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Electro Rent Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: December 22, 2011 03:34PM

Electro Rent Corp. (ELRC) filed Quarterly Report for the period ended 2011-11-30. Electro Rent Corp. has a market cap of $412.8 million; its shares were traded at around $17.21 with a P/E ratio of 17.3 and P/S ratio of 1.8. The dividend yield of Electro Rent Corp. stocks is 4.6%. Electro Rent Corp. had an annual average earning growth of 2.8% over the past 10 years.



Highlight of Business Operations:

Comparing the first six months of fiscal 2012 to the first six months of fiscal 2011, our revenues increased by 15.6% from $104.1 million to $120.3 million, our operating profit increased 0.7% from $17.9 million to $18.1 million and our net income increased by 17.7% from $12.3 million to $14.5 million.

Our net income includes bargain purchase gains, net of deferred taxes, of $3.4 million and $0.2 million for the six months ended November 30, 2011 and 2010, respectively, as a result of our acquisitions of EMT and Telogy, respectively. Our operating profit modestly improved, as growth in our rental revenues and sales of new equipment were offset by an increase in depreciation expense of $2.3 million, or 9.9%, as we have invested in additional rental equipment to support our growth, and an increase in selling, general and administrative expenses of $4.5 million, or 16.6%, primarily related to the broadening and strengthening of our sales organization in support of our Agilent resale agreement, higher rental demand, and future growth opportunities.

Total revenues for the three months ended November 30, 2011 and 2010 were $61.6 million and $53.3 million, respectively. The 15.7% increase in total revenues was due to a 10.9% increase in rental and lease revenues and a 21.7% increase in sales of equipment and other revenues.

Total revenues for the six months ended November 30, 2011 and 2010 were $120.3 million and $104.1 million, respectively. The 15.6% increase in total revenues was due to a 9.9% increase in rental and lease revenues and a 22.9% increase in sales of equipment and other revenues.

Selling, general and administrative expenses increased 16.6% to $31.8 million in the first six months of fiscal 2012 compared to $27.3 million in the first six months of fiscal 2011. As a percentage of total revenues, selling, general and administrative expenses increased to 26.5% in the first six months of fiscal 2012 from 26.2% in the first six months of fiscal 2011. Our selling, general and administrative expenses increased primarily due to the broadening and strengthening of our sales organization in support of our Agilent resale agreement, higher rental demand, and future growth opportunities.

Read the The complete Report



Stocks Discussed: ELRC,
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