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This excerpt taken from the BUCY 10-K filed Mar 2, 2009. Liquidity and Capital Resources Our
At December 31, 2008, we had borrowings under our secured revolving credit facility of $55.2 million at a weighted average Our credit facilities contain operating and financial covenants that, among other things, could limit our ability to obtain additional 57 This excerpt taken from the BUCY 10-K filed Feb 29, 2008. Liquidity and Capital Resources We SIZE="2">Borrowings under the secured revolving credit facility bear interest, payable no less frequently than quarterly, at (1) LIBOR plus between 1.25% and 1.75% (based on our total leverage ratio) for U.S. dollar denominated LIBOR loans, As of December 31, 2007, we had borrowings of $15.1 million under our secured Our obligations under the credit facilities are guaranteed, on a joint and several basis, by certain of our domestic
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capital. Our financial covenants require that we maintain a total leverage ratio, calculated on a trailing four-quarter basis, of not more than 4.0 to 1.0 through the end of the quarter ending December 31, 2008 and not more than 3.5 to 1.0 for each measurement period thereafter. The total leverage ratio is calculated as the ratio of consolidated indebtedness (which is net of cash) to consolidated operating profit (which excludes, among other things, certain non-cash charges, as discussed more fully in the credit facilities). As of December 31, 2007, our total leverage ratio was 1.67 to 1.0. As of December 31, 2007, we were in compliance with all covenants and other requirements in our credit facilities. On May 15, This excerpt taken from the BUCY 10-K filed Mar 1, 2007. Liquidity and Capital Resources Cash Requirements During 2007, we anticipate strong cash flows from operations due to continued strength in our aftermarket parts sales as well as continued high demand for our new machines. In expanding markets, customers are generally contractually obligated to make progress payments under purchase contracts for machine orders and certain large parts orders. As a result, we do not anticipate significant outside financing requirements to fund production of these machines and do not believe that new machine sales will have a material negative effect on our liquidity, although the issuance of letters of credit reduces the amount available for borrowings under our revolving credit facility. If additional borrowings are necessary during 2007, we believe we have sufficient capacity under our revolving credit facility (see “Financing Cash Flows” below). Our 2006 capital expenditures were $74.4 million compared with $22.2 million for 2005. Included in capital expenditures for 2006 was approximately $56.2 million related to our expansion program, of which $3.0 million was paid in early 2007. The remaining expenditures consisted primarily of production machinery at our main manufacturing facility. We expect capital expenditures in 2007 to remain near our 2006 level as we increase our manufacturing capacity and upgrade and replace our manufacturing equipment to support our increased sales activity. We believe cash flows from operating activities and funds available under our revolving credit facility, as well as governmental grants and other programs, will be sufficient to fund our expected capital expenditures in 2007. As of December 31, 2006, there were $76.2 million of standby letters of credit outstanding under all of our bank facilities. As of December 31, 2006, our long-term liabilities consisted primarily of warranty and product liability accruals and pension and postretirement benefit accruals. For 2007, we expect to contribute $9.2 million to our pension plans and $1.3 million for the payment of benefits from our postretirement benefit plan. As of December 31, 2006, our unfunded pension and postretirement benefit liability was $44.9 million. Payments of warranty and product liability claims are not subject to a definitive estimate by year. We do not anticipate cash requirements for warranty claims to be materially different than historical funding levels. We do not expect to pay any material product liability claims in 2007. In addition to the obligations noted above, we anticipate cash funding currently estimated requirements for interest, dividends and income taxes of approximately $5.7 million, $6.3 million and $37.1 million, respectively, during 2007. We believe that cash flows from our operations and our revolving credit facility will be sufficient to fund our normal cash requirements for 2007. We also believe that cash flows from our operations will be sufficient to repay any borrowings under our revolving credit facility as necessary. This excerpt taken from the BUCY 10-Q filed Aug 9, 2006. Liquidity and Capital Resources Stock Split and Dividend Policy On March 8, 2006, the Company’s Board of Directors authorized a three-for-two split of the Company’s Class A common stock. The stock split was paid on March 29, 2006 to Company shareholders of record on March 20, 2006. The Company’s Class A common stock began trading on a split-adjusted basis on March 30, 2006. The Company’s Board of Directors also authorized, and shareholders approved at the 2006 annual meeting of shareholders, an increase in the number of authorized shares of the Company’s Class A common stock to 75,000,000 shares. This increase in authorized shares became effective upon filing the Company’s Amended and Restated Certificate of Incorporation with the State of Delaware on May 3, 2006. In addition, the Company’s Board of Directors authorized a 30% increase in the quarterly dividend to the amount of $.05 per share per quarter for dividends payable after the date of the stock split. On July 20, 2006, a cash dividend of $.05 per share was declared and is to be paid on August 21, 2006 to shareholders of record on August 3, 2006. Cash Requirements During the remainder of 2006, the Company anticipates strong cash flows from operations due to continued strength in aftermarket parts sales as well as continued high demand for new machines. In expanding markets, customers are generally contractually obligated to make progress payments under purchase contracts for machine orders and certain large parts orders. As a result, the Company does not anticipate significant outside financing requirements to fund production of these machines and does not believe that new machine sales will have a negative effect on its liquidity. If additional borrowings are necessary during the remainder of 2006, the Company believes it has sufficient capacity under its revolving credit facility (see “Financing Cash Flows” below). On July 20, 2006, the Company announced that it will undertake the third phase of its multi-phase expansion program at its South Milwaukee facility. The first phase of the expansion program, which was announced on August 24, 2005, includes the construction of a new facility on the grounds of the Company’s South Milwaukee campus north of Rawson Avenue and is expected to be completed during the fourth quarter of 2006. The second phase, announced on February 16, 2006, will expand the Company’s new facility north of Rawson Avenue and is expected to be completed in mid-2007. The aggregate cost of phase one and two is expected to be approximately $54 million. Phase three of the expansion program will include the renovation of manufacturing buildings and offices, as well as the addition of new machine tools, at its existing facilities south of Rawson Avenue and is expected to be completed by the fourth quarter of 2007 at a cost of approximately $58 million. The Company intends to finance the expansion program through working capital and funds available under its existing revolving credit facility, and is exploring the availability of governmental grants and other programs. At June 30, 2006, the Company had contractual obligations of approximately $26.2 million with respect to the expansion program. As of June 30, 2006, there have been no other material changes to the contractual obligations with respect to purchase obligations and operating leases and rental and service agreements as presented in the Company’s 2005 Annual Report to Shareholders. The Company’s capital expenditures for the six months ended June 30, 2006 were $30.9 million compared with $8.0 million for the six months ended June 30, 2005. Included in capital expenditures for the six months ended June 30, 2006 was $21.2 million related to the expansion program, of which $4.5 million was paid in July 2006. The remaining expenditures consist primarily of production machinery at the Company’s main manufacturing facility. The Company expects a continued increase in capital expenditures during the remainder of 2006 as it increases manufacturing capacity and upgrades and 24 replaces manufacturing equipment to support increased sales activity. The Company believes cash flows from operating activities and funds available under its revolving credit facility will be sufficient to fund capital expenditures during the remainder of 2006. At June 30, 2006, there were $46.5 million of standby letters of credit outstanding under all Company bank facilities. The Company believes that cash flows from operations will be sufficient to fund its cash requirements for the next twelve months. The Company also believes that cash flows from operations will be sufficient to repay any borrowings under its revolving credit facility. During the first six months of 2006, the Company reduced its borrowings under the revolving credit facility by $8.6 million. This excerpt taken from the BUCY 10-Q filed May 10, 2006. Liquidity and Capital Resources Stock Split and Dividend Policy On March 8, 2006, the Company’s Board of Directors authorized a three-for-two split of the Company’s Class A common stock. The stock split was paid on March 29, 2006 to Company shareholders of record on March 20, 2006. The Company’s Class A common stock began trading on a split-adjusted basis on March 30, 2006. The Company’s Board of Directors also authorized, and shareholders approved at the 2006 annual meeting of shareholders, an increase in the number of authorized shares of the Company’s Class A common stock to 75,000,000 shares. This increase in authorized shares became effective upon filing the Company’s Amended and Restated Certificate of Incorporation with the State of Delaware on May 3, 2006. 22 In addition, the Company’s Board of Directors authorized a 30% increase in the quarterly dividend to the amount of $.05 per share per quarter for dividends payable after the date of the stock split. On May 3, 2006, a cash dividend of $.05 per share was declared and is to be paid on June 5, 2006 to shareholders of record on May 18, 2006. This excerpt taken from the BUCY 10-Q filed Nov 14, 2005. Liquidity and Capital Resources Cash Requirements During the remainder of 2005, the Company anticipates strong cash flows from operations due to continued strength in aftermarket parts sales as well as increased demand for new machines. In expanding markets, customers are generally contractually obligated to make progress payments under purchase contracts for machine orders. As a result, the Company does not anticipate significant outside financing requirements to fund production of these machines and does not believe that new machine sales will have a negative long-term effect on its liquidity. If additional borrowings are necessary during the remainder of 2005, the Company believes it has sufficient capacity under its revolving credit facility (see “Financing Cash Flows” below). 22 As of September 30, 2005, there have been no material changes to the contractual obligations with respect to purchase obligations and operating leases and rental and service agreements as presented in the Company’s 2004 Annual Report to Shareholders. There have also been no material changes to the contractual obligations with respect to long-term debt and short-term obligations as presented in the Company’s Form 10-Q for the quarterly period ended June 30, 2005. On August 24, 2005, the Company announced that it is proceeding with plans to expand its manufacturing facilities in South Milwaukee, Wisconsin. The initial phase of the expansion program will include the construction of a new facility on the grounds of the Company’s South Milwaukee campus north of Rawson Avenue at an approximate cost of $22 million. The construction of this new facility is expected to be completed during the third quarter of 2006. At September 30, 2005, the Company had not yet incurred any contractual obligations with respect to this project. During the month of October 2005, the Company entered into contractual obligations of approximately $5.5 million with respect to this project. The Company intends to finance the expansion program through working capital and funds available under its existing revolving credit facility, and is exploring the availability of governmental grants and other programs. The Company’s capital expenditures for the nine months ended September 30, 2005 were $13.6 million compared with $3.8 million for the nine months ended September 30, 2004. Included in capital expenditures for the nine months ended September 30, 2005 was $2.9 million related to the new leased manufacturing facility in Milwaukee. The remaining expenditures consist primarily of production machinery at the Company’s main manufacturing facility. The Company expects a continued increase in capital expenditures during the remainder of 2005 as it increases manufacturing capacity and upgrades and replaces manufacturing equipment to support increased sales activity. The Company believes cash flows from operating activities will be sufficient to fund capital expenditures in 2005. At September 30, 2005, there were $24.0 million of standby letters of credit outstanding under all Company bank facilities. The Company believes that cash flows from operations will be sufficient to fund its cash requirements for the next twelve months. The Company intends to pay quarterly cash dividends of $0.575 per share (equal to $.23 per year). A quarterly cash dividend of $1.2 million was declared on July 14, 2005 and paid on August 15, 2005. Sources and Uses of Cash While the Company had $7.3 million of cash and cash equivalents as of September 30, 2005, this cash is located at various foreign subsidiaries and is used for working capital purposes. Cash receipts in the United States are applied against the Company’s revolving credit facility. | EXCERPTS ON THIS PAGE:
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