I picked up a position in KRSL around $17 to add to my collection of aerospace companies. The collection now includes EDAC, SIF, and KRSL. Thanks to SSKILLZ1 for pointing me at KRSL.
Here is some DD on KRSL:
- The last quarter earnings were $0.16/share but would have been $0.28 without some one time charges. - The backlog has increased to $29.7M plus they have an additional UTC LOI that will add over $10M to the backlog. To put this in perspective, the revenue last quarter was $5.8M. At the current run rate they have over 6 quarters of revenue in their backlog plus LOI with a total backlog/LOI in the $40M range. Their backlog has been steadily increasing for the past two year. I expect to see some significant increases in revenue in the coming two or three quarters with their huge backlog. - I'm expecting earnings for the next quarter to be in the $0.30-$0.35 range and to move up from there. That is slightly lower than others on the board are expecting. - Here is some historical information on revenue, GM, backlog and EPS:
* GM in the most recent quarter would have been 19.5% without the warranty issue which is a one-time event. + EPS in the most recent quarter would have been $0.28 without one-time events.
- One risk with KRSL is that their largest customer represents 64% of revenue. I'm not concerned about that from an AR point of view but more from a future revenue point of view.
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