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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 THIRD QUARTER 2021 FINANCIAL RESULTS AND ANNOUNCES PROMOTION OF SCOTT A. KING TO CEO Mansfield , Ohio - October 29 , 2021 – The Gorman - Rupp Company ( NYSE : GRC ) reports financial results for the third quarter and nine months ended September 30 , 2021 . Third Quarter 2021 Highlights • • • Third quarter earnings per share were $ 0.34 compared to $ 0.28 per share for the third quarter of 2020 О ○ 2021 results included an unfavorable LIFO impact of $ 0.08 per share due to inflationary pressure Results included non - cash pension settlement charges of $ 0.01 and $ 0.03 per share in 2021 and 2020 , respectively Sales increased 14.8 % and incoming orders increased 32.0 % compared to the third quarter of 2020 Backlog improved to $ 156.5 million at September 30 , 2021 • Scott A. King promoted to Chief Executive Officer effective January 1 , 2022 Net sales for the third quarter of 2021 were $ 102.1 million compared to net sales of $ 89.0 million for the third quarter of 2020 , an increase of 14.8 % or $ 13.1 million . Domestic sales increased 8.6 % or $ 5.4 million and international sales increased 30.0 % or $ 7.7 million compared to the same period in 2020. As the global economy has started to recover from the COVID - 19 pandemic , sales and incoming orders have increased across nearly all of our markets . Sales in our water markets increased 14.6 % or $ 9.3 million in the third quarter of 2021 compared to the third quarter of 2020. Sales increased $ 6.0 million in the fire protection market , $ 3.6 million in the construction market , $ 2.3 million in the repair market , and $ 0.8 million in the agriculture market . Partially offsetting these increases was a decrease of $ 3.4 million in the municipal market . The decrease in municipal market sales is primarily due to timing , as both incoming orders and backlog have increased compared to the prior year . Sales in our non - water markets increased 15.2 % or $ 3.8 million in the third quarter of 2021 compared to the third quarter of 2020 . Sales increased $ 2.7 million in the OEM market , $ 0.7 million in the industrial market , and $ 0.4 million in the petroleum market . Gross profit was $ 25.8 million for the third quarter of 2021 , resulting in gross margin of 25.3 % , compared to gross profit of $ 23.0 million and gross margin of 25.8 % for the same period in 2020. The 50 basis point decrease in gross margin was driven by a 210 basis point increase in cost of material , which included an unfavorable LIFO impact of 250 basis points , partially offset by a 160 basis point improvement on labor and overhead resulting from increased sales volume . Selling , general and administrative ( " SG & A ” ) expenses were $ 14.3 million and 14.0 % of net sales for the third quarter of 2021 compared to $ 13.2 million and 14.9 % of net sales for the same period in 2020. SG & A expenses increased 8.0 % or $ 1.1 million as a result of compensation , travel and other expense items returning closer to pre - pandemic levels as operational activities return to normal . SG & A expenses as a percentage of sales improved 90 basis points primarily as a result of leverage on fixed costs from increased sales volume . Operating income was $ 11.5 million for the third quarter of 2021 , resulting in an operating margin of 11.3 % , compared to operating income of $ 9.7 million and operating margin of 10.9 % for the same period in 2020. Operating margin improved 40 basis points as a result of improved leverage on fixed costs from increased sales volume partially offset by an unfavorable LIFO impact . Other income ( expense ) , net was $ 0.5 million of expense for the third quarter of 2021 compared to expense of $ 0.7 million for the same period in 2020. The decrease to expense was due primarily to reduced non - cash pension settlement charges of $ 0.4 million in the third quarter of 2021 compared to $ 1.0 million in the third quarter of 2020 . Net income was $ 8.8 million for the third quarter of 2021 compared to $ 7.3 million in the third quarter of 2020 , and earnings per share were $ 0.34 and $ 0.28 for the respective periods . Earnings per share for the third quarter of 2021 included an unfavorable LIFO