Another solid quarter considering all the headwinds they are facing. The drop in the Australian dollars continues to affect their reported results in USD. For the year, sales in Australian dollars were actually up 5%, but due to the declining dollar, sales as reported in USD were down 11%. Even with the difficulties associated with the falling currency and overall broader weakness in the iron ore and mining markets, AYSI is still delivering solid profitability. Cash is still strong at $12.0 million and with the Indonesian facilities listed for $4 million, it totals $16.0 million of cash assuming the sale of the facilities at the book value. $16 million of cash and land is approximately $0.92 per share. So the remaining business is being valued at $0.27 per share, or less than 1x last year's earnings.
I think at this time next year, if they sell the Indonesian land and building at $4 million, cash per share will be near $1.10 per share, or the current share price. There is little risk here with the large cash cushion, and plenty of opportunity once AYSI can start growing again. I also believe there is still the potential for the family to take the company private with a buyout of remaining shareholders using existing cash on hand. I think a buyout would have to be in the range of $2.00 to be fair based on the current market conditions.
