Nice pop on FSCR. The 10K filing today revealed another huge quarter in Q4. Here's the shareholder letter:
To Our
Shareholders:
The Company reports net earnings for the fourth quarter ended June 30, 2016, of $4,153,000, or $3.01 per
share, on sales of $19,285,000. Net earnings include an income tax benefit of $2,877,000 which consists of a
reduction in the deferred tax asset valuation reserve of $4,300,000 and deferred tax expense of $1,423,000.
Absent the tax adjustments net earnings in the current quarter are $1,276,000, or $.92 per share. This
compares to net earnings of $1,016,000, or $.74 per share, on sales of $18,339,000 in the comparable quarter
last year.
For the year ended June 30, 2016, the Company reports net earnings of $7,087,000, or $5.13 per share, on
sales of $77,525,000. Absent the income tax benefit of $2,877,000, net earnings are $4,210,000 or $3.05 per
share. This compares to net earnings of $1,340,000, or $.97 per share, on sales of $63,983,000 in the previous
year.
We are very pleased to report a significant increase in profits as the Company brought a substantial
amount of new business into production.
The Company is enjoying a period of strong demand and solid plant performance. In support of this lively
sense of opportunity, capital expenditures were $5.5 million. Overall, the Company’s advanced technical
capabilities are driving its continual expansion into the manufacture of more sophisticated, complex parts
which yield higher margins and, we believe, make the Company’s competitive position increasingly
defensible.
Many of the uncertainties of the global economy which may act as headwinds for the modest U.S. economic
recovery still persist. Although a renewed sense of stability regarding the European and Chinese
economies has lessened concern among economists that they will slow U.S. growth, China’s economic
opacity and the threat of a toxic loan crisis among Chinese banks continues to be troubling. Japan is
experiencing difficulty with its negative interest policies and struggles for any growth. However, consumers
are playing their part in the consumer driven U.S. economy. Relatively less expensive gasoline, sustained
job growth, and the recovery in housing all act to support strong North American vehicle sales.
We wish to thank our employees for their deep commitment to develop and produce increasingly difficult
part programs. We also wish to thank our Shareholders for their kind expressions of support and
encouragement. The Company, resilient and adaptive and prospering, has done a fine job.
