Quarter Earnings
  • Cowlitz Bancorporation Announces Third Quarter 2009 Financial Results
  • Dresser-Rand Reports Strong Third Quarter 2009 ResultsNet Income Increased 59% to $74.6...
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  • Southwestern Energy Announces Third Quarter 2009 Results and Updates Fourth Quarter...
  • CanAlaska Uranium Ltd. - Initial closing of private placement
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  • Middleburg Financial Corporation Announces Third Quarter 2009 Dividend
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  • DTE Energy Reports Third Quarter 2009 Results; Maintains Updated 2009 Earnings Guidance
  • Pharmacyclics Reports First Quarter Fiscal 2010 Financial Results
  • CompX Reports Third Quarter 2009 Results
  • Evercore President and Chief Executive Officer, Ralph L. Schlosstein, and its Chief...
  • The Manitowoc Company Reports Third-Quarter Financial Results- Foodservice integration on...
  • Strategic Hotels & Resorts Closes Sale of the Four Seasons Mexico City
  • Gastar Announces Amended and Restated Credit AgreementInitial Borrowing Base of $47.5...
  • Suburban Propane Partners, L.P. to Hold Fiscal 2009 Fourth Quarter/Year End Results...
  • Krispy Kreme Awards Franchise Development Rights for Thailand
  • Communications Systems, Inc. Recognized by Forbes Magazine
  • NuVasive to Present at the Oppenheimer 20th Annual Healthcare Conference
  • Correction to Sierra Wireless October 28, 2009 Press ReleaseTSX: SW NASDAQ: SWIR
  • CO2 Solution to Present at TSX-SDTC Cleantech Investor Day in MontrealTrading symbol: CST...
  • Flotek Industries, Inc. Announces Adjournment of Special Meeting of Stockholders



    Mohawk Industries, Inc. Announces Third Quarter Earnings

    CALHOUN, Georgia, October 29 /PRNewswire/ --

    Mohawk Industries, Inc. (NYSE: MHK) today announced 2009 third quarter net earnings of US$34 million and diluted earnings per share (EPS) of US$0.50 which included a restructuring charge of approximately US$16 million, primarily related to our distribution and manufacturing infrastructure. Excluding the restructuring charge, net earnings and EPS would be US$44 million and US$0.64 per share, respectively. In the third quarter of 2008, the net loss was US$1,485 million and loss per share was US$21.70. Excluding the 2008 third quarter charges, net earnings and EPS would have been US$84 million and US$1.23 per share, respectively. Net sales for the 2009 third quarter were US$1,383 million, a decrease of 22% (21% with a constant exchange rate) from 2008. Continued cost control, reduced capital spending and lower working capital enabled generation of free cash flow of US$128 million for the quarter.

    For the nine months of 2009, our net loss was US$25 million or a net loss per share of US$0.37. Excluding year to date charges, net earnings would be US$108 million and EPS would be US$1.57. In the first nine months of 2008 net loss and loss per share were US$1,331 million and US$19.45 per share, respectively. Excluding the 2008 year to date charges, net earnings and EPS would have been US$244 million and US$3.56 per share, respectively. Net sales for the first nine months of 2009 were US$3,997 million representing a 25% decrease from 2008. Sales declined 22% with a constant exchange rate excluding carpet tile charges. The sales decrease for both the quarter and the year to date in the U.S. and Europe is primarily attributable to continuing low home sales, soft business investment and weak consumer discretionary spending.

    In commenting on the third quarter results, Jeffery S. Lorberbaum, Chairman and CEO stated, "Our third quarter earnings were slightly better than our guidance due to the many changes we have made to manage through this difficult environment. Our gross margin of 27%, an improvement of almost 200 basis points over last year benefited from lower raw material and freight costs, personnel reductions, cost containment measures and plant consolidations. Investments in new products, research and development and capital expenditures are being made to improve sales, efficiencies, quality and service. Our balance sheet is strong with over US$300 million of cash, ample liquidity from our new US$600 million bank facility and free cash flow of over US$340 million exceeding last year by approximately 55% on a year to date basis. Our strategy continues to be adjusted as the economic environment requires."

    Mohawk segment sales were down 21% for the third quarter, in line with the industry. Much of our efforts to reduce costs and improve processes have been offset by low industry volumes and unabsorbed overhead. Consumers are purchasing more value-oriented products and selling prices on commoditized products have compressed. Residential volume remains weak with commercial still in decline. We have made improvements in our controllable production costs and quality throughout our processes. Reductions in our SG&A continue to be made throughout the organization. The restructuring of our distribution model and consolidating regional warehouses with Dal-Tile will lower our infrastructure cost further. The commercial team is focused on the government, healthcare and education markets, which should be stronger than the other channels.

    Dal-Tile sales for the third quarter were down 23% or 22% with a constant exchange rate. The decline in new housing sales and commercial is significantly affecting the ceramic industry. Dal-Tile is taking share from imports, which make up about half of the industry volume with our broad product line and strong distribution. We further reduced our SG&A in the third quarter by merging local service centers, consolidating regional warehouses and reducing our warehousing infrastructure. Manufacturing costs continue to improve with increased productivity, lower waste levels, and higher quality. Our new introductions of engineered stone and terrazzo tile products are growing in the U.S. market. In Mexico, we are improving our market position by broadening our product line and expanding our customer base.

    Unilin sales declined 21% or 18% with a constant exchange rate. Our operating margins for the quarter were approximately 12% and the EBITDA margin was approximately 26%. Demand in both our U.S. and European markets remained challenging in the quarter. Lower raw material costs, increased royalty income, postponement of expenses and better than expected sales volume in some of our products favorably impacted our earnings. Our laminate business has been influenced by customers trading down to lower value alternatives. To improve our laminate sales, we are increasing participation in the DIY channels, growing sales of our new product introductions, adding new product features and investing in new product innovation. We broadened our wood distribution in both the U.S. and Europe under multiple brands to reach all markets. We continue to invest in research and development in our products to provide greater value and to lower production costs. The board products remain under significant pricing pressure due to excess capacity in the markets and high fixed operating costs. Unilin has implemented many cost reductions to lower SG&A, reduce manufacturing costs and manage inventory levels.

    Business conditions remain weak as we move into seasonally slower quarters. The residential business appears to have stabilized and the commercial business will continue to be difficult next year. Sequentially, lower plant utilization rates in the fourth quarter will result in higher unabsorbed overhead. Carpet material costs will reduce margins until we pass them through with higher prices. Our fourth quarter guidance for earnings is US$0.28 to US$0.38 per share. Excluded from the guidance is an estimated restructuring charge of US$25 million, primarily non-cash reductions of our manufacturing and distribution infrastructure. We continue to make the necessary structural changes to strengthen our long-term business. Each segment is executing innovative ways to positively position us in all product categories. All of our efforts to strengthen the business during this downturn will significantly benefit us in the future as the industry recovers.

    Certain of the statements in the immediately preceding paragraphs, particularly anticipating future performance, business prospects, growth and operating strategies and similar matters and those that include the words "could," "should," "believes," "anticipates," "expects," and "estimates," or similar expressions constitute "forward-looking statements." For those statements, Mohawk claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. There can be no assurance that the forward-looking statements will be accurate because they are based on many assumptions, which involve risks and uncertainties. The following important factors could cause future results to differ: changes in economic or industry conditions; competition; raw material and energy costs; timing and level of capital expenditures; integration of acquisitions; rationalization of operations; claims; litigation and other risks identified in Mohawk's SEC reports and public announcements.

    Mohawk is a leading supplier of flooring for both residential and commercial applications. Mohawk offers a complete selection of carpet, ceramic tile, laminate, wood, stone, vinyl, and rugs. These products are marketed under the premier brands in the industry, which include Mohawk, Karastan, Ralph Lauren, Lees, Bigelow, Dal-Tile, American Olean, Unilin and Quick Step. Mohawk's unique merchandising and marketing assist our customers in creating the consumers' dream. Mohawk provides a premium level of service with its own trucking fleet and over 250 local distribution locations.

    There will be a conference call Friday, October 30, 2009 at 11:00 AM Eastern Time. The telephone number to call is +1-800-603-9255 for US/Canada and +1-706-634-2294 for International/Local. Conference ID # 34166688. A conference call replay will also be available until November 13, 2009 by dialing +1-800-642-1687 for US/local calls and +1-706-645-9291 for International/Local calls and entering Conference ID # 34166688. (All amounts in US dollars unless otherwise specified) MOHAWK INDUSTRIES, INC. AND SUBSIDIARIES Consolidated Statement of Operations Three Months Ended Nine Months Ended -------------------- -------------------- (Amounts in thousands, Sept. 26, Sept. 27, Sept. 26, Sept. 27, except per share data) 2009 2008 2009 2008 --------- --------- --------- --------- Net sales $1,382,565 1,763,034 3,996,916 5,341,176 Cost of sales 1,013,106 1,323,963 3,106,380 3,959,374 --------- --------- --------- --------- Gross profit 369,459 439,071 890,536 1,381,802 Selling, general and administrative expenses 301,388 321,259 893,671 993,609 Impairment of goodwill and other intangibles - 1,418,912 - 1,418,912 --------- --------- --------- --------- Operating income (loss) 68,071 (1,301,100) (3,135)(1,030,719) Interest expense 32,318 30,540 92,504 97,049 Other (income) expense, net (610) 4,201 (2,617) 8,630 --------- --------- --------- --------- Earnings (loss) before income taxes 36,363 (1,335,841) (93,022)(1,136,398) Income tax expense (benefit) 2,015 148,940 (67,744) 194,215 --------- --------- --------- --------- Net earnings (loss) $34,348 (1,484,781) (25,278)(1,330,613) --------- --------- --------- --------- Basic earnings (loss) per share $0.50 (21.70) (0.37) (19.45) --------- --------- --------- --------- Weighted-average common shares outstanding - basic 68,456 68,411 68,446 68,396 --------- --------- --------- --------- Diluted earnings (loss) per share $0.50 (21.70) (0.37) (19.45) --------- --------- --------- --------- Weighted-average common shares outstanding - diluted 68,653 68,411 68,446 68,396 --------- --------- --------- --------- Other Financial Information (Amounts in thousands) Net cash provided by operating activities $146,549 190,287 412,594 376,979 --------- --------- --------- --------- Depreciation and amortization $76,435 77,712 221,177 226,020 --------- --------- --------- --------- Capital expenditures $18,678 49,512 71,281 155,322 --------- --------- --------- ---------

    Consolidated Balance Sheet Data (Amounts in thousands) September 26, 2009 September 27, 2008 ------------------ ------------------ ASSETS Current assets: Cash and cash equivalents $306,145 62,025 Receivables, net 832,105 933,741 Inventories 939,478 1,234,651 Prepaid expenses 117,367 122,464 Deferred income taxes and other current assets 164,016 151,160 ---------------------------------------------------------------- Total current assets 2,359,111 2,504,041 Property, plant and equipment, net 1,841,779 1,963,939 Goodwill 1,424,391 1,529,321 Intangible assets, net 817,586 954,826 Deferred income taxes and other non-current assets 45,588 20,259 ---------------------------------------------------------------- $6,488,455 6,972,386 ---------------------------------------------------------------- LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $53,163 131,663 Accounts payable and accrued expenses 876,579 980,873 ---------------------------------------------------------------- Total current liabilities 929,742 1,112,536 Long-term debt, less current portion 1,802,138 1,924,698 Deferred income taxes and other long-term liabilities 510,486 558,471 ---------------------------------------------------------------- Total liabilities 3,242,366 3,595,705 ---------------------------------------------------------------- Total equity 3,246,089 3,376,681 ---------------------------------------------------------------- $6,488,455 6,972,386 ---------------------------------------------------------------- As of or for the As of or for the Segment Information Three Months Ended Nine Months Ended (Amounts in thousands) ----------------------- --------------------- Sept. 26, Sept. 27, Sept. 26, Sept. 27, 2009 2008 2009 2008 --------- --------- --------- --------- Net sales: Mohawk $755,904 953,827 2,118,025 2,827,297 Dal-Tile 361,590 472,031 1,096,772 1,402,593 Unilin 281,803 357,785 829,984 1,173,065 Intersegment sales (16,732) (20,609) (47,865) (61,779) ------------------------------------------------------------------------- Consolidated net sales $1,382,565 1,763,034 3,996,916 5,341,176 ------------------------------------------------------------------------- Operating income (loss): Mohawk $16,261 (224,376) (142,234) (167,542) Dal-Tile 21,166 (479,918) 72,626 (364,808) Unilin 34,929 (592,549) 80,622 (482,472) Corporate and eliminations (4,285) (4,257) (14,149) (15,897) ------------------------------------------------------------------------- Consolidated operating income (loss) $68,071 (1,301,100) (3,135) (1,030,719) ------------------------------------------------------------------------- Assets: Mohawk $1,697,334 2,122,463 Dal-Tile 1,622,502 1,736,212 Unilin 2,754,233 2,912,235 Corporate and eliminations 414,386 201,476 ------------------------------------------------------------------------- Consolidated assets $6,488,455 6,972,386 -------------------------------------------------------------------------

    Reconciliation of Net Sale to Adjusted Net Sales (Amounts in thousands) Three Months Ended Nine Months Ended -------------------- -------------------- Sept. 26, Sept. 27, Sept. 26, Sept. 27, 2009 2008 2009 2008 --------- --------- --------- --------- Net sales $1,382,565 1,763,034 3,996,916 5,341,176 Add: Commercial carpet tile reserve - 14,614 110,224 23,651 Add: Exchange rate 16,825 - 89,825 - --------- --------- --------- --------- Adjusted net sales $1,399,390 1,777,648 4,196,965 5,364,827 --------- --------- --------- --------- Reconciliation of Segment Net Sale to Adjusted Segment Net Sales (Amounts in thousands) Three Months Ended -------------------- Sept. 26, Sept. 27, 2009 2008 --------- --------- Dal-Tile segment ------------------------------------------------- Net sales $361,590 472,031 Add: Exchange rate 4,518 - ------------------------------------------------- Adjusted net sales $366,108 472,031 ------------------------------------------------- Unilin segment ------------------------------------------------- Net sales $281,803 357,785 Add: Exchange rate 12,307 - ------------------------------------------------- Adjusted net sales $294,110 357,785 ------------------------------------------------- Reconciliation of Net Earnings (Loss) to Adjusted Net Earnings (Amounts in thousands, except per share data) Three Months Ended Nine Months Ended -------------------- -------------------- Sept. 26, Sept. 27, Sept. 26, Sept. 27, 2009 2008 2009 2008 ---------- --------- --------- --------- Net earnings (loss) $34,348 (1,484,781) (25,278) (1,330,613) Unusual charges: Add: Impairment of goodwill and other intangibles - 1,418,912 - 1,418,912 Add: Commercial carpet tile reserve - 14,614 122,492 23,651 Add: FIFO inventory - - 61,794 - Add: Business restructurings 16,019 - 31,936 - Add: Income tax expense (benefit) (6,167) 135,620 (83,004) 132,140 ------------------------------------------------------------------------- Adjusted net earnings $44,200 84,365 107,940 244,090 ------------------------------------------------------------------------- Basic earnings (loss) per share $0.50 (21.70) (0.37) (19.45) Weighted-average common shares outstanding - basic 68,456 68,411 68,446 68,396 Adjusted Diluted earnings per share $0.64 1.23 1.57 3.56 Weighted-average common shares outstanding - diluted 68,653 68,600 68,606 68,599

    Reconciliation of Free Cash Flow (Amounts in thousands) Three Months Ended Nine Months Ended ------------------ ------------------------------ Sept. 26, 2009 Sept. 26, 2009 Sept. 27, 2008 ------------------ -------------- -------------- Net cash provided by operations $146,549 412,594 376,979 Net cash used in investing (24,282) (77,205) (163,668) less: Acquisitions, net of cash 5,604 5,924 8,346 ---------------------------------------- ------------------------------ Free cash flow $127,871 341,313 221,657 ---------------------------------------- ------------------------------ Reconciliation of Unilin Segment Operating Income to Unilin Segment EBITDA (Amounts in thousands) Three Months Ended ------------------ EBITDA reconciliation September 26, 2009 ----------------------------------------- Operating income $34,929 Add: Other income 833 Add: Depreciation and amortization 38,247 ----------------- ------ EBITDA $74,009 -------- ------- The Company believes it is useful for itself and investors to review, as applicable, both GAAP and the above non-GAAP measures in order to assess the performance of the Company's business for planning and forecasting in subsequent periods.

    Mohawk Industries, Inc.

    Frank H. Boykin, Chief Financial Officer of Mohawk Industries, Inc., +1-706-624-2695




    Cowlitz Bancorporation Announces Third Quarter 2009 Financial Results

    LONGVIEW, Wash., Oct. 29 /PRNewswire-FirstCall/ --

    Flash Results Cowlitz Bancorporation (Numbers in Thousands, Except Per Share Data) Three Months Ended Nine Months Ended ------------------ ----------------- September September June September September 30, 2009 30, 2008 30, 2009 30, 2009 30, 2008 -------- -------- -------- -------- -------- Net Interest Income $3,669 $5,584 $3,836 $11,694 $16,721 Net Loss ($4,062) ($1,596) ($15,435) ($21,399) ($8,785) Diluted EPS ($0.79) ($0.31) ($3.01) ($4.18) ($1.74) Total Period End Loans $399,211 $374,361 $436,684 Total Period End Deposits $530,481 $535,479 $501,358

    Cowlitz Bancorporation reported a net loss of $4,062,000, or ($0.79) per diluted share, for the quarter ended September 30, 2009 compared with a net loss of $1,596,000, or ($0.31) per diluted share, during the same period of 2008. The current quarter's results include a $6.4 million provision for credit losses and a $3.1 million gain attributable to terminated interest rate contracts. For the nine months ended September 30, 2009, the Company reported a net loss of $21.4 million compared with a net loss of $8.8 million for the nine months ended September 30, 2008.

    The second quarter 2009 results included a $12.4 million non-cash charge to establish a 100 percent valuation allowance against the Company's net deferred tax assets. The valuation allowance increased $1.4 million in the third quarter of 2009 to $13.8 million, as the Company recorded no tax benefit on its pre-tax loss. The noncash charges related to this valuation allowance represented 64 percent of the year-to-date 2009 loss.

    "Economic indicators signal that the next few quarters will still remain challenging due to the weak economy, high levels of unemployment and downward pressure on real estate values. The management team remains focused on reducing problem loans, enhancing our risk management processes and maintaining liquidity," stated Richard J. Fitzpatrick, President and CEO of Cowlitz Bancorporation and its wholly-owned subsidiary Cowlitz Bank. "In addition, Cowlitz Bancorporation and its financial advisor are exploring options for raising capital to strengthen the Bank. Currently, however, capital markets remain largely inaccessible to small and mid-size banks with our profile. Nevertheless, we will continue to pursue all capital raising activities."

    At September 30, 2009, the Bank's capital ratios were in excess of regulatory levels required to be designated "well- capitalized" for the FDIC's Tier 1 and Tier 1 leverage ratios. The Bank's Total risk-based capital ratio was 9.48 percent and exceeded the FDIC benchmark of 8.00 percent for "adequately capitalized". The table below illustrates the capital ratios for Cowlitz Bank.

    To Be Well- Capitalized Under Prompt For Capital Corrective Adequacy Action Actual Purposes Provisions ------ -------- ---------- Amount Ratio Amount Ratio Amount Ratio ------ ----- ------ ----- ------ ----- September 30, 2009 Total risk-based capital: Bank $39,161 9.48% $33,040 >/=8.00% $41,301 >/=10.00% Tier 1 risk-based capital: Bank $33,920 8.21% $16,520 >/=4.00% $24,780 >/=6.00% Tier 1 (leverage) capital: Bank $33,920 5.80% $23,377 >/=4.00% $29,222 >/=5.00%

    "Cowlitz Bank continues to have significant liquidity with approximately $115 million of available borrowing capacity with the FHLB, as well as access to a credit line at the Federal Reserve. The Bank had $128.2 million of cash and short-term investments at the end of the third quarter of 2009," stated Mr. Fitzpatrick. "The Bank's current goals include reducing real estate construction loans and altering the mix of its assets to reduce its capital requirements."

    Net loans totaled $374.4 million at September 30, 2009, compared with $436.7 million at September 30, 2008, a decrease of approximately 14 percent. On a linked-quarter basis, loans decreased $24.9 million, or approximately 6 percent, from June 30, 2009. Average loans in the third quarter of 2009 were $388.7 million compared with average loans of $414.5 million in the second quarter of 2009 and $436.8 million in the third quarter of 2008.

    Average earning assets in the third quarter of 2009 were $545.8 million, compared with $551.5 million in the previous quarter and $496.7 million in the third quarter of 2008. The Bank's cash and cash equivalents averaged $117.0 million in the third quarter and $90.6 million year-to-date 2009, compared with $30.4 million in the third quarter of 2008. The Company is currently maintaining a higher level of low-rate interest-bearing investments to provide a prudent level of liquidity for these economic times. Total average deposits increased to $539.2 million in the third quarter of 2009 compared with $537.8 million in the previous quarter and $474.6 million in the third quarter of 2008.

    With our customers' protection and security foremost in our commitment to customer first banking(TM), Cowlitz Bank has chosen to continue to participate in the FDIC's Transaction Account Guarantee Program where the entire amount in all noninterest-bearing deposit accounts for participating banks are fully guaranteed by the FDIC through June 30, 2010. This is in addition to, and separate from, the $250,000 coverage available under the FDIC's general deposit insurance rules which are in effect until December 31, 2013.

    Net interest margin as a percentage was 2.77 percent for the third quarter of 2009, compared with 2.89 percent in the second quarter of 2009 and 4.62 percent in the third quarter of 2008. Net interest income was $3.7 million in the third quarter of 2009, compared with $3.8 million in the second quarter of 2009 and $5.6 million in the same quarter last year. The Company's net interest income for the first nine months of 2009 relative to the same period of 2008 was affected by several factors, including significant interest rate reductions by the Federal Reserve in the second half of 2008, the amount of interest reversals in 2009, a shift in the mix of interest-earning assets towards lower yielding cash-equivalent investments, a higher level of nonperforming assets and a lower level of noninterest-bearing demand and low-cost money market deposit accounts.

    The Company's yield on average earning assets in the third quarter of 2009 was 5.37 percent, compared with 5.57 percent in the second quarter of 2009 and 7.27 percent in the third quarter of 2008. The Company estimates that interest reversals reduced the third and second quarters of 2009 net interest margins by 14 basis points and 38 basis points, respectively. Interest reversals in the third quarter of 2008 reduced the net interest margin 11 basis points. The average rate on interest-bearing liabilities fell to 2.82 percent in the third quarter of 2009 from 2.94 percent in the second quarter of 2009 and 3.26 percent in the third quarter a year ago. Average funding costs have improved as deposits issued in 2009 were issued in a lower interest rate environment than the first nine months of 2008.

    The provision for credit losses was $6.4 million in the third quarter of 2009, compared with $3.7 million in the second quarter of 2009 and $2.3 million in the third quarter of 2008. The allowance for loan losses was 3.07 percent of loans at September 30, 2009 compared with 2.08 percent at June 30, 2009 and 3.17 percent at September 30, 2008. In the third quarter of 2009, the provision exceeded net loan charge-offs by $2.9 million. For the first nine months of 2009, the provision totaled $13.6 million and charge-offs totaled $16.9 million. Aggressive actions to reduce credit risk has accelerated the timing of charge-offs but has resulted in a significant decrease in the exposure to land and real estate construction loans, the loan categories having shown the most weakness during this prolonged recession. Since the end of the third quarter of 2008, real estate construction loans are down 33 percent and now constitute 18 percent of total loans compared with 23 percent at the end of the third quarter 2008.

    Net loan charge-offs were $3.5 million in the third quarter of 2009, down from $3.9 million in the second quarter of 2009 and up from $2.3 million in the third quarter of 2008. Charge-offs in the third quarter of 2009 consisted primarily of $2.6 million in real estate construction and related loans. The level of charge-offs in 2009 to-date primarily reflected the rapidly declining appraisal value of real estate collateral. The Company's term single-family residential real estate mortgage portfolio has not experienced any charge-offs in the last three years and only a nominal amount of past due loans. The Company has incurred only minor amounts of charge-offs in its credit card portfolio.

    The ratio of the allowance for credit losses to total loans increased to 3.07 percent at September 30, 2009 from 2.16 percent at June 30, 2009. The Company reviews the loans in its portfolio regularly for impaired loans. A loan is impaired when, based on current information and events, it is probable that the Bank will be unable to collect all interest and principal due. Impaired loans totaled $53.1 million at September 30, 2009. The ratio of the Bank's book balance to total appraised collateral values of impaired loans was 60 percent. Specific reserves were recorded on two loans totaling $1.1 million. The remaining loans were charged down to their expected net realizable value. The table below shows the ratios of the allowance to loans at September 30, 2009.

    September 30, 2009 ------------------ Allowance for Credit Losses Loan Balances % -------------- ------------- -- Impaired loans: With reserves $1,061 $11,061 9.59% Without reserves - 41,990 -% All other loans 10,429 321,310 3.25% ------ ------- $11,490 $374,361 3.07% ======= ========

    "Credit quality continues to be our primary area of focus, particularly in the residential land and construction portfolio. While we have seen a rise in other categories of non-performing loans, the inflow is still driven by continued weakness in the housing and construction markets," stated Ernie Ballou, Vice President and Chief Credit Administrator. "Though we may see some negative migration in commercial loans, we are cautiously optimistic because the portfolio is diversified, cash flow sources are varied and a large percentage of the loans are owner-occupied."

    Nonaccrual loans at September 30, 2009 totaled $56.3 million, essentially unchanged from $56.2 million at June 30, 2009. Nonaccrual loans totaled $9.3 million at September 30, 2008. The largest loan segment of nonaccrual loans continues to be real estate construction. Nonperforming real estate construction loans represented 50 percent of total non-accruing loans at September 30, 2009, compared with 56 percent at December 31, 2008. Loans placed on nonaccrual during the quarter totaled $12.9 million. Of these loans, $6.4 million were real estate construction and development loans and $1.9 million were commercial real estate loans. Commercial and industrial loans placed on nonaccrual in the third quarter of 2009 totaled $4.5 million and related to several borrowers. One commercial loan relationship placed on nonaccrual during the quarter totaling $3.5 million was paid off in full prior to the end of the quarter. During the third quarter of 2009, nonaccrual loans were reduced by pay-offs of $9.1 million and charge-offs of $3.4 million. Loans totaling $0.6 million were foreclosed and transferred to other real estate owned and repossessed assets.

    There can be no assurance the Company will not incur significant additional loan loss provisions or expenses in connection with the ultimate collection of nonaccrual loans or in carrying and developing of foreclosed real estate. Although the Company has never originated or acquired subprime loans nor invested in securities collateralized by subprime loans, the prolonged economic downturn has affected the Company through reduction in overall real estate values, reduced home sales and construction, increased unemployment and a weakening of national and local economic conditions, including the Company's primary markets of Washington and Oregon.

    Total nonperforming assets (defined as loans on nonaccrual and repossessed assets) were $61.4 million at September 30, 2009, compared with $61.2 million at June 30, 2009 and $11.8 million at September 30, 2008. At September 30, 2009, there were no loans 90 days past due and accruing. As a percentage of total assets, nonperforming assets were 10.62 percent at September 30, 2009, compared with 10.54 percent at June 30, 2009 and 2.09 percent at September 30, 2008.

    Noninterest income was $3.9 million for the third quarter of 2009, compared with $758,000 in the second quarter of 2009 and $(520,000) for the third quarter of 2008. The increase in non-interest income in the third quarter of 2009 was primarily attributable to a $3.1 million gain recognized on terminated interest rate contracts with a notional value of $125 million entered into to hedge interest rate payments on variable rate loans. The Company terminated its interest rate floor contract in the third quarter of 2009 and terminated two swap contracts in prior periods. The Company recognized deferred gains in the current quarter as the result of reductions in the loan pools originally hedged by the contracts. The third quarter of 2008 included an other-than-temporary impairment charge of $1.4 million related to the Company's investment in FNMA preferred stock. Excluding this charge, noninterest income for the second quarter of 2008 was $892,000. In the 2009 periods, the Company experienced increases in fiduciary income related to the Bank's trust business over 2008 levels. International trade fees decreased in 2009 primarily due to the planned reduction in the number of nonresident relationships serviced by our Seattle-based international trade department and wire room that took place early in the first quarter of 2009.

    Noninterest expenses in the third quarter of 2009 were $5.3 million, compared with $5.7 million in the second quarter of 2009 and $4.7 million in the third quarter of 2008. Salaries and employee benefits decreased $352,000, or 15 percent, in the third quarter of 2009 compared with the third quarter of 2008. The number of full-time equivalent employees at September 30, 2009 was 14 percent less than the same time a year ago, and reflects management's efforts to streamline operations and reduce overall employee-related costs, while maintaining or improving customer service. Offsetting the decrease in salaries and employee benefits were higher levels of professional fees and loan expenses related to problem assets and significantly higher FDIC deposit insurance premiums. This increase primarily resulted from an industry-wide increase in assessments as the FDIC replenishes the deposit insurance fund, including an industry-wide special assessment in the second quarter of 2009.

    Cowlitz Bancorporation is the holding company of Cowlitz Bank, which was established in 1977. In addition to its four branches in Cowlitz County Washington, Cowlitz Bank's divisions include Bay Bank located in Bellevue, Seattle, and Vancouver, Washington; Portland and Wilsonville, Oregon; and Bay Mortgage in southwest Washington. Cowlitz specializes in commercial and international banking services for Northwest businesses, professionals, and retail customers, and offers trust services in Washington and Oregon.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those discussed in this press release as a result of risk factors identified in the Company's Form 10-K for the year ended December 31, 2008, and other filings with the SEC. We make forward-looking statements in this release related to the Company's liquidity and ability to manage through the current economic cycle.

    INCOME STATEMENT Quarter Ended Nine Months Ended ---------------- ------------- ----------------- September September June September September 30, 2009 30, 2008 30, 2009 30, 2009 30, 2008 --------- --------- --------- --------- --------- Interest income $7,243 $8,892 $7,510 $22,518 $26,971 Interest expense 3,574 3,308 3,674 10,824 10,250 ----- ----- ----- ------ ------ Net interest income 3,669 5,584 3,836 11,694 16,721 Provision for credit losses 6,368 2,300 3,695 13,568 15,895 ----- ----- ----- ------ ------ Net interest income after provision for credit losses (2,699) 3,284 141 (1,874) 826 Non-interest income Service charges on deposit accounts 222 221 228 680 564 Fiduciary income 189 143 187 602 479 International trade fees 14 126 20 97 461 Increase in cash surrender value of bank owned life insurance 154 154 155 459 460 Securities gains (losses) 2 (1,412) (76) (85) (1,844) Gains on termination of interest rate contracts 3,110 - - 3,110 - Other income 216 248 244 665 769 --- --- --- --- --- Total non- interest income 3,907 (520) 758 5,528 889 Non-interest expense Salaries and employee benefits 1,981 2,333 1,942 6,108 7,340 Net occupancy and equipment expense 654 641 618 1,912 1,888 Data processing and communication 273 264 382 966 710 Professional fees 415 390 547 1,532 861 Federal deposit insurance 586 94 504 1,505 281 Foreclosed asset expense, net 181 373 224 465 2,247 Loan expense 215 131 399 666 270 Equity in limited partnerships losses 43 50 277 368 142 Interest rate contracts valuation adjustment 78 (242) 128 320 75 Other expenses 844 693 705 2,290 2,447 --- --- --- ----- ----- Total non- interest expense 5,270 4,727 5,726 16,132 16,261 ----- ----- ----- ------ ------ Loss before income taxes (4,062) (1,963) (4,827) (12,478) (14,546) Income tax expense (benefit) - (367) 10,608 8,921 (5,761) --- ---- ------ ----- ------ Net loss $(4,062) $(1,596) $(15,435) $(21,399) $(8,785) ======= ======= ======== ======== ======= Loss per share: Basic and diluted $(0.79) $(0.31) $(3.01) $(4.18) $(1.74) ====== ====== ====== ====== ====== Weighted average shares outstanding: Basic and diluted 5,133,945 5,067,379 5,122,733 5,124,109 5,059,188 Shares outstanding at period end 5,133,945 5,067,379 5,133,945 5,133,945 5,067,379 Number of full-time equivalent employees 112 130 Quarter Ended Nine Months Ended ------------- ----------------- SELECTED September September June September September AVERAGES 30, 2009 30, 2008 30, 2009 30, 2009 30, 2008 --------- --------- ---------- -------- ---------- ---------- Average loans $388,696 $436,770 $414,497 $411,289 $425,177 Average interest- earning assets 545,783 496,690 551,549 547,258 487,229 Total average assets 586,238 539,965 599,510 591,325 533,712 Average deposits 539,241 474,562 537,822 533,317 461,551 Average interest- bearing liabilities 501,940 403,849 500,427 492,718 387,025 Average equity 29,681 47,877 44,301 40,786 53,739 SELECTED BALANCE September September June SHEET ACCOUNTS 30, 2009 30, 2008 30, 2009 ---------------- --------- --------- -------- Total assets $578,287 $565,335 $580,363 Securities available for sale 52,867 40,812 56,705 Loans (bank regulatory classification): Real estate secured: One to four family residential 41,465 35,014 41,222 Multifamily 8,193 3,325 4,726 Construction 68,120 101,420 80,620 Commercial real estate 174,756 170,954 178,191 ------- ------- ------- Total real estate 292,534 310,713 304,759 ------- ------- ------- Commercial and industrial 79,663 123,582 92,339 Consumer and other 2,711 3,595 2,835 ----- ----- ----- 374,908 437,890 399,933 Deferred loan fees (547) (1,206) (722) ---- ------ ---- Loans, net of deferred loan fees 374,361 436,684 399,211 Goodwill 1,798 1,798 1,798 Deposits: Non-interest- bearing demand 49,283 82,096 48,834 Savings and interest-bearing demand 57,043 31,768 57,358 Money market 32,980 75,574 40,932 Certificates of deposits 396,173 311,920 383,357 ------- ------- ------- Total deposits 535,479 501,358 530,481 Junior subordinated debentures 12,372 12,372 12,372 Stockholders' equity 25,954 46,372 32,504 Book value per share $5.06 $9.15 $6.33 Tangible book value per share $4.71 $8.80 $5.98 Quarter Ended Nine Months Ended ------------- ----------------- RATIOS September September June September September ANNUALIZED 30, 2009 30, 2008 30, 2009 30, 2009 30, 2008 ----------- -------- -------- --------- -------- -------- Return on average assets -2.75% -1.18% -10.33% -4.84% -2.20% Return on average equity -54.30% -13.26% -139.75% -70.15% -21.84% Return on average tangible equity -57.80% -13.78% -145.66% -73.38% -22.60% Average equity/ average assets 5.06% 8.87% 7.39% 6.90% 10.07% Yield on interest- earning assets (TE) 5.37% 7.27% 5.57% 5.61% 7.53% Rate on interest- bearing liabil- ities 2.82% 3.26% 2.94% 2.94% 3.54% Net interest spread (TE) 2.55% 4.01% 2.63% 2.67% 3.99% Net interest margin (TE) 2.77% 4.62% 2.89% 2.96% 4.71% TE - Tax exempt interest income has been adjusted to a taxable equivalent basis using a 34% tax rate. Quarter Ended Nine Months Ended ------------- ----------------- ALLOWANCE FOR September September September September CREDIT LOSSES 30, 2009 30, 2008 30, 2009 30, 2008 -------------- --------- --------- --------- --------- Balance at beginning of period $8,614 $14,247 $13,994 $5,990 Provision for credit losses 6,368 2,300 13,568 15,895 Recoveries 301 35 863 62 Charge-offs (3,793) (2,314) (16,935) (7,679) ------ ------ ------- ------ Balance at end of period $11,490 $14,268 $11,490 $14,268 ======= ======= ======= ======= Components Allowance for loan losses $11,227 $13,859 Liability for unfunded credit commitments 263 409 --- --- Total allowance for credit losses $11,490 $14,268 ======= ======= Allowance for loan losses/total loans 3.00% 3.17% Allowance for credit losses/total loans 3.07% 3.27% September September June 30, NON-PERFORMING ASSETS 30, 2009 30, 2008 2009 --------------------- --------- --------- ----------- Loans on non-accrual status $56,297 $9,286 $56,248 Other real estate owned 5,086 2,425 4,822 Other foreclosed assets 58 100 99 --- --- --- Total non-performing assets $61,441 $11,811 $61,169 ======= ======= ======= Total non-performing loans to total loans 15.04% 2.13% 14.09% ===== ==== ===== Total non-performing assets/ total assets 10.62% 2.09% 10.54% ===== ==== ===== Loans past due greater than 90 days and accruing $- $3,733 $- === ====== ===

    Cowlitz Bancorporation

    CONTACT: Richard J. Fitzpatrick, President and CEO, or Gerald L.
    Brickey, CFO, both of Cowlitz Bancorporation, +1-360-423-9800




    Dresser-Rand Reports Strong Third Quarter 2009 ResultsNet Income Increased 59% to $74.6 million or $0.91 per Share Operating Income Improved 28% to $105.6 million Acquired Compressor Renewal Services

    HOUSTON, Oct. 29 /PRNewswire-FirstCall/ --

    Results Summary (dollars in millions, except per share data): Three Months Ended Sept. Nine Months Ended Sept. ------------------------ ----------------------- 2009 2008 2009 2008 ------ ------ -------- -------- Total revenues $612.1 $543.9 $1,727.1 $1,448.9 Operating income $105.6 $82.8 $265.9 $205.2 Income before income taxes $100.5 $70.3 $246.3 $181.6 Net income $74.6 $46.8 $169.4 $120.7 Diluted EPS $0.91 $0.57 $2.07 $1.43 Shares used to compute diluted EPS (000) 82,013 82,608 81,794 84,591 Total bookings $290.8 $733.1 $1,051.3 $1,812.5 Total backlog $1,644.9 $2,385.9 $1,644.9 $2,385.9

    Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") , a global supplier of rotating equipment and aftermarket parts and services, reported net income of $74.6 million, or $0.91 per diluted share, for the third quarter 2009. This compares to a net income of $46.8 million, or $0.57 per diluted share, for the third quarter 2008.

    Vincent R. Volpe Jr., President and Chief Executive Officer of Dresser-Rand, said, "We are pleased to report another quarter of strong operating performance. Total revenues increased 12.5%, operating income increased 27.5% and net income improved 59.4% over the corresponding period of last year. We remain on track to achieve operating income for the full year in line with the guidance provided approximately one year ago.

    "New Units bookings in the quarter of $79.0 million, however, fell short of the level previously expected," said Volpe. "While the low level of bookings in the third quarter reflected the ongoing project delays that we have discussed all year, it now appears that the awaited recovery has begun. Since the beginning of October, we have booked or received commitments for more than $250 million of new unit business. These include projects in both traditional and non-traditional markets. In our traditional upstream market, they include all of the compression and power generation equipment for a floating production, storage and offloading (FPSO) vessel destined for West Africa and the compression equipment for six different services for one of the world's largest liquefied natural gas projects. In the downstream market, they include all of the critical rotating equipment, a total of 21 units, for a large greenfield project in the Middle East. On the non-traditional market side, we will be supplying nine steam turbine generator sets for turbo-compound energy recovery systems that will be used on board nine new container ships.

    "With signs of a market recovery, continuing strong level of inquiries, and visibility to potential orders, we reiterate our expectation for new unit bookings to be in the range of $700 million to $1.1 billion for the full year.

    "On the aftermarket front, third quarter bookings of $211.8 million were also below our expectations," said Volpe. "This level of bookings was due to the ongoing reduction in the level of orders from one of our key national oil company clients, an unfavorable foreign exchange impact and reduced maintenance spending by our clients worldwide. For the first nine months, the unfavorable variance in aftermarket bookings on a year over year basis was 13.2%. Approximately half of that change can be attributed to the decline in bookings from the one national oil company client, and nearly half from an unfavorable foreign exchange impact. We expect aftermarket orders overall to improve sequentially in the fourth quarter. However, based on recent, direct dialogue with the one national oil company client in question, we currently expect this client's bookings levels to recover sometime in 2010, which is later than what had been previously anticipated. As a result, we now expect full year aftermarket bookings to be about fifteen percent lower than 2008, with approximately two-thirds of that decline attributable to the adverse impacts of the previously mentioned national oil company client and foreign exchange. In our view, given the present, global market conditions, we are pleased with the on-going strength of the aftermarket activity. It has been steady despite the volatility of commodity prices and our clients' infrastructure spending, which reinforces the overall resiliency of our business model."

    Total revenues for the third quarter 2009 of $612.1 million increased $68.2 million, or 12.5%, compared with $543.9 million for the third quarter 2008. Total revenues for the nine months ended September 30, 2009, of $1,727.1 million increased $278.2 million, or 19.2%, compared with revenues of $1,448.9 million for the corresponding period in 2008.

    Operating income for the third quarter 2009 was $105.6 million. This compares to operating income of $82.8 million for the third quarter 2008. Third quarter 2009 operating income increased from the year ago quarter primarily due to higher revenues, improvements in material and labor productivity and lower manufacturing capacity costs.

    Operating income for the nine months ended September 30, 2009, was $265.9 million. This compares to operating income of $205.2 million for the corresponding period in 2008. Operating income increased from the year ago nine month period primarily due to higher revenues and improvements in material and labor productivity.

    Net income for the third quarter of $74.6 million increased 59.4% from the corresponding period in 2008. The increase reflects the factors contributing to the change in operating income as well as net currency gains and a lower effective tax rate.

    Bookings for the third quarter 2009 were $290.8 million, which was $442.3 million or 60.3% lower than the third quarter 2008 of $733.1 million. Bookings for the nine and twelve months ended September 30, 2009, of $1,051.3 million and $1,762.1 million, respectively, were 42.0% and 27.4% lower than the bookings for the corresponding periods ended September 30, 2008, of $1,812.5 million and $2,426.2 million, respectively.

    The backlog at the end of September 2009, was $1,644.9 million or 31.1% lower than the backlog at the end of September 2008 of $2,385.9 million.

    New Units Segment

    New unit revenues for the third quarter 2009 of $347.2 million were up 13.2% compared with $306.7 million for the third quarter 2008. New unit revenues for the nine months ended September 30, 2009, of $973.9 million improved 28.9% compared with $755.4 million for the corresponding period in 2008.

    New unit operating income was $55.9 million for the third quarter 2009 compared with operating income of $37.8 million for the third quarter 2008. This segment's operating margin was 16.1% compared with 12.3% for the third quarter 2008. The increase in this segment's operating results was primarily attributable to higher revenues, improvements in material and labor productivity and lower manufacturing capacity costs. The Company benefited from the high level of sales in the period while leveraging its ability to lower period and other costs due to the relatively low level of new unit bookings. The Company reiterates its belief that on a steady state basis, where bookings and sales are more comparable, new unit margins are expected to be closer to low double digits.

    New unit operating income was $129.2 million for the nine months ended September 30, 2009, compared with operating income of $72.7 million for the corresponding period in 2008. This segment's operating margin for the nine months ended September 30, 2009, was 13.3% compared with 9.6% for the corresponding nine month period in 2008. The increases from the corresponding periods in 2008 were attributable to higher revenues and improvements in material and labor productivity.

    Bookings for the three months ended September 30, 2009, of $79.0 million were 82.1% lower than bookings for the corresponding period in 2008 of $442.2 million. Bookings for the nine and twelve months ended September 30, 2009, of $357.5 million and $773.3 million, respectively, were 64.7% and 43.2% lower than the bookings for the corresponding periods ended September 30, 2008, of $1,013.4 million and $1,361.9 million, respectively.

    The backlog at September 30, 2009, of $1,289.2 million was 34.4% lower than the $1,966.0 million backlog at September 30, 2008.

    Aftermarket Parts and Services Segment

    Aftermarket parts and services revenues for the third quarter 2009 of $264.9 million were up 11.7% compared with $237.2 million for the third quarter 2008. Aftermarket parts and services revenues for the nine months ended September 30, 2009, of $753.2 million increased 8.6% compared with $693.5 for the corresponding period in 2008.

    Aftermarket operating income for the third quarter 2009 of $70.2 million increased 10.0% compared with $63.8 million for the third quarter 2008. The increase in this segment's operating income was principally due to higher revenues, improved pricing and cost and productivity improvements. This segment's operating margin for the third quarter of 2009 of approximately 26.5% was essentially flat compared with 26.9% for the third quarter 2008.

    Aftermarket operating income for the nine months ended September 30, 2009, of $196.7 million increased 6.6% compared with $184.6 million for the corresponding period in 2008. The increase in operating income from the corresponding nine month period in 2008 was attributable to higher revenues, improved pricing and cost and productivity improvements. This segment's operating margin for the nine months ended September 30, 2009, of approximately 26.1% compared with 26.6% for the corresponding period in 2008.

    Bookings for the three months ended September 30, 2009, of $211.8 million were 27.2% lower than bookings for the corresponding period in 2008 of $290.9 million. Bookings for the nine and twelve months ended September 30, 2009, of $693.8 million and $988.8 million, respectively, were 13.2% and 7.1% lower than the bookings for the corresponding periods ended September 30, 2008, of $799.1 million and $1,064.3 million, respectively.

    The backlog at September 30, 2009, of $355.7 million compared with the backlog of $419.9 million at September 30, 2008.

    Liquidity and Capital Resources

    As of September 30, 2009, cash and cash equivalents totaled $198.2 million and borrowing availability under the Company's $500 million senior secured credit facility was $319.9 million, as $180.1 million was used for outstanding letters of credit.

    In the first nine months of 2009, cash provided by operating activities was $79.6 million compared with $167.0 million for the corresponding period in 2008. The decrease of $87.4 million in net cash provided by operating activities was principally from increased pension contributions of $24.7 million and changes in working capital. In the first nine months of 2009, capital expenditures totaled $21.1 million. As of September 30, 2009, total debt was $370.1 million and total debt net of cash and cash equivalents was approximately $171.9 million.

    Principal uses of cash in the first nine months of 2008, included capital expenditures of $27.6 million, share repurchase of $150.2 million and three acquisitions totaling $89.6 million.

    The Company is replacing its existing shelf registration statement today with the filing of a new universal debt and equity shelf registration statement with the Securities and Exchange Commission. The existing shelf was due to expire in November 2009. While the Company has no current plans to raise capital, the new shelf registration statement provides the Company with the flexibility to respond to a wide array of debt and equity financing opportunities that may arise in the future.

    Strategic Acquisition

    On September 1, 2009, Dresser-Rand Company acquired the assets of Compressor Renewal Services, Ltd. ("CRS"). CRS is a highly regarded provider of aftermarket services to the gas transmission industry. CRS is based in Odessa, Texas and had revenues in 2008 of approximately $8 million. The acquisition is expected to enhance Dresser-Rand's ability to service installed equipment other than its own in the North American pipeline industry. CRS represents the third strategic acquisition completed since the third quarter of last year supporting Dresser-Rand's focus on gas transmission and gathering, with emphasis on the extensive installed base of integral gas engines. The other two acquisitions are Arrow Industries, the market-leading foundation and mechanical services provider, and Enginuity, the market-leading emissions reduction and automation technology solutions provider. Together with CRS, they form a very strong service capability for the gas transmission and gathering marketplace.

    Outlook

    The market for new unit orders appears to be recovering and, similarly, the Company expects sequentially higher aftermarket bookings in the fourth quarter. The Company believes that its 2009 operating income will be in the range of $340 to $360 million.

    Conference Call

    The Company will discuss its third quarter 2009 results at its conference call on Friday, October 30, 2009. A webcast presentation will be accessible live at 8:30 a.m. Eastern Time. You may access the live presentation at http://www.dresser-rand.com/. Participants may also join the conference call by dialing (888) 298-3511 in the U.S. and (719) 325-2431 from outside the U.S. five to ten minutes prior to the scheduled start time.

    A replay of the webcast will be available from 11:30 a.m. Eastern Time on October 30, 2009, through 11:59 p.m. Eastern Time on November 6, 2009. You may access the webcast replay at http://www.dresser-rand.com/. A replay of the conference can be accessed by dialing (888) 203-1112 in the U.S. and (719) 457-0820 from outside the U.S. The replay pass code is 6717421.

    About Dresser-Rand

    Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The Company operates manufacturing facilities in the United States, France, United Kingdom, Germany, Norway, India, and China, and maintains a network of 35 service and support centers covering more than 140 countries.

    This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, the Company's plans, objectives, goals, strategies, future events, future bookings, revenues, or performance, capital expenditures, financing needs, plans, or intentions relating to acquisitions, business trends, executive compensation, and other information that is not historical information. The words "anticipates", "believes", "expects", "intends", "appears", "outlook", and similar expressions identify such forward-looking statements. Although the Company believes that such statements are based on reasonable assumptions, these forward-looking statements are subject to numerous factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include, among others, the following: potential for material weaknesses in its internal controls; economic or industry downturns; the variability of bookings due to volatile market conditions, subjectivity clients exercise in placing orders, and timing of large orders; volatility and disruption of the credit markets; its inability to generate cash and access capital on reasonable terms and conditions; its inability to implement its business strategy to increase aftermarket parts and services revenue; competition in its markets; failure to complete or achieve the expected benefits from any future acquisitions; economic, political, currency and other risks associated with international sales and operations; fluctuations in currencies and volatility in exchange rates; loss of senior management; environmental compliance costs and liabilities; failure to maintain safety performance acceptable to its clients; failure to negotiate new collective bargaining agreements; unexpected product claims and regulations; infringement on its intellectual property or infringement on others' intellectual property; difficulty in implementing an information management system; and the Company's brand name may be confused with others. These and other risks are discussed in detail in the Company's filings with the Securities and Exchange Commission at http://www.sec.gov/. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. The Company can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on results of operations and financial condition. The Company undertakes no obligation to update or revise forward-looking statements, which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. For information about Dresser-Rand, go to its website at http://www.dresser-rand.com/.

    DRC-FIN Dresser-Rand Group Inc. Consolidated Statement of Income Three months ended Nine months ended September 30, September 30, ------------------ ----------------- 2009 2008 2009 2008 --------- ------- ------- ------ (Unaudited; $ in millions, except per share amounts) Net sales of products $494.8 $451.7 $1,400.3 $1,187.0 Net sales of services 117.3 92.2 326.8 261.9 ------ ------ -------- -------- Total revenues 612.1 543.9 1,727.1 1,448.9 ------ ------ -------- -------- Cost of products sold 350.3 320.0 1,015.7 855.6 Cost of services sold 79.6 66.5 222.2 180.2 ------ ------ -------- -------- Total cost of sales 429.9 386.5 1,237.9 1,035.8 ------ ------ -------- -------- Gross profit 182.2 157.4 489.2 413.1 Selling and administrative expenses 70.9 71.1 207.4 204.0 Research and development expenses 5.7 3.5 14.6 9.3 Plan settlement / curtailment amendment - - 1.3 (5.4) ------ ------ -------- -------- Income from operations 105.6 82.8 265.9 205.2 ------ ------ -------- -------- Interest expense, net (8.3) (7.1) (23.6) (21.2) Other income (expense), net 3.2 (5.4) 4.0 (2.4) ------ ------ -------- -------- Income before income taxes 100.5 70.3 246.3 181.6 Provision for income taxes 25.9 23.5 76.9 60.9 ------ ------ -------- -------- Net income $74.6 $46.8 $169.4 $120.7 ====== ====== ======== ======== Net income per common share- basic and diluted $0.91 $0.57 $2.07 $1.43 ====== ====== ======== ======== Weighted average shares outstanding - (In thousands) Basic 81,705 82,392 81,644 84,407 ====== ====== ======== ======== Diluted 82,013 82,608 81,794 84,591 ====== ====== ======== ======== Dresser-Rand Group Inc. Consolidated Segment Data Three months ended Nine months ended September 30, September 30, ------------------ ----------------- 2009 2008 2009 2008 ------- ------- ------- -------- (Unaudited; $ in millions) Revenues New units $347.2 $306.7 $973.9 $755.4 Aftermarket parts and services 264.9 237.2 753.2 693.5 -------- -------- -------- -------- Total revenues $612.1 $543.9 $1,727.1 $1,448.9 ======== ======== ======== ======== Gross profit New units $80.2 $60.8 $198.7 $133.1 Aftermarket parts and services 102.0 96.6 290.5 280.0 -------- -------- -------- -------- Total gross profit $182.2 $157.4 $489.2 $413.1 ======== ======== ======== ======== Operating income New units $55.9 $37.8 $129.2 $72.7 Aftermarket parts and services 70.2 63.8 196.7 184.6 Unallocated (20.5) (18.8) (60.0) (52.1) -------- -------- -------- -------- Total operating income $105.6 $82.8 $265.9 $205.2 ======== ======== ======== ======== Bookings New units $79.0 $442.2 $357.5 $1,013.4 Aftermarket parts and services 211.8 290.9 693.8 799.1 -------- -------- -------- -------- Total bookings $290.8 $733.1 $1,051.3 $1,812.5 ======== ======== ======== ======== Backlog - ending New units $1,289.2 $1,966.0 $1,289.2 $1,966.0 Aftermarket parts and services 355.7 419.9 355.7 419.9 -------- -------- -------- -------- Total backlog $1,644.9 $2,385.9 $1,644.9 $2,385.9 ======== ======== ======== ======== Dresser-Rand Group Inc. Consolidated Balance Sheet September 30, December 31, 2009 2008 ------------- ------------ (Unaudited; $ in millions, except share and per share amounts) Assets Current assets Cash and cash equivalents $198.2 $147.1 Accounts receivable, less allowance for losses of $12.2 at 2009 and $11.6 at 2008 309.6 366.3 Inventories, net 373.0 328.5 Prepaid expenses 42.8 43.4 Deferred income taxes, net 22.9 22.5 -------- -------- Total current assets 946.5 907.8 Property, plant and equipment, net 259.6 250.3 Goodwill 464.9 429.1 Intangible assets, net 436.6 441.6 Other assets 24.5 23.4 -------- -------- Total assets $2,132.1 $2,052.2 ======== ======== Liabilities and Stockholders' Equity Current liabilities Accounts payable and accruals $392.5 $430.9 Customer advance payments 210.2 275.0 Accrued income taxes payable 17.1 30.2 Loans payable 0.1 0.2 -------- -------- Total current liabilities 619.9 736.3 Deferred income taxes, net 21.1 22.9 Postemployment and other employee benefit liabilities 111.7 135.3 Long-term debt 370.0 370.1 Other noncurrent liabilities 35.5 27.4 -------- -------- Total liabilities 1,158.2 1,292.0 -------- -------- Stockholders' equity Common stock, $0.01 par value, 250,000,000 shares authorized; and, 82,519,183 and 81,958,846 shares issued and outstanding, respectively 0.8 0.8 Additional paid-in capital 394.2 384.6 Retained earnings 596.7 427.3 Accumulated other comprehensive loss (17.8) (52.5) -------- -------- Total stockholders' equity 973.9 760.2 -------- -------- Total liabilities and stockholders' equity $2,132.1 $2,052.2 ======== ======== Dresser-Rand Group Inc. Consolidated Statement of Cash Flows Nine months ended September 30, ----------------- 2009 2008 ------- -------- (Unaudited; $ in millions) Cash flows from operating activities Net income $169.4 $120.7 Adjustments to arrive at net cash provided by operating activities: Depreciation and amortization 37.9 37.0 Deferred income taxes (1.3) 2.3 Stock-based compensation 8.0 4.4 Amortization of debt financing costs 2.4 2.3 Provision for losses on inventory 4.2 2.1 Plan settlement / curtailment amendment (0.2) (11.8) Loss on sale of property, plant and equipment 0.1 0.3 Equity loss on investments 0.8 - Working capital and other, net of acquisitions Accounts receivable 61.8 18.5 Inventories (38.2) (52.4) Accounts payable and accruals (49.8) 34.2 Customer advances (77.5) 44.2 Other (38.0) (34.8) ------ ------ Net cash provided by operating activities 79.6 167.0 ------ ------ Cash flows from investing activities Capital expenditures (21.1) (27.6) Proceeds from sales of property, plant and equipment 1.0 0.3 Acquisitions, net of cash acquired (12.7) (89.6) Other investments (5.0) - ------ ------ Net cash used in investing activities (37.8) (116.9) ------ ------ Cash flows from financing activities Proceeds from exercise of stock options 2.1 1.4 Repurchase of common stock - (150.2) Payments of long-term debt (0.1) (0.2) ------ ------ Net cash provided by (used in) financing activities 2.0 (149.0) ------ ------ Effect of exchange rate changes on cash and cash equivalents 7.3 (4.2) ------ ------ Net increase (decrease) in cash and cash equivalents 51.1 (103.1) Cash and cash equivalents, beginning of the period 147.1 206.2 ------ ------ Cash and cash equivalents, end of period $198.2 $103.1 ====== ======

    Dresser-Rand Group Inc.

    CONTACT: Blaise Derrico, Director Investor Relations of Dresser-Rand
    Company, +1-713-973-5497

    Web Site: http://www.dresser-rand.com/




    AnalogicTech to Present at TechAmerica AeA Classic Financial Conference

    SANTA CLARA, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Advanced Analogic Technologies, Inc. ("AnalogicTech" or the "Company") , an analog semiconductor company focused on powering innovative solutions in consumer, industrial, and telecom markets, announced today that members of its management team will present to investors at the following financial conference:

    (Logo: http://www.newscom.com/cgi-bin/prnh/20050829/SFTU089LOGO) TechAmerica AeA Classic Financial Conference Date: November 2, 2009 Time: 10:50 a.m. PT Location: Marriott San Diego Hotel & Marina in San Diego, California

    Live webcasts of AnalogicTech's presentation will be available on the company's investor relations website at http://www.aati.com/ in the "Webcasts" section.

    About Advanced Analogic Technologies, Inc.:

    Advanced Analogic Technologies (AATI) develops advanced semiconductor system solutions that play a key role in the continuing evolution of feature-rich, energy efficient electronic devices. The company focuses on addressing the application-specific power management needs of consumer devices such as mobile handsets, digital cameras, and netbooks/notebooks, as well as devices in a broad range of industrial, medical and telecom applications. AATI also licenses device, process, package, and application-related technologies. Headquartered in Silicon Valley, AATI has design centers in Santa Clara and Shanghai, and Asia-based operations and logistics. For more information, please visit http://www.analogictech.com/. (AnalogicTech - F)

    AnalogicTech and the AnalogicTech logo are trademarks of Advanced Analogic Technologies, Inc.

    Photo: http://www.newscom.com/cgi-bin/prnh/20050829/SFTU089LOGO
    http://photoarchive.ap.org/
    PRN Photo Desk photodesk@prnewswire.com Advanced Analogic Technologies, Inc.

    CONTACT: Investors, Lisa Laukkanen of The Blueshirt Group,
    +1-415-217-4967, lisa@blueshirtgroup.com, for Advanced Analogic Technologies,
    Inc.

    Web Site: http://www.analogictech.com/




    Universal Technical Institute to Present at the Signal Hill Third Annual Education Preview Conference

    PHOENIX, Oct. 29 /PRNewswire-FirstCall/ -- Universal Technical Institute, Inc. will be presenting at the Signal Hill Third Annual Education Preview Conference at the Hyatt Regency in Baltimore, Md. on Thursday, Nov. 12, 2009, at 10:30 a.m. Eastern time. Kim McWaters, President and Chief Executive Officer and Eugene Putnam, Executive Vice President and Chief Financial Officer will be presenting. A webcast of the presentation will be posted on the UTI investor relations website at http://uti.investorroom.com/. An audio recording of the presentation will be archived and available following the event.

    About Universal Technical Institute

    Universal Technical Institute (the "Company") is the leading provider of technical education training for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as measured by total average undergraduate enrollment. The Company offers undergraduate degree, diploma and certificate programs at 10 campuses across the United States, and manufacturer specific training programs that are sponsored by the manufacturer or dealer at dedicated training centers. Through its campus-based school system, Universal Technical Institute offers specialized technical education programs under the banner of several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NTI). We routinely post important information about us on our investor relations website at http://uti.investorroom.com/.

    Safe Harbor Statement

    All statements contained herein, other than statements of historical fact, could be deemed "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the Company's actual results include, among other things, changes to federal and state educational funding, possible failure or inability to obtain regulatory consents and certifications for new or expanding campuses, potential increased competition, changes in demand for the programs offered by the Company, increased investment in management and capital resources, the effectiveness of the Company's recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic conditions and other risks that are described from time to time in the public filings of the Company. Further information on these and other potential factors that could affect the Company's financial results or condition may be found in the Company's filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to publicly update any forward-looking statements whether as a result of new information, future events, changes in expectations, any changes in events, conditions or circumstances, or otherwise.

    Universal Technical Institute, Inc.

    CONTACT: Jenny Bruso, Director, Investor Relations of Universal
    Technical Institute, Inc., +1-623-445-9351

    Web Site: http://www.uticorp.com/
    http://uti.investorroom.com/




    Mantra to collaborate with King Fahd University of Petroleum and Minerals on products of interest to the petrochemicals industry

    SEATTLE, Oct. 29 /PRNewswire-FirstCall/ -- Mantra Venture Group Ltd. ('Mantra', OTCBB: MVTG, FSE: 5MV) is pleased to announce that it has signed a Letter of Intent (LOI) with King Fahd University of Petroleum & Minerals (KFUPM) based out of Dhahran, Saudi Arabia. Under the terms of the LOI, Mantra and KFUPM's Center for Refining and Petrochemicals (CRP) have expressed a mutual interest to explore and research new processes that would use Mantra's Electroreduction of Carbon Dioxide (ERC) reactor, a form of carbon recycling.

    Current processes developed by Mantra have been demonstrated as effective in converting CO2 into a variety of valuable chemicals, including: formate salts, formic acid, oxalic acid and methanol. While each of these end-products has a significant market value, Mantra is now looking to create additional value in its ERC technology by expanding this list. The CRP Research Institute of KFUPM has extensive capabilities in product research and application, is very knowledgeable about the petrochemicals industry, and can help Mantra achieve its goal.

    Shawn Kim, Vice President of International Business Development for Mantra, said: "The CRP Research Institute of KFUPM is respected for its research especially in petrochemicals, and we look forward to working with the team at CRP. Expanding the number of viable chemicals produced by ERC will add value to the ERC technology and will lead to an expansion of Mantra's markets. KFUPM is well-recognized in the oil and gas industry, and a successful partnership with them could open many doors for ERC carbon recycling and for Mantra."

    Mantra and KFUPM are working together on this collaborative effort and, following the outline given in the LOI, they plan to engage in a fully defined project.

    Stay up to date with Mantra on Twitter: twitter.com/mantraenergy About King Fahd University of Petroleum & Minerals

    Based out of Saudi Arabia, KFUPM provides advanced training in the fields of science, engineering, and management in order to promote leadership and service in the Kingdom's petroleum and mineral industries. The University also furthers knowledge and expertise through its extensive research institutes, including the Center for Refining and Petrochemicals (CRP).

    The vision of KFUPM's CRP Research Institute is to be a leading research facility in petroleum refining and petrochemicals through innovation in basic and applied research. Current areas of development for KFUPM's CRP Research Institute include: (i) developing advanced catalysts and processes for reducing sulphur levels in heavy oils and converting them to distillates; (ii) providing technical support to local refineries for the production of clean transportation fuels with emphasis on the necessary processes and catalysts; and (iii) developing capabilities and conducting research in novel technologies that have the potential to impact the refining industry.

    For more information on KFUPM, visit: http://www.kfupm.edu.sa/ri/default.aspx.

    About ERC

    The ERC process, "the Electrochemical Reduction of Carbon Dioxide", combines captured carbon dioxide with water to produce high value materials, such as formic acid and formate salts, which are conventionally obtained from the thermochemical processing of fossil Fuels. However, ERC has an advantage over the established thermochemical methods for converting carbon dioxide to liquid fuels.

    While thermochemical reactions must be driven at relatively high temperatures that are normally obtained by burning fossil fuels, ERC operates at near ambient conditions and is driven by electric energy that can be taken from an electric power grid supplied by hydro, wind, solar or nuclear energy (forms of renewable energy). When renewable energy is used, the products can be made with a negative or neutral carbon balance.

    About Mantra:

    Mantra, through its group of sustainable energy, carbon reduction and consumer product subsidiaries, is active in the green technology marketplace with an innovative, multi-faceted approach focused on profitability through sustainability. By aggressively seeking out new technologies and innovating solutions for a cleaner earth for everyone, Mantra intends to provide a highly profitable and environmentally responsible investment for its shareholders.

    Mantra is a public company quoted on the OTC BB under the symbol MVTG and on the Frankfurt Stock Exchange under the symbol 5MV.

    Forward-Looking Statements:

    Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Mantra Venture Group's filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

    Mantra Venture Group Ltd.

    CONTACT: Investor Relations: Kol Henrikson, 1-877-609-2898,
    khenrikson@mantraenergy.com, http://www.mantraenergy.com/




    Overland Storage, Inc. Announces Proposed Public Offering of Common Stock

    SAN DIEGO, Oct. 29 /PRNewswire-FirstCall/ -- Overland Storage, Inc. , announced today that it has commenced an underwritten public offering of its common stock. The shares will be issued pursuant to a prospectus and prospectus supplement filed as part of an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission.

    The Company intends to use the net proceeds from the offering for general corporate purposes, including product development and sales and marketing.

    Roth Capital Partners, LLC is the underwriter for the offering.

    This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. This press release is being issued pursuant to and in accordance with Rule 134 under the Securities Act of 1933, as amended.

    The offering will be made only by means of a prospectus and a prospectus supplement. Electronic copies of the base prospectus and the preliminary prospectus supplement may be obtained from sales representatives of Roth Capital Partners, LLC, Attention: Equity Capital Markets, 24 Corporate Plaza Drive, Newport Beach, CA 92660, by telephone at (949) 720-7194, or via email at rothecm@roth.com. The Company's registration statement on Form S-3 including the base prospectus and the preliminary prospectus supplement are also available on the SEC website at http://www.sec.gov/. The information in the preliminary prospectus supplement is not complete and may be changed.

    Overland Storage, Inc.

    CONTACT: Equity Capital Markets, +1-949-720-7194, rothecm@roth.com




    Southwestern Energy Announces Third Quarter 2009 Results and Updates Fourth Quarter Production Guidance

    HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- Southwestern Energy Company today announced its financial and operating results for the third quarter of 2009. Highlights include:

    -- Natural gas and crude oil production of 73.2 Bcfe, up 38% over the same period in 2008 -- Net cash provided by operating activities before changes in operating assets and liabilities of $331.8 million (a non-GAAP measure reconciled below), up from $312.1 million in the same period in 2008 -- Net earnings of $118.3 million, compared to $218.2 million in the same period in 2008 -- Revised fourth quarter 2009 production guidance range to 86-89 Bcfe, up 12% from midpoints of previous guidance

    For the third quarter of 2009, Southwestern reported net income of $118.3 million, or $0.34 per diluted share, compared to $218.2 million, or $0.63 per diluted share, for the same period in 2008. Net income for the third quarter of 2009 declined due to significantly lower natural gas prices, which were only partially offset by higher production volumes. Results for the third quarter of 2008 also included an after-tax gain on the sale of the company's utility assets of $35.4 million, or $0.10 per diluted share. Net cash provided by operating activities before changes in operating assets and liabilities (a non-GAAP measure reconciled below) was $331.8 million in the third quarter of 2009, up from $312.1 million for the same period in 2008.

    "We had a solid quarter despite depressed natural gas prices which were at a seven-year low and the various curtailment issues we experienced related to maintenance and repairs of the Boardwalk Pipeline," remarked Harold M. Korell, Executive Chairman of Southwestern Energy. "We do not expect these factors to weigh as heavily in the fourth quarter of 2009, as the Boardwalk Pipeline was placed on-line sooner than we had expected and as gas prices appear to be moving higher than they have been over the past nine months. As a result of the Boardwalk Pipeline being back on-line, we were able to reach another milestone last week when we surpassed 1 Bcfe of net production per day as a company. As we look ahead, we see continued profitable growth in our production and reserves which, coupled with our low cost structure, will create tremendous value for Southwestern Energy and its shareholders."

    Third Quarter 2009 Financial Results

    E&P Segment - Operating income from the company's E&P segment was $172.0 million for the third quarter of 2009, down from $280.6 million for the same period in 2008. The decrease was primarily due to a 41% decrease in realized natural gas prices and a 12% increase in operating costs and expenses, which were partially offset by a 38% increase in production volumes.

    Gas and oil production totaled 73.2 Bcfe in the third quarter of 2009, up from 52.8 Bcfe in the third quarter of 2008, and included 58.8 Bcf from the company's Fayetteville Shale play, up from 37.2 Bcf in the third quarter of 2008. Beginning on October 8, 2009, the Fayetteville Lateral of the Texas Gas Transmission Pipeline (Boardwalk Pipeline) was placed back into service after being shut down since September 1, 2009 due to maintenance and pipeline inspection. The Greenville Lateral of the Boardwalk Pipeline was also placed back into service in October after this shut down.

    As a result of the repairs, the company is now able to transport all of its current production from the Fayetteville Shale and, at October 24, 2009, was producing at a gross operated rate of approximately 1,230 MMcf per day. Southwestern has revised its previous gas and oil production guidance range for 2009 from 278 to 288 Bcfe to 297 to 300 Bcfe, up approximately 53% over 2008 levels (using midpoints), due to the company's significant production growth from the Fayetteville Shale play and as a result of the pipeline repairs being completed faster than the company had anticipated. Of this total for 2009, approximately 243 to 245 Bcf is expected to come from the Fayetteville Shale play. Southwestern's production guidance for the remainder of 2009 is shown below:

    1st 2nd 3rd 4th Full-Year Quarter Quarter Quarter Quarter 2009 Actual Actual Actual Estimate Estimate ------ ------ ------ -------- -------- Previous Guidance (Bcfe) 60 - 61 70 - 71 66 - 68 74 - 82 278 - 288 Revised Guidance (Bcfe) 63.9 74.3 73.2 86 - 89 297 - 300

    Including the effect of hedges, Southwestern's average realized gas price in the third quarter of 2009 was $5.06 per Mcf, down 41% from $8.56 per Mcf in the third quarter of 2008. The company's commodity hedging activities increased its average gas price by $2.21 per Mcf during the third quarter of 2009, compared to a decrease of $0.26 per Mcf during the same period in 2008. Southwestern has approximately 33 Bcf of its remaining 2009 projected natural gas production hedged through fixed price swaps and collars at a weighted average floor price of $8.41 per Mcf.

    Disregarding the impact of commodity price hedges, the company's average price received for its gas production during the third quarter of 2009 was approximately $0.54 per Mcf lower than average NYMEX spot prices, compared to approximately $1.42 per Mcf lower during the third quarter of 2008. As of October 27, 2009, the company had protected approximately 50 Bcf of its fourth quarter 2009 expected gas production from the potential of widening basis differentials through hedging activities and sales arrangements at an average basis differential to NYMEX gas prices of approximately $0.25 per Mcf, excluding transportation charges and fuel charges. As of that same date for the first quarter of 2010, the company had protected approximately 45 Bcf at an average basis differential to NYMEX gas prices of approximately $0.20 per Mcf, excluding transportation and fuel charges. The company typically sells its natural gas at a discount to NYMEX spot prices due to locational basis differentials, transportation charges and fuel charges. The company pays third-party transportation charges which typically range from $0.15 to $0.32 per MMBtu and fuel charges which range from 0.25 to 2.25%.

    Lease operating expenses per unit of production for the company's E&P segment were $0.76 per Mcfe in the third quarter of 2009, down from $0.96 per Mcfe in the third quarter of 2008. The decrease primarily resulted from the impact that lower natural gas prices had on the cost of compressor fuel in the third quarter of 2009.

    General and administrative expenses per unit of production were $0.38 per Mcfe in the third quarter of 2009, compared to $0.33 per Mcfe in the third quarter of 2008. The increase was primarily due to the increased payroll and other employee-related costs primarily associated with the expansion of the company's operations due to the Fayetteville Shale play, including a $5.4 million increase in incentive compensation that was accrued during the quarter, which were partially offset by the effects of the company's increased production volumes.

    Taxes other than income taxes per unit of production were $0.10 per Mcfe in the third quarter of 2009, compared to $0.15 per Mcfe in the third quarter of 2008, primarily due to lower commodity prices and changes in severance and ad valorem taxes that result from the mix of the company's production volumes.

    The company's full cost pool amortization rate decreased to $1.43 per Mcfe in the third quarter of 2009, compared to $1.86 per Mcfe in the third quarter of 2008. The decline in the average amortization rate was primarily the result of the $907.8 million non-cash ceiling test impairment recorded in the first quarter of 2009. The amortization rate is impacted by the timing and amount of reserve additions and the costs associated with those additions, revisions of previous reserve estimates due to both price and well performance, impairments that result from full cost ceiling tests, proceeds from the sale of properties that reduce the full cost pool and the levels of costs subject to amortization. The future full cost pool amortization rate cannot be predicted with accuracy due to the variability of each of the factors discussed above, as well as other factors.

    Midstream Services - Operating income for the company's midstream services segment, which is comprised of natural gas gathering and marketing activities, was $25.1 million for the three months ended September 30, 2009, up from $18.3 million in the same period in 2008. The increase in operating income was primarily due to the increase in gathering revenues from the company's Fayetteville Shale play, partially offset by increased operating costs and expenses. At October 26, 2009, the company's midstream segment was gathering approximately 1,304 MMcf per day through 1,091 miles of gathering lines in the Fayetteville Shale play area, up from approximately 675 MMcf per day a year ago. Gathering volumes, revenues and expenses for this segment are expected to continue to grow as reserves related to the company's Fayetteville Shale play are developed and production increases.

    First Nine Months of 2009 Financial Results

    For the first nine months of 2009, Southwestern reported a net loss of $193.5 million, or $0.56 per diluted share, which included a first quarter $907.8 million non-cash ceiling test impairment ($558.3 million net of taxes) of the company's natural gas and oil properties resulting from lower natural gas prices. Excluding the non-cash impairment, Southwestern's net income for the first nine months of 2009 was $364.8 million (a non-GAAP measure; see reconciliation below), or $1.06 per diluted share, compared to net income of $463.7 million, or $1.34 per diluted share, in the same period in 2008. Excluding the non-cash impairment, the company's financial results have been impacted primarily by lower realized natural gas prices during the first nine months of 2009, partially offset by significant growth in production volumes.

    Net cash provided by operating activities before changes in operating assets and liabilities (a non-GAAP measure; see reconciliation below), was $1.03 billion for the first nine months of 2009, up 16% from $884.1 million for the same period in 2008.

    E&P Segment - Excluding the non-cash ceiling test impairment, operating income from the company's E&P segment was $526.4 million for the nine months ended September 30, 2009 (a non-GAAP measure; see reconciliation below), compared to $661.4 million for the same period in 2008. The decrease was primarily due to lower realized natural gas prices and increased operating costs and expenses which were partially offset by higher production.

    Gas and oil production was 211.4 Bcfe in the first nine months of 2009, compared to 137.0 Bcfe in the first nine months of 2008, and included 169.6 Bcf from the company's Fayetteville Shale play, up from 90.4 Bcf in the first nine months of 2008.

    Southwestern's average realized gas price was $5.31 per Mcf, including the effect of hedges, in the first nine months of 2009 compared to $8.19 per Mcf in the first nine months of 2008. The company's hedging activities increased the average gas price realized during the first nine months of 2009 by $2.15 per Mcf, compared to a decrease of $0.64 per Mcf during the first nine months of 2008. Disregarding the impact of hedges, the average price received for the company's gas production during the first nine months of 2009 was approximately $0.77 per Mcf lower than average NYMEX spot prices, compared to approximately $0.90 per Mcf lower than NYMEX spot prices during the first nine months of 2008.

    Lease operating expenses for the company's E&P segment were $0.76 per Mcfe in the first nine months of 2009, down from $0.90 per Mcfe in the first nine months of 2008. The decrease was primarily the result of the impact that lower natural gas prices had on the cost of compressor fuel in the first nine months of 2009.

    General and administrative expenses were $0.34 per Mcfe in the first nine months of 2009, compared to $0.38 per Mcfe in the first nine months of 2008. The decrease was primarily due to the effects of the company's increased production volumes which more than offset the effects of increased payroll, incentive compensation and other employee-related costs primarily associated with the expansion of the company's operations due to the Fayetteville Shale play. Southwestern added 227 new employees during the first nine months of 2009.

    Taxes other than income taxes were $0.10 per Mcfe during the first nine months of 2009, compared to $0.15 per Mcfe during the first nine months of 2008, primarily due to lower commodity prices and the change in the mix of the company's production volumes.

    The company's full cost pool amortization rate decreased to $1.56 per Mcfe in the first nine months of 2009, compared to $2.03 per Mcfe in the first nine months of 2008, primarily due to the $907.8 million non-cash ceiling test impairment recorded in the first quarter of 2009 and the sale of natural gas and oil properties in 2008, as the proceeds were credited to the full cost pool.

    Midstream Services - Operating income for the company's midstream activities was $80.3 million in the first nine months of 2009, compared to $43.4 million in the first nine months of 2008. The increase in operating income was primarily due to increased gathering revenues and an increase in the margin from gas marketing activities related to the Fayetteville Shale play, partially offset by increased operating costs and expenses.

    Capital Investments - In the first nine months of 2009, Southwestern invested approximately $1.4 billion, compared to approximately $1.3 billion during the first nine months of 2008, which included $1.2 billion invested in its E&P business and $167 million invested in its Midstream Services activities. Of the approximately $1.2 billion invested in its E&P business, $1.0 billion was invested in its Fayetteville Shale play, $123 million in East Texas, $35 million in its conventional Arkoma Basin program and $35 million in New Ventures. The company expects that its total capital investments for the full year of 2009 to be approximately $1.8 billion.

    E&P Operations Review

    Fayetteville Shale Play - For the first nine months of 2009, Southwestern placed a total of 324 operated wells on production in the Fayetteville Shale play, all of which were horizontal wells fracture stimulated using slickwater.

    At October 24, 2009, the company's gross production rate from the Fayetteville Shale play was approximately 1,230 MMcf per day, up from approximately 600 MMcf per day a year ago. The graph below provides gross production data from the company's operated wells in the Fayetteville Shale play area through October 24, 2009.

    (Photo: http://www.newscom.com/cgi-bin/prnh/20091029/DA01641-a)

    During the third quarter of 2009, the company's horizontal wells had an average completed well cost of $2.9 million per well, average horizontal lateral length of 4,100 feet and average time to drill to total depth of 12 days from re-entry to re-entry. This compares to an average completed well cost of $2.9 million per well, average horizontal lateral length of 4,123 feet and average time to drill to total depth of 11 days from re-entry to re-entry in the second quarter of 2009. The company currently has 17 drilling rigs running in its Fayetteville Shale play area, 13 that are capable of drilling horizontal wells and 4 smaller rigs that are used to drill the vertical portion of the wells. The company currently expects its gross well count in the play during 2009 to be approximately 550 wells (80% operated).

    Since 2007, improvements in the company's completion practices and longer lateral lengths have resulted in quarter-over-quarter improvements in average initial production rates of operated wells placed on production. During the third quarter of 2009, Southwestern placed three wells on production with initial production rates over 6.0 MMcf per day. Subsequent to the end of the third quarter and through October 23, 2009, the company placed two wells on production with initial production rates over 6.0 MMcf per day, including its highest rate well, the Linda Linn 08-12 1-23H located in Faulkner County, with an initial production rate of approximately 6.7 MMcf per day. Results from the company's drilling activities from 2007 through 2009, by quarter, are shown below.

    Wells Average 30th-Day 60th-Day Average Completion Time Placed on IP Rate Avg Rate Avg Rate Lateral Method Frame Production (Mcf/d) (# of wells) (# of wells) Length SW/XL/Hy-RHy ----- ---------- ------- ------------ ------------ ------ ------------ 1st Qtr 2007 58 1,261 1,066(58) 958(58) 2,104 11/37/10 2nd Qtr 2007 46 1,497 1,254(46) 1,034(46) 2,512 24/12/10 3rd Qtr 2007 74 1,769 1,510(72) 1,334(72) 2,622 69/4/1 4th Qtr 2007 77 2,027 1,690(77) 1,481(77) 3,193 68/1/8 1st Qtr 2008 75 2,343 2,147(75) 1,943(74) 3,301 71/1/3 2nd Qtr 2008 83 2,541 2,155(83) 1,886(83) 3,562 83/0/0 3rd Qtr 2008 97 2,882 2,560(97) 2,349(97) 3,736 97/0/0 4th Qtr 2008(1) 74 3,350(1) 2,722(74) 2,386(74) 3,850 74/0/0 1st Qtr 2009(1) 120 2,992(1) 2,537(120) 2,308(119) 3,874 120/0/0 2nd Qtr 2009 111 3,611 2,833(111) 2,504(105) 4,123 111/0/0 3rd Qtr 2009 93 3,604 2,543(69) 2,334(36) 4,100 93/0/0 Note: Results as of September 30, 2009. SW - Slickwater fluids XL - Crosslinked gel fluids Hy-RHy - Hybrid or Reverse Hybrid method (combination slickwater/crosslinked gel fluid system) (1) The significant increase in the average initial production rate for the fourth quarter of 2008 and the subsequent decrease for the first quarter of 2009 primarily reflected the impact of the delay in the Boardwalk Pipeline. Wells that were placed on production in January and February of 2009 had average initial production rates of 2,806 Mcf per day and 2,749 Mcf per day, respectively, while wells placed on production during March 2009 had average initial production rates of 3,353 Mcf per day.

    In 2008, the company developed a 4-square mile area of its Fayetteville Shale acreage in a pilot program with horizontal wells spaced at approximately 1,000 feet apart, representing approximately 110-acre spacing. Beginning in late 2008, Southwestern began drilling wells to test tighter well spacing. Through September 30, 2009, the company had placed over 200 wells on production that have well spacing of 700 feet or less, representing approximately 65-acre spacing or less. Results to date have been encouraging. In the areas the company has currently drilled, it now expects to drill between 10 and 12 wells per section in the Fayetteville Shale, pending additional well data and analyses. Additionally, the company is currently testing eight different pilot areas with well spacings that will range from 300 to 600 feet apart.

    The graph below provides normalized average daily production data through September 30, 2009, for the company's horizontal wells using slickwater and crosslinked gel fluids. The "dark blue curve" is for horizontal wells fracture stimulated with either slickwater or crosslinked gel fluid. The "red curve" indicates results for the company's wells with lateral lengths greater than 3,000 feet, while the "purple curve" indicates results for the company's wells with lateral lengths greater than 4,000 feet. The normalized production curves are intended to provide a qualitative indication of the company's Fayetteville Shale wells' performance and should not be used to estimate an individual well's estimated ultimate recovery. The 2.0, 2.5 and 3.0 Bcf typecurves are shown solely for reference purposes and are not intended to be projections of the performance of the company's wells.

    (Photo: http://www.newscom.com/cgi-bin/prnh/20091029/DA01641-b)

    At September 30, 2009, Southwestern held approximately 879,000 net acres in the play area (including 125,372 net acres in the traditional Fairway portion of the Arkoma Basin).

    East Texas - In the second quarter of 2008, Southwestern signed a 50/50 joint venture agreement with a private company targeting the Haynesville/Bossier Shale intervals in Shelby and San Augustine Counties, Texas. The first horizontal well, the Red River 877 #1 located in Shelby County, reached total depth in the fourth quarter of 2008, was production tested at 7.2 MMcf per day in the first quarter of 2009. The second horizontal well, the Red River 164 #1 located in San Augustine County, was production tested at 13.4 MMcf per day in the second quarter of 2009. The company completed a third well, the Red River 619 #1 located in San Augustine County, which was production tested in the third quarter of 2009 at 16.7 MMcf per day. A fourth well, the Burrows Gas Unit #1-H, is currently being tested. A fifth well, the Red River 257 #1 is waiting on completion. The company is currently drilling a sixth well, the Red River 257 #2 located in San Augustine County. Southwestern plans to participate in at least one additional well during 2009. In total, Southwestern has approximately 32,800 net acres it believes is prospective for the Haynesville/Bossier Shale.

    Southwestern participated in drilling 33 wells in East Texas during the first nine months of 2009, 28 of which were James Lime horizontal wells. The company currently has 37 operated James Lime horizontal wells on production which had average gross initial production rates of 9.5 MMcf per day. Southwestern's current net production from the James Lime is approximately 48 MMcf per day. Production from the company's East Texas properties was 24.6 Bcfe for the first nine months of 2009, compared to 24.1 Bcfe for the first nine months of 2008.

    Conventional Arkoma Program - (Outside the Fayetteville Shale play area) Southwestern participated in drilling 14 wells in its conventional Arkoma Basin drilling program during the first nine months of 2009. Production from the company's conventional Arkoma Basin was 16.9 Bcf for the first nine months of 2009, compared to 18.6 Bcf for the first nine months of 2008.

    New Ventures - At September 30, 2009, Southwestern held approximately 161,900 net undeveloped acres in the United States outside of its core operating areas in connection with New Ventures, including approximately 139,700 net acres in Pennsylvania under which it believes the Marcellus Shale is prospective.

    Explanation and Reconciliation of Non-GAAP Financial Measures

    We report our financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes certain non-GAAP performance measures may provide users of this financial information additional meaningful comparisons between current results and the results of our peers and of prior periods.

    One such non-GAAP financial measure is net cash provided by operating activities before changes in operating assets and liabilities. Management presents this measure because (i) it is accepted as an indicator of an oil and gas exploration and production company's ability to internally fund exploration and development activities and to service or incur additional debt, (ii) changes in operating assets and liabilities relate to the timing of cash receipts and disbursements which the company may not control and (iii) changes in operating assets and liabilities may not relate to the period in which the operating activities occurred.

    Additional non-GAAP financial measures we may present from time to time are net income attributable to Southwestern Energy, diluted earnings per share attributable to Southwestern Energy stockholders and our E&P segment operating income, all which exclude certain charges or amounts. Management presents these measures because (i) they are consistent with the manner in which the Company's performance is measured relative to the performance of its peers, (ii) these measures are more comparable to earnings estimates provided by securities analysts, and (iii) charges or amounts excluded cannot be reasonably estimated and guidance provided by the Company excludes information regarding these types of items. These adjusted amounts are not a measure of financial performance under GAAP.

    See the reconciliations below of GAAP financial measures to non-GAAP financial measures for the three and nine months ended September 30, 2009 and September 30, 2008. Non-GAAP financial measures should not be considered in isolation or as a substitute for the Company's reported results prepared in accordance with GAAP.

    9 Months Ended Sept 30, ---------------------- 2009 2008 ---- ---- (in thousands) Net income (loss) attributable to Southwestern Energy: Net income (loss) attributable to Southwestern Energy $(193,476) $463,747 Add back: Impairment of natural gas and oil properties (net of taxes) 558,305 - ------- --- Net income attributable to Southwestern Energy, excluding impairment of natural gas and oil properties $364,829 $463,747 ======== ======== 9 Months Ended Sept 30, ---------------------- 2009 2008 ---- ---- Diluted earnings per share: Net income (loss) per share attributable to Southwestern Energy stockholders $(0.56) $1.34 Add back: Impairment of natural gas and oil properties (net of taxes) 1.62 - ---- --- Net income per share attributable to Southwestern Energy stockholders, excluding impairment of natural gas and oil properties $1.06 $1.34 ===== ===== 3 Months Ended Sept 30, ---------------------- 2009 2008 ---- ---- (in thousands) Cash flow from operating activities: Net cash provided by operating activities $315,795 $378,455 Add back (deduct): Change in operating assets and liabilities 15,978 (66,316) ------ ------- Net cash provided by operating activities before changes in operating assets and liabilities $331,773 $312,139 ======== ======== 9 Months Ended Sept 30, ---------------------- 2009 2008 ---- ---- (in thousands) Cash flow from operating activities: Net cash provided by operating activities $989,526 $966,707 Add back (deduct): Change in operating assets and liabilities 40,098 (82,621) ------ ------- Net cash provided by operating activities before changes in operating assets and liabilities $1,029,624 $884,086 ========== ======== 9 Months Ended Sept 30, ---------------------- 2009 2008 ---- ---- (in thousands) E&P segment operating income: E&P segment operating income (loss) $(381,422) $661,403 Add back: Impairment of natural gas and oil properties 907,812 - ------- --- E&P segment operating income, excluding Impairment of natural gas and oil properties $526,390 $661,403 ======== ========

    Southwestern will host a teleconference call on Friday, October 30, 2009, at 10:00 a.m. Eastern to discuss the company's third quarter 2009 results. The toll-free number to call is 877-407-8035 and the international toll-free number is 201-689-8035. The teleconference can also be heard "live" on the Internet at http://www.swn.com/.

    Southwestern Energy Company is an integrated company whose wholly-owned subsidiaries are engaged in oil and gas exploration and production, natural gas gathering and marketing. Additional information on the company can be found on the Internet at http://www.swn.com/.

    All statements, other than historical financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements that address activities, outcomes and other matters that should or may occur in the future, including, without limitation, statements regarding the financial position, business strategy, production and reserve growth and other plans and objectives for the company's future operations, are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. The company has no obligation and makes no undertaking to publicly update or revise any forward-looking statements. You should not place undue reliance on forward-looking statements. They are subject to known and unknown risks, uncertainties and other factors that may affect the company's operations, markets, products, services and prices and cause its actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In addition to any assumptions and other factors referred to specifically in connection with forward-looking statements, risks, uncertainties and factors that could cause the company's actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: the timing and extent of changes in market conditions and prices for natural gas and oil (including regional basis differentials); the company's ability to transport its production to the most favorable markets or at all; the timing and extent of the company's success in discovering, developing, producing and estimating reserves; the economic viability of, and the company's success in drilling, the company's large acreage position in the Fayetteville Shale play, overall as well as relative to other productive shale gas plays; the company's ability to fund the company's planned capital investments; the company's ability to determine the most effective and economic fracture stimulation for the Fayetteville Shale formation; the impact of federal, state and local government regulation, including any increase in severance taxes; the costs and availability of oil field personnel services and drilling supplies, raw materials, and equipment and services; the company's future property acquisition or divestiture activities; increased competition; the financial impact of accounting regulations and critical accounting policies; the comparative cost of alternative fuels; conditions in capital markets, changes in interest rates and the ability of the company's lenders to provide it with funds as agreed; credit risk relating to the risk of loss as a result of non-performance by the company's counterparties and any other factors listed in the reports the company has filed and may file with the Securities and Exchange Commission (SEC). For additional information with respect to certain of these and other factors, see the reports filed by the company with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    Financial Summary Follows OPERATING STATISTICS (Unaudited) Southwestern Energy Company and Subsidiaries Three Months Nine Months Periods Ended September 30 2009 2008 2009 2008 --------------------------- ---- ---- ---- ---- Exploration & Production ----------------------- Production Gas production (Bcf) 73.0 52.4 210.8 134.9 Oil production (MBbls) 29 76 95 345 Total equivalent production (Bcfe) 73.2 52.8 211.4 137.0 --------------------------------- ---- ---- ----- ----- Commodity Prices Average gas price per Mcf, including hedges $5.06 $8.56 $5.31 $8.19 Average gas price per Mcf, excluding hedges $2.85 $8.82 $3.16 $8.83 Average oil price per Bbl $64.20 $125.33 $49.47 $112.37 ------------------------- ------ ------- ------ ------- Operating Expenses per Mcfe Lease operating expenses $0.76 $0.96 $0.76 $0.90 General & administrative expenses $0.38 $0.33 $0.34 $0.38 Taxes, other than income taxes $0.10 $0.15 $0.10 $0.15 Full cost pool amortization $1.43 $1.86 $1.56 $2.03 ----- ----- ----- ----- Midstream --------- Gas volumes marketed (Bcf) 98.3 71.6 273.9 181.2 Gas volumes gathered (Bcf) 93.0 64.6 267.4 153.0 ----- ----- ----- ----- STATEMENTS OF OPERATIONS (Unaudited) Southwestern Energy Company and Subsidiaries Three Months Nine Months Periods Ended September 30 2009 2008 2009 2008 -------------------------- ---- ---- ---- ---- (in thousands except share/per share amounts) Operating Revenues Gas sales $369,963 $433,698 $1,110,051 $1,167,403 Gas marketing 113,642 226,889 356,652 568,032 Oil sales 1,805 9,565 4,680 38,816 Gas gathering 17,443 12,662 50,871 30,134 Other 96 185 (968) 7,090 ----- --- --- ---- ----- 502,949 682,999 1,521,286 1,811,475 Operating Costs and Expenses Gas purchases - midstream services 112,956 225,149 353,323 560,490 Gas purchases - gas distribution - - - 61,439 Operating expenses 38,898 23,877 96,576 77,903 General and administrative expenses 31,942 21,055 84,851 70,536 Depreciation, depletion and amortization 113,833 105,230 355,988 300,478 Impairment of natural gas and oil properties - - 907,812 - Taxes, other than income taxes 8,282 8,648 23,963 24,793 ------------------------ ----- ----- ------ ------ 305,911 383,959 1,822,513 1,095,639 ------- ------- --------- --------- Operating Income (Loss) 197,038 299,040 (301,227) 715,836 ---------------------- ------- ------- -------- ------- Interest Expense Interest on debt 13,761 14,205 41,671 46,950 Other interest charges 740 482 2,269 1,749 Interest capitalized (9,224) (8,109) (31,913) (21,595) -------------------- ------ ------ -------- -------- 5,277 6,578 12,027 27,104 Other Income 554 2,354 1,088 2,530 Gain on Sale of Utility Assets - 57,264 - 57,264 ----------------------- --- ------ --- ------ Income (Loss) Before Income Taxes 192,315 352,080 (312,166) 748,526 -------------------- ------- ------- -------- ------- Provision (Benefit) for Income Taxes Current (20,704) 61,000 (56,204) 107,500 Deferred 94,809 72,715 (62,378) 176,732 -------- ------ ------ -------- ------- 74,105 133,715 (118,582) 284,232 ------ ------- -------- ------- Net income (loss) 118,210 218,365 (193,584) 464,294 Less: net income (loss) attributable to noncontrolling interest (44) 197 (108) 547 Net Income (Loss) Attributable to Southwestern Energy $118,254 $218,168 $(193,476) $463,747 -------------------- -------- -------- --------- -------- Earnings Per Share Net income (loss) attributable to Southwestern Energy stockholders - Basic $0.34 $0.64 $(0.56) $1.36 Net income (loss) attributable to Southwestern Energy stockholders - Diluted $0.34 $0.63 $(0.56) $1.34 ---------------------- ----- ----- ------ ----- Weighted Average Common Shares Outstanding Basic 343,717,232 342,312,845 343,087,065 341,595,957 Diluted 349,000,241 346,712,565 343,087,065 346,459,853 ------- ----------- ----------- ----------- ----------- BALANCE SHEETS (Unaudited) Southwestern Energy Company and Subsidiaries September 30 2009 2008 ------------ ---- ---- (in thousands) ASSETS Current Assets $533,836 $886,490 -------------- -------- -------- Property and Equipment 6,709,592 4,844,090 Less: Accumulated depreciation, depletion and amortization 2,882,350 1,499,632 ----------------------------------------- 3,827,242 3,344,458 ------------ --------- --------- Other Assets 97,065 133,058 ------------ $4,458,143 $4,364,006 ---------- ---------- LIABILITIES AND EQUITY Current Liabilities (1) $561,516 $724,072 Long-Term Debt 958,300 674,800 -------------- ------- ------- Deferred Income Taxes 632,890 635,604 Long-Term Hedging Liability 10,265 49,467 --------------------------- ------ ------ Other Liabilities 65,607 48,703 Commitments and Contingencies ----------------------------- ------ ------ Equity Common stock, $.01 par value; authorized 540,000,000 shares, issued 345,256,980 shares in 2009 and 343,182,556 in 2008 3,453 3,432 Additional paid-in capital 827,040 807,019 Retained earnings 1,256,501 1,345,778 Accumulated other comprehensive income 136,999 69,255 Common stock in treasury, 203,472 shares in 2009 and 224,807 in 2008 (4,316) (4,732) Total Southwestern Energy stockholders' equity 2,219,677 2,220,752 Noncontrolling interest 9,888 10,608 ----------------------- ----- ------ Total equity 2,229,565 2,231,360 $4,458,143 $4,364,006 ---------- ---------- (1) Current Liabilities include $1.2 million in 2009 and $61.2 million in 2008 of Senior Notes. STATEMENTS OF CASH FLOWS (Unaudited) Southwestern Energy Company and Subsidiaries Nine Months Periods Ended September 30 2009 2008 (in thousands) Cash Flows From Operating Activities Net income (loss) $(193,584) $464,294 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 357,218 301,801 Impairment of natural gas and oil properties 907,812 - Deferred income taxes (62,378) 176,732 Impairment of natural gas inventory and other 5,459 - Gain on sale of utility assets - (57,264) Unrealized (gain) loss on derivatives 6,535 (5,956) Stock-based compensation expense 8,699 5,379 Gain on sale of property and equipment - (392) Distributions to noncontrolling interest in partnership (137) (508) Change in assets and liabilities (40,098) 82,621 Net cash provided by operating activities 989,526 966,707 ----------------------------------------- ------- ------- Cash Flows From Investing Activities Capital investments (1,374,047) (1,287,324) Proceeds from sale of property and equipment - 732,924 Net proceeds from sale of utility assets - 213,721 Other items (4,585) (816) Net cash used in investing activities (1,378,632) (341,495) ------------------------------------- ---------- -------- Cash Flows From Financing Activities Payments on short-term debt (60,600) (600) Payments on revolving long-term debt (879,400) (1,843,600) Borrowings under revolving long-term debt 1,164,100 1,001,400 Proceeds from issuance of long-term debt - 600,000 Debt issuance costs and revolving credit facility costs - (8,895) Excess tax benefit for stock-based compensation - 42,197 Change in bank drafts outstanding (25,783) 5,402 Proceeds from exercise of common stock options 4,171 3,240 Net cash provided by (used in) financing activities 202,488 (200,856) ---------------------------------------- ------- -------- Increase (decrease) in cash and cash equivalents (186,618) 424,356 Cash and cash equivalents at beginning of year(1) 196,277 1,832 Cash and cash equivalents at end of period $9,659 $426,188 ------------------------------------------ ------ -------- (1) Cash and cash equivalents at the beginning of the year for 2008 include $1.1 million classified as "held for sale." SEGMENT INFORMATION (Unaudited) Southwestern Energy Company and Subsidiaries Quarter Ending Exploration September 30, & Midstream 2009 Production Services Other(1) Eliminations Total -------------- (in thousands) Revenues $371,034 $360,211 $112 $(228,408) $502,949 Gas purchases - 306,745 - (193,789) 112,956 Operating expenses 55,584 17,828 - (34,514) 38,898 General & administrative expenses 27,638 4,402 7 (105) 31,942 Depreciation, depletion & amortization 108,432 5,205 196 - 113,833 Taxes, other than income taxes 7,342 931 9 - 8,282 Operating Income (Loss) $172,038 $25,100 $(100) $- $197,038 Capital Investments (2) $333,927 $64,986 $9,860 $- $408,773 Quarter Ending September 30, 2008 -------------- Revenues $458,173 $683,171 $234 $(458,579) $682,999 Gas purchases - 645,701 - (420,552) 225,149 Operating expenses 50,604 11,186 - (37,913) 23,877 General & administrative expenses 17,216 3,944 9 (114) 21,055 Depreciation, depletion & amortization 102,015 3,179 36 - 105,230 Taxes, other than income taxes 7,731 907 10 - 8,648 Operating Income $280,607 $18,254 $179 $- $299,040 -------- ------- ---- --- -------- Capital Investments (2) $415,690 $54,222 $1,709 $- $471,621 Nine Months Ending September 30, 2009 ------------- Revenues $1,121,800 $1,090,849 $575 $(691,938) $1,521,286 Gas purchases - 936,356 - (583,033) 353,323 Operating expenses 159,937 45,209 - (108,570) 96,576 General & administrative expenses 72,334 12,811 41 (335) 84,851 Depreciation, depletion & amortization 341,920 13,506 562 - 355,988 Impairment of natural gas and oil properties 907,812 - - - 907,812 Taxes, other than income taxes 21,219 2,713 31 - 23,963 Operating Income (Loss) $(381,422) $80,254 $(59) $- $(301,227) Capital Investments (2) $1,186,409 $167,442 $14,350 $- $1,368,201 Nine Months Ending September 30, 2008 ------------- Revenues $1,147,915 $1,728,254 $118,168 $(1,182,862) $1,811,475 Gas purchases - 1,638,127 79,120 (1,095,318) 621,929 Operating expenses 123,817 27,088 14,139 (87,141) 77,903 General & administrative expenses 52,147 10,070 8,722 (403) 70,536 Depreciation, depletion & amortization 289,352 7,586 3,540 - 300,478 Taxes, other than income taxes 21,196 1,966 1,631 - 24,793 ------ ----- ----- --- ------ Operating Income $661,403 $43,417 $11,016 $- $715,836 -------- ------- ------- --- -------- Capital Investments (2) $1,155,025 $133,545 $8,451 $- $1,297,021 (1) The nine-month period ended September 30, 2008 includes operating results and capital investments associated with our natural gas distribution subsidiary, Arkansas Western Gas ("AWG"). On July 1, 2008, we closed the sale of AWG and, as a result, we no longer have any natural distribution operations. (2) Capital investments include reductions of $4.2 million and $12.4 million for the three- and nine-month periods ended September 30, 2009, respectively, and a reduction of $3.0 million and an increase of $7.0 million for the three- and nine-month periods ended September 30, 2008, respectively, relating to the change in accrued expenditures between periods.

    Photo: http://www.newscom.com/cgi-bin/prnh/20091029/DA01641-a
    http://www.newscom.com/cgi-bin/prnh/20091029/DA01641-b
    http://photoarchive.ap.org/
    PRN Photo Desk, photodesk@prnewswire.com Southwestern Energy Company

    CONTACT: Greg D. Kerley, Executive Vice President and Chief Financial
    Officer, +1-281-618-4803, or Brad D. Sylvester, CFA, Vice President, Investor
    Relations, +1-281-618-4897, both of Southwestern Energy Company

    Web Site: http://www.swn.com/




    CanAlaska Uranium Ltd. - Initial closing of private placement

    VANCOUVER, Oct. 29 /PRNewswire-FirstCall/ -- CanAlaska Uranium Ltd. (TSX.V - CVV) ("CanAlaska" or the "Company") wishes to announce that further to the Company's News Release dated October 5th, 2009, the Company has closed on an initial flow-through subscription agreement and has issued a total of 1,190,000 units at a price of $0.21/unit for proceeds of $249,900. The units are subject to a hold period of four months expiring March 1, 2010. A cash payment of $12,495 and 59,500 warrants have been issued as finders fees.

    As previously announced, the flow-through units will be issued at a price of $0.21 per unit. Each flow-through unit will consist of one common share of the Company and one-half of a share purchase warrant. Each whole warrant will be exercisable into one common share at a price of $0.28 per common share for a period of 18 months from the close of the flow-through private placement. The ordinary units will be issued at a price of $0.19 per unit. Each regular unit will consist of one common share of the Company and one-half of a share purchase warrant. Each whole warrant will be exercisable into one common share of the Company at a price of $0.28 per share for a period of 18 months from the close of the private placement.

    The proceeds from the unit offerings will be utilized for uranium exploration in Canada and for general corporate purposes. Finders fees may be payable in connection with these proposed placements and are subject to regulatory approval.

    In other matters, the Board of Directors and members of its Compensation Committee have approved, subject to regulatory acceptance, the issuance of 1,200,000 incentive stock options to an officer and an employee of the Company. The exercise price of the options will be $0.18 per common share, exercisable for a period of five years and shall include a two year-vesting provision.

    About CanAlaska Uranium Ltd. - http://www.canalaska.com/

    CANALASKA URANIUM LTD. (CVV - TSX.V, CVVUF - OTCBB, DH7 - Frankfurt) is undertaking uranium exploration in twenty 100%-owned and three optioned uranium projects in Canada's Athabasca Basin - the "Saudi Arabia of Uranium". Since September 2004, the Company has aggressively acquired one of the largest land positions in the region, comprising over 2,500,000 acres (10,117 sq. km or 3,906 sq. miles). To-date, CanAlaska has expended over Cdn$55 million exploring its properties and has delineated multiple uranium targets.

    CanAlaska's geological expertise and high exploration profile has attracted the attention of major international strategic partners. Among others, Japanese conglomerate Mitsubishi Corporation has undertaken to provide the Company C$11 mil. in exploration funding for its West McArthur Project. Exploration of CanAlaska's Cree East Project is also progressing under a C$19 mil. joint venture with a consortium of Korean companies led by Hanwha Corporation, and comprising Korea Electric Power Corp., Korea Resources Corp. and SK Energy Co, Ltd. Exploration recently commenced on the Poplar Project with Chinese mining partner East Resources Inc., comprising a potential 100,000 metres of drill testing. In addition, Canadian explorer Kodiak Exploration has also optioned the McTavish Project to advance exploration with the goal of attaining a 60% project interest earn-in by delineating a minimum of 35 million pounds U(3)O8.

    On behalf of the Board of Directors (signed) Peter Dasler, M.Sc., P.Geo. President & CEO, CanAlaska Uranium Ltd.

    The TSX Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release: CUSIP# 13708P 10 2. This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.

    CanAlaska Uranium Ltd.

    CONTACT: Emil Fung, Director & V.P. - Corp. Dev., Tel: (604) 688-3211,
    Email: info@canalaska.com




    Universal Health Services, Inc. Reports 41% Increase in 2009 Third Quarter Earnings Per Diluted Share, Raises Full Year GuidanceConsolidated Results of Operations - Three-month periods ended September 30, 2009 and 2008:

    KING OF PRUSSIA, Pa., Oct. 29 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. announced today that its reported net income attributable to UHS was $51.1 million, or an increase of 41% to $1.03 per diluted share, during the third quarter of 2009 as compared to $37.0 million, or $.73 per diluted share, during the comparable quarter of the prior year.

    Net revenues increased 4% to $1.30 billion during the third quarter of 2009 as compared to $1.24 billion during the third quarter of 2008.

    "We are extremely pleased with these solid results in an extremely challenging environment," said Alan B. Miller, Chief Executive Officer. "The continued economic weakness continues to drive higher levels of uncompensated care and pressure certain markets in particular, but the overall balance in our acute portfolio and the very steady performance of our behavioral segment has contributed to another very satisfying performance this quarter."

    Consolidated Results of Operations - Nine-month periods ended September 30, 2009 and 2008:

    Reported net income attributable to UHS was $199.5 million, or $4.04 per diluted share, during the nine-month period ended September 30, 2009 as compared to $152.9 million, or $2.99 per diluted share, during the comparable nine-month period of the prior year.

    As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information, included in our net income attributable to UHS during the nine-month period ended September 30, 2009, was a combined $9.8 million, or $.20 per diluted share, consisting of: (i) a favorable after-tax adjustment of $14.1 million, or $.29 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2009 based upon a reserve analysis, partially offset by; (ii) an unfavorable discrete tax item of $4.3 million, or $.09 per diluted share, as discussed below.

    After adjusting the reported results for the nine-month period ended September 30, 2009 to neutralize the net favorable impact of the above-mentioned adjustments (there were no adjustments applicable to the comparable nine-month prior year period), our adjusted net income attributable to UHS was $189.7 million, or an increase of 28% to $3.84 per diluted share, during the nine-month period ended September 30, 2009, as compared to $152.9 million, or $2.99 per diluted share during the comparable nine-month period of the prior year.

    Net revenues increased 3% to $3.91 billion during the nine-month period ended September 30, 2009 as compared to $3.79 billion during the comparable nine-month period of the prior year.

    Acute Care Services - Three-month periods ended September 30, 2009 and 2008:

    At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions increased 0.5% while patient days decreased 2.2% during the third quarter of 2009, as compared to the third quarter of 2008. Net revenues at these facilities increased 5.3% during the third quarter of 2009 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 2.6% while net revenue per adjusted patient day increased 5.5% during the third quarter of 2009 as compared to the comparable quarter of the prior year. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts) at our acute care hospitals increased to 13.0% during the third quarter of 2009 as compared to 11.6% during the third quarter of 2008.

    We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $169 million and $154 million during the three-month periods ended September 30, 2009 and 2008, respectively.

    Acute Care Services - Nine-month periods ended September 30, 2009 and 2008:

    During the nine-month period ended September 30, 2009, on a same facility basis, inpatient admissions to our acute care facilities increased 0.3% while patient days decreased 1.7%, as compared to the comparable period of the prior year. Net revenues at our acute care facilities increased 3.0% during the nine-month period ended September 30, 2009 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted admission increased 1.1% while net revenue per adjusted patient day increased 3.1% during the nine-month period ended September 30, 2009 as compared to the comparable period of the prior year. On a same facility basis, the operating margin at our acute care hospitals increased to 15.8% during the nine-month period ended September 30, 2009 as compared to 14.2% during the comparable period of the prior year.

    Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $509 million and $450 million during the nine-month periods ended September 30, 2009 and 2008, respectively.

    Behavioral Health Care Services - Three-month periods ended September 30, 2009 and 2008:

    At our behavioral health care facilities, on a same facility basis, inpatient admissions increased 2.1% and patient days increased 1.4% during the third quarter of 2009 as compared to the third quarter of 2008. Net revenues at these facilities increased 3.6% during the third quarter of 2009 as compared to the comparable quarter in the prior year. Net revenue per adjusted patient day at these facilities increased 2.2% during the third quarter of 2009 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods was 25.2% during the third quarter of 2009 as compared to 23.5% during the third quarter of 2008.

    Behavioral Health Care Services - Nine-month periods ended September 30, 2009 and 2008:

    During the nine-month period ended September 30, 2009, on a same facility basis, inpatient admissions to our behavioral health care facilities increased 1.6% while patient days increased 0.4%, as compared to the comparable period of the prior year. Net revenues at our behavioral health care facilities increased 3.5% during the nine-month period ended September 30, 2009 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted patient day increased 3.5% during the nine-month period ended September 30, 2009 as compared to the comparable prior year period. On a same facility basis, the operating margin at our behavioral health facilities increased to 25.5% during the nine-month period ended September 30, 2009 as compared to 24.1% during the comparable period of the prior year.

    2009 Full Year Guidance Increased to $4.65 to $4.80 Per Diluted Share:

    Based upon the operating trends and financial results experienced during the first nine months of 2009, and subject to certain assumptions, provisions and adjustments, including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures, we are increasing our estimated range of earnings per diluted share from continuing operations for the year ended December 31, 2009 to $4.65 to $4.80 from the previously provided range of $4.40 to $4.55. This revised guidance range excludes the net favorable impact of $.20 per diluted share resulting from the above-mentioned items that were included in our results for the nine-month periods ended September 30, 2009 (consisting of the favorable impact resulting from the reduction to our professional and general liability self-insurance reserves and the unfavorable impact resulting from the discrete tax item).

    Settlement of South Texas Health System Affiliates Investigation:

    As previously disclosed, since November, 2005, the government had been investigating our South Texas Health System affiliates. The investigation was focused on certain arrangements which, the government believed, may have violated Medicare and Medicaid rules and regulations pertaining to payments to physicians and the solicitation of patient referrals from physicians and other matters relating to payments to various individuals which may have constituted improper payments.

    We have recently entered into a settlement agreement with the government in connection with this matter whereby we have agreed to pay $27.5 million and have entered into a corporate integrity agreement with respect to the South Texas Health System facilities. During 2008, we recorded a pre-tax charge of $25 million to establish a reserve in connection with this matter. Also, during the first six months of 2009 we: (i) reserved an additional $3 million in connection with this matter, and; (ii) recorded a $4.3 million unfavorable discrete tax item to reflect the estimated nondeductible portion of the amount reserved. We do not expect to incur any additional material charges in connection with this matter.

    Conference Call Information:

    We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 30, 2009. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on October 30, 2009 and will continue through midnight on November 13, 2009. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 35911099. This call will also be available live over the internet at our web site at http://www.uhsinc.com/. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com/, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents at http://www.streetevents.com/.

    General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

    Universal Health Services, Inc. ("UHS") is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust . For additional information on the Company, visit our web site: http://www.uhsinc.com/.

    This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2008 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended June 30, 2009), may cause the results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

    We believe that operating income, operating margin, adjusted income from continuing operations attributable to UHS, adjusted income from continuing operations attributable to UHS per diluted share, adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share and earnings before interest, taxes, depreciation and amortization ("EBITDA"), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2008 and Report on Form 10-Q for the quarter ended June 30, 2009. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

    (more) Universal Health Services, Inc. ------------------------------- Consolidated Statements of Income --------------------------------- (in thousands, except per share amounts) (unaudited) Three months Nine months ended September 30, ended September 30, ------------------- ------------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net revenues $1,295,109 $1,244,462 $3,911,168 $3,785,015 Operating charges: Salaries, wages and benefits 558,244 530,858 1,641,491 1,600,514 Other operating expenses 253,792 269,299 759,907 777,257 Supplies expense 171,652 170,743 522,030 524,246 Provision for doubtful accounts 141,086 125,003 380,734 365,446 Depreciation and amortization 51,205 48,465 153,424 142,544 Lease and rental expense 17,253 17,600 51,912 53,021 ------ ------ ------ ------ 1,193,232 1,161,968 3,509,498 3,463,028 --------- --------- --------- --------- Income from continuing operations before interest expense and income taxes 101,877 82,494 401,670 321,987 Interest expense, net 10,780 13,419 35,297 40,147 ------ ------ ------ ------ Income from continuing operations before income taxes 91,097 69,075 366,373 281,840 Provision for income taxes 32,043 22,536 131,308 95,352 ------ ------ ------- ------ Income from continuing operations 59,054 46,539 235,065 186,488 Income from continuing operations attributable to minority interests 7,980 9,316 35,557 34,022 ----- ----- ------ ------ Income from continuing operations attributable to UHS 51,074 37,223 199,508 152,466 (Loss) income from discontinued operations, net of income tax expense (a) - (226) - 434 ------- ------- -------- -------- Net income attributable to UHS $51,074 $36,997 $199,508 $152,900 ======= ======= ======== ======== Basic earnings per share attributable to UHS (b) From continuing operations $1.04 $0.73 $4.05 $2.99 From discontinued operations - - - 0.01 - - - ---- Total basic earnings per share $1.04 $0.73 $4.05 $3.00 ===== ===== ===== ===== Diluted earnings per share attributable to UHS (b) From continuing operations $1.03 $0.73 $4.04 $2.98 From discontinued operations - - - 0.01 - - - ---- Total diluted earnings per share $1.03 $0.73 $4.04 $2.99 ===== ===== ===== ===== Universal Health Services, Inc. ------------------------------- Footnotes to Consolidated Statements of Income ---------------------------------------------- (in thousands, except per share amounts) (unaudited) Three months Nine months ended September 30, ended September 30, ------------------- ------------------- 2009 2008 2009 2008 ---- ---- ---- ---- (a) Calculation of income from discontinued operations, net of income tax: ------------------------------ (Loss) income from discontinued operations, pre-tax - ($363) - $706 Income tax benefit (expense) - 137 - (272) -- --- -- ---- (Loss) income from discontinued operations, net of taxes - ($226) - $434 == ===== == ==== (b) Earnings per share calculation: ----------------------------------- Basic and diluted: ------------------ Income from continuing operations attributable to UHS $51,074 $37,223 $199,508 $152,466 Less: Net income attributable to unvested restricted share grants (217) (88) (912) (576) ---- --- ---- ---- Income from continuing operations - basic and diluted 50,857 37,135 198,596 151,890 (Loss) income from discontinued operations - (226) - 434 -- ---- -- --- Net income attributable to UHS - basic and diluted $50,857 $36,909 $198,596 $152,324 ======= ======= ======== ======== Weighted average number of common shares - basic 48,887 50,544 48,981 50,812 ------ ------ ------ ------ Basic earnings per share attributable to UHS: From continuing operations $1.04 $0.73 $4.05 $2.99 From discontinued operations - - - 0.01 -- -- -- ---- Total basic earnings per share $1.04 $0.73 $4.05 $3.00 ===== ===== ===== ===== Weighted average number of common shares 48,887 50,544 48,981 50,812 Add: Other share equivalents 365 134 189 88 --- --- --- -- Weighted average number of common shares and equiv. - diluted 49,252 50,678 49,170 50,900 ------ ------ ------ ------ Diluted earnings per share attributable to UHS: From continuing operations $1.03 $0.73 $4.04 $2.98 From discontinued operations - - - 0.01 -- -- -- ---- Total diluted earnings per share $1.03 $0.73 $4.04 $2.99 ===== ===== ===== ===== Universal Health Services, Inc. ------------------------------- Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule") -------------------------------------------------------------------- For the three months ended September 30, 2009 and 2008 ------------------------------------------------------ (in thousands, except per share amounts) (unaudited) Three months ended Three months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Net revenues $1,295,109 100.0% $1,244,462 100.0% Operating charges: Salaries, wages and benefits 558,244 43.1% 530,858 42.7% Other operating expenses 253,792 19.6% 269,299 21.6% Supplies expense 171,652 13.3% 170,743 13.7% Provision for doubtful accounts 141,086 10.9% 125,003 10.0% ------- ---- ------- ---- 1,124,774 86.8% 1,095,903 88.1% --------- ---- --------- ---- Operating income/ margin 170,335 13.2% 148,559 11.9% Lease and rental expense 17,253 17,600 Income from continuing operations attributable to minority interests 7,980 9,316 ----- ----- Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA") 145,102 121,643 Depreciation and amortization 51,205 48,465 Interest expense, net 10,780 13,419 ------ ------ Income before income taxes 83,117 59,759 Provision for income taxes 32,043 22,536 ------ ------ Income from continuing operations attributable to UHS 51,074 37,223 Loss from discontinued operations, net of income taxes - (226) ------- ------- Net income attributable to UHS $51,074 $36,997 ======= ======= Three months ended Three months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Per Per Amount Diluted Share Amount Diluted Share ------ ------------- ------ ------------- Calculation of Adjusted Income from Continuing Operations Attributable to UHS ------------------------ Income from continuing operations attributable to UHS $51,074 $1.03 $37,223 $0.73 Plus/minus adjustments: Reduction of reserve for professional and general liability self-insured claims, net of income taxes - - - - Unfavorable discrete tax item - - - - Subtotal after-tax adjustments to income from continuing operations attributable to UHS - - - - -- -- -- -- Adjusted income from continuing operations attributable to UHS $51,074 $1.03 $37,223 $0.73 ======= ===== ======= ===== Calculation of Adjusted Net Income Attributable to UHS ----------------------- Net income attributable to UHS $51,074 $1.03 $36,997 $0.73 After-tax adjustments to income from continuing operations attributable to UHS, as indicated above - - - - -- -- -- -- Adjusted net income attributable to UHS $51,074 $1.03 $36,997 $0.73 ======= ===== ======= ===== Universal Health Services, Inc. ------------------------------- Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule") -------------------------------------------------------------------- For the nine months ended September 30, 2009 and 2008 ----------------------------------------------------- (in thousands, except per share amounts) (unaudited) Nine months ended Nine months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Net revenues $3,911,168 100.0% $3,785,015 100.0% Operating charges: Salaries, wages and benefits 1,641,491 42.0% 1,600,514 42.3% Other operating expenses 759,907 19.4% 777,257 20.5% Supplies expense 522,030 13.3% 524,246 13.9% Provision for doubtful accounts 380,734 9.7% 365,446 9.7% ------- --- ------- --- 3,304,162 84.5% 3,267,463 86.3% --------- ---- --------- ---- Operating income/ margin 607,006 15.5% 517,552 13.7% Lease and rental expense 51,912 53,021 Income from continuing operations attributable to minority interests 35,557 34,022 ------ ------ Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA") 519,537 430,509 Depreciation and amortization 153,424 142,544 Interest expense, net 35,297 40,147 ------ ------ Income before income taxes 330,816 247,818 Provision for income taxes 131,308 95,352 ------- ------ Income from continuing operations attributable to UHS 199,508 152,466 Income from discontinued operations, net of income taxes - 434 -------- -------- Net income attributable to UHS $199,508 $152,900 ======== ======== Nine months ended Nine months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Per Per Amount Diluted Share Amount Diluted Share ------ ------------- ------ ------------- Calculation of Adjusted Income from Continuing Operations Attributable to UHS ------------------------------ Income from continuing operations attributable to UHS $199,508 $4.04 $152,466 $2.98 Plus/minus adjustments: Reduction of reserve for professional and general liability self-insured claims, net of income taxes (14,168) (0.29) - - Unfavorable discrete tax item 4,331 0.09 Subtotal after-tax adjustments to income from continuing operations attributable to UHS (9,837) (0.20) - - ------ ----- - - Adjusted income from continuing operations attributable to UHS $189,671 $3.84 $152,466 $2.98 ======== ===== ======== ===== Calculation of Adjusted Net Income Attributable to UHS --------------------------- Net income attributable to UHS $199,508 $4.04 $152,900 $2.99 After-tax adjustments to income from continuing operations attributable to UHS, as indicated above (9,837) (0.20) - - ------ ----- -- -- Adjusted net income attributable to UHS $189,671 $3.84 $152,900 $2.99 ======== ===== ======== ===== Universal Health Services, Inc. ------------------------------- Condensed Consolidated Balance Sheets ------------------------------------- (in thousands, unaudited) (unaudited) September 30, December 31, 2009 2008 ---- ---- Assets Current assets: Cash and cash equivalents $13,630 $5,460 Accounts receivable, net 596,232 625,437 Supplies 80,726 76,043 Other current assets 35,365 26,375 Deferred income taxes 47,457 34,522 Current assets held for sale 21,580 21,580 ------ ------ Total current assets 794,990 789,417 ------- ------- Property and equipment 3,644,113 3,355,974 Less: accumulated depreciation (1,386,112) (1,255,682) ---------- ---------- 2,258,001 2,100,292 --------- --------- Other assets: Goodwill 732,685 732,937 Deferred charges 9,666 10,428 Other 106,167 109,388 ------- ------- $3,901,509 $3,742,462 ========== ========== Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt $2,918 $8,708 Accounts payable and accrued liabilities 629,033 542,008 Federal and state taxes - 10,409 -- ------ Total current liabilities 631,951 561,125 ------- ------- Other noncurrent liabilities 396,678 407,652 Long-term debt 852,270 990,661 Deferred income taxes 52,208 12,439 UHS common stockholders' equity 1,728,194 1,543,850 Minority interest 240,208 226,735 ------- ------- Total equity 1,968,402 1,770,585 ---------- ---------- $3,901,509 $3,742,462 ========== ========== Universal Health Services, Inc. ------------------------------- Consolidated Statements of Cash Flows ------------------------------------- (in thousands) (unaudited) Nine months ended September 30, ------------------- 2009 2008 ---- ---- Cash Flows from Operating Activities: Net income attributable to UHS $199,508 $152,900 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation & amortization 153,424 144,711 Changes in assets & liabilities, net of effects from acquisitions and dispositions: Accounts receivable 20,747 (7,796) Construction management and other receivable 13,697 (1,674) Accrued interest 10,712 11,290 Accrued and deferred income taxes 10,824 (3,418) Other working capital accounts 40,434 35,941 Other assets and deferred charges 3,716 16,317 Other 7,541 12,354 Minority interest in earnings of consolidated entities 35,557 34,022 Accrued insurance expense, net of commercial premiums paid 31,321 58,127 Payments made in settlement of self-insurance claims (43,206) (38,011) ------- ------- Net cash provided by operating activities 484,275 414,763 ------- ------- Cash Flows from Investing Activities: Property and equipment additions, net of disposals (278,825) (239,880) Acquisition of property and business (9,006) (14,775) Proceeds received from sales of assets 818 32,634 Settlement proceeds received related to prior year acquisitions, net of expenses - 1,539 Investment in joint-venture - (1,270) Purchase of minority ownership interest in majority owned business - (1,058) -- ------ Net cash used in investing activities (287,013) (222,810) -------- -------- Cash Flows from Financing Activities: Reduction of long-term debt (143,844) (219,311) Additional borrowings 170 150,155 Repurchase of common shares (15,467) (104,436) Dividends paid (11,821) (12,147) Issuance of common stock 1,568 1,751 Profit distributions related to minority interests in majority owned businesses (19,698) (18,820) Capital contributions from minority member - 2,306 -- ----- Net cash used in financing activities (189,092) (200,502) -------- -------- Increase (decrease) in cash and cash equivalents 8,170 (8,549) Cash and cash equivalents, beginning of period 5,460 16,354 ----- ------ Cash and cash equivalents, end of period $13,630 $7,805 ======= ====== Supplemental Disclosures of Cash Flow Information: Interest paid $32,357 $34,198 ======= ======= Income taxes paid, net of refunds $120,429 $97,907 ======== ======= Universal Health Services, Inc. Supplemental Statistical Information (un-audited) % Change % Change Quarter Ended 9 months ended Same Facility: 9/30/2009 9/30/2009 -------------- --------- --------- Acute Care Hospitals -------------------- Revenues 5.3% 3.0% Adjusted Admissions 2.6% 1.9% Adjusted Patient Days -0.1% -0.1% Revenue Per Adjusted Admission 2.6% 1.1% Revenue Per Adjusted Patient Day 5.5% 3.1% Behavioral Health Hospitals ----------------- Revenues 3.6% 3.5% Adjusted Admissions 2.0% 1.1% Adjusted Patient Days 1.4% -0.1% Revenue Per Adjusted Admission 1.5% 2.3% Revenue Per Adjusted Patient Day 2.2% 3.5% UHS Consolidated Third Quarter Ended Nine months Ended ---------------- ------------------- ----------------- 9/30/2009 9/30/2008 9/30/2009 9/30/2008 --------- --------- --------- --------- Revenues $1,295,109 $1,244,462 $3,911,168 $3,785,015 EBITDA (1) 145,102 121,643 519,537 430,509 EBITDA Margin (1) 11.2% 9.8% 13.3% 11.4% Cash Flow From Operations 183,436 204,689 484,275 414,763 Days Sales Outstanding 42 46 42 46 Capital Expenditures 95,577 83,818 278,825 239,880 Debt 855,188 943,721 Shareholders Equity 1,728,194 1,566,314 Debt / Total Capitalization 33.1% 37.6% Debt / EBITDA (2) 1.31 1.70 Debt / Cash From Operations (2) 1.61 2.14 Acute Care EBITDAR Margin (3) 13.0% 11.6% 15.8% 14.2% Behavioral Health EBITDAR Margin (3) 24.5% 23.0% 24.9% 23.5% (1) Net of Minority Interest (2) Latest 4 quarters (3) Before Corporate overhead allocation, minority interest and prior year self insurance reserve adjustment booked in 2009 UNIVERSAL HEALTH SERVICES, INC. SELECTED HOSPITAL STATISTICS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AS REPORTED: ------------ ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 84 81 3.7% Average licensed beds 5,465 5,450 0.3% 7,977 7,618 4.7% Patient days 280,269 286,552 -2.2% 532,228 519,362 2.5% Average daily census 3,046.4 3,114.7 -2.2% 5,785.1 5,645.2 2.5% Occupancy- licensed beds 55.7% 57.2% -2.5% 72.5% 74.1% -2.1% Admissions 65,082 64,738 0.5% 35,005 32,786 6.8% Length of stay 4.3 4.4 -2.7% 15.2 15.8 -4.0% Inpatient revenue $2,380,103 $2,259,640 5.3% $524,713 $488,986 7.3% Outpatient revenue 1,038,772 917,982 13.2% 68,577 61,358 11.8% Total patient revenue 3,418,875 3,177,622 7.6% 593,290 550,344 7.8% Other revenue 16,848 18,019 -6.5% 7,357 8,183 -10.1% Gross hospital revenue 3,435,723 3,195,641 7.5% 600,647 558,527 7.5% Total deductions 2,488,456 2,296,314 8.4% 271,315 247,695 9.5% Net hospital revenue $947,267 $899,327 5.3% $329,332 $310,832 6.0% SAME FACILITY: -------------- ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 79 79 0.0% Average licensed beds 5,465 5,450 0.3% 7,697 7,547 2.0% Patient days 280,269 286,552 -2.2% 520,564 513,231 1.4% Average daily census 3,046.4 3,114.7 -2.2% 5,658.3 5,578.6 1.4% Occupancy- licensed beds 55.7% 57.2% -2.5% 73.5% 73.9% -0.5% Admissions 65,082 64,738 0.5% 33,448 32,767 2.1% Length of stay 4.3 4.4 -2.7% 15.6 15.7 -0.6% (1) Acute care hospitals located in New Orleans and Central Montgomery Medical Center are excluded in current and prior years. (2) Centennial Peaks, Coastal Behavioral, Shenandoah Valley and Springwoods Behavioral are excluded in both current and prior years. Central Florida and Summit Ridge Hospital is included from September 1st through year to date. Broad Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are excluded in both current and prior years. UNIVERSAL HEALTH SERVICES, INC. SELECTED HOSPITAL STATISTICS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AS REPORTED: ------------ ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 84 81 3.7% Average licensed beds 5,465 5,452 0.2% 7,876 7,629 3.2% Patient days 877,224 892,689 -1.7% 1,574,698 1,580,086 -0.3% Average daily census 3,213.3 3,258.0 -1.4% 5,768.1 5,766.7 0.0% Occupancy- licensed beds 58.8% 59.8% -1.6% 73.2% 75.6% -3.1% Admissions 199,226 198,685 0.3% 103,025 98,228 4.9% Length of stay 4.4 4.5 -2.0% 15.3 16.1 -5.0% Inpatient revenue $7,430,016 $6,999,680 6.1% $1,552,640 $1,467,036 5.8% Outpatient revenue 3,081,566 2,748,382 12.1% 209,218 193,281 8.2% Total patient revenue 10,511,582 9,748,062 7.8% 1,761,858 1,660,317 6.1% Other revenue 53,625 55,733 -3.8% 23,608 26,234 -10.0% Gross hospital revenue 10,565,207 9,803,795 7.8% 1,785,466 1,686,551 5.9% Total deductions 7,705,648 7,027,568 9.6% 801,392 745,545 7.5% Net hospital revenue $2,859,559 $2,776,227 3.0% $984,074 $941,006 4.6% SAME FACILITY: -------------- ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 79 79 0.0% Average licensed beds 5,465 5,452 0.2% 7,630 7,476 2.1% Patient days 877,231 892,665 -1.7% 1,549,466 1,544,017 0.4% Average daily census 3,213.3 3,257.9 -1.4% 5,675.7 5,635.1 0.7% Occupancy- licensed beds 58.8% 59.8% -1.6% 74.4% 75.4% -1.3% Admissions 199,226 198,685 0.3% 99,584 98,054 1.6% Length of stay 4.4 4.5 -2.0% 15.6 15.7 -1.2% (1) Acute care hospitals located in New Orleans and Central Montgomery Medical Center are excluded in current and prior years. (2) Centennial Peaks, Coastal Behavioral, Shenandoah Valley and Springwoods Behavioral are excluded in both current and prior years. Central Florida and Summit Ridge Hospital is included from September 1st through year to date. Broad Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are excluded in both current and prior years.

    Universal Health Services, Inc.

    CONTACT: Steve Filton, Chief Financial Officer of Universal Health
    Services, Inc., +1-610-768-3300

    Web Site: http://www.uhsinc.com/




    Simpson Manufacturing Co., Inc. Announces Third Quarter Results

    PLEASANTON, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Simpson Manufacturing Co., Inc. (the "Company") announced today that its third quarter 2009 net sales decreased 23.9% to $167.2 million compared to net sales of $219.8 million for the third quarter of 2008. The Company had net income of $12.8 million for the third quarter of 2009 compared to net income of $23.4 million for the third quarter of 2008. Diluted net income per common share was $0.26 for the third quarter of 2009 compared to diluted net income per common share of $0.48 for the third quarter of 2008. In the first nine months of 2009, net sales decreased 25.4% to $452.4 million as compared to net sales of $606.7 million for the first nine months of 2008. Net income was $15.0 million for the first nine months of 2009 as compared to net income of $52.1 million for the first nine months of 2008. Diluted net income per common share was $0.31 for the first nine months of 2009 as compared to $1.06 for the first nine months of 2008.

    In the third quarter of 2009, sales declined throughout the United States. Sales during the quarter also decreased throughout Europe, with the exception of France, and decreased in the United Kingdom and Canada. Sales in France were up primarily due to the acquisition of Agence Internationale Commerciale et Industrielle, S.A.S. ("Aginco") in April 2009. Simpson Strong-Tie's third quarter sales decreased 22.0% from the same quarter last year, while Simpson Dura-Vent's sales decreased 37.5%. Simpson Strong-Tie's sales to contractor distributors and dealer distributors decreased significantly as home-building activity, and general economic conditions, remained weak. Sales to home centers also decreased. Sales decreased across all of Simpson Strong-Tie's major product lines, particularly those used in new home construction. Simpson Dura-Vent's sales decreased across most of its product lines, with the exception of special gas vent products which were up slightly.

    Income from operations decreased 43.5% from $37.2 million in the third quarter of 2008 to $21.0 million in the third quarter of 2009. Gross margins decreased from 40.8% in the third quarter of 2008 to 36.4% in the third quarter of 2009. The decrease in gross margins was primarily due to reduced absorption of fixed overhead, as a result of lower production volumes, as well as higher manufacturing costs, including higher costs of material and labor. The decline in steel prices slowed in the second quarter of 2009 and prices again started to rise in the third quarter of 2009. The Company expects steel prices to continue to increase as demand returns to the market. Through the first nine months of 2009, inventories decreased 29.2% from $251.9 million at December 31, 2008, to $178.2 million at September 30, 2009.

    Research and development expense decreased 12.2% from $5.7 million in the third quarter of 2008 to $5.0 million in the third quarter of 2009, primarily due to a $0.4 million decrease in personnel expenses. Selling expense decreased 27.0% from $21.3 million in the third quarter of 2008 to $15.6 million in the third quarter of 2009, which resulted primarily from a $3.6 million decrease in expenses associated with sales and marketing personnel, most of which was related to cost-cutting measures, a $1.1 million decrease in promotional expenditures and a $0.6 million decrease in commissions paid to selling agents. General and administrative expense decreased 24.2% from $25.5 million in the third quarter of 2008 to $19.4 million in the third quarter of 2009. This decrease resulted from several factors, including a $1.8 million decrease in administrative personnel expenses, related in part to cost-cutting measures, a $1.7 million decrease in cash profit sharing, a $1.6 million decrease in legal and professional service expenses and a $0.9 million decrease in the provision for bad debt, partly offset by a $0.5 million increase in amortization of intangible assets, primarily related to the acquisition of Aginco. Interest income decreased primarily due to lower interest rates. The effective tax rate was 39.3% in the third quarter of 2009, up from 38.1% in the third quarter of 2008.

    In the first nine months of 2009, sales declined throughout the United States. California and the western and southeastern regions had the largest decreases in sales. Sales during the period also decreased in Europe, the United Kingdom and Canada. Simpson Strong-Tie's sales for the first nine months of the year decreased 25.5% from the same period last year, while Simpson Dura-Vent's sales decreased 24.6%. Simpson Strong-Tie's sales to contractor distributors and dealer distributors decreased as a result of the weakness in the U.S. housing market. Sales to home centers also decreased. Sales decreased across all of Simpson Strong-Tie's major product lines, particularly those used in new home construction. Sales of Simpson Dura-Vent's Direct-Vent and gas vent, hearth and pellet vent product lines decreased, while sales of special gas vent and relining products increased, primarily as a result of the acquisition of ProTech in June 2008.

    Income from operations decreased 64.4% from $83.0 million in the first nine months of 2008 to $29.6 million in the first nine months of 2009. Gross margins decreased from 37.9% in the first nine months of 2008 to 33.8% in the first nine months of 2009. The decrease in gross margins was primarily due to reduced absorption of fixed overhead, as a result of lower production volumes, as well as higher manufacturing costs, including higher costs of material and labor.

    Research and development expense decreased 8.4% from $16.4 million in the first nine months of 2008 to $15.0 million in the first nine months of 2009, primarily due to a $0.7 million decrease in professional service fees and a $0.6 million decrease in personnel expenses. Selling expense decreased 23.4% from $63.3 million in the first nine months of 2008 to $48.4 million in the first nine months of 2009. This decrease resulted primarily from an $8.6 million decrease in expenses associated with sales and marketing personnel, most of which was related to cost-cutting measures, a $4.0 million decrease in promotional expenditures and a $1.0 million decrease in commissions paid to selling agents. General and administrative expense decreased 10.9% from $67.2 million in the first nine months of 2008 to $59.8 million in the first nine months of 2009. This decrease resulted primarily from a $6.1 million decrease in cash profit sharing, a $1.7 million decrease in administrative personnel expenses, related in part to cost-cutting measures, and a $1.5 million decrease in legal and professional service expenses, partly offset by a $1.3 million increase in bad debt charges, most of which was recorded in the first quarter of 2009, and a $1.5 million increase in amortization of intangible assets, primarily related to the businesses acquired since June 2008. Interest income decreased from $2.2 million in the first nine months of 2008 to $64 thousand in the first nine months of 2009, primarily due to lower interest rates. The effective tax rate was 48.9% in the first nine months of 2009, up from 38.9% in the first nine months of 2008. The effective tax rate is higher than the statutory rate primarily due to the valuation allowances taken on foreign losses and a reduced benefit from the reduction or loss of enterprise zone tax credits at two of the Company's facilities in California.

    At its meeting on October 21, 2009, the Company's Board of Directors declared a cash dividend of $0.10 per share. The record date for the dividend will be January 7, 2010, and it will be paid on January 28, 2010.

    Investors, analysts and other interested parties are invited to join the Company's conference call on Friday, October 30, 2009, at 6:00 am Pacific Time. To participate, callers may dial 800-894-5910. The call will be webcast simultaneously and will be available for one month through a link on the Company's website at http://www.simpsonmfg.com/.

    This document contains forward-looking statements, based on numerous assumptions and subject to risks and uncertainties. Although the Company believes that the forward-looking statements are reasonable, it does not and cannot give any assurance that its beliefs and expectations will prove to be correct. Many factors could significantly affect the Company's operations and cause the Company's actual results to differ substantially from the Company's expectations. Those factors include, but are not limited to: (i) general economic and construction business conditions; (ii) customer acceptance of the Company's products; (iii) relationships with key customers; (iv) materials and manufacturing costs; (v) the financial condition of customers, competitors and suppliers; (vi) technological developments; (vii) increased competition; (viii) changes in capital and credit market conditions; (ix) governmental and business conditions in countries where the Company's products are manufactured and sold; (x) changes in trade regulations; (xi) the effect of acquisition activity; (xii) changes in the Company's plans, strategies, objectives, expectations or intentions; and (xiii) other risks and uncertainties indicated from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Actual results might differ materially from results suggested by any forward-looking statements in this report. The Company does not have an obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

    The Company's results of operations for the three and nine months ended September 30, 2009 and 2008 (unaudited), are as follows: Three Months Nine Months Ended September 30, Ended September 30, ------------------- ------------------- (Amounts in thousands, except per share data) 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $167,200 $219,823 $452,446 $606,742 Cost of sales 106,299 130,143 299,594 376,939 ------- ------- ------- ------- Gross profit 60,901 89,680 152,852 229,803 ------ ------ ------- ------- Research and development and engineering expenses 4,971 5,662 14,997 16,375 Selling expenses 15,563 21,323 48,440 63,264 General and administrative expenses 19,351 25,514 59,828 67,155 ------ ------ ------ ------ Income from operations 21,016 37,181 29,587 83,009 Loss in equity method investment, before tax - - (214) - Interest income, net - 579 64 2,213 --- --- -- ----- Income before taxes 21,016 37,760 29,437 85,222 Provision for income taxes 8,258 14,398 14,405 33,126 ----- ------ ------ ------ Net income $12,758 $23,362 $15,032 $52,096 ====== ====== ====== ====== Net income per share: Basic $0.26 $0.48 $0.31 $1.07 Diluted 0.26 0.48 0.31 1.06 Cash dividend declared per common share $0.10 $0.10 $0.30 $0.30 Weighted average shares outstanding: Basic 49,195 48,612 49,066 48,593 Diluted 49,355 48,946 49,185 48,939 Other data: Depreciation and amortization $7,493 $7,627 $22,093 $22,634 Pre-tax stock compensation expense 511 859 1,554 2,715 The Company's financial position as of September 30, 2009 and 2008, and December 31, 2008 (unaudited), is as follows: September 30, December 31, ------------- ------------ (Amounts in thousands) 2009 2008 2008 ---- ---- ---- Cash and short-term investments $220,139 $163,857 $170,750 Trade accounts receivable, net 108,005 125,875 76,005 Inventories 178,237 251,647 251,878 Assets held for sale 7,887 8,429 8,387 Other current assets 24,787 18,936 20,577 ------ ------ ------ Total current assets 539,055 568,744 527,597 Property, plant and equipment, net 191,326 195,062 193,318 Goodwill 81,289 75,799 68,619 Other noncurrent assets 45,499 39,096 40,666 ------ ------ ------ Total assets $857,169 $878,701 $830,200 ======= ======= ======= Trade accounts payable $29,638 $46,113 $21,675 Line of credit and current portion of long-term debt 29 629 26 Other current liabilities 48,175 65,460 50,193 ------ ------ ------ Total current liabilities 77,842 112,202 71,894 Long-term liabilities 9,019 10,607 9,280 Stockholders' equity 770,308 755,892 749,026 ------- ------- ------- Total liabilities and stockholders' equity $857,169 $878,701 $830,200 ======= ======= =======

    Simpson Manufacturing Co., Inc., headquartered in Pleasanton, California, through its subsidiary, Simpson Strong-Tie Company Inc., designs, engineers and is a leading manufacturer of wood-to-wood, wood-to-concrete and wood-to-masonry connectors and fastening systems, stainless steel fasteners and pre-fabricated shearwalls. Simpson Strong-Tie also offers a full line of adhesives, mechanical anchors and powder actuated tools for concrete, masonry and steel. The Company's other subsidiary, Simpson Dura-Vent Company, Inc., designs, engineers and manufactures venting systems for gas and wood burning appliances. The Company's common stock trades on the New York Stock Exchange under the symbol "SSD."

    For further information, contact Barclay Simpson at (925) 560-9032.

    Simpson Manufacturing Co., Inc.

    CONTACT: Barclay Simpson of Simpson Manufacturing Co., Inc.,
    +1-925-560-9032

    Web Site: http://www.simpsonmfg.com/




    Middleburg Financial Corporation Announces Third Quarter 2009 Dividend

    MIDDLEBURG, Va., Oct. 29 /PRNewswire-FirstCall/ -- The board of directors of Middleburg Financial Corporation today announced a $0.10 per common share cash dividend for shareholders of record as of November 13, 2009, and payable on November 27, 2009.

    Middleburg Financial Corporation common stock trades on the NASDAQ Market under the MBRG symbol. Middleburg Financial Corporation is headquartered in Middleburg, Virginia, and has two wholly owned subsidiaries, Middleburg Bank and Middleburg Investment Group. Middleburg Trust Company and Middleburg Investment Advisors are part of Middleburg Investment Group. Middleburg Bank serves Loudoun, Fairfax and Fauquier Counties in Virginia with seven financial service centers. Middleburg Trust Company is headquartered in Richmond, Virginia and maintains offices in several of the financial service centers. Middleburg Investment Advisors, Inc., is a registered investment management firm located in Alexandria, Virginia.

    Middleburg Financial Corporation

    CONTACT: Joseph L. Boling, Chairman of the Board & CEO, +1-540-687-4812,
    or Gary R. Shook, President +1-540-687-4801, or Jeffrey H. Culver, Executive
    Vice President, +1-703-737-3470

    Web Site: http://www.middleburgbank.com/




    Resources Global Professionals to Hold Conference Call on Creation of New Corporate Advisory and Restructuring Business Through Acquisition of Sitrick And Company and Brincko Associates on October 30, 2009

    IRVINE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Resources Global Professionals, a leading multinational provider of professional services and the operating subsidiary of Resources Connection, Inc. , will hold a conference call to discuss the creation of a new Corporate Advisory and Restructuring business through the acquisition of Sitrick And Company and Brincko Associates on Friday, October 30, 2009.

    The conference call will be held tomorrow at 8:30 a.m. ET, October 30, 2009. The dial-in number for the conference call will be: 877-397-0300. No password is required; simply ask for the Resources Global Professionals conference call.

    The conference call will be broadcast in simultaneous listen-only mode on the Resources Global Professionals website at http://ir.resourcesglobal.com/events.cfm. A digital replay of the conference call will also be available through October 30, 2009 at: 888-203-1112. The password for the replay is: 8104203. The call will also be archived on the Resources Global Professionals website for 30 days.

    Analyst Contact: Nate Franke, Chief Financial Officer (US+) 1-714-430-6500 or nate.franke@resources-us.com Media Contact: Michael Sitrick (US+) 1-310-788-2850 or mike_strick@sitrick.com ABOUT RESOURCES GLOBAL PROFESSIONALS

    Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. , is a multinational professional services firm that helps business leaders execute internal initiatives. Partnering with business leaders, we drive internal change across all parts of a global enterprise -- finance and accounting, information management, internal audit, human capital, legal services and supply chain management.

    Resources Global was founded in 1996 within a Big Four accounting firm. Today, we are a publicly traded company with over 2,700 professionals, from more than 80 practice offices, annually serving over 2,100 clients around the world. Headquartered in Irvine, California, Resources Global has served 84 of the Fortune 100 companies. The Company is listed on the NASDAQ Global Select Market, the exchange's highest tier by listing standards. More information about Resources Global is available at http://www.resourcesglobal.com/.

    Resources Connection, Inc.

    CONTACT: analysts, Nate Franke, Chief Financial Officer of Resources
    Connection, Inc., +1-714-430-6500, nate.franke@resources-us.com; or media,
    Michael Sitrick, +-1-310-788-2850, mike_strick@sitrick.com

    Web Site: http://www.resourcesglobal.com/




    Resources Connection to Create New Corporate Advisory and Restructuring Business Through Acquisition of Sitrick And Company and Brincko Associates

    IRVINE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Resources Connection, Inc., , today announced the formation of a Corporate Advisory and Restructuring subsidiary through the acquisition of the business of Sitrick And Company, Inc., one of the nation's leading strategic communications firms and Brincko Associates, Inc., a widely-respected corporate advisory and restructuring firm.

    The acquisitions, which include the purchase of certain assets of both Sitrick And Company and Brincko Associates, and the personal goodwill of Michael Sitrick, CEO of Sitrick and Company, will be made for aggregate initial consideration of $43.3 million, comprising $28.2 million in cash and approximately 810,000 shares of restricted stock which, for financial reporting purposes, will be valued at the closing price of Resources' stock on the date the transaction closes, plus an earn-out based on the achievement of certain adjusted earnings before interest, income taxes, depreciation and amortization ("EBITDA") levels over a period of four years from the date of closing. The transaction is subject to customary closing conditions, including the completion of the audited financial statements for Brincko Associates, and is expected to close within the next 30 days. The principal acquisition agreement provides that the employees of the new subsidiary would share in up to 20 percent of the earn-out based upon the achievement of certain growth targets.

    Following the closing, this new Resources subsidiary will be called Sitrick Brincko Group, LLC. Michael Sitrick will be Chairman and CEO of the new subsidiary and will report directly to Donald B. Murray, Chairman and CEO of Resources. John Brincko will be President and COO of the new subsidiary.

    Sitrick And Company, with offices in Los Angeles, New York, San Francisco and Miami, specializes in corporate, financial, transactional and crisis communications. It was founded in 1989. Headquartered in Southern California, Brincko Associates is an international management consulting firm established in 1979.

    Mr. Murray said the transaction, which is expected to be immediately accretive, will make Resources a meaningful player in the corporate advisory and restructuring market.

    "Strategically, the acquisition of the business of Sitrick And Company augments Resources' "first in" capabilities as corporate issues arise and require immediate communication strategy formulation and execution," Mr. Murray said. "In such situations, companies often require significant assistance to react proactively to the business issues at hand. Such matters include business and financial restructuring, dispute resolution assistance, interim senior-level management or forensic accounting assistance."

    "Brincko Associates brings significant, added expertise in each of these areas to Resources. By combining the specialized skill sets of these two businesses with Resources' consultant capabilities, geographic footprint and client base, we believe we will greatly increase our ability to assist clients during challenging periods in a more cost effective manner than currently offered by traditional consulting firms," he said.

    "All one has to do is to read the daily headlines to see why we are so excited about this acquisition," Mr. Murray said. "Despite predictions that the recession is over, the business landscape remains littered with troubled companies and indeed whole industries. The constricted financing environment over the past couple of years has further exacerbated these problems and deepened the pipeline of troubled companies. We believe this transaction provides significant opportunities for growth."

    "The anticipated synergies between Sitrick, Brincko and Resources not only provide this vehicle for growth," he stated, "but what we all believe is a cost-effective means for companies undergoing change to work through their problems. Sitrick's and Brincko's ability to provide expert senior-level corporate advisory, turnaround and communications counsel is recognized nationwide. Resources, with over 2000 consultants and 82 locations throughout the world, provides the means to staff assignments with as many highly-qualified accounting, human resources and IT professionals as required, at a cost that is considerably less than comparable turnaround firms are charging."

    Mr. Sitrick added, "We believe there is a paradigm shift occurring in the advisory and restructuring business due to the cash squeeze that companies in the current economic environment are experiencing. This is particularly true for those attempting a restructuring."

    He continued, "What we are hearing from Boards, companies and creditors is they recognize that to get the best talent, they have to pay the going rate for the top people - lawyers, turnaround professionals and communications executives. They are looking for alternatives, with respect to the rates they have to pay, when they must replace or augment an accounting, human resources or IT department. Sitrick's and Brincko's combination with Resources provides us - and our clients - with a very attractive quality and financial alternative."

    Mr. Brincko stated, "By way of example only, a review of one bankruptcy court filing showed that if the debtor used Resources' professionals for a number of finance, accounting and IT roles instead of the service provider whose professionals were included in the fee application, the entity would have achieved substantial savings."

    Mr. Brincko continued, "There is a lot of money that could be saved by just replacing one group of accountants and IT professionals for another with comparable or greater experience. And remember, we are not talking about changing out the top executives in this matter, but the mid- and lower-level professionals with like or more experienced people."

    Mr. Sitrick added, "The change that John and I are talking about could make the difference between a company surviving and successfully emerging from a restructuring and one going into liquidation - at the very least, it should result in an increased recovery for creditors."

    Mr. Murray added, "We believe that Mike Sitrick, John Brincko and their teams are among the best known and most respected professionals in their fields. In the restructuring segment of Sitrick's business, for example, over the past 20 years, his firm has managed the strategic communications for approximately 300 companies in Chapter 11. These include such well-known matters as Delphi, Conseco, Inc., Collins & Aikman, Federal-Mogul Corporation, Global Crossing, Interstate Bakeries, Laidlaw, Mirant Corporation, Public Service of New Hampshire, Purina Mills, Refco, Service Merchandise, Singer, Solutia, US Airways, Orange County, CA, America West Airlines, Barneys New York and Worldcom. This year, the firm is handling or has handled 15 Chapter 11 cases and five out-of-court restructurings."

    He continued, "John Brincko, who is in the process of completing a chapter 11 restructuring assignment at Spansion, Inc., has managed such restructurings as Barneys New York, Consolidated Freightways, Mossimo, Inc., Knudsen Foods, Inc., CalComp Technology, Sun World International, Sahlen & Associates, Strouds and Omnimedical. In each of these matters, John Brincko served as the CEO (or, as to Barneys New York, President and COO, and as to Spansion as CRO) of each company during a portion of the restructuring."

    In addition to its strategic communication counseling in restructuring cases, the Sitrick firm has been involved in a wide spectrum of matters including mergers and acquisitions, proxy contests, withhold vote contests, product recalls, business litigation of all kinds - from patent infringement suits to allegations of stock manipulation, financial restatements and write-downs, state and federal government investigations, criminal indictments, insurance fraud, labor issues (including emergency executive transitions, sexual harassment and sex discrimination cases), fraudulent conveyance cases, trade disputes, environmental issues and product liability claims.

    Brincko Associates, in addition to restructuring services, debtor representation, liquidation management and business dissolution management, provides such other services as customer, vendor and employee relations consulting, crisis management, financial structure analysis, cash management, interim management, complex negotiations, risk assessment, cost reduction and seller representation.

    Mr. Murray said that Sitrick and Brincko's work in these and other areas should also provide synergy for both Sitrick and Resources to grow their other lines of business.

    "We have over 2,100 clients worldwide," he said, "and all of them will likely have a situation at one time or another that could benefit from Sitrick Brincko Group's help across all areas of specialty."

    Mr. Sitrick said, "Like John, I have had many opportunities to sell or merge my business over the years but chose to stay independent. This combination gives me an opportunity to not only partner with one of the most respected people in the corporate advisory and restructuring business, but to operate on a global platform utilizing the outstanding professionals of Resources Global Professionals. Most importantly, it provides both John and me with the opportunity to provide real added value to clients and potential clients on a global basis."

    Mr. Brincko said, "Both Mike and I feel that this transaction provides a unique opportunity: to help companies, to help creditors and to take our practices to a new level. Like Mike, I am very excited about the opportunity this combination provides and look forward to the weeks, months and years ahead."

    For the twelve months ended December 31, 2008 and the six months ended June 30, 2009, Sitrick And Company and Brincko Associates had combined revenue of approximately $24.4 million and $14.4 million, respectively, and adjusted EBITDA of $10.5 million and $6.6 million, respectively. Adjusted EBITDA represents EBITDA adjusted for certain expenses which are not anticipated to recur post-transaction.

    In connection with the acquisition, at the closing, Michael Sitrick and John Brincko will enter into a 54-month employment contract with the Resources subsidiary.

    ABOUT RESOURCES GLOBAL PROFESSIONALS

    Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. , is a multinational professional services firm that helps business leaders execute internal initiatives. Partnering with business leaders, Resources Global Professionals drives internal change across all parts of a global enterprise - finance and accounting, information management, internal audit, human capital, legal services and supply chain management.

    Resources Global was founded in 1996 within a Big Four accounting firm. Today, it is a publicly traded company with over 2,700 professionals, from 82 practice offices, annually serving 2,100 clients around the world. Its professionals have an average of 18-years of experience in fields such as finance and accounting, human capital, information management, internal audit, legal and supply chain.

    Headquartered in Irvine, California, Resources Global has served 84 of the Fortune 100 companies.

    The Company is listed on the NASDAQ Global Select Market, the exchange's highest tier by listing standards. More information about Resources Global is available at http://www.resourcesglobal.com/.

    Resources will hold a conference call for interested analysts and investors at 8:30 a.m., ET tomorrow, October 30, 2009. This conference call will be available for listening via a webcast on the Company's website: http://www.resourcesglobal.com/.

    Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," or "will" or the negative of these terms or other comparable terminology. In this press release, such statements include our belief that the closing of the acquisitions will occur within the next 30 days, that the acquisitions will be immediately accretive to Resources, that the acquisitions will make Resources a meaningful player in the corporate advisory and restructuring market, that the acquisitions will greatly increase our ability to assist clients in a more cost effective manner than offered by traditional consulting firms, that troubled companies and industries and the constricted financing environment provides opportunity for growth, that the anticipated synergies between Sitrick, Brincko and Resources provide a vehicle for growth and is a cost-effective means for companies undergoing change, that the use of Resources' professionals would have resulted in substantial savings, that there is a paradigm shift in the advisory and restructuring business, that the combination of Sitrick and Brincko with Resources provides clients with an attractive quality and financial alternative, and that Resources' clients will benefit from Sitrick's and Brincko's help. Such statements and all phases of Resources Connection's operations are subject to known and unknown risks, uncertainties and other factors, including seasonality, overall economic conditions and other factors and uncertainties as are identified in our most recent Annual Report on Form 10-K and our other public filings made with the Securities and Exchange Commission (File No. 0-32113). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Resources Connection's, and its industry's, actual results, levels of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The Company undertakes no obligation to update the forward-looking statements in this press release.

    Resources Global Professionals

    CONTACT: Analysts, Nate Franke, Chief Financial Officer of Resources
    Connection, Inc., +1-714-430-6500, nate.franke@resources-us.com, or Media,
    Michael Sitrick, +1-310-788-2850, mike_sitrick@sitrick.com, for Resources
    Connection, Inc.

    Web Site: http://www.resourcesconnection.com/




    Activision Blizzard to Present at the BMO Capital Markets 17th Annual Digital Entertainment Conference

    SANTA MONICA, Calif., Oct 29 /PRNewswire-FirstCall/ -- Activision Blizzard, Inc. today announced that Thomas Tippl, Chief Financial Officer and Chief Corporate Officer of Activision Blizzard, Inc., will be presenting at the BMO Capital Markets 17th Annual Digital Entertainment Conference on Thursday, November 12th at 9:00 a.m. (ET) at the Grand Hyatt in New York City.

    Mr. Tippl's remarks will be broadcast over the Internet. To access the webcast, please log on to http://www.activisionblizzard.com/ or:

    http://www.bmocm.com/conferences/digitalentertainment2009/webcast/default. aspx

    Please note that the presentation time is subject to change. Please contact the financial institution hosting the conference for additional details.

    During the course of the presentation, Activision Blizzard may make forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that these statements are only predictions and actual events or results may differ materially.

    Headquartered in Santa Monica, California, Activision Blizzard, Inc. is a worldwide online, PC, console and handheld game publisher with leading market positions across every major category of the rapidly growing interactive entertainment software industry.

    Activision Blizzard maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, Norway, Denmark, the Netherlands, Australia, Russia, South Korea, China, and the region of Taiwan. More information about Activision Blizzard and its products can be found on the company's website, http://www.activisionblizzard.com/.

    Cautionary Note Regarding Forward-looking Statements: Information in this press release that involves Activision Blizzard's expectations, plans, intentions or strategies regarding the future, including statements under the heading "Company Outlook," are forward-looking statements that are not facts and involve a number of risks and uncertainties. Activision Blizzard generally uses words such as "outlook," "will," "remains," "to be," "plans," "believes," "may," "expects," "intends," and similar expressions to identify forward-looking statements. Factors that could cause Activision Blizzard's actual future results to differ materially from those expressed in the forward-looking statements set forth in this release include, but are not limited to, sales levels of Activision Blizzard's titles, shifts in consumer spending trends, the impact of the current macroeconomic environment, the seasonal and cyclical nature of the interactive game market, any further difficulties related to the transition of World of Warcraft in China from the former licensee to NetEase, Activision Blizzard's ability to predict consumer preferences among competing hardware platforms (including next-generation hardware), declines in software pricing, product returns and price protection, product delays, retail acceptance of Activision Blizzard's products, adoption rate and availability of new hardware and related software, industry competition, rapid changes in technology, industry standards and consumer preferences, protection of proprietary rights, litigation against Activision Blizzard, maintenance of relationships with key personnel, customers, licensees, licensors, vendors, and third-party developers, counterparty risks relating to customers, licensees, licensors and manufacturers, domestic and international economic, financial and political conditions and policies, foreign exchange rates, integration of recent acquisitions and the identification of suitable future acquisition opportunities, Activision Blizzard's success in completing the integration of the operations of Activision and Vivendi Games in a timely manner and the combined Company's ability to realize the anticipated benefits and synergies of the transaction to the extent, or in the timeframe, anticipated, and the other factors identified in the risk factors sections of Activision Blizzard's annual report on Form 10-K for the year ended December 31, 2008 and subsequent filed quarterly reports on Form 10-Q. The forward-looking statements in this release are based upon information available to Activision Blizzard as of the date of this release, and Activision Blizzard assumes no obligation to update any such forward-looking statements. Forward-looking statements believed to be true when made may ultimately prove to be incorrect. These statements are not guarantees of the future performance of Activision Blizzard and are subject to risks, uncertainties and other factors, some of which are beyond its control and may cause actual results to differ materially from current expectations.

    Activision Blizzard, Inc.

    CONTACT: Maryanne Lataif, Sr. Vice President, Corporate Communications,
    +1-310-255-2704, mlataif@activision.com, or Kristin Mulvihill Southey, Sr.
    Vice President, Investor Relations & Treasurer, +1-310-255-2635,
    ksouthey@activision.com, both of Activision Blizzard, Inc.

    Web Site: http://www.activisionblizzard.com/

    Company News On-Call: http://www.prnewswire.com/comp/007396.html




    DTE Energy Reports Third Quarter 2009 Results; Maintains Updated 2009 Earnings Guidance

    DETROIT, Oct. 29 /PRNewswire-FirstCall/ -- DTE Energy today reported third quarter 2009 earnings of $158 million, or $0.96 per diluted share, compared with $177 million, or $1.08 per diluted share, in the third quarter of 2008.

    Operating earnings for the third quarter 2009 were $157 million, or $0.95 per diluted share, compared with third quarter 2008 operating earnings of $173 million, or $1.06 per diluted share. Operating earnings exclude non-recurring items, certain timing-related items and discontinued operations. Reconciliations of reported earnings to operating earnings are at the end of this news release.

    Reported earnings for the nine months ended Sept. 30, 2009, were $419 million or $2.55 per diluted share, versus $417 million or $2.55 per diluted share in 2008. Reported earnings in 2008 included $0.50 per share related to the sale of a portion of the company's Barnett Shale natural gas property. Year-to-date operating earnings were $427 million or $2.61 per diluted share, compared with $329 million or $2.00 per diluted share in 2008.

    "We are very proud of what we accomplished this year," said Anthony F. Earley Jr., DTE Energy chairman and CEO. "Our balance sheet and liquidity remain solid, operational metrics have improved across the board and we successfully executed key regulatory proceedings, including implementing renewable energy and energy optimization plans, and filing rate cases at both utilities. Continued focus on these priorities, as well as expanding our continuous improvement efforts, has allowed DTE Energy to remain financially healthy during these turbulent times.

    "We still have work to do, however," Earley added. "Neither of our utilities will earn their allowed rate of return this year, although continuous improvement initiatives have allowed them to perform very well in a difficult environment. Solid performance from the utilities, coupled with non-utility performance that is ahead of plan, allowed us to increase our earnings guidance earlier this month."

    As previously announced, the company updated earnings guidance from $2.75 to $3.05 per share to $3.20 to $3.40 per share at its Oct. 19, 2009, analyst meeting.

    Third quarter 2009 operating earnings results, by segment: Utilities

    Electric Utility: Operating earnings for Detroit Edison were $0.95 per diluted share versus $0.98 in 2008. Drivers of the variance were a 7 percent reduction in sales volume due to the economy and an additional 4 percent lower sales volume due to cooler weather; partially offset by December 2008 and July 2009 rate increases, as well as continuous improvement and one-time cost reductions.

    Gas Utility: MichCon had a seasonal operating loss of $0.14 per diluted share, compared with an operating loss of $0.08 per diluted share in 2008. The quarter-over-quarter variance is primarily due to increased benefits, interest and depreciation expenses in 2009 and a tax refund in 2008.

    Non-Utilities

    Gas Midstream: Operating earnings of $0.08 per diluted share were greater than 2008 operating earnings of $0.07 per diluted share, primarily due to increased pipeline revenues.

    Unconventional Gas Production: This segment had an operating loss of $0.01 per diluted share, down from third quarter 2008 operating earnings of $0.02 per diluted share. Lower commodity prices in 2009 were the primary driver of this variance.

    Power and Industrial Projects: Operating earnings were $0.04 per diluted share, compared with operating earnings of $0.15 per diluted share in 2008. Earnings in 2008 were higher than normal due to higher coke production and an intercompany interest true-up with Corporate and Other.

    Energy Trading: Energy Trading had operating earnings of $0.04 per diluted share versus operating earnings of $0.10 per diluted share in the third quarter of 2008. Lower realized gains were the primary driver of the quarter-over-quarter variance.

    Corporate and Other: The Corporate and Other segment had an operating loss of $0.01 per diluted share compared to the operating loss of $0.18 per diluted share in the third quarter of 2008. Driving performance was lower interest and a 2008 intercompany interest true-up with Power and Industrial Projects.

    Outlook for 2009

    "Continuous improvement efforts at DTE Energy continue to evolve, mature and accelerate," said David E. Meador, DTE Energy executive vice-president and chief financial officer. "I am pleased to report that our continuous improvement initiatives are yielding substantial and sustainable results. These successful efforts, coupled with strong earnings from our non-utilities and one-time tax benefits, resulted in solid year-to-date earnings.

    "I am also happy to report that these earnings results were achieved without compromising on customer service, safety or system reliability," Meador added. "The dedicated efforts of our employees toward maintaining and improving these standards has resulted in increased reliability at our power plants, safety results that are top decile in the industry and customer satisfaction that has remained consistent in tough economic times. Continued focus on these metrics remains a priority for DTE Energy."

    Conference call and webcast information

    This earnings announcement, as well as a package of slides and supplemental information, is available at http://www.dteenergy.com/.

    DTE Energy plans to conduct a conference call with the investment community hosted by Meador at 9 a.m. EDT Friday, Oct. 30, to discuss third quarter earnings results. Investors, the news media and the public may listen to a live internet broadcast of the meeting at http://www.dteenergy.com/. The telephone dial-in numbers are (877) 419-6593 or (719) 325-4887. There is no passcode. The internet broadcast will be archived on the company's website. An audio replay of the call will be available from 11 a.m. Oct. 30 to Nov. 13. To access the replay, dial (888) 203-1112 or (719) 457-0820 and enter passcode 7542853.

    DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.2 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.2 million customers in Michigan and other non-utility, energy businesses focused on gas pipelines and storage, coal transportation, unconventional gas production, and power and industrial projects. Information about DTE Energy is available at dteenergy.com.

    Use of Operating Earnings Information - In this release, DTE Energy discusses 2009 operating earnings guidance. It is likely that certain items that impact the company's 2009 reported results will be excluded from operating results. Reconciliations to the comparable 2009 reported earnings guidance is not provided because it is not possible to provide a reliable forecast of specific line items. These items may fluctuate significantly from period to period and may have a significant impact on reported earnings.

    DTE Energy management believes that operating earnings provide a more meaningful representation of the company's earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and investors. Internally, DTE Energy uses operating earnings to measure performance against budget and to report to the Board of Directors.

    The information contained herein is as of the date of this release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this release as a result of new information or future events or developments. Words such as "anticipate," "believe," "expect," "projected" and "goals" signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties. This release contains forward-looking statements about DTE Energy's financial results and estimates of future prospects, and actual results may differ materially.

    Many factors may impact forward-looking statements including, but not limited to, the following: the length and severity of ongoing economic decline resulting in lower demand, customer conservation and increased thefts of electricity and gas; changes in the economic and financial viability of our customers, suppliers, and trading counterparties, and the continued ability of such parties to perform their obligations to the Company; high levels of uncollectible accounts receivable; access to capital markets and capital market conditions and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which could impact availability of short and long-term financing; potential for continued loss on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; the timing and extent of changes in interest rates; the level of borrowings; the availability, cost, coverage and terms of insurance and stability of insurance providers; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; economic climate and population growth or decline in the geographic areas where we do business; environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements that could include carbon and more stringent mercury emission controls, a renewable portfolio standard, energy efficiency mandates, and a carbon tax or cap and trade structure; nuclear regulations and operations associated with nuclear facilities; impact of electric and gas utility restructuring in Michigan, including legislative amendments and Customer Choice programs; employee relations and the impact of collective bargaining agreements; unplanned outages; changes in the cost and availability of coal and other raw materials, purchased power and natural gas; volatility in the short-term natural gas storage markets impacting third-party storage revenues; cost reduction efforts and the maximization of plant and distribution system performance; the effects of competition; the uncertainties of successful exploration of gas shale resources and challenges in estimating gas reserves with certainty; impact of regulation by the FERC, MPSC, NRC and other applicable governmental proceedings and regulations, including any associated impact on rate structures; changes in and application of federal, state and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings and audits; the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals or new legislation; the cost of protecting assets against, or damage due to, terrorism; changes in and application of accounting standards and financial reporting regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy and other business issues; and binding arbitration, litigation and related appeals. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause our results to differ materially from those contained in any forward-looking statement. Any forward-looking statements refer only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This presentation should also be read in conjunction with the "Forward-Looking Statements" section in each of DTE Energy's and Detroit Edison's 2008 Forms 10-K and 2009 Forms 10-Q (which sections are incorporated herein by reference), and in conjunction with other SEC reports filed by DTE Energy and Detroit Edison.

    DTE Energy Company Consolidated Statements of Operations (Unaudited) Three Months Nine Months Ended Ended September 30 September 30 ------------- ------------- (in Millions, Except per Share Amounts) 2009 2008 2009 2008 ---- ---- ---- ---- Operating Revenues $1,961 $2,338 $5,904 $7,159 ------ ------ ------ ------ Operating Expenses Fuel, purchased power and gas 735 1,034 2,272 3,332 Operation and maintenance 554 628 1,740 2,081 Depreciation, depletion and amortization 266 235 738 677 Taxes other than income 63 71 204 229 Gain on sale of non-utility assets - - - (128) Other asset (gains) and losses, reserves and impairments, net - (5) (3) 7 --- -- -- - 1,618 1,963 4,951 6,198 ----- ----- ----- ----- Operating Income 343 375 953 961 --- --- --- --- Other (Income) and Deductions Interest expense 143 125 409 371 Interest income (11) (5) (17) (13) Other income (28) (34) (74) (74) Other expenses 8 22 17 45 - -- -- -- 112 108 335 329 --- --- --- --- Income Before Income Taxes 231 267 618 632 Income Tax Provision 73 97 197 231 -- -- --- --- Income from Continuing Operations 158 170 421 401 Discontinued Operations Income, net of tax - 8 - 22 --- - --- -- Net Income 158 178 421 423 Less: Net Income Attributable to the Noncontrolling Interests From Continuing operations - 1 2 4 Discontinued operations - - - 2 --- - - - - 1 2 6 Net Income Attributable to DTE Energy Company $158 $177 $419 $417 ==== ==== ==== ==== Basic Earnings per Common Share Income from continuing operations $0.96 $1.03 $2.55 $2.43 Discontinued operations - 0.05 - 0.12 --- ---- --- ---- Total $0.96 $1.08 $2.55 $2.55 ===== ===== ===== ===== Diluted Earnings per Common Share Income from continuing operations $0.96 $1.03 $2.55 $2.43 Discontinued operations - 0.05 - 0.12 --- ---- --- ---- Total $0.96 $1.08 $2.55 $2.55 ===== ===== ===== ===== Weighted Average Common Shares Outstanding Basic 165 163 164 163 Diluted 165 163 164 163 Dividends Declared per Common Share $0.53 $0.53 $1.59 $1.59 DTE Energy Company Segment Net Income (Unaudited) Three Months Ended September 30 -------------------------------------------------------- 2009 2008 --------------------------- --------------------------- Reported Adjust- Operating Reported Adjust- Operating (in Millions) Earnings ments Earnings Earnings ments Earnings -------- ------- --------- -------- ------- -------- Electric Utility $156 $- $156 $159 $- 159 Gas Utility (23) - (23) (15) 2 B (13) Non-utility Operations Gas Midstream 13 - 13 11 - 11 Unconventional Gas Production (2) - (2) 3 - 3 Power and Industrial Projects 10 (1) A 9 26 - 26 Energy Trading 6 - 6 19 (2) C 17 -- -- -- -- -- -- Total Non-utility operations 27 (1) 26 59 (2) 57 -- -- -- -- -- -- Corporate and Other (2) - (2) (34) 4 C (30) Income from Continuing Operations 158 (1) 157 169 4 173 --- -- --- --- - --- Discontinued Operations - - - 8 (8) D - ---- --- ---- ---- --- ---- Net Income $158 $(1) $157 $177 $(4) $173 ==== === ==== ==== === ==== Adjustments key A) General Motors accounts receivable bad debt reserve. B) Costs to achieve savings from Performance Excellence Process. C) Residual hedge impact from Antrim sale. D) Results relating to discontinuance of synfuel operations. DTE Energy Company Segment Diluted Earnings Per Share (Unaudited) Three Months Ended September 30 -------------------------------------------------------- 2009 2008 --------------------------- --------------------------- Reported Adjust- Operating Reported Adjust- Operating Earnings ments Earnings Earnings ments Earnings ------- ------ -------- -------- ------- -------- Electric Utility $0.95 $- $0.95 $0.98 $- $0.98 Gas Utility (0.14) - (0.14) (0.09) 0.01 B (0.08) Non-utility Operations Gas Midstream 0.08 - 0.08 0.07 - 0.07 Unconventional Gas Production (0.01) - (0.01) 0.02 - 0.02 Power and Industrial Projects 0.05 (0.01) A 0.04 0.15 - 0.15 Energy Trading 0.04 - 0.04 0.11 (0.01) C 0.10 ---- ----- ---- ---- ----- ---- Total Non-utility operations 0.16 (0.01) 0.15 0.35 (0.01) 0.34 ---- ----- ---- ---- ----- ---- Corporate and Other (0.01) - (0.01) (0.21) 0.03 C (0.18) Income from Continuing Operations 0.96 (0.01) 0.95 1.03 0.03 1.06 ---- ----- ---- ---- ---- ---- Discontinued Operations - - - 0.05 (0.05) D - ----- ------ ----- ----- ------ ----- Net Income $0.96 $(0.01) $0.95 $1.08 $(0.02) $1.06 ===== ====== ===== ===== ====== ===== Adjustments key A) General Motors accounts receivable bad debt reserve. B) Costs to achieve savings from Performance Excellence Process. C) Residual hedge impact from Antrim sale. D) Results relating to discontinuance of synfuel operations. DTE Energy Company Segment Net Income (Unaudited) Nine Months Ended September 30 -------------------------------------------------------- 2009 2008 --------------------------- --------------------------- Reported Adjust- Operating Reported Adjust- Operating (in Millions) Earnings ments Earnings Earnings ments Earnings ------- ------- --------- -------- ------- --------- Electric Utility $313 $4 E $317 $251 $- $251 Gas Utility 23 - 23 33 3 B 36 Non-utility Operations Gas Midstream 37 - 37 27 - 27 Unconventional Gas Production (6) - (6) 89 (81) F 8 Power and Industrial Projects 8 1 E 12 30 1 B 31 3 A Energy Trading 73 - 73 36 1 B 37 --- - --- --- --- --- Total Non-utility operations 112 4 116 182 (79) 103 --- - --- --- --- --- Corporate and Other (29) - (29) (69) 6 C (61) 2 G Income from Continuing Operations 419 8 427 397 (68) 329 --- - --- --- --- --- Discontinued Operations - - - 20 (20) D - ---- -- ---- ---- ---- ---- Net Income $419 $8 $427 $417 $(88) $329 ==== == ==== ==== ==== ==== Adjustments key A) General Motors accounts receivable bad debt reserve. B) Costs to achieve savings from Performance Excellence Process. C) Residual hedge impact from Antrim sale. D) Results relating to discontinuance of synfuel operations. E) Chrysler accounts receivable bad debt reserve. F) Gain on sale of Barnett Core. G) Residual impact from Crete sale. DTE Energy Company Segment Diluted Earnings Per Share (Unaudited) Nine Months Ended September 30 -------------------------------------------------------- 2009 2008 --------------------------- --------------------------- Reported Adjust- Operating Reported Adjust- Operating Earnings ments Earnings Earnings ments Earnings -------- ------ -------- -------- ------- --------- Electric Utility $1.91 $0.03 E $1.94 $1.54 $- $1.54 Gas Utility 0.14 - 0.14 0.20 0.02 B 0.22 Non-utility Operations Gas Midstream 0.23 - 0.23 0.17 - 0.17 Unconventional Gas Production (0.04) - (0.04) 0.55 (0.50) F 0.05 Power and Industrial Projects 0.04 0.01 E 0.07 0.18 - 0.18 0.02 A Energy Trading 0.45 - 0.45 0.22 - 0.22 ---- ---- ---- ---- ----- ---- Total Non-utility operations 0.68 0.03 0.71 1.12 (0.50) 0.62 ---- ---- ---- ---- ----- ---- Corporate and Other (0.18) - (0.18) (0.43) 0.04 C (0.38) 0.01 G Income from Continuing Operations 2.55 0.06 2.61 2.43 (0.43) 2.00 ---- ---- ---- ---- ----- ---- Discontinued Operations - - - 0.12 (0.12) D - ----- ----- ----- ----- ------ ----- Net Income $2.55 $0.06 $2.61 $2.55 $(0.55) $2.00 ===== ===== ===== ===== ====== ===== Adjustments key A) General Motors accounts receivable bad debt reserve. B) Costs to achieve savings from Performance Excellence Process. C) Residual hedge impact from Antrim sale. D) Results relating to discontinuance of synfuel operations. E) Chrysler accounts receivable bad debt reserve. F) Gain on sale of Barnett Core. G) Residual impact from Crete sale.

    DTE Energy

    CONTACT: Media, Scott Simons, +1-313-235-8808, or Lorie N. Kessler,
    +1-313-235-8807, Analysts, Dan Miner, +1-313-235-5525, or Lisa Muschong,
    +1-313-235-8505

    Web Site: http://www.dteenergy.com/




    Pharmacyclics Reports First Quarter Fiscal 2010 Financial Results

    SUNNYVALE, Calif., Oct. 29 /PRNewswire-FirstCall/ -- Pharmacyclics, Inc. today reported financial results for its first fiscal quarter ended September 30, 2009. The net loss for the first quarter of fiscal 2010 was $4.8 million, or $0.12 per share, compared to a net loss of $6.5 million, or $0.25 per share, in the first quarter of fiscal 2009.

    Total operating expenses were $4.8 million in the first quarter of fiscal 2010, including $0.2 million of share-based compensation expense. In 2009 total operating expenses were $6.6 million, including share-based compensation expense of $1.8 million. Excluding share-based compensation expense, total expenses were $4.6 million in the first quarter of fiscal 2010 compared to $4.8 million for the first quarter of fiscal 2009, a decrease of $0.2 million.

    As of September 30, 2009, the company's cash, cash equivalents and marketable securities totaled $33.9 million compared to $16.3 million as of June 30, 2009. In July 2009, the company completed a Rights Offering resulting in the sale of approximately 22.5 million shares of common stock for net proceeds of $27.8 million. Robert W. Duggan, the company's Chairman of the Board and CEO, purchased 4.8 million shares in the Rights Offering. In connection with the Rights Offering, the company repaid a $6.4 million loan from an affiliate of Mr. Duggan.

    Today, the company also announced that Dr. Glenn Rice, our President and Chief Operating Officer, will end his position with Pharmacyclics in mid-February, 2010, to return to his long held passion for drug development in Asia. He will remain a Pharmacyclics board member.

    Mr. Duggan stated, "I would like to thank Glenn for his dedication and assistance in a critical time for Pharmacyclics. With his broad experience he has assisted us in evaluating our pipeline. We are continuing various executive searches in key areas to further support our goal of achieving viability and growth through innovation." Mr. Duggan concluded, "To avoid conflict with the upcoming American Society of Hematology (ASH) meeting to be held December 4 - 8, 2009, we will hold our conference call after we release HDAC & Btk clinical trial data at ASH. Meanwhile we remain convinced we are engaged in meaningful progress across all four of our clinical molecules. We look forward to providing a robust review of each of our clinical programs at our annual shareholder meeting scheduled for December 18, 2009."

    For further questions please contact Ramses Erdtmann VP Finance at: 408-215-3325

    About Pharmacyclics

    Pharmacyclics® is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative small-molecule drugs for the treatment of immune mediated disease and cancer. The purpose of the company is to create a profitable business by generating income from products it develops, licenses and commercializes, either with one or several potential partners or alone as may best forward the economic interest of its stakeholders. The Company endeavors to create novel, patentable, differentiated products that have the potential to significantly improve the standard of care in the markets it serves. Presently, Pharmacyclics has four product candidates in clinical development and two product candidates in pre-clinical development. It is Pharmacyclics' business strategy to establish collaborations with large pharmaceutical and biotechnology companies for the purpose of generating present and future income in exchange for adding to their product pipelines. Pharmacyclics strives to generate collaborations that allow it to retain valuable territorial rights and simultaneously fast forward the clinical development and commercialization of its products. The Company is headquartered in Sunnyvale, California and is listed on NASDAQ under the symbol PCYC. To learn more about how Pharmacyclics advances science to improve human healthcare visit us at http://www.pharmacyclics.com/.

    NOTE: This announcement may contain forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our expectations and beliefs regarding our future results or performance. Because these statements apply to future events, they are subject to risks and uncertainties. When used in this announcement, the words "anticipate", "believe", "estimate", "expect", "expectation", "should", "would", "project", "plan", "predict", "intend" and similar expressions are intended to identify such forward-looking statements. Our actual results could differ materially from those projected in the forward-looking statements. Additionally, you should not consider past results to be an indication of our future performance. For a discussion of the risk factors and other factors that may affect our results, please see the Risk Factors section of our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. We do not intend to update any of the forward-looking statements after the date of this announcement to conform these statements to actual results, to changes in management's expectations or otherwise, except as may be required by law.

    PHARMACYCLICS, INC. STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) Three Months Ended September 30, ------------- 2009 2008 ---- ---- Operating expenses: Research and development $3,288 $3,203 General and administrative 1,533 3,439 ----- ----- Total operating expenses 4,821 6,642 ----- ----- Loss from operations (4,821) (6,642) Interest and other income, net (24) 100 --- --- Net loss $(4,845) $(6,542) ======= ======= Basic and diluted net loss per share $(0.12) $(0.25) ====== ====== Shares used to compute basic and diluted net loss per share 40,993 26,015 ====== ====== PHARMACYCLICS, INC. CONDENSED BALANCE SHEETS (unaudited) (in thousands) September 30, June 30, 2009 2009 ---- ---- ASSETS Cash, cash equivalents and marketable securities* $33,874 $16,326 Other current assets 835 1,215 --- ----- Total current assets 34,709 17,541 Property and equipment, net 413 470 Other noncurrent assets 290 290 --- --- $35,412 $18,301 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Note payable to related party $- $6,379 Deferred revenue - current portion 8,490 7,025 Other current liabilities 2,244 1,968 ----- ----- Total current liabilities 10,734 15,372 Deferred revenue - non-current portion 3,138 4,603 Other long term obligations 62 67 -- -- Total liabilities 13,934 20,042 Stockholder's equity (deficit) 21,478 (1,741) ------ ------ $35,412 $18,301 ======= ======= * Marketable securities $12,144 $1,792 ======= ======

    Pharmacyclics, Inc.

    CONTACT: Ramses Erdtmann, Vice President of Finance, +1-408-215-3325

    Web Site: http://www.pharmacyclics.com/




    CompX Reports Third Quarter 2009 Results

    DALLAS, Oct. 29 /PRNewswire-FirstCall/ -- CompX International Inc. announced today sales of $29.4 million for the third quarter of 2009 compared to $43.9 million in the same period of 2008. For the nine months ended September 30, 2009, sales were $87.1 million compared to $128.1 million in the previous year. CompX reported an operating loss of $200,000 in the third quarter of 2009 compared to an operating loss of $4.9 million in the same period in 2008, and reported an operating loss of $2.0 million for the nine months ended September 30, 2009 compared to income of $3.1 million for 2008. The 2008 operating results include a non-cash goodwill impairment charge of $9.9 million in the third quarter, as discussed below. The 2009 operating results for the third quarter include charges relating to litigation expenses of $1.5 million. The 2009 operating loss for the nine month period includes aggregate charges relating to litigation expenses and a valuation adjustment for assets held for sale of $3.2 million.

    Net income for the third quarter of 2009 was $500,000, or $0.04 per share, compared to a net loss of $7.5 million, or $0.61 per share, for the same period of 2008. Net loss for the nine months ended September 30, 2009 was $1.7 million, or $0.13 per diluted share, compared to a net loss of $3.8 million, or $0.31 per diluted share, in 2008. The third quarter and nine month periods ended September 30, 2008 include the non-cash goodwill impairment charge of $9.9 million, or $0.80 per share, relating to the Marine Components segment. Excluding the goodwill impairment charge, 2008 operating income would have been $4.9 million for the quarter and $12.9 million for the nine month period.

    Net sales decreased principally due to lower order rates from our customers across all business segments as a result of general unfavorable economic conditions in North America. Excluding the impact of the 2008 goodwill impairment charge, the decreases in operating income are primarily due to the negative effects of the lower order rates, reduced coverage of overhead and fixed manufacturing costs from the resulting under-utilization of production capacity, higher legal expense associated with certain patent related litigation and the assets held for sale charge in the second quarter of 2009, partially offset by the positive effects of cost reductions implemented in response to the lower order rates and the favorable impact of relative changes in foreign currency exchange rates.

    "Although our third quarter 2009 sales were below 2008 levels, they were consistent with the first two quarters of 2009, indicating that demand may have stabilized," commented David A. Bowers, President & CEO. "We continue to manage our businesses as efficiently as possible at the lower sales levels by strengthening our relationships with current and prospective customers through the development and introduction of new products, continuously evaluating the cost structure for additional efficiency opportunities and aggressively managing working capital as evidenced by generating year-to-date cash flow from operations at a similar level as 2008 despite the lower sales."

    CompX is a leading manufacturer of security products, furniture components and performance marine components. It operates from six locations in the U.S., Canada and Taiwan and employs approximately 1,000 people.

    Forward-Looking Statements

    Statements in this release relating to matters that are not historical facts are forward-looking statements based upon management's belief and assumptions using currently available information. Although CompX believes the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. Such statements, by their nature, involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, CompX continues to face many risks and uncertainties. Among the factors that could cause actual future results to differ materially include, but are not limited to, general economic and political conditions, changes in raw material and other operating costs, demand for office furniture, service industry employment levels, competitive products and prices, fluctuations in currency exchange rates, the introduction of trade barriers, potential difficulties in integrating completed acquisitions, the ability to sustain or increase operating income improvement resulting from cost control initiatives, uncertainties associated with the development of new product features and other risks and uncertainties detailed in CompX's Securities and Exchange Commission filings. Should one or more of these risks materialize or if the consequences worsen, or if the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. CompX disclaims any intention or obligation to publicly update or revise such statements whether as a result of new information, future events or otherwise.

    Explanation of CompX's Use of Non-GAAP Financial Measures

    In addition to results presented in accordance with GAAP, this news release includes non-GAAP financial measures relating to excluding the 2008 goodwill impairment charge from GAAP operating income. CompX believes this non-GAAP financial measure provides information useful to investors in understanding the underlying operational performance of the company, its business and performance trends. Specifically, the Company believes the exclusion of goodwill impairment permits evaluation and a comparison of results for on-going business operations, and it is on this basis that CompX's management internally assesses the company's performance. The goodwill impairment is excluded from CompX's segment measures used internally to evaluate segment performance in accordance with GAAP because management does not consider the impairment particularly relevant or useful in evaluating the operating performance of our business segments. Although CompX believes the above non-GAAP financial measure enhances investors' understanding of its business and performance, this non-GAAP financial measure should not be considered an alternative to GAAP basis financial measures.

    Reconciliation of GAAP to non-GAAP financial measures: Operating income (loss) ------------------------------------------- Including the Excluding the effect of the effect of the goodwill goodwill impairment Goodwill impairment charge impairment charge (GAAP) charge (Non-GAAP) ------------------------------------------- (Dollars in thousands) Three months ended September 30, 2008: Operating income (loss) $(4,941) $9,881 $4,940 Nine months ended September 30, 2008: Operating income $3,055 $9,881 $12,936 COMPX INTERNATIONAL INC. SUMMARY OF CONSOLIDATED OPERATIONS (In millions, except per share amounts) (Unaudited) Three months ended Nine months ended September 30, September 30, 2008 2009 2008 2009 ---- ---- ---- ---- Net sales $43.9 $29.4 $128.1 $87.1 Cost of goods sold 32.7 22.4 96.0 69.1 ---- ---- ---- ---- Gross margin 11.2 7.0 32.1 18.0 Selling, general and administrative expense 6.3 6.9 19.2 19.0 Goodwill impairment 9.9 - 9.9 - Assets held for sale write-down - - - 0.7 Other operating income (expense), net 0.1 (0.3) 0.1 (0.3) --- ---- --- ---- Operating income (loss) (4.9) (0.2) 3.1 (2.0) Interest expense (0.5) (0.2) (1.8) (0.9) Other non-operating income, net - - 0.2 - --- --- --- --- Income (loss) before income taxes (5.4) (0.4) 1.5 (2.9) Provision (benefit) for income taxes 2.1 (0.9) 5.3 (1.2) --- ---- --- ----- Net income (loss) $(7.5) $0.5 $(3.8) $(1.7) ===== ==== ===== ===== Net income (loss) per diluted common share $(0.61) $0.04 $(0.31) $(0.13) ====== ===== ====== ====== Weighted average diluted common shares outstanding 12.4 12.4 12.4 12.4 ==== ==== ==== ==== COMPX INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) December 31, September 30, 2008 2009 ---- ---- Assets (Unaudited) Current assets: Cash and equivalents $14.4 $18.2 Accounts receivable, net 16.8 14.0 Inventories, net 22.7 17.3 Deferred income taxes and other 4.7 5.2 Note receivable 0.9 - --- --- Total current assets 59.5 54.7 Intangibles 32.9 32.5 Net property and equipment 67.4 64.8 Assets held for sale 3.5 2.8 Other assets 0.1 0.9 --- --- Total assets $163.4 $155.7 ====== ====== Liabilities and Stockholders' Equity Current liabilities: Current maturities of note payable to affiliate $1.0 $- Accounts payable and accrued liabilities 14.3 13.4 Interest payable to affiliate 0.5 0.2 Income taxes 1.2 0.2 --- --- Total current liabilities 17.0 13.8 Note payable to affiliate 42.0 42.2 Deferred income taxes and other 13.1 13.1 Stockholders' equity 91.3 86.6 ---- ---- Total liabilities and stockholders' equity $163.4 $155.7 ====== ======

    CompX International Inc.

    CONTACT: David A. Bowers, President & CEO of CompX International Inc.,
    +1-864-286-1122




    Evercore President and Chief Executive Officer, Ralph L. Schlosstein, and its Chief Financial Officer, Robert B. Walsh, to Present at Keefe, Bruyette & Woods 2009 Securities Brokerage & Market Structure Conference on November 5, 2009

    NEW YORK, Oct. 29 /PRNewswire-FirstCall/ -- Evercore Partners Inc. today announced that its President and Chief Executive Officer, Ralph L. Schlosstein, and Chief Financial Officer, Robert B. Walsh, are scheduled to present at the Keefe, Bruyette & Woods 2009 Securities Brokerage & Market Structure Conference in New York on Thursday, November 5, 2009 at 9:30 a.m. Eastern Time.

    A live audio webcast of the presentation will be available on the Investor Relations section of Evercore's Web site at http://www.evercore.com/. A replay also will be available on the same site for 60 days following the event.

    About Evercore Partners

    Evercore Partners is a leading investment banking boutique and investment management firm. Evercore's Advisory business counsels its clients on mergers, acquisitions, divestitures, restructurings and other strategic transactions. Evercore's Investment Management business comprises wealth management, institutional asset management and private equity investing. Evercore serves a diverse set of clients around the world from its offices in New York, San Francisco, Boston, Washington D.C., Los Angeles, Houston, London, Mexico City and Monterrey, Mexico. More information about Evercore can be found on the Company's Web site at http://www.evercore.com/. EVR-X.

    Evercore Partners Inc.

    CONTACT: Investor Contact: Robert B. Walsh, Chief Financial Officer,
    Evercore Partners, +1-212-857-3100; or Media Contact: Kenny Juarez, The
    Abernathy MacGregor Group, for Evercore Partners, +1-212-371-5999

    Web Site: http://www.evercore.com/




    The Manitowoc Company Reports Third-Quarter Financial Results- Foodservice integration on track, synergies pacing ahead of schedule - Crane segment initiatives positioning company for next market upturn - Strong cash flow enables company to reaffirm its full-year debt reduction target of $450 million

    MANITOWOC, Wis., Oct. 29 /PRNewswire-FirstCall/ -- The Manitowoc Company, Inc. today reported sales of $881.5 million for the third quarter of 2009, down 20 percent from $1,106.8 million in the third quarter of 2008. The sales decrease was due primarily to a 52 percent decline in crane sales, partially offset by the additional revenues related to the acquisition of Enodis plc in October 2008.

    On a GAAP basis, the company reported a loss of $17.7 million, or $0.14 per diluted share for the quarter, versus a net loss of $26.1 million, or $0.20 per share in the third quarter of 2008. Both periods included unusual items. Excluding unusual items, the adjusted loss from continuing operations was $4.9 million, or $0.04 per share, for the third quarter of 2009, versus similarly adjusted earnings of $92.7 million, or $0.71 per share in the third quarter of 2008. A reconciliation of GAAP earnings to earnings from continuing operations before special items is provided later in this press release.

    "Despite lower sales and operating earnings, cash flow improved as a result of working-capital reductions, operational improvements, and cost reductions that we have implemented over the past year," said Glen E. Tellock, Manitowoc's chairman and chief executive officer. "Our cash flow from operations of $198 million during the third quarter enabled further progress toward our aggressive debt reduction goals. Thus far in 2009, we have reduced our debt by $262 million.

    "We continue to focus on strengthening the business during this challenging economic decline. Our top priorities are to reduce debt, flawlessly integrate our Foodservice business, and restructure our Crane operations for recovery. We have had considerable success in all three areas, so we are well positioned to resume our long-term growth trends as the world economy improves."

    Foodservice Segment Results

    In the Foodservice segment, third-quarter 2009 net sales increased to $402.0 million from $115.8 million in the third quarter of 2008 and from $382.5 million in the second quarter of 2009. The year-over-year increase was related to the acquisition of Enodis. On a pro-forma basis, Foodservice revenues decreased 23 percent in the third quarter of 2009 from $519.1 million in the third quarter of 2008.

    Foodservice operating earnings for the third quarter of 2009 were $58.9 million, up from $18.4 million in the same period in 2008, and $46.4 million in the second quarter of 2009. This resulted in Foodservice segment operating margins of 14.7%, a significant increase from 12.1% in the second quarter. The sequential-quarter margin improvement was due primarily to the substantial progress being made in the Enodis integration and overall cost control measures. Year-to-date, the Foodservice segment has realized more than $26 million of integration synergies, which we now believe will reach as much as $34 million for the full year.

    "Our Foodservice operating margins continue to improve as the integration activity progresses," said Tellock. "In addition, new product innovations have resulted in a number of contract wins, spanning our beverage equipment, food retail refrigeration, and cooking systems. Innovative products will play a major role in driving our future success, and we are making significant progress toward this goal across all major product lines."

    Crane Segment Results

    Third-quarter 2009 net sales in the Crane segment were $479.5 million, down 52 percent from $991.0 million in the third quarter of the prior year. On a sequential-quarter basis, sales were down 26 percent from $652.3 million during the second quarter of 2009. Crane segment operating earnings for the third quarter of 2009 decreased to $20.8 million from $139.0 million in the same period last year, and $49.5 million in the second quarter of 2009. As is typically the case, the Crane segment's third-quarter margin decline is impacted by the European holidays.

    Crane segment backlog totaled $667 million at September 30, 2009, a decrease of 26 percent from the $901 million backlog at June 30, 2009. However, the company has seen stabilization in the form of net positive order flow. This positive trend started in March, continued to increase over the succeeding six months, and is expected to continue into the fourth quarter, as well as the first quarter of next year.

    "During the first half of 2009, crane sales still benefited from the very strong backlog on our books prior to the extreme cyclical downturn that developed rapidly in the fourth quarter of 2008," said Tellock. "It is typical for both the size and the duration of the backlog to diminish as demand wanes since the factories are not operating as close to their capacity. As a result, the percentage of our orders versus revenues has increased from 18 percent in the first quarter to over 50 percent in the third quarter.

    "While improvement in the U.S. and European markets is not expected in the near term, there are pockets of growth in Asia, Latin America, Africa, and the Middle East. Going forward, Manitowoc should benefit from the global restructuring that we have been implementing over the past year, as well as our position in emerging markets that are leading the economic recovery."

    Cash Flow/Debt Reduction

    Cash flow from operations in the third quarter of $198 million enabled Manitowoc to continue making progress in its debt reduction objective. Total debt was reduced by approximately $140 million in the quarter. With year-to-date debt reduction of $262 million, Manitowoc continues to target full-year debt reduction of $450 million.

    GAAP Reconciliation

    In this release, the company refers to various non-GAAP measures. We believe that these measures are helpful to investors in assessing the company's ongoing performance of its underlying businesses before the impact of special items. In addition, these non-GAAP measures provide a comparison to commonly used financial metrics within the professional investing community which do not include special items. Earnings and earnings per share before special items reconcile to earnings presented according to GAAP as follows (in millions, except per share data):

    Three Months Nine Months Ended Ended September 30 September 30 ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Net earnings (loss) $(17.7) $(26.1) $(692.0) $210.4 Special items, net of tax: Loss (earnings) from discontinued operations 4.5 (11.6) 30.1 (31.7) Loss on currency hedges - 128.9 - 128.9 Goodwill impairment for discontinued operations - - 28.8 - Goodwill impairment for continuing operations - - 647.1 - Restructuring expense 8.3 0.5 25.2 0.5 Other - 1.0 3.7 1.0 --- --- --- --- Net earnings before special items $(4.9) $92.7 $42.9 $309.1 ===== ===== ===== ====== Diluted earnings (loss) per share $(0.14) $(0.20) $(5.31) $1.60 Special items, net of tax: Loss (earnings) from discontinued operations 0.03 (0.09) 0.23 (0.24) Loss on currency hedges - 0.99 - 0.98 Goodwill impairment for discontinued operations - - 0.22 - Goodwill impairment for continuing operations - - 4.97 - Restructuring expense 0.06 - 0.19 - Other - 0.01 0.03 0.01 --- ---- ---- ---- Diluted earnings per share before special items $(0.04) $0.71 $0.33 $2.35 ====== ===== ===== ===== Adjusted EBITDA

    Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, plus certain items such as pro-forma acquisition results, that are adjustments per the credit agreement definition. The company's Adjusted EBITDA in the third quarter ended September 30, 2009 was $96 million, bringing trailing twelve-month Adjusted EBITDA to $455 million.

    Investor Conference Call

    On October 30 at 10:00 a.m. ET (9:00 a.m. CT), Manitowoc's senior management will discuss its third-quarter results during an investor conference call. All interested parties may listen to the live conference call via the Internet by going to the Investor Relations area of Manitowoc's Web site at http://www.manitowoc.com/. A replay of the conference call will also be available at the same location on the Web site.

    About The Manitowoc Company, Inc.

    The Manitowoc Company, Inc. is a multi-industry, capital goods manufacturer with over 100 manufacturing and service facilities in 27 countries. It is recognized as one of the world's largest providers of lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes, and boom trucks. Manitowoc also is one of the world's leading innovators and manufacturers of commercial foodservice equipment serving the ice, beverage, refrigeration, food prep, and cooking needs of restaurants, convenience stores, hotels, healthcare, and institutional applications.

    Forward-looking Statements

    This press release includes "forward-looking statements" intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as "intends," "expects," "anticipates," "targets," "estimates," and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:

    -- unanticipated changes in revenues, margins, costs, and capital expenditures; -- uncertainties associated with new product introductions and the successful development of innovative products that drive growth; -- the ability to generate cash consistent with Manitowoc's stated goals; -- matters impacting the successful and timely implementation of ERP systems; -- foreign currency fluctuations and their impact on hedges in place with Manitowoc; -- changes in raw material prices; -- unexpected issues associated with the availability and viability of suppliers; -- unanticipated changes in global demand for high-capacity lifting equipment; -- the risks associated with growth; -- geographic factors and political and economic risks; -- actions of competitors; -- changes in economic or industry conditions generally or in the markets served by Manitowoc; -- the state of financial and credit markets; -- unanticipated changes in customer demand; -- the ability of Manitowoc's customers to receive financing; -- unanticipated issues associated with refresh/renovation plans by national restaurant accounts; -- efficiencies and capacity utilization of facilities; -- issues related to workforce reductions; -- work stoppages, labor negotiations, and labor rates; -- government approval and funding of projects; -- the ability to complete and appropriately integrate restructurings, consolidations, acquisitions, divestitures, strategic alliances, and joint ventures; -- finalization of the price and other terms of now-completed divestitures and unanticipated issues associated with transitional services provided by Manitowoc in connection with those divestitures; -- in connection with the now-completed acquisition of Enodis: potential balance sheet changes resulting from finalization of purchase accounting treatment; the ability to appropriately and timely integrate the acquisition of Enodis; realization of anticipated earnings enhancements, cost savings, strategic options and other synergies and the anticipated timing to realize those savings, synergies and options; and -- risks and other factors cited in Manitowoc's filings with the United States Securities and Exchange Commission.

    Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2008.

    THE MANITOWOC COMPANY, INC. Unaudited Consolidated Financial Information For the Three and Nine Months Ended September 30, 2009 and 2008 (In millions, except share data) INCOME STATEMENT ---------------- Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $881.5 $1,106.8 $2,943.8 $3,286.4 Cost of sales 680.0 863.1 2,300.4 2,512.8 ----- ----- ------- ------- Gross profit 201.5 243.7 643.4 773.6 Engineering, selling and administrative expenses 132.7 98.7 420.0 317.3 Asset impairments - - 700.0 - Restructuring expense 12.8 0.8 38.7 0.8 Integration expense - 1.6 3.5 1.6 Amortization expense 8.4 2.0 25.2 5.5 --- --- ---- --- Operating earnings (loss) 47.6 140.6 (544.0) 448.4 Amortization of deferred financing fees (12.0) (0.2) (31.9) (0.6) Interest expense (49.0) (7.3) (130.4) (21.0) Loss on currency hedges - (198.4) - (198.4) Loss on debt extinguishment - - (2.1) - Other income - net 2.3 (2.8) 8.5 5.3 --- ---- --- --- Earnings (loss) from continuing operations before taxes on income (11.1) (68.1) (699.9) 233.7 Provision (benefit) for taxes on income 3.6 (29.6) (63.6) 55.9 --- ----- ----- ---- Earnings (loss) from continuing operations (14.7) (38.5) (636.3) 177.8 Discontinued operations: Earnings (loss) from discontinued operations, net of income taxes (1.8) 11.6 (33.1) 31.7 Loss on sale of discontinued operations, net of income taxes (2.7) - (25.8) - ---- --- ----- --- Net earnings (loss) (19.2) (26.9) (695.2) 209.5 Loss attributable to noncontrolling interests 1.5 0.8 3.2 0.9 --- --- --- --- Net earnings (loss) attributable to Manitowoc (17.7) (26.1) (692.0) 210.4 ===== ===== ====== ===== Amounts attributable to the Manitowoc common shareholders: Earnings (loss) from continuing operations (13.2) (37.7) (633.1) 178.7 Earnings (loss) from discontinued operations, net of income taxes (1.8) 11.6 (33.1) 31.7 Loss on sale of discontinued operations, net of income taxes (2.7) - (25.8) - ---- --- ----- --- Net earnings (loss) attributable to Manitowoc (17.7) (26.1) (692.0) 210.4 DILUTED EARNINGS (LOSS) PER SHARE: Earnings (loss) from continuing operations attributable to the Manitowoc common shareholders, net of income taxes $(0.10) $(0.29) $(4.86) $1.36 Earnings (loss) from discontinued operations attributable to the Manitowoc common shareholders, net of income taxes (0.01) 0.09 (0.25) 0.24 Loss on sale of discontinued operations attributable to the Manitowoc common shareholders, net of income taxes (0.02) - (0.20) - ----- --- ----- --- DILUTED EARNINGS (LOSS) PER SHARE $(0.14) $(0.20) $(5.31) $1.60 ====== ====== ====== ===== AVERAGE SHARES OUTSTANDING: Average Shares Outstanding - Basic 130,284,925 130,090,741 130,227,298 129,855,810 Average Shares Outstanding - Diluted 130,284,925 130,090,741 130,227,298 131,781,634 SEGMENT SUMMARY --------------- Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales from continuing operations: Cranes and related products $479.5 $991.0 $1,804.7 $2,939.2 Foodservice equipment 402.0 115.8 1,139.1 347.2 ----- ----- ------- ----- Total $881.5 $1,106.8 $2,943.8 $3,286.4 ====== ======== ======== ======== Operating earnings (loss) from continuing operations: Cranes and related products $20.8 $139.0 $126.8 $440.6 Foodservice equipment 58.9 18.4 132.8 53.6 General corporate expense (10.9) (12.4) (36.2) (37.9) Asset impairments - - (700.0) - Restructuring expense (12.8) (0.8) (38.7) (0.8) Integration expense - (1.6) (3.5) (1.6) Amortization (8.4) (2.0) (25.2) (5.5) ---- ---- ----- ---- Total $47.6 $140.6 $(544.0) $448.4 ===== ====== ======= ====== THE MANITOWOC COMPANY, INC. Unaudited Consolidated Financial Information For the Three and Nine Months Ended September 30, 2009 and 2008 (In millions) BALANCE SHEET ------------- September 30, December 31, ASSETS 2009 2008 ---- ---- Current assets: Cash and temporary investments $161.1 $175.6 Restricted cash 6.5 5.1 Accounts receivable - net 420.0 608.2 Inventories - net 718.9 925.3 Deferred income taxes 210.7 138.1 Other current assets 71.1 177.9 Current assets of discontinued operation - 124.8 --- ----- Total current assets 1,588.3 2,155.0 Property, plant and equipment - net 715.0 728.8 Intangible assets - net 2,192.8 2,899.5 Other long-term assets 149.0 179.7 Long-term assets of discontinued operation - 123.1 --- ----- TOTAL ASSETS $4,645.1 $6,086.1 ======== ======== LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $851.9 $1,206.3 Short-term borrowings 176.2 182.3 Customer advances 54.2 48.5 Product warranties 98.6 102.0 Product liabilities 31.3 34.4 Current liabilities of discontinued operation - 44.6 --- ---- Total current liabilities 1,212.2 1,618.1 Long-term debt 2,217.0 2,473.0 Other non-current liabilities 574.1 672.7 Stockholders' equity 641.8 1,322.3 ----- ------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $4,645.1 $6,086.1 ======== ======== CASH FLOW SUMMARY ----------------- Three Months Nine Months Ended Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net earnings (loss) $(17.7) $(26.1) $(692.0) $210.4 Non-cash adjustments 4.6 213.2 809.0 241.8 Changes in operating assets and liabilities 218.4 (209.5) 84.1 (339.3) ----- ------ ---- ------ Net cash provided from (used for) operating activities of continuing operations 205.3 (22.4) 201.1 112.9 Net cash provided from (used for) operating activities of discontinued operations (7.4) 20.4 (21.2) 36.9 ---- ---- ----- ---- Net cash provided from (used for) operating activities 197.9 (2.0) 179.9 149.8 Business acquisitions, net of cash acquired - (8.6) - (26.7) Capital expenditures (19.1) (31.7) (63.5) (96.2) Restricted cash (1.3) 1.3 (1.4) 11.5 Net cash used for investing activities of discontinued operations - (0.9) - (2.2) Proceeds from sale of business - - 148.8 - Proceeds from sale of fixed assets 1.7 2.5 3.5 5.6 Payments on borrowings - net (140.8) 18.3 (253.7) (10.0) Payments on receivable financing - net (0.6) (1.6) (7.9) (4.4) Dividends paid (2.6) (2.6) (7.9) (7.8) Stock options exercised 0.6 0.9 (0.1) 8.6 Debt issuance costs (0.8) (4.2) (17.8) (17.6) Effect of exchange rate changes on cash 3.6 (8.3) 5.6 2.1 --- ---- --- --- Net increase (decrease) in cash & temporary investments $38.6 $(36.9) $(14.5) $12.7 ===== ====== ====== =====

    The Manitowoc Company, Inc.

    CONTACT: Carl J. Laurino, Senior Vice President & Chief Financial
    Officer of The Manitowoc Company, Inc., +1-920-652-1720

    Web Site: http://www.manitowoc.com/




    Strategic Hotels & Resorts Closes Sale of the Four Seasons Mexico City

    CHICAGO, Oct. 29 /PRNewswire-FirstCall/ -- Strategic Hotels & Resorts, Inc. , today announced that the company closed on its disposition of the Four Seasons Mexico City hotel to an affiliate of Meridia Capital for a purchase price of $54.0 million.

    About the Company

    Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in the United States, Mexico and Europe. The company currently has ownership interests in 18 properties with an aggregate of 8,118 rooms. For a list of current properties and for further information, please visit the company's website at http://www.strategichotels.com/.

    About Meridia Capital

    Meridia Capital is a private equity group focused on investing in premium hotel properties internationally. The firm owns and asset manages hotels in urban markets which are operated by the world's leading international brands. Meridia Capital Hospitality I is Meridia Capital Partners' first fund and was closed in early 2007 with equity of euro 150 million. Meridia Capital currently owns properties in Paris, Santiago (Chile), Sao Paulo (Brazil), Mexico D.F. and Thailand. For further information please visit http://www.meridiacapital.com/.

    Strategic Hotels & Resorts, Inc.

    CONTACT: Ryan Bowie, Vice President and Treasurer of Strategic Hotels &
    Resorts, +1-312-658-5766

    Web Site: http://www.strategichotels.com/
    http://www.meridiacapital.com/




    Gastar Announces Amended and Restated Credit AgreementInitial Borrowing Base of $47.5 Million

    HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- Gastar Exploration Ltd. (NYSE Amex: GST) announced today that it has entered into an amended and restated credit agreement with Amegy Bank, as administrative agent and co-lead arranger, Bank of Montreal, as co-lead arranger and joint bookrunner, and IBERIABANK fsb. The new revolving credit facility provides Gastar an initial borrowing base of $47.5 million at LIBOR plus 250 to 350 basis points, depending on borrowing utilization percentage. The Company currently has no borrowings outstanding under the agreement except for a letter of credit in the amount of $100,000. The credit facility has a scheduled maturity date of January 2, 2013 and is subject to semi-annual borrowing base redeterminations.

    J. Russell Porter, Gastar's President and Chief Executive Officer, stated, "We have completely transformed Gastar's capital structure over the last four months and now have almost no net debt. This new credit facility gives us the flexibility to pursue opportunities as they arise under a long-term low cost facility. The facility may be used from time to time to finance accelerated drilling activity in East Texas and Appalachia, exploration activities and additional acreage acquisition in Appalachia, as well as other investment opportunities and general corporate purposes. However, we reiterate our commitment to maintaining a strong balance sheet and funding most business activities through cash flow from operations."

    The facility contains financial covenants typical for this type of lending including requirements that the Company maintain quarterly an "Interest Coverage Ratio" of at least 2.50:1.00, a "Total Net Indebtedness to EBITDA Ratio" not to exceed 4.00:1.00 and a "Current Ratio" of at least 1.00:1.00, as adjusted. For additional information, please refer to the amended and restated credit agreement which will be filed with the Securities and Exchange Commission on form 8-K.

    About Gastar Exploration

    Gastar Exploration Ltd. is an exploration and production company focused on finding and developing natural gas assets in North America. The Company pursues a strategy combining deep natural gas exploration and development with lower risk shale resource and CBM development. The Company owns and operates exploration and development acreage in the deep Bossier gas play of East Texas and Marcellus Shale play in West Virginia and Pennsylvania. Gastar's CBM activities are conducted within the Powder River Basin of Wyoming and Montana. For more information, visit our web site at http://www.gastar.com/.

    Company Contact: Gastar Exploration Ltd. Michael Gerlich, Vice President and CFO 713-739-1800 / mgerlich@gastar.com Investor Relations Counsel: Lisa Elliott / Anne Pearson DRG&E : 713-529-6600 lelliott@drg-e.com / apearson@drg-e.com

    Gastar Exploration Ltd.

    CONTACT: Michael Gerlich, Vice President and CFO of Gastar Exploration
    Ltd., +1-713-739-1800, mgerlich@gastar.com; or Investor Relations Counsel,
    Lisa Elliott, lelliott@drg-e.com, or Anne Pearson, apearson@drg-e.com, both of
    DRG&E, +1-713-529-6600, for Gastar Exploration Ltd.

    Web Site: http://www.gastar.com/




    Suburban Propane Partners, L.P. to Hold Fiscal 2009 Fourth Quarter/Year End Results Conference Call

    WHIPPANY, N.J., Oct. 29 /PRNewswire-FirstCall/ -- Suburban Propane Partners, L.P. , a nationwide distributor of propane, fuel oil and related products and services, as well as a marketer of natural gas and electricity, announced today that it has scheduled its Fiscal 2009 Fourth Quarter and Full Year Results Conference Call for Thursday, November 12, 2009 at 9:00 AM Eastern Time.

    Analysts, investors and other interested parties are invited to listen to management's discussion of Fiscal 2009 fourth quarter and year end results and business outlook by accessing the call via the internet at http://www.suburbanpropane.com/, or by telephone as follows:

    Phone #: (800) 553-0272

    Ask for: Suburban Propane Fiscal Year 2009 Fourth Quarter Results Conference

    Call.

    In addition, a replay of the conference call will be available from 11:00 AM Thursday, November 12, 2009 until 11:59 PM, Friday, November 13, 2009 and can be accessed by dialing (800) 475-6701, Access Code 119096. The replay will also be available via Suburban's web site until Thursday, November 19, 2009.

    Suburban Propane Partners, L.P. is a publicly-traded master limited partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban has been in the customer service business since 1928. The Partnership serves the energy needs of approximately 850,000 residential, commercial, industrial and agricultural customers through more than 300 locations in 30 states.

    Suburban Propane Partners, L.P.

    CONTACT: Michael Stivala, Chief Financial Officer & Chief Accounting
    Officer, Suburban Propane Partners, L.P., +1-973-503-9252

    Web Site: http://suburbanpropane.com/




    Krispy Kreme Awards Franchise Development Rights for Thailand

    WINSTON-SALEM, N.C., Oct. 29 /PRNewswire-FirstCall/ -- Krispy Kreme Doughnut Corporation announced today that it has entered into an agreement with KDN Company Limited for the development of 20 franchise Krispy Kreme retail shops in Thailand over the next five years. KDN Company Limited is majority owned and operated by Ms. Ausanee Mahagitsiri, eldest child of successful Thai industrialist Prayudh Mahagitsiri.

    (Logo: http://www.newscom.com/cgi-bin/prnh/19991216/NYTH146 )

    "With KDN Company Limited, we have found a franchise partner in Thailand with a true passion for the Krispy Kreme brand and our world famous products," said Jeff Welch, Krispy Kreme president, international. "We believe that their unique and sound understanding of the Thai consumer, combined with their years of successful business experience across a variety of consumer industries, is a strong asset for them as they establish the Krispy Kreme brand in Thailand."

    "We are excited to introduce to the Thai people a premium doughnut and the one-of-a-kind experience that is associated with the Krispy Kreme brand," said Ausanee Mahagitsiri, chief executive officer of KDN Company Limited. "Krispy Kreme is very popular in Japan, South Korea and the Philippines, and we expect Krispy Kreme to be well received in Thailand as the Thai people are very fond of sweets, and believe in the concept of sharing and generosity. We are pleased to enter into a franchise relationship with Krispy Kreme."

    The Krispy Kreme Original Glazed® doughnut can be found in 18 countries, including the United States, Australia, Bahrain, Canada, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, the Philippines, Puerto Rico, the Republic of Korea, Qatar, the Kingdom of Saudi Arabia, Turkey, the United Arab Emirates, and the United Kingdom.

    About KDN Company Limited

    KDN Company Limited is majority owned and controlled by Ms. Ausanee Mahagitsiri. Ms. Mahagitsiri and her family own and operate the PM Group, one of Thailand's largest conglomerates. PM Group interests include Biaxially Oriented Polypropylene (BOPP) film, cold rolled stainless steel, golf courses/resorts, real estate development and instant coffee in partnership with Nestle under the "Nescafe" trademark in Thailand.

    About Krispy Kreme

    Krispy Kreme is an international retailer of premium-quality sweet treats, including its signature Original Glazed(R) doughnut. Headquartered in Winston-Salem, N.C., the company has offered the highest-quality doughnuts and great-tasting coffee since it was founded in 1937. Krispy Kreme is proud of its Fundraising program, which for decades has helped non-profit organizations raise millions of dollars in needed funds. Today, Krispy Kreme can be found in approximately 530 locations around the world. Krispy Kreme Doughnuts, Inc. is listed on the New York Stock Exchange. Visit us at http://www.krispykreme.com/.

    Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the "SEC") and the United States Attorney's Office for the Southern District of New York; potential indemnification obligations and limitations of our director and officer liability insurance; the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our new domestic operating model and refranchising strategy; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with government regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; risks associated with our high levels of indebtedness; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; significant changes in our management; risks associated with competition; and other factors discussed in Krispy Kreme's Annual Report on Form 10-K for fiscal 2008 and other periodic reports filed with the SEC.

    Photo: http://www.newscom.com/cgi-bin/prnh/19991216/NYTH146 Krispy Kreme Doughnut Corporation

    CONTACT: Brian Little, +1-336-726-8825, blittle@krispykreme.com

    Web Site: http://www.krispykreme.com/




    Communications Systems, Inc. Recognized by Forbes Magazine

    MINNETONKA, Minn., Oct. 29 /PRNewswire-FirstCall/ -- Communications Systems, Inc. today announced it has been recognized by Forbes magazine as one of the Best Performing Companies in the magazine's list of America's 200 Best Small Companies of 2009.

    "We are honored to be included in the list of Best Small Companies in America by the prestigious Forbes magazine," said Jeffrey K. Berg, President and Chief Executive Officer. "This achievement represents the hard work and dedication of all our employees who are the foundation of our success."

    Forbes' List of 200 Best Small Companies in America is comprised of companies that have shown both sales and earnings growth. Candidates must have annual revenue between $5 million and $750 million, be publicly traded for at least a year, and have a stock price no lower than $5. Rankings are based on earnings growth, sales growth, and return on equity in the past 12 months, and over five years each company's stock performance was also compared with those of its peers.

    The list is featured in the November 2 issue of Forbes magazine. About Communications Systems, Inc.

    CSI provides physical connectivity infrastructure and services for cost-effective broadband solutions and is a leading supplier of voice grade connecting devices and wiring systems. CSI serves the broadband market as the world's leading supplier of media conversion technology, which permits networks to deploy fiber optic technology while retaining the copper-based infrastructure already embedded in the network. CSI also supplies copper wire and fiber optic structured wiring systems for broadband networks and line filters for digital subscriber line ("DSL") service. CSI also provides network design, training and management services.

    Cautionary Statement

    From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, Communications Systems Inc. may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans which are typically preceded by the words "believes," "expects," "anticipates," "intends" or similar expressions. For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties which could cause actual performance, activities or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.

    Communications Systems, Inc.

    CONTACT: Jeffrey K. Berg, President and Chief Executive Officer, or
    David T. McGraw, Vice President - Finance & Chief Financial Officer, both of
    Communications Systems, Inc., +1-952-996-1674

    Web Site: http://www.commsystems.com/




    NuVasive to Present at the Oppenheimer 20th Annual Healthcare Conference

    SAN DIEGO, Oct. 29 /PRNewswire-FirstCall/ -- NuVasive, Inc. , a medical device company focused on developing products for minimally disruptive surgical treatments for the spine, announced today that Kevin O'Boyle, Chief Financial Officer and Executive Vice President, will present at the Oppenheimer 20th Annual Healthcare Conference at The Waldorf Astoria Hotel in New York, New York, on Tuesday, November 3, 2009.

    A live webcast of the presentation will be available online from the investor relations page of the Company's corporate website at http://www.nuvasive.com/. After the live webcast, the presentation will remain available on the website for 30 days.

    About NuVasive

    NuVasive is a medical device company focused on the design, development, and marketing of products for the surgical treatment of spine disorders. The Company's product portfolio is focused primarily on the $4.6 billion U.S. spine implant market. Additionally, the Company has expanded into the $1.5 billion global biologics market, the $1.5 billion international market, and is developing products for the emerging motion preservation market.

    NuVasive's principal product offering is based on its Maximum Access Surgery, or MAS® platform. The MAS platform combines four categories of products that collectively minimize soft tissue disruption during spine surgery with maximum visualization and safe, easy reproducibility for the surgeon: NeuroVision®, a proprietary software-driven nerve avoidance system; MaXcess®, a unique split-blade retractor system; a wide variety of specialized implants; and several biologic fusion enhancers. MAS significantly reduces surgery time and returns patients to activities of daily living much faster than conventional approaches. Having redefined spine surgery with the MAS platform's lateral approach, known as eXtreme Lateral Interbody Fusion, or XLIF®, NuVasive has built an entire spine franchise. With nearly 50 products today spanning lumbar, thoracic and cervical applications, the Company will continue to expand and evolve its offering predicated on its R&D focus and dedication to outstanding service levels supported by a culture of Absolute Responsiveness®.

    NuVasive cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause NuVasive's results to differ materially from historical results or those expressed or implied by such forward-looking statements. The potential risks and uncertainties that could cause actual growth and results to differ materially include, but are not limited to: the uncertain process of seeking regulatory approval or clearance for NuVasive's products or devices, including risks that such process could be significantly delayed; the possibility that the FDA may require significant changes to NuVasive's products or clinical studies; the risk that products may not perform as intended and may therefore not achieve commercial success; the risk that competitors may develop superior products or may have a greater market position enabling more successful commercialization; the risk that additional clinical data may call into question the benefits of NuVasive's products to patients, hospitals and surgeons; and other risks and uncertainties more fully described in NuVasive's press releases and periodic filings with the Securities and Exchange Commission. NuVasive's public filings with the Securities and Exchange Commission are available at http://www.sec.gov/. NuVasive assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made.

    Contact: Investors: Kevin C. O'Boyle Patrick F. Williams EVP & Chief Financial Officer Vice President, Finance & Investor NuVasive, Inc. Relations 858-909-1998 NuVasive, Inc. investorrelations@nuvasive.com 858-638-5511 investorrelations@nuvasive.com Media: Jason Rando The Ruth Group 646-536-7025 jrando@theruthgroup.com

    NuVasive, Inc.

    CONTACT: Kevin C. O'Boyle, EVP & Chief Financial Officer, NuVasive,
    Inc., +1-858-909-1998, investorrelations@nuvasive.com; Investors: Patrick F.
    Williams, Vice President, Finance & Investor Relations, NuVasive, Inc.,
    +1-858-638-5511, investorrelations@nuvasive.com; Media: Jason Rando, The Ruth
    Group, +1-646-536-7025, jrando@theruthgroup.com

    Web Site: http://www.nuvasive.com/




    Correction to Sierra Wireless October 28, 2009 Press ReleaseTSX: SW NASDAQ: SWIR

    VANCOUVER, Oct. 29 /PRNewswire-FirstCall/ -- An inadvertent mathematical error was made in our October 28, 2009 press release on page 2 in the supplemental table reconciling our Q3 2009 GAAP to non-GAAP results. The Non-GAAP gross margin in the first column titled "Sierra Non-GAAP" should be $33.1 million instead of $34.6 million. All other numbers in the table are correct.

    Cautionary Note Regarding Forward-Looking Statements

    Certain statements in this press release that are not based on historical facts constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws ("forward-looking statements"). These forward-looking statements are not promises or guarantees of future performance but are only predictions that relate to future events, conditions or circumstances or our future results, performance, achievements or developments and are subject to substantial known and unknown risks, assumptions, uncertainties and other factors that could cause our actual results, performance, achievements or developments in our business or in our industry to differ materially from those expressed, anticipated or implied by such forward-looking statements. Forward-looking statements in this press release include all financial guidance for the fourth quarter of 2009, and all other disclosure regarding possible events, conditions, circumstances or results of operations that are based on assumptions about future economic conditions, courses of action and other future events. We caution you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. These forward-looking statements appear in a number of different places in this press release and can be identified by words such as "may", "estimates", "projects", "expects", "intends", "believes", "plans", "anticipates", "continue", "growing", "expanding", or their negatives or other comparable words. Forward-looking statements include statements regarding the outlook for our future operations, plans and timing for the introduction or enhancement of our services and products, statements concerning strategies or developments, statements about future market conditions, supply conditions, end customer demand conditions, channel inventory and sell through, revenue, gross margin, operating expenses, profits, forecasts of future costs and expenditures, the outcome of legal proceedings, and other expectations, intentions and plans that are not historical fact. The risk factors and uncertainties that may affect our actual results, performance, achievements or developments are many and include, amongst others, our ability to develop, manufacture, supply and market new products that we do not produce today that meet the needs of customers and gain commercial acceptance, our reliance on the deployment of next generation networks by major wireless operators, the continuous commitment of our customers, and increased competition. These risk factors and others are discussed in our Annual Information Form and Management's Discussion and Analysis of Financial Condition and Results of Operations, which may be found on SEDAR at http://www.sedar.com/ and on EDGAR at http://www.sec.gov/ and in our other regulatory filings with the Securities and Exchange Commission in the United States and the Provincial Securities Commissions in Canada. Many of these factors and uncertainties are beyond our control. Consequently, all forward-looking statements in this press release are qualified by this cautionary statement and we cannot assure you that actual results, performance, achievements or developments that we anticipate will be realized. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and we do not undertake any obligation to update forward-looking statements should the assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by law.

    About Sierra Wireless

    Sierra Wireless products connect people and machines to wireless networks around the world. We offer an advanced, comprehensive product line, addressing consumer, enterprise, original equipment manufacturer and specialized vertical industry markets. We also offer a wide range of professional and operated services. Our solutions are used for mobile computing, transportation, industrial M2M (machine-to-machine), enterprise, residential and consumer communications applications. For more information about Sierra Wireless, visit http://www.sierrawireless.com/.

    "AirCard" is a registered trademark of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.

    Sierra Wireless, Inc.

    CONTACT: Sierra Wireless, Inc., David G. McLennan, Chief Financial
    Officer, (604) 231-1181, Website: http://www.sierrawireless.com/, Email:
    investor@sierrawireless.com




    CO2 Solution to Present at TSX-SDTC Cleantech Investor Day in MontrealTrading symbol: CST Outstanding shares: 50,261,136

    QUEBEC CITY and MONTREAL, Oct. 29 /PRNewswire-FirstCall/ -- CO2 Solution Inc. ("CO2 Solution") is pleased to announce that it will present at the Sustainable Development Technology Canada (SDTC) Investor Day - Montreal, on November 3, 2009 at 10:30 AM at the Toronto Stock Exchange (TSX), Montreal Exchange Auditorium, Tour de la Bourse, 800 Victoria Square, 4th Floor, Montreal, Quebec.

    The presentation by Glenn Kelly, President & CEO will focus on the opportunity for the Company's breakthrough technology to address the potential multi-billion dollar market for low-cost carbon capture. CO2 Solution was selected to present as an SDTC investee company and the event will be attended by leading institutional investors and other TSX market participants.

    With over $340 million in invested capital, SDTC is a not-for-profit foundation that finances and supports the development and demonstration of clean technologies which provide solutions to issues of climate change, clean air, water quality and soil, and which deliver economic, environmental and health benefits to Canadians. SDTC's mission is to act as the primary catalyst in building a sustainable development technology infrastructure in Canada.

    For further information on the event or for registration information, please contact Kathryn Lanoue, Outreach and Events Coordinator, Tel: 613-234-6313 ext. 224 or visit http://www.sdtc.ca/.

    About CO2 Solution

    Based in Quebec City, CO2 Solution Inc. has developed a proprietary bio-technological platform for the efficient capture of carbon dioxide (CO2), the most important greenhouse gas (GHG), from power plants and other large stationary sources of emissions. The Company's technology platform exploits the natural power of a bio-catalyst (enzyme), carbonic anhydrase, which functions within humans and other mammals to manage CO2 during respiration. CO2 Solution has successfully adapted the enzyme to function within an industrial environment, and thus has taken advantage of a biomimetic approach to CO2 capture based on millions of years of evolution. The Company is commercializing its technology for coal fired power generation, the oil sands and other CO2-intensive industries where a low-cost capture solution is key to meeting climate change legislation in a cost effective manner.

    CO2 Solution's technology platform is protected by several North American and European patents, including the use of carbonic anhydrase for CO2 capture and release in a packed column system. News releases and additional information can be found at http://www.co2solution.com/

    The TSX Venture Exchange has neither approved nor disapproved the

    information contained herein and accepts no responsibility for it.

    CO2 SOLUTION INC.

    CONTACT: Annie Chiasson, Director, Corporate Affairs, (418) 842-3456,
    http://www.co2solution.com/; Source: CO2 Solution Inc.




    Flotek Industries, Inc. Announces Adjournment of Special Meeting of Stockholders

    HOUSTON, Oct. 29 /PRNewswire-FirstCall/ -- Flotek Industries, Inc. today announced that it has adjourned its special meeting of stockholders that convened today at 9:00 a.m. Houston time. The meeting has been scheduled to reconvene at 1:00 p.m. Houston time on Monday, November 9, 2009 at the Flotek Corporate Office, 2930 W. Sam Houston Pkwy. N, Suite 300, Houston, Texas 77043.

    Stockholders who wish to vote at the reconvened special meeting or who have any questions about the reconvened special meeting or the matters to be considered and voted upon should contact Innisfree M&A Incorporated at 1-888-750-5834.

    About Flotek Industries, Inc.

    Flotek is a global developer and distributor of innovative specialty chemicals and down-hole drilling and production equipment. Flotek manages automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry. Flotek Industries, Inc. is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK."

    For additional information, please visit Flotek's web site at http://www.flotekind.com/.

    Forward-Looking Statements:

    Certain statements set forth in this Press Release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.'s business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Press Release.

    Although forward-looking statements in this Press Release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which the Company operates, competition, obsolescence of products and services, the Company's ability to obtain financing to support its operations, environmental and other casualty risks, and the impact of government regulation. Further information about the risks and uncertainties that may impact the Company are set forth in the Company's most recent filings on Form 10-K (including without limitation in the "Risk Factors" Section) and Form 10-Q, and in the Company's other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Press Release.

    Flotek Industries, Inc.

    CONTACT: Investor Relations of Flotek Industries, Inc., +1-713-849-9911

    Web Site: http://www.flotekind.com/

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