Todd Shipyards Announce Quarterly Results

Todd Shipyards Corporation announced financial results for the second quarter ended Sept. 28, 2003. For the quarter, the Company reported net income of $2.0 million or $0.35 per diluted share on revenue of $44.4 million. For the six month period then ended, the Company reported a net loss of $0.2 million or $0.05 per diluted share on revenue of $65.6 million. In the prior year second quarter ended Sept. 28, 2002, the Company reported net income of $2.0 million or $0.36 per diluted share on revenue of $40.6 million. For the six month period then ended, the Company reported net income of $4.3 million or $0.77 per diluted share on revenue of $89.8 million. The Company's second quarter revenue of $44.4 million reflects an increase of $3.9 million (9%) from the same period last fiscal year. The quarter to quarter increase is primarily attributable to the relative volumes of Navy repair and overhaul projects. Revenues for the first six months of fiscal year 2004 of $65.6 million reflect a decrease of $24.3 million (27%) from fiscal year 2003 comparable periods. The decrease in the first six months of fiscal year 2004 is primarily attributable to the postponement of scheduled Navy work during the first quarter due to the deployment of ships in support of the military operations in Iraq. The Navy ships have started to return from active duty, and the volume of repair projects for the Navy increased significantly during the second quarter of fiscal year 2004. For the quarter ended Sept. 28, 2003, the Company reported operating income of $2.6 million, which is relatively unchanged from the prior year period of $2.7 million. For the six month period then ended, the Company reported an operating loss of $1.1 million, a decrease of $7.1 million from operating income reported during the comparable prior year six month period. As previously reported, the decrease in operating income during the first six months of fiscal year 2004 from amounts reported in the prior year is attributable to two factors. First, fiscal year 2004's first quarter volumes were substantially reduced, resulting in lower operating income, due to delays in anticipated Navy repair work. Second, the Company recorded a $2.5 million charge, during the first quarter of fiscal year 2004, related to the unanticipated bankruptcy of one of the Company's previous worker compensation insurance carriers. For the second quarter and six month period ending Sept. 28, 2003, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $0.4 million and $0.7 million, respectively. During the same periods ending Sept. 29, 2002, the Company reported net gains on the sale of available-for-sale securities, investment income and other income of $0.3 million and $0.6 million, respectively. For the quarter ended Sept. 28, 2003, the Company recorded $1.0 million in federal income tax expense. During the six month period then ended, the Company recorded a $0.1 million federal income tax benefit as a result of its cumulative pre-tax loss for the year. During the same periods ended Sept. 29, 2002, the Company recorded $1.1 million and $2.3 million respectively, in federal income tax expense.