New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
Zoltek Companies Inc. Reports Operating Results (10-K)
Posted by: gurufocus (IP Logged)
Date: November 30, 2011 06:37AM

Zoltek Companies Inc. (ZOLT) filed Annual Report for the period ended 2011-09-30. Zoltek Companies Inc. has a market cap of $196.9 million; its shares were traded at around $5.73 with and P/S ratio of 1.5.



Highlight of Business Operations:

The Company s cost of sales increased by 16.3% or $18.8 million, to $134.0 million during fiscal 2011 from $115.2 million during fiscal 2010. Our cost of sales increased in response to the increase in production volume to meet the customer demand. Carbon fiber cost of sales increased by 12.6%, or $11.9 million, to $106.8 million during fiscal 2011 from $94.9 million for fiscal 2010, reflecting high raw material costs described above. Technical fiber cost of sales increased 33.8%, or $6.4 million, to $25.7 million for fiscal 2011 from $19.1 million for fiscal 2010 primarily as a result of the increased sales and ACN costs noted above. The cost of sales of the corporate/other products segment increased by 36.0%, or $0.4 million to $1.6 million for fiscal 2011 as compared to $1.2 million for fiscal 2010.

The Company s cost of sales increased by 16.3% or $18.8 million, to $134.0 million during fiscal 2011 from $115.2 million during fiscal 2010. Our cost of sales increased in response to the increase in production volume to meet the customer demand. Carbon fiber cost of sales increased by 12.6%, or $11.9 million, to $106.8 million during fiscal 2011 from $94.9 million for fiscal 2010, reflecting high raw material costs described above. Technical fiber cost of sales increased 33.8%, or $6.4 million, to $25.7 million for fiscal 2011 from $19.1 million for fiscal 2010 primarily as a result of the increased sales and ACN costs noted above. The cost of sales of the corporate/other products segment increased by 36.0%, or $0.4 million to $1.6 million for fiscal 2011 as compared to $1.2 million for fiscal 2010.

Included in the Company s cost of sales were available unused capacity costs of $11.5 million. These costs are comprised of fixed production costs allocated to manufacturing lines which were primarily related to our Mexico plant producing below normal levels and amounted to $10.1 million for the carbon fiber segment and $1.4 million for the technical fiber segment during fiscal 2011. The Company believes maintaining this available unused capacity has been necessary to encourage development of significant large-scale applications and maintain a level of readiness as we anticipate a return to more robust market conditions. The available unused capacity costs will decline as production volume increases. The Company's gross profit increased by 33.2%, or $4.4 million, to $17.7 million during fiscal 2011 from $13.3 million in fiscal 2010. Carbon fiber gross profit margin increased to 10.2% for fiscal 2011 compared to 8.2% for fiscal 2010. Carbon fiber gross profit increased to $12.1 million from $8.5 million during these respective periods. The increases in carbon fiber gross profit and gross profit percentage resulted primarily from the increase in the production levels to satisfy the increase in demand indicated above. Technical fiber gross profit increased to $5.0 million, or 16.3% of sales, for fiscal 2011 from $4.2 million, or 18.2% of sales, during fiscal 2010. The increases in technical fiber gross profit and margin resulted from increased production efficiency from utilizing capacity. The gross profit of the other products increased for fiscal 2011 to $0.6 million compared to a gross profit for fiscal 2010 of $0.6 million. Application and market development costs were $8.6 million in fiscal 2011 and $8.2 million in fiscal 2010. These costs included product and market development efforts, product trials and product development personnel costs. Targeted emerging applications include automobile components, offshore oil and gas drilling, fire/heat barrier and alternate energy technologies. The increase from fiscal 2010 to fiscal 2011 was primarily due to increased focus on developing new production methods that will enable potential automotive customers to fabricate cost-effective carbon fiber intermediate products. Selling, general and administrative expenses decreased by $1.8 million to $13.8 million in fiscal 2011 from $15.6 million in fiscal 2010. The Company recorded $0.87 million for the cost of employee and director services received in exchange for equity instruments during fiscal 2011, a decrease of $1.23 million from $2.0 million in fiscal 2010. Additionally, the decrease was due to a $0.5 million decrease in bad debt expense, $0.7 million decrease in professional fees, $0.2 million decrease in depreciation expense and a $0.1 million decrease in insurance costs. The Company increased employee costs by $11.0 million, primarily related to corporate sales activities.

The Company s sales decreased 7.4%, or $10.3 million, to $128.5 million in fiscal 2010 from $138.8 million in fiscal 2009. Sales volume to our largest customer decreased by $24.7 million as demand for their wind turbines declined and they moved to just-in-time inventory. This reduction was, however, offset partially by an increase in volume of sales to other wind energy customers and for other applications. Certain price reductions related to market pressures caused a $9.1 million decrease in sales compared to fiscal 2010. Carbon fiber sales decreased 10.4%, or $12.0 million, to $103.4 million during fiscal 2010 from $115.3 million during fiscal 2009. Technical fiber sales increased 11.0%, or $2.3 million, to $23.3 million during fiscal 2010 from $21.0 million during fiscal 2009. Technical fiber sales increased in fiscal 2010 primarily due to increased shipments to aircraft brake customers. Sales of other products and services consisting primarily of energy utility services provided to the local community by our Hungarian subsidiary decreased $0.6 million to $1.8 million during fiscal 2010 from $2.4 million during fiscal 2009.

The Company s cost of sales increased by 6.5% or $7.1 million, to $115.2 million during fiscal 2010 from $108.1 million during fiscal 2009. Our raw material costs increased substantially as unscheduled shutdowns of ACN production in Europe coupled with an increase in demand for ACN drove market prices up more than 100% during fiscal 2010. Carbon fiber cost of sales increased by 7.0%, or $6.2 million, to $94.9 million during fiscal 2010 from $88.7 million in fiscal 2009 as a result of the increase in raw material costs. Technical fiber cost of sales increased $1.7 million, or 9.8%, to $19.1 million for fiscal 2010 from $17.4 million for fiscal 2009 primarily as a result of the increased sales and raw material costs noted above. The cost of sales of the corporate/other products segment decreased by 41.0%, or $0.8 million to $1.2 million for fiscal 2010 compared to $2.1 million for fiscal 2009.

Read the The complete Report



Stocks Discussed: ZOLT,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial