HeritageCrystal Clean Inc. (HCCI, Financial) filed Quarterly Report for the period ended 2010-06-19.
Heritagecrystal Clean Inc. has a market cap of $115.7 million; its shares were traded at around $8.38 with a P/E ratio of 36.4 and P/S ratio of 1.1. HCCI is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp, Chuck Royce of Royce& Associates.
For the second fiscal quarter of 2010, sales increased $2.9 million, or 12.9%, to $25.3 million from $22.4 million for the second fiscal quarter of 2009. For the first half of 2010, sales increased $3.2 million, or 6.9%, to $49.3 million from $46.2 million for the first half of 2009. Sales increased in all service types in the second fiscal quarter and on a year-to-date basis compared to the second fiscal quarter and first half of fiscal 2009 due to higher customer demand for our services. The increase was also positively impacted by our price increases in the fourth quarter of fiscal 2009.
For the second fiscal quarter of 2010, cost of sales increased $1.2 million, or 22.3%, to $6.4 million from $5.2 million for the second fiscal quarter of 2009. Cost of sales as a percentage of sales increased to 25.3% in second fiscal quarter of 2010, from 23.4%, in the second fiscal quarter of 2009. The increase was due to the higher used oil prices and volumes in the second fiscal quarter of 2010 compared to the second fiscal quarter of 2009. This was partially offset as the increase in our used oil inventory in the second fiscal quarter of 2010 was greater than the increase during second fiscal quarter of 2009. For the first half of 2010, cost of sales decreased $0.3 million, or 2.5%, to $12.4 million from $12.7 million for the first half of 2009. Cost of sales as a percentage of sales decreased to 25.2% in the first half of 2010, from 27.6%, in the first half of 2009. Early in fiscal 2009, cost of sales was still negatively impacted by the declining
For the second fiscal quarter of 2010, operating costs increased $0.7 million, or 6.0%, to $12.8 million from $12.1 million for the second fiscal quarter of 2009. For the first half of 2010, operating costs increased $1.0 million, or 4.0%, to $25.3 million from $24.3 million for the first half of 2009. We undertook cost cutting measures such as workforce efficiencies early in fiscal 2009 to compensate for the sales decline we were experiencing during the recession. These measures continue to reduce our operating expenses as a percentage of sales when comparing the first half of fiscal 2010 to fiscal 2009. Costs for diesel and transportation fuel surcharges in the second fiscal quarter and the first half in 2010 were higher than in the second fiscal quarter and the first half of 2009. Additionally, we incurred branch labor, collection truck and facility costs in connection with new branches opened in the first fiscal quarter of 2010.
For the second fiscal quarter of 2010, selling, general and administrative expenses increased $0.4 million, or 10.0%, to $4.4 million from $4.0 million for the second fiscal quarter of 2009. For the first half of 2010, selling general and administrative expenses increased $1.0 million, or 12.8%, to $8.8 million from $7.8 million for the first half of 2009. Selling, general and administrative expenses as a percentage of sales increased to 17.8% in the first half of 2010, from 17.0%, in the first half of 2009. The increase was primarily due to a charge related to a sales tax audit recorded in the first fiscal quarter of 2010 and the increase in the Management Incentive Plan (“MIP”) bonus pool which is aligned with the profitability of operations.
In the first quarter of 2010, we announced that we were planning to develop a used oil re-refinery. In the second fiscal quarter of 2010, we secured the required major permits and announced that we selected Indianapolis, Indiana as our site for the re-refinery, which is also the location of our largest hub. The re-refinery is being designed to process up to 50 million gallons per year of used oil feedstock and produce up to 30 million gallons per year of lubricating base oil. The estimated capital cost of the project is approximately $40.0 million and we expect that the operation of the re-refinery will increase our working capital requirements by $5 to $10 million. The re-refinery is expected to begin operating at partial capacity during 2012. As of June 19, 2010, $2.5 million has been capitalized relating to the used oil re-refinery. An additional $3.7 million has been committed for orders for significant equipment related to the used oil re-refinery as of the end of the second fiscal quarter of 2010. During fiscal 2010 and 2011, we plan to roll out additional used oil collection routes to increase the volume of used oil that we collect and we estimate that we will incur roughly $1.0 million and $1.5 million of net expense, respectively, related to the roll out. We intend to use the money we raised in our recent equity offering to fund a portion of the construction costs for the used oil re-refinery.
Read the The complete Report
Heritagecrystal Clean Inc. has a market cap of $115.7 million; its shares were traded at around $8.38 with a P/E ratio of 36.4 and P/S ratio of 1.1. HCCI is in the portfolios of Tom Gayner of Markel Gayner Asset Management Corp, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
In the first quarter of 2010, we announced our plans to develop a used oil re-refinery. In the second fiscal quarter of 2010, we secured the required major permits and announced that we selected Indianapolis, Indiana as our site for the re-refinery, which is also the location of our largest hub. The re-refinery is being designed to process up to 50 million gallons per year of used oil feedstock and produce up to 30 million gallons per year of lubricating base oil. The estimated capital cost of the project is approximately $40 million and we expect that operation of the re-refinery will increase our working capital requirements by approximately $5 to $10 million. The re-refinery is expected to begin operating at partial capacity during 2012. During the design and construction period, we plan to roll out additional used oil collection routes to increase the volume of used oil that we collect and we estimate that during fiscal 2010 and 2011 we will incur net expenses of roughly $1.0 million and $1.5 million, respectively, related to this roll out.For the second fiscal quarter of 2010, sales increased $2.9 million, or 12.9%, to $25.3 million from $22.4 million for the second fiscal quarter of 2009. For the first half of 2010, sales increased $3.2 million, or 6.9%, to $49.3 million from $46.2 million for the first half of 2009. Sales increased in all service types in the second fiscal quarter and on a year-to-date basis compared to the second fiscal quarter and first half of fiscal 2009 due to higher customer demand for our services. The increase was also positively impacted by our price increases in the fourth quarter of fiscal 2009.
For the second fiscal quarter of 2010, cost of sales increased $1.2 million, or 22.3%, to $6.4 million from $5.2 million for the second fiscal quarter of 2009. Cost of sales as a percentage of sales increased to 25.3% in second fiscal quarter of 2010, from 23.4%, in the second fiscal quarter of 2009. The increase was due to the higher used oil prices and volumes in the second fiscal quarter of 2010 compared to the second fiscal quarter of 2009. This was partially offset as the increase in our used oil inventory in the second fiscal quarter of 2010 was greater than the increase during second fiscal quarter of 2009. For the first half of 2010, cost of sales decreased $0.3 million, or 2.5%, to $12.4 million from $12.7 million for the first half of 2009. Cost of sales as a percentage of sales decreased to 25.2% in the first half of 2010, from 27.6%, in the first half of 2009. Early in fiscal 2009, cost of sales was still negatively impacted by the declining
For the second fiscal quarter of 2010, operating costs increased $0.7 million, or 6.0%, to $12.8 million from $12.1 million for the second fiscal quarter of 2009. For the first half of 2010, operating costs increased $1.0 million, or 4.0%, to $25.3 million from $24.3 million for the first half of 2009. We undertook cost cutting measures such as workforce efficiencies early in fiscal 2009 to compensate for the sales decline we were experiencing during the recession. These measures continue to reduce our operating expenses as a percentage of sales when comparing the first half of fiscal 2010 to fiscal 2009. Costs for diesel and transportation fuel surcharges in the second fiscal quarter and the first half in 2010 were higher than in the second fiscal quarter and the first half of 2009. Additionally, we incurred branch labor, collection truck and facility costs in connection with new branches opened in the first fiscal quarter of 2010.
For the second fiscal quarter of 2010, selling, general and administrative expenses increased $0.4 million, or 10.0%, to $4.4 million from $4.0 million for the second fiscal quarter of 2009. For the first half of 2010, selling general and administrative expenses increased $1.0 million, or 12.8%, to $8.8 million from $7.8 million for the first half of 2009. Selling, general and administrative expenses as a percentage of sales increased to 17.8% in the first half of 2010, from 17.0%, in the first half of 2009. The increase was primarily due to a charge related to a sales tax audit recorded in the first fiscal quarter of 2010 and the increase in the Management Incentive Plan (“MIP”) bonus pool which is aligned with the profitability of operations.
In the first quarter of 2010, we announced that we were planning to develop a used oil re-refinery. In the second fiscal quarter of 2010, we secured the required major permits and announced that we selected Indianapolis, Indiana as our site for the re-refinery, which is also the location of our largest hub. The re-refinery is being designed to process up to 50 million gallons per year of used oil feedstock and produce up to 30 million gallons per year of lubricating base oil. The estimated capital cost of the project is approximately $40.0 million and we expect that the operation of the re-refinery will increase our working capital requirements by $5 to $10 million. The re-refinery is expected to begin operating at partial capacity during 2012. As of June 19, 2010, $2.5 million has been capitalized relating to the used oil re-refinery. An additional $3.7 million has been committed for orders for significant equipment related to the used oil re-refinery as of the end of the second fiscal quarter of 2010. During fiscal 2010 and 2011, we plan to roll out additional used oil collection routes to increase the volume of used oil that we collect and we estimate that we will incur roughly $1.0 million and $1.5 million of net expense, respectively, related to the roll out. We intend to use the money we raised in our recent equity offering to fund a portion of the construction costs for the used oil re-refinery.
Read the The complete Report
