KRSL posts EPS of $0.32 for the third quarter on revenue of $7.45 million....
Solid quarter in line with what I had expected. Margins improved while top-tine revenue was below my expectations. The company still has a solid cash position and backlog increased again to $32.4 million.
Kreisler Manufacturing Corporation Third Quarter Results: 96% Net Income Increase and 19% Sales Increase
Wednesday May 14, 4:05 pm ET
ELMWOOD PARK, N.J., May 14 /PRNewswire-FirstCall/ -- Kreisler Manufacturing Corporation (Nasdaq: KRSL - News) announced sales and earnings for the three and nine months ended March 31, 2008.
Highlights
Three Months Ended March 31, 2008
-- Net Sales 19% increase to $7,445,000 compared to $6,247,000 at
March 31, 2007
-- Net income 96% increase to $605,000 compared to $308,000 at
March 31, 2007
-- EPS $0.32 fully diluted earnings per common share compared to
$0.16 at March 31, 2007
-- Backlog 9% increase to $32,400,000 compared to $29,689,000 at
March 31, 2007
Nine Months Ended March 31, 2008
-- Net Sales 25% increase to $21,709,000 compared to $17,346,000 at
March 31, 2007
-- Net income 25% increase to $1,635,000 compared to $1,308,000 at
March 31, 2007
-- EPS $0.86 fully diluted earnings per common share compared to
$0.71 at March 31, 2007
Kreisler CEO Michael Stern commented that "We are pleased with our latest financial results. Our strategy remains focused on expanding global capabilities, making incremental improvements in product quality and, to further improve efficiencies, enhancing employee skills. Kreisler Polska's tube and pipe facility is on schedule to be operational this summer with the goal of supporting current and future U.S. and European customers. We continue positioning Kreisler to benefit from strategic opportunities while providing competitive pricing through process improvements and cost containment."
"Our net income for the three and nine months ended March 31, 2008 increased 96% and 25%, respectively, compared to the prior fiscal year," said Kreisler CFO Ned Stern. "During our fiscal 2008 third quarter, sales of components for military aircraft engines and industrial gas turbines increased 24% and 179%, respectively, compared to our third quarter fiscal 2007 sales," said Ned Stern, "while our sales of commercial aircraft engine components were 7% lower. For the nine months ended March 31, 2008, all three of our industry market areas experienced sales increases compared to the same period in the prior fiscal year." The Company noted that the net income for the three months ended March 31, 2007 was affected by a $235,000 pre-tax product warranty expense and a $129,000 sales reduction attributable to a U.S. Government contract.
Ned Stern also noted that, "our order backlog as of March 31, 2008 increased 9% to $32,400,000 compared to $29,689,000 as of March 31, 2007. Approximately 74% of our order backlog is scheduled to ship over the next 12 months. Our March 31, 2008 cash on hand and short-term investments of $7,523,000 increased $1,900,000 compared to June 30, 2007 due to strong working capital management and advanced payments from our customers. We also held approximately $700,000 of AAA-rated auction rate securities as long-term investments. While we have no immediate need for liquidity, these long-term investments have been affected by the ability of the financial markets to trade such securities. We do not anticipate that the lack of liquidity of these long-term investments will affect our ability to execute our current business plan."
Kreisler Manufacturing Corporation is a manufacturer of precision metal components and assemblies for use in military and commercial aircraft engines and industrial gas turbines. These products primarily include tube and manifold assemblies. The Company has two wholly owned subsidiaries: Kreisler Industrial Corporation located in Elmwood Park, New Jersey, and Kreisler Polska Sp. z o.o located in Krakow, Poland.
