Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
this stock is too cheap. I wrote it up on my blog: http://www.nonamestocks.com/2023/12/sprs-is-consistent-profitable-and-cheap.html
Numbers out. Not as good as last year eps-wise, but still very decent. Points to a $1.30-$2 stock, IMO. Will continue to accumulate.
T
so dumb scottrade has my funds restricted until tuesday was not able to buy today. this is almost a sure thing for at least a 10% gain after earnings come out
Hoping for a good report. Noticed a couple big offers which has me wondering. But, if it should go down, good time to accumulate. Love the low float deals.
T
my bad i mean the 28th
probably going to see another positive Q tomorrow price will jump 10-20% with PPS of .95-1.00
Exactly what gives us an opportunity to make some money. Accumulate now and get rewarded when they are discovered or taken private/bought out. Hang in there.
T
their is still no respect for this company
Fantastic and history shows the 4th q will be even better.
outstanding quarter here
helllllooooo anybody out there? Who else has gotten in recently?
Current Assets - Total Liabilities is about .69/share
Sold at new 52 low today of .25
-Happy Investing
Joe
SPRS.. $1.01
SPRS.. $0.81
Holder TOFIAS Sells 20,000 Of SURGE COMPONENTS INC >SPRS
Dow Jones and Company, Inc. - Dec 17 at 09:24
Company Symbols: OTC-PINK:SPRS
SOURCE: Form 4
ISSUER: SURGE COMPONENTS INC
SYMBOL: SPRS
FILER: TOFIAS MICHAEL D
TITLE: Beneficial Owner
DATE TRANSACTION SHARES PRICE VALUE
12/15/10 Sale 20,000 $0.72 $14,400
OWNERSHIP: 1,861,676 (Direct)
The Form 4 is filed with the Securities and Exchange Commission by insiders
to report transactions in their companies' shares. Open market purchases
and sales must be reported within two business days of the transaction.
Insider Data Source: The Washington Service
(info@washingtonservice.com or 301-913-5100)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/nae/al?rnd=GqCGOCeUYbQWYIaZ9kb1wQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
12-17-10 0924ET
SPRS.. $0.65
He has been a seller all along and is well aware that he had to sell part of his position in order to create a market.. The others were acquirers of the stock thru options.. Hummingbird is the smart one on this page.. hank
DateTime Ticker Wire Impact HeadlineText
10/26 10:10 SPRS DJ Holder TOFIAS Sells 62,641 Of SURGE COMPONENTS INC >SPRS
10/26 10:10 ED Form 4 SURGE COMPONENTS INC For: Oct 22 Filed by: Tofias Michael D
10/22 15:45 SPRS DJ Holder TOFIAS Sells 50,000 Of SURGE COMPONENTS INC >SPRS
10/22 15:45 ED Form 4 SURGE COMPONENTS INC For: Oct 20 Filed by: Tofias Michael D
10/20 15:53 SPRS DJ Holder TOFIAS Sells 129,500 Of SURGE COMPONENTS INC >SPRS
10/20 15:53 ED Form 4 SURGE COMPONENTS INC For: Oct 18 Filed by: Tofias Michael D
10/19 12:14 ED Form 4 SURGE COMPONENTS INC For: Oct 15 Filed by: Tofias Michael D
10/15 12:40 ED Form 10-Q SURGE COMPONENTS INC For: Aug 31
10/14 12:55 ED Form 4 SURGE COMPONENTS INC For: Oct 12 Filed by: Tofias Michael D
10/12 13:37 ED Form 4 SURGE COMPONENTS INC For: Oct 08 Filed by: Tofias Michael D
10/08 12:12 ED Form 4 SURGE COMPONENTS INC For: Oct 07 Filed by: Tofias Michael D
10/07 15:28 ED Form 4 SURGE COMPONENTS INC For: Oct 06 Filed by: Tofias Michael D
10/06 12:29 ED Form SC 13D SURGE COMPONENTS INC Filed by: HUMMINGBIRD MANAGEMENT LLC
09/16 14:11 ED Form 8-K SURGE COMPONENTS INC For: Aug 31
09/03 11:22 ED Form 4 SURGE COMPONENTS INC For: Jul 01 Filed by: Smith Carl III
09/02 16:59 ED Form SC 13D SURGE COMPONENTS INC Filed by: LEVY IRA
09/02 16:58 ED Form 3/A SURGE COMPONENTS INC For: Jul 18 Filed by: LEVY IRA
08/20 17:16 ED Form 10-12G/A SURGE COMPONENTS INC
08/11 16:12 ED Form 3 SURGE COMPONENTS INC For: Jul 18 Filed by: JACOBS GARY MARK
08/05 10:52 ED Form 3 SURGE COMPONENTS INC For: Jul 18 Filed by: Chariton Lawrence
08/05 10:51 ED Form 3 SURGE COMPONENTS INC For: Jul 18 Filed by: Siegel David
08/05 10:51 ED Form 3 SURGE COMPONENTS INC For: Jul 18 Filed by: Plafker Alan
08/04 12:40 ED Form 3 SURGE COMPONENTS INC For: Jul 18 Filed by: LEVY IRA
08/04 12:39 ED Form 3 SURGE COMPONENTS INC For: Jul 18 Filed by: LUBMAN STEVEN J
07/15 13:12 ED Form 3 SURGE COMPONENTS INC For: Jul 18 Filed by: Tofias Michael D
05/19 17:40 ED Form 10-12G SURGE COMPONENTS INC
What do you make of the Form 4 disposal of shares today
SPRS.. $0.66
I love this stock.. Long 61,776 and looking for a 5 bagger.. hank
10/22/10 12:46 PM EDT Buy 8888 SPRS Executed @ $0.66 Details | Edit
10/20/10 3:25 PM EDT Buy 4192 SPRS Executed @ $0.63 Details | Edit
10/20/10 3:24 PM EDT Buy 920 SPRS Executed @ $0.62 Details | Edit
10/20/10 2:46 PM EDT Buy 8888 SPRS Executed @ $0.6 Details | Edit
10/20/10 2:44 PM EDT Buy 10000 SPRS Executed @ $0.6 Details | Edit
10/20/10 2:43 PM EDT Buy 10000 SPRS Executed @ $0.6 Details | Edit
10/20/10 12:50 PM EDT Buy 488 SPRS Executed @ $0.6 Details | Edit
10/20/10 12:50 PM EDT Buy 5000 SPRS Executed @ $0.6 Details | Edit
10/20/10 12:50 PM EDT Buy 10000 SPRS Executed @ $0.6 Details | Edit
10/20/10 12:49 PM EDT Buy 3400 SPRS Executed @ $0.6 Details | Edit
SPRS.. $0.63.. The supply of stock is running dry..
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940 OMB APPROVAL
OMB Number: 3235-0287
Expires: February 28, 2011
Estimated average burden
hours per response 0.5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*Tofias Michael D
--------------------------------------------------------------------------------
(Last) (First) (Middle)
325 NORTH END AVENUE, APT. 21D
--------------------------------------------------------------------------------
(Street)NEW YORK NY 10282
--------------------------------------------------------------------------------
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
SURGE COMPONENTS INC [SPRS] 5. Relationship of Reporting Person(s) to Issuer
(Check all applicable) Director X 10% Owner
Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
10/18/2010
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8) 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4) 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, par value $0.001 per share 10/18/2010 S 45,000 D $ 0.45 2,150,317 D
Common Stock, par value $0.001 per share 10/18/2010 S 50,000 D $ 0.49 2,100,317 D
Common Stock, par value $0.001 per share 10/18/2010 S 34,500 D $ 0.55 2,065,817 D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date
(Month/Day/Year) 7. Title and Amount of Underlying Securities
(Instr. 3 and 4) 8. Price of Derivative Security
(Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4) 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Explanation of Responses:
/s/Michael D. Tofias 10/20/2010
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940 OMB APPROVAL
OMB Number: 3235-0287
Expires: February 28, 2011
Estimated average burden
hours per response 0.5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*Tofias Michael D
--------------------------------------------------------------------------------
(Last) (First) (Middle)
325 NORTH END AVENUE, APT. 21D
--------------------------------------------------------------------------------
(Street)NEW YORK NY 10282
--------------------------------------------------------------------------------
(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
SURGE COMPONENTS INC [SPRS] 5. Relationship of Reporting Person(s) to Issuer
(Check all applicable) Director X 10% Owner
Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
10/18/2010
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)X Form filed by One Reporting Person
Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8) 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4) 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, par value $0.001 per share 10/18/2010 S 45,000 D $ 0.45 2,150,317 D
Common Stock, par value $0.001 per share 10/18/2010 S 50,000 D $ 0.49 2,100,317 D
Common Stock, par value $0.001 per share 10/18/2010 S 34,500 D $ 0.55 2,065,817 D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date
(Month/Day/Year) 7. Title and Amount of Underlying Securities
(Instr. 3 and 4) 8. Price of Derivative Security
(Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4) 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Explanation of Responses:
/s/Michael D. Tofias 10/20/2010
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
SPRS.. $0.63 I wish I could of bought this sale.. hank
Holder TOFIAS Sells 129,500 Of SURGE COMPONENTS INC >SPRS
Dow Jones & Company, Inc. - Oct 20 at 15:53
Company Symbols: OTC-PINK:SPRS
SOURCE: Form 4
ISSUER: SURGE COMPONENTS INC
SYMBOL: SPRS
FILER: TOFIAS MICHAEL D
TITLE: Beneficial Owner
DATE TRANSACTION SHARES PRICE VALUE
10/18/10 Sale 129,500 $0.49 $63,727
OWNERSHIP: 2,065,817 (Direct)
The Form 4 is filed with the Securities and Exchange Commission by insiders
to report transactions in their companies' shares. Open market purchases
and sales must be reported within two business days of the transaction.
Insider Data Source: The Washington Service
(info@washingtonservice.com or 301-913-5100)
SPRG.. Surge Components, Inc. $0.55
Headquarters: 95 East Jefryn Boulevard
Deer Park, NY 11729
Web Address:
http://www.surgecomponents.com
Is a supplier of electronic products and components. These products include capacitors, which are electrical energy storage devices, and discrete components, such as semiconductor rectifiers, transistors and diodes, which are single-function, low-power semiconductor products that are packaged alone, as compared to integrated circuits (ICs) such as microprocessors. Surge's products are typically utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, cellular telephones, computers, consumer electronics, garage door openers, household appliances, power supplies and security equipment. Surge's products are sold to both original equipment manufacturers (OEMs) that incorporate them into their products and to distributors of Surge's product lines that resell these products within their customer baseResults of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS -UNAUDITED
Nine Months Ended Three Months Ended
August 31, August 31,
2010 2009 2010 2009
Net sales $ 15,620,352 $ 8,576,213 $ 6,067,148 $ 3,333,225
Cost of goods sold 10,958,792 6,152,063 4,252,684 2,397,560
Gross profit 4,661,560 2,424,150 1,814,464 935,665
Operating expenses:
Selling and shipping expenses 1,248,187 752,618 450,531 276,669
General and administrative expenses 1,836,010 1,478,631 634,279 465,311
Depreciation and amortization 105,180 112,960 37,410 37,876
Total operating expenses 3,189,377 2,344,209 1,122,220 779,856
Income before other income (expense)
and income taxes 1,472,183 79,941 692,244 155,809
Other income (expense):
Interest expense (90,270 ) (89,799 ) (30,120 ) (29,345 )
Investment income 3,522 6,106 1,076 1,421
Other income (expense) (86,748 ) (83,693 ) (29,044 ) (27,924 )
Income (Loss) before income taxes 1,385,435 (3,752 ) 663,200 127,885
Income taxes (benefit) 9,137 5,006 (731 ) 526
Net Income (Loss) 1,376,298 (8,758 ) 663,931 127,359
Dividends on preferred stock 16,350 16,350 8,175 8,175
Net income (loss) available to
common shareholders $ 1,359,948 $ (25,108 ) $ 655,756 $ 119,184
Net income (loss) per share available
to common shareholders:
Basic $ .15 $ (.00 ) $ .07 $ .01
Diluted $ .15 $ (.00 ) $ .07 $ .01
Weighted Shares Outstanding:
Basic 8,895,008 8,874,512 8,922,512 8,874,512
Diluted 9,222,008 8,874,512 9,249,512 8,874,512
SPRG.. Surge Components, Inc. $0.55
Headquarters: 95 East Jefryn Boulevard
Deer Park, NY 11729
Web Address:
http://www.surgecomponents.com
Is a supplier of electronic products and components. These products include capacitors, which are electrical energy storage devices, and discrete components, such as semiconductor rectifiers, transistors and diodes, which are single-function, low-power semiconductor products that are packaged alone, as compared to integrated circuits (ICs) such as microprocessors. Surge's products are typically utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, cellular telephones, computers, consumer electronics, garage door openers, household appliances, power supplies and security equipment. Surge's products are sold to both original equipment manufacturers (OEMs) that incorporate them into their products and to distributors of Surge's product lines that resell these products within their customer baseResults of Operations
Comparison of six months ended May 31, 2010 and May 31, 2009
Consolidated net sales for the six months ended May 31, 2010 increased by $4,310,216 or 82%, to $9,553,204 as compared to net sales of $5,242,988 for the six months May 31, 2009. We attribute the increase to additional business with existing customers. The electronic components industry is currently experiencing a high demand in products and the Company is benefiting from that with an increase in volume.
Our gross profit for the six months ended May 31, 2010 increased by $1,358,611, or 91%, as compared the six months ended May 31, 2009. Gross margin as a percentage of net sales increased to 29.8% the six months ended May 31, 2010 compared to 28.4% for the six months ended May 31,2009. We attribute the increase to new more profitable business and cutting costs, including an increase in the amount of purchase rebates earned from certain vendors.
Selling and shipping expenses for the six months ended May 31, 2010 was $797,656, an increase of $321,707, or 68%, as compared to $475,949 for the six months ended May 31, 2009.The increase is directly related to the increase in sales for the Company. Specifically the increase is due to additional sales commissions, selling expenses, such as travel and freight out expense.
General and administrative expenses for the six months ended May 31, 2010 was $1,201,731, an increase of $186,625, or 18%, as compared to $1,015,106 for the six months ended May 31, 2009. The increase is due to increased professional fees associated with the Company becoming a reporting company with the SEC and additional compensation approved by the Board for the officers and directors of the Company.
Investment income for the six months ended May 31, 2010 was $2,446, compared to $4,685 for the six months ended May 31, 2009. We attribute the decrease of $2,239, or 48%, to lower interest rates in our money market accounts in 2010.
Interest expense for the six months ended May 31, 2010 was $60,150, compared to $60,454 for the six months ended May 31, 2009. Interest expense remained relatively unchanged between the two periods. Interest rates have been comparable for the last year.
Income taxes for the six months ended May 31, 2010 were $9,868, compared to $4,480 for the six months ended May 31, 2009. The difference is a result of state income taxes.
As a result of the foregoing, net income for the six months ended May 31, 2010 was $712,367, compared to net loss of $136,117 for the six months ended May 31, 2009.
Comparison Fiscal 2009 and Fiscal 2008
Consolidated net sales for Fiscal 2009 decreased by $1,915,624, or 13.5%, to $12,325,812 as compared to net sales of $14,241,436 for Fiscal 2002. The decrease in revenue is primarily due to the significant decrease in purchasing as a result of the global recession.
Our gross profit for Fiscal 2009 decreased by $418,930, or 10.2%, as compared to Fiscal 2008. Gross margin as a percentage of net sales increased to 29.9% in Fiscal 2009 compared to 28.8% for Fiscal 2008. We attribute the increase to new more profitable business and cutting costs, including an increase in the amount of purchase rebates earned from certain vendors.
Selling and shipping expenses for Fiscal 2009 was $1,090,196, a decrease of $399,236, or 26.8%, as compared to $1,489,392 for Fiscal 2008. We attribute the decrease to the lower sales volume resulting in fewer sales commissions and shipping costs.
General and administrative expenses for Fiscal 2009 was $2,012,639, a decrease of $226,827, or 10.1%, as compared to $2,239,466 for Fiscal 2008. We attribute the decrease to cutting costs, primarily payroll and payroll related costs
Investment income for fiscal 2009 was $7,405, compared to $24,245 for fiscal 2008. We attribute the decrease of $16,840, or 69.5%, lower interest rates in 2009.
Income taxes for Fiscal 2009 were $5,364, compared to $7,426 for fiscal 2008.
As a result of the foregoing, net income for Fiscal 2009 was $316,555, compared to $132,156 for Fiscal 2008.
Liquidity and Capital Resources
As of May 31, 2010 we had cash of $1,486,406, and working capital of $3,402,977. We believe that our working capital levels and available financing are adequate to meet our operating requirements during the next twelve months.
During the six months ended May 31, 2010, we had net cash flow from operating activities of $140,504, as compared to net cash from operating activities of $244,193 for the six months ended May 31, 2009. During Fiscal 2009, we had net cash flow from operating activities of $364,294, as compared to net cash used in operating activities of $404,330 in Fiscal 2008. The increase in cash flow from operating activities resulted from increase in the 2010 profit, increase in accounts receivable and inventory offset by increase in accounts payable. The significant increase in accounts receivable in the current quarter was a direct result in the increase in revenues. As a result of these increased revenues, the Company made a significant investment in additional inventory. The Company adjusts its inventory levels based upon the industry outlook and near term expectations of demand for the Company’s products.
We had net cash used in investing activities of $(4,866) for the six months ended May 31, 2010, as compared to net cash used in investing activities of $146,949 for the six months ended May 31, 2009. We had net cash used in investing activities of $158,512 for Fiscal 2009, as compared to net cash used in investing activities of $44,067 in Fiscal 2008. This decrease was the result of the Company purchasing additional computer hardware in 2009.
We had net cash from financing activities of 210,430 for the six months ended May 31, 2010, as compared to net cash used in financing activities of $(76,872) for the six months ended May 31, 2009. We had net cash from financing activities of $29,393 for Fiscal 2009, as compared to net cash from financing activities of $496,966 for Fiscal 2008. The increase was the result of increased borrowings in 2010 from our lender.
As a result of the foregoing, the Company had a net increase in cash of $346,068 during the six months ended May 31, 2010 , as compared to a net increase in cash of $20,372 for the six months ended May 31, 2009 .
In July 2002, the Company obtained a financing commitment with an asset-based lender totaling $1,000,000 (the “Credit Line”). Borrowings under the Credit Line accrue interest at the greater of the prime rate plus two percent (2.0%) or 6.75%. The Company is required to make monthly interest only payments. The Company may repay all or a portion of the line of credit at any time. In addition, the Company is obligated to pay one-quarter of one percent (1/4 of 1%) annually as an unused line fee for the difference between $1,000,000 and the average daily balance of the Credit Line. The Credit Line is collateralized by substantially all the Company’s assets and contains various financial covenants pertaining to the maintenance of working capital and tangible net worth. At May 31, 2010, the Company was in compliance with the financial covenants.
Followers
|
10
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
25
|
Created
|
10/20/10
|
Type
|
Free
|
Moderators |
Surge Components, Inc.
Headquarters: 95 East Jefryn Boulevard
Deer Park, NY 11729
Web Address:
http://www.surgecomponents.com
Is a supplier of electronic products and components. These products include capacitors, which are electrical energy storage devices, and discrete components, such as semiconductor rectifiers, transistors and diodes, which are single-function, low-power semiconductor products that are packaged alone, as compared to integrated circuits (ICs) such as microprocessors. Surge's products are typically utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, cellular telephones, computers, consumer electronics, garage door openers, household appliances, power supplies and security equipment. Surge's products are sold to both original equipment manufacturers (OEMs) that incorporate them into their products and to distributors of Surge's product lines that resell these products within their customer baseResults of Operations
Comparison of six months ended May 31, 2010 and May 31, 2009
Consolidated net sales for the six months ended May 31, 2010 increased by $4,310,216 or 82%, to $9,553,204 as compared to net sales of $5,242,988 for the six months May 31, 2009. We attribute the increase to additional business with existing customers. The electronic components industry is currently experiencing a high demand in products and the Company is benefiting from that with an increase in volume.
Our gross profit for the six months ended May 31, 2010 increased by $1,358,611, or 91%, as compared the six months ended May 31, 2009. Gross margin as a percentage of net sales increased to 29.8% the six months ended May 31, 2010 compared to 28.4% for the six months ended May 31,2009. We attribute the increase to new more profitable business and cutting costs, including an increase in the amount of purchase rebates earned from certain vendors.
Selling and shipping expenses for the six months ended May 31, 2010 was $797,656, an increase of $321,707, or 68%, as compared to $475,949 for the six months ended May 31, 2009.The increase is directly related to the increase in sales for the Company. Specifically the increase is due to additional sales commissions, selling expenses, such as travel and freight out expense.
General and administrative expenses for the six months ended May 31, 2010 was $1,201,731, an increase of $186,625, or 18%, as compared to $1,015,106 for the six months ended May 31, 2009. The increase is due to increased professional fees associated with the Company becoming a reporting company with the SEC and additional compensation approved by the Board for the officers and directors of the Company.
Investment income for the six months ended May 31, 2010 was $2,446, compared to $4,685 for the six months ended May 31, 2009. We attribute the decrease of $2,239, or 48%, to lower interest rates in our money market accounts in 2010.
Interest expense for the six months ended May 31, 2010 was $60,150, compared to $60,454 for the six months ended May 31, 2009. Interest expense remained relatively unchanged between the two periods. Interest rates have been comparable for the last year.
Income taxes for the six months ended May 31, 2010 were $9,868, compared to $4,480 for the six months ended May 31, 2009. The difference is a result of state income taxes.
As a result of the foregoing, net income for the six months ended May 31, 2010 was $712,367, compared to net loss of $136,117 for the six months ended May 31, 2009.
Comparison Fiscal 2009 and Fiscal 2008
Consolidated net sales for Fiscal 2009 decreased by $1,915,624, or 13.5%, to $12,325,812 as compared to net sales of $14,241,436 for Fiscal 2002. The decrease in revenue is primarily due to the significant decrease in purchasing as a result of the global recession.
Our gross profit for Fiscal 2009 decreased by $418,930, or 10.2%, as compared to Fiscal 2008. Gross margin as a percentage of net sales increased to 29.9% in Fiscal 2009 compared to 28.8% for Fiscal 2008. We attribute the increase to new more profitable business and cutting costs, including an increase in the amount of purchase rebates earned from certain vendors.
Selling and shipping expenses for Fiscal 2009 was $1,090,196, a decrease of $399,236, or 26.8%, as compared to $1,489,392 for Fiscal 2008. We attribute the decrease to the lower sales volume resulting in fewer sales commissions and shipping costs.
General and administrative expenses for Fiscal 2009 was $2,012,639, a decrease of $226,827, or 10.1%, as compared to $2,239,466 for Fiscal 2008. We attribute the decrease to cutting costs, primarily payroll and payroll related costs
Investment income for fiscal 2009 was $7,405, compared to $24,245 for fiscal 2008. We attribute the decrease of $16,840, or 69.5%, lower interest rates in 2009.
Income taxes for Fiscal 2009 were $5,364, compared to $7,426 for fiscal 2008.
As a result of the foregoing, net income for Fiscal 2009 was $316,555, compared to $132,156 for Fiscal 2008.
Liquidity and Capital Resources
As of May 31, 2010 we had cash of $1,486,406, and working capital of $3,402,977. We believe that our working capital levels and available financing are adequate to meet our operating requirements during the next twelve months.
During the six months ended May 31, 2010, we had net cash flow from operating activities of $140,504, as compared to net cash from operating activities of $244,193 for the six months ended May 31, 2009. During Fiscal 2009, we had net cash flow from operating activities of $364,294, as compared to net cash used in operating activities of $404,330 in Fiscal 2008. The increase in cash flow from operating activities resulted from increase in the 2010 profit, increase in accounts receivable and inventory offset by increase in accounts payable. The significant increase in accounts receivable in the current quarter was a direct result in the increase in revenues. As a result of these increased revenues, the Company made a significant investment in additional inventory. The Company adjusts its inventory levels based upon the industry outlook and near term expectations of demand for the Company’s products.
We had net cash used in investing activities of $(4,866) for the six months ended May 31, 2010, as compared to net cash used in investing activities of $146,949 for the six months ended May 31, 2009. We had net cash used in investing activities of $158,512 for Fiscal 2009, as compared to net cash used in investing activities of $44,067 in Fiscal 2008. This decrease was the result of the Company purchasing additional computer hardware in 2009.
We had net cash from financing activities of 210,430 for the six months ended May 31, 2010, as compared to net cash used in financing activities of $(76,872) for the six months ended May 31, 2009. We had net cash from financing activities of $29,393 for Fiscal 2009, as compared to net cash from financing activities of $496,966 for Fiscal 2008. The increase was the result of increased borrowings in 2010 from our lender.
As a result of the foregoing, the Company had a net increase in cash of $346,068 during the six months ended May 31, 2010 , as compared to a net increase in cash of $20,372 for the six months ended May 31, 2009 .
In July 2002, the Company obtained a financing commitment with an asset-based lender totaling $1,000,000 (the “Credit Line”). Borrowings under the Credit Line accrue interest at the greater of the prime rate plus two percent (2.0%) or 6.75%. The Company is required to make monthly interest only payments. The Company may repay all or a portion of the line of credit at any time. In addition, the Company is obligated to pay one-quarter of one percent (1/4 of 1%) annually as an unused line fee for the difference between $1,000,000 and the average daily balance of the Credit Line. The Credit Line is collateralized by substantially all the Company’s assets and contains various financial covenants pertaining to the maintenance of working capital and tangible net worth. At May 31, 2010, the Company was in compliance with the financial covenants.
[chart]data.moneycentral.msn.com/scripts/chrtsrv.dll?symbol=SPRS&E1=0&LPR=2&C1=0&C2=0&C3=3&C4=2&D5=0&D2=0&D4=1&DD=1&width=612&height=258&CE=0&CF=0[/chart]
Nine Months Ended | Three Months Ended | |||||||||||||||
August 31, | August 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales | $ | 15,620,352 | $ | 8,576,213 | $ | 6,067,148 | $ | 3,333,225 | ||||||||
Cost of goods sold | 10,958,792 | 6,152,063 | 4,252,684 | 2,397,560 | ||||||||||||
Gross profit | 4,661,560 | 2,424,150 | 1,814,464 | 935,665 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and shipping expenses | 1,248,187 | 752,618 | 450,531 | 276,669 | ||||||||||||
General and administrative expenses | 1,836,010 | 1,478,631 | 634,279 | 465,311 | ||||||||||||
Depreciation and amortization | 105,180 | 112,960 | 37,410 | 37,876 | ||||||||||||
Total operating expenses | 3,189,377 | 2,344,209 | 1,122,220 | 779,856 | ||||||||||||
Income before other income (expense) | ||||||||||||||||
and income taxes | 1,472,183 | 79,941 | 692,244 | 155,809 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (90,270 | ) | (89,799 | ) | (30,120 | ) | (29,345 | ) | ||||||||
Investment income | 3,522 | 6,106 | 1,076 | 1,421 | ||||||||||||
Other income (expense) | (86,748 | ) | (83,693 | ) | (29,044 | ) | (27,924 | ) | ||||||||
Income (Loss) before income taxes | 1,385,435 | (3,752 | ) | 663,200 | 127,885 | |||||||||||
Income taxes (benefit) | 9,137 | 5,006 | (731 | ) | 526 | |||||||||||
Net Income (Loss) | 1,376,298 | (8,758 | ) | 663,931 | 127,359 | |||||||||||
Dividends on preferred stock | 16,350 | 16,350 | 8,175 | 8,175 | ||||||||||||
Net income (loss) available to | ||||||||||||||||
common shareholders | $ | 1,359,948 | $ | (25,108 | ) | $ | 655,756 | $ | 119,184 | |||||||
Net income (loss) per share available | ||||||||||||||||
to common shareholders: | ||||||||||||||||
Basic | $ | .15 | $ | (.00 | ) | $ | .07 | $ | .01 | |||||||
Diluted | $ | .15 | $ | (.00 | ) | $ | .07 | $ | .01 | |||||||
Weighted Shares Outstanding: | ||||||||||||||||
Basic | 8,895,008 | 8,874,512 | 8,922,512 | 8,874,512 | ||||||||||||
Diluted | 9,222,008 | 8,874,512 | 9,249,512 | 8,874,512 |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |