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GR GORMAN - RUPP COMPANY NEWS RELEASE P.O. Box 1217 ⚫ Mansfield , Ohio 44901-1217 , USA Tel : 419-755-1011 Fax : 419-755-1263 ⚫ gormanrupp.com GORMAN - RUPP REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS Mansfield , Ohio – April 22 , 2021 – The Gorman - Rupp Company ( NYSE : GRC ) reports financial results for the first quarter ended March 31 , 2021 . First Quarter 2021 Highlights • • • First quarter earnings per share were $ 0.28 compared to $ 0.21 per share for the first quarter of 2020 - First quarter of 2020 included a non - cash pension settlement charge of $ 0.04 per share Net sales decreased 2.9 % or $ 2.7 million compared to the first quarter of 2020 and increased 7.9 % or $ 6.5 million compared to the fourth quarter of 2020 Incoming orders increased 1.3 % compared to the first quarter of 2020 and increased 9.5 % compared to the fourth quarter of 2020 Backlog improved to $ 125.5 million compared to $ 113.1 million at December 31 , 2020 Net sales for the first quarter of 2021 were $ 89.0 million compared to net sales of $ 91.7 million for the first quarter of 2020 , a decrease of 2.9 % or $ 2.7 million . Domestic sales decreased 4.2 % or $ 2.7 million and international sales were flat compared to the same period in 2020 . Sales in our water markets increased 0.9 % or $ 0.6 million in the first quarter of 2021 compared to the first quarter of 2020. Sales increased $ 0.8 million in the repair market , $ 0.6 million in the construction market , and $ 0.2 million in the agriculture market . Partially offsetting these increases were sales decreases of $ 0.9 million in the fire protection market and $ 0.1 million in the municipal market primarily due to the COVID - 19 pandemic in both cases . Sales in our non - water markets decreased 11.7 % or $ 3.3 million in the first quarter of 2021 compared to the first quarter of 2020 primarily due to the COVID - 19 pandemic , along with reduced demand from midstream oil and gas customers and softness in oil and gas drilling activity . Sales decreased $ 2.5 million in the industrial market and $ 1.0 million in the OEM market while sales in the petroleum market increased $ 0.2 million . Gross profit was $ 23.0 million for the first quarter of 2021 , resulting in gross margin of 25.9 % , compared to gross profit of $ 23.4 million and gross margin of 25.6 % for the same period in 2020. Gross margin increased 30 basis points due to improved leverage on labor and overhead . Selling , general and administrative ( " SG & A ” ) expenses were $ 14.1 million and 15.8 % of net sales for the first quarter of 2021 compared to $ 14.9 million and 16.2 % of net sales for the same period in 2020. SG & A expenses decreased 5.4 % or $ 0.8 million and improved 40 basis points as a percentage of sales due to reduced marketing and travel related expenses combined with overall expense management . Operating income was $ 9.0 million for the first quarter of 2021 , resulting in an operating margin of 10.1 % , compared to operating income of $ 8.6 million and operating margin of 9.4 % for the same period in 2020. Operating margin increased 70 basis points primarily as a result of improved leverage on labor and overhead , reduced marketing and travel related expenses , and overall expense management . Other income ( expense ) , net was $ 0.3 million of income for the first quarter of 2021 compared to expense of $ 1.7 million for the same period in 2020. The change was due primarily to a non - cash pension settlement charge of $ 1.5 million and $ 0.5 million of foreign exchange losses which both occurred in the first quarter of 2020 and did not recur in the first quarter of 2021 . Net income was $ 7.4 million for the first quarter of 2021 compared to $ 5.5 million in the first quarter of 2020 , and earnings per share were $ 0.28 and $ 0.21 for the respective periods . Earnings per share for the first quarter of 2020 included a non - cash pension settlement charge of $ 0.04 per share .