Baker Corp (BKR, Financial) filed Quarterly Report for the period ended 2010-09-30.
Baker Corp has a market cap of $312.9 million; its shares were traded at around $34.13 with a P/E ratio of 13.1 and P/S ratio of 0.7. Baker Corp had an annual average earning growth of 12.4% over the past 10 years.BKR is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Our gross profit totaled $30.3 million for 2010 compared to $22.2 million for 2009, reflecting an increase of $8.1 million or 36%. Gross profit expressed as a percentage of revenues was 22.3% for 2010 compared to 20.2% for 2009. The increase in gross profit for 2010 is primarily attributable to a decrease in incentive compensation costs of $1.7 million, the addition of LPAs margin and our Transportation segments increased revenue volume compared to 2009, partially offset by increased amortization expense of $1.4 million for intangible assets related to the LPA acquisition and a decrease in our Federal segments margin, which included a $1.2 million decrease in project incentive awards. Included in total gross profit for 2010 and 2009 were Corporate-related costs of $0.5 million and $0.2 million, respectively, which were not allocated to our segments.
Our SG&A expenses totaled $22.5 million for 2010 compared to $14.7 million for 2009, reflecting an increase of $7.8 million or 53%. SG&A expenses increased period-over-period due to additional SG&A expenses of $5.5 million from LPA, which includes amortization expense of $0.4 million for intangible assets related to the LPA acquisition. Also contributing to the increase in SG&A was an increase in acquisition-related costs and increased rent-related costs associated with significant renewal activity and the addition of new locations in the period. SG&A expenses expressed as a percentage of revenues increased to 16.6% for 2010 from 13.4% for 2009. This overall increase in SG&A expenses expressed as a percentage of revenues is primarily driven by the aforementioned increase related to LPAs SG&A, increased acquisition-related costs of $0.3 million and increased rent-related cost of $0.3 million. SG&A expenses for the Transportation segment were $14.4 million for 2010 compared to $8.0 million for 2009, reflecting an increase of $6.4 million or 81%. SG&A expenses for the Transportation segment expressed as a percentage of revenues increased to 18.0% for 2010 from 15.8% for 2009. SG&A expenses for the Federal segment were $8.1 million for 2010 compared to $6.7 million for 2009, reflecting an increase of $1.4 million or 20%. SG&A expenses for the Federal segment expressed as a percentage of revenues increased to 14.6% for 2010 from 11.3% for 2009.
Other income/(expense) aggregated to income of $0.6 million for 2010 compared to income of $3.4 million for 2009. Other income/(expense) primarily included equity income from our unconsolidated subsidiaries of $0.5 million for 2010 compared to $3.5 million for 2009. The decrease in equity income from our unconsolidated subsidiaries was primarily due to SBHs current Iraq IDIQ contract ending in September 2009 and the associated decrease in work performed as existing task orders are completed. It is not anticipated that further contract funding will be added to this contract vehicle. A modest amount of currently funded task order work was extended beyond September 30, 2010 but the contract was materially complete by September 2010. The decrease in SBH from $3.5 million for 2009 to $0.3 million for 2010 was partially offset by an increase of $0.2 million related to the addition of LPAs joint venture, Louisiana TIMED Managers (LTM) during the quarter. Also included in Other income/(expense) is interest income, interest expense and other income and expense, net, which were nominal in both periods presented.
Our SG&A expenses totaled $57.3 million for 2010 compared to $43.9 million for 2009, reflecting an increase of $13.4 million or 31%. SG&A expenses increased period-over-period primarily due to additional SG&A expense of $9.5 million from LPA, which includes amortization expense of $0.6 million for intangible assets related to the LPA acquisition. Also contributing to the increase in SG&A was an increase in acquisition-related costs and increased rent-related costs associated with significant renewal activity and the addition of new locations in the period, a nonrecurring indirect tax charges and increased professional fees. SG&A expenses expressed as a percentage of revenues increased to 15.1% for 2010 from 13.0% for 2009. This overall increase in SG&A expenses expressed as a percentage of revenues is primarily driven by the aforementioned increased acquisition-related costs of $2.0 million, increased rent-related cost of $0.9 million, a nonrecurring indirect tax charges of $0.6 million and professional fees of 0.4 million. This was offset by a reduction of incentive compensation costs of $1.5 million. SG&A expenses for the Transportation segment were $33.0 million for 2010 compared to $22.2 million for 2009, reflecting an increase of $10.8 million or 49%. SG&A expenses for the Transportation segment expressed as a percentage of revenues increased to 16.2% for 2010 from 15.1% for 2009. SG&A expenses for the Federal segment were $24.3 million for 2010 compared to $21.7 million for 2009, reflecting an increase of $2.6 million or 12.2%. SG&A expenses for the Federal segment expressed as a percentage of revenues increased to 13.9% for 2010 from 11.3% for 2009 driven in part by the Federal segments decreased revenue volume.
Other income/(expense) aggregated to income of $2.3 million for 2010 compared to $6.5 million for 2009. Other income/(expense) primarily included equity income from our unconsolidated subsidiaries of $2.1 million for 2010 compared to $6.2 million for 2009. The decrease in equity income from our unconsolidated subsidiaries was primarily due to SBHs current Iraq IDIQ contract ending in September 2009 and the associated decrease in work performed as existing task orders are completed. It is not anticipated that further contract funding will be added to this contract vehicle. A modest amount of currently funded task order work was extended beyond September 30, 2010 but the contract was materially complete by September 2010. The decrease in SBH from $6.2 million for 2009 to $1.2 million for 2010 was partially offset by an increase of $0.9 million related to the addition of LTM during the period. We do not anticipate LTM to maintain this level of income in future periods. Also included in Other income/(expense) is interest income, interest expense and other income and expense, net, which were nominal in both periods presented.
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Baker Corp has a market cap of $312.9 million; its shares were traded at around $34.13 with a P/E ratio of 13.1 and P/S ratio of 0.7. Baker Corp had an annual average earning growth of 12.4% over the past 10 years.BKR is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our earnings per diluted common share for continuing operations were $1.67 for the nine months ended September 30, 2010, compared to $2.10 per diluted common share reported for 2009. Our total Company earnings per diluted common share were $1.51 for the nine months ended September 30, 2010, compared to $2.48 per diluted common share reported for the same period in 2009. Income from continuing operations for the nine months ended September 30, 2010 was $15.2 million, compared to $18.7 million for the same period in 2009. These results were driven by a decrease in our Federal segments work performed on the FEMA Map Mod Program contract, a decrease in work performed for our unconsolidated joint venture in Iraq and an overall decrease in revenues in our Federal Segment. In addition, income from our unconsolidated subsidiary, Stanley Baker Hill, LLC (SBH), decreased by $5.1 million period over period. These decreases were offset by an increase in revenues and margins in our Transportation segment, which includes the results of LPA, and a year-over-year decrease in our incentive compensation costs, partially offset by amortization expense for intangible assets related to the LPA acquisition. We had a loss from discontinued operations related to our former Energy segment of $1.5 million for 2010, as compared to income from discontinued operations of $3.5 million for 2009. The 2010 loss from discontinued operations was primarily attributable to the unfavorable development of legacy insurance claims and foreign tax accruals related to our former Energy business.Our gross profit totaled $30.3 million for 2010 compared to $22.2 million for 2009, reflecting an increase of $8.1 million or 36%. Gross profit expressed as a percentage of revenues was 22.3% for 2010 compared to 20.2% for 2009. The increase in gross profit for 2010 is primarily attributable to a decrease in incentive compensation costs of $1.7 million, the addition of LPAs margin and our Transportation segments increased revenue volume compared to 2009, partially offset by increased amortization expense of $1.4 million for intangible assets related to the LPA acquisition and a decrease in our Federal segments margin, which included a $1.2 million decrease in project incentive awards. Included in total gross profit for 2010 and 2009 were Corporate-related costs of $0.5 million and $0.2 million, respectively, which were not allocated to our segments.
Our SG&A expenses totaled $22.5 million for 2010 compared to $14.7 million for 2009, reflecting an increase of $7.8 million or 53%. SG&A expenses increased period-over-period due to additional SG&A expenses of $5.5 million from LPA, which includes amortization expense of $0.4 million for intangible assets related to the LPA acquisition. Also contributing to the increase in SG&A was an increase in acquisition-related costs and increased rent-related costs associated with significant renewal activity and the addition of new locations in the period. SG&A expenses expressed as a percentage of revenues increased to 16.6% for 2010 from 13.4% for 2009. This overall increase in SG&A expenses expressed as a percentage of revenues is primarily driven by the aforementioned increase related to LPAs SG&A, increased acquisition-related costs of $0.3 million and increased rent-related cost of $0.3 million. SG&A expenses for the Transportation segment were $14.4 million for 2010 compared to $8.0 million for 2009, reflecting an increase of $6.4 million or 81%. SG&A expenses for the Transportation segment expressed as a percentage of revenues increased to 18.0% for 2010 from 15.8% for 2009. SG&A expenses for the Federal segment were $8.1 million for 2010 compared to $6.7 million for 2009, reflecting an increase of $1.4 million or 20%. SG&A expenses for the Federal segment expressed as a percentage of revenues increased to 14.6% for 2010 from 11.3% for 2009.
Other income/(expense) aggregated to income of $0.6 million for 2010 compared to income of $3.4 million for 2009. Other income/(expense) primarily included equity income from our unconsolidated subsidiaries of $0.5 million for 2010 compared to $3.5 million for 2009. The decrease in equity income from our unconsolidated subsidiaries was primarily due to SBHs current Iraq IDIQ contract ending in September 2009 and the associated decrease in work performed as existing task orders are completed. It is not anticipated that further contract funding will be added to this contract vehicle. A modest amount of currently funded task order work was extended beyond September 30, 2010 but the contract was materially complete by September 2010. The decrease in SBH from $3.5 million for 2009 to $0.3 million for 2010 was partially offset by an increase of $0.2 million related to the addition of LPAs joint venture, Louisiana TIMED Managers (LTM) during the quarter. Also included in Other income/(expense) is interest income, interest expense and other income and expense, net, which were nominal in both periods presented.
Our SG&A expenses totaled $57.3 million for 2010 compared to $43.9 million for 2009, reflecting an increase of $13.4 million or 31%. SG&A expenses increased period-over-period primarily due to additional SG&A expense of $9.5 million from LPA, which includes amortization expense of $0.6 million for intangible assets related to the LPA acquisition. Also contributing to the increase in SG&A was an increase in acquisition-related costs and increased rent-related costs associated with significant renewal activity and the addition of new locations in the period, a nonrecurring indirect tax charges and increased professional fees. SG&A expenses expressed as a percentage of revenues increased to 15.1% for 2010 from 13.0% for 2009. This overall increase in SG&A expenses expressed as a percentage of revenues is primarily driven by the aforementioned increased acquisition-related costs of $2.0 million, increased rent-related cost of $0.9 million, a nonrecurring indirect tax charges of $0.6 million and professional fees of 0.4 million. This was offset by a reduction of incentive compensation costs of $1.5 million. SG&A expenses for the Transportation segment were $33.0 million for 2010 compared to $22.2 million for 2009, reflecting an increase of $10.8 million or 49%. SG&A expenses for the Transportation segment expressed as a percentage of revenues increased to 16.2% for 2010 from 15.1% for 2009. SG&A expenses for the Federal segment were $24.3 million for 2010 compared to $21.7 million for 2009, reflecting an increase of $2.6 million or 12.2%. SG&A expenses for the Federal segment expressed as a percentage of revenues increased to 13.9% for 2010 from 11.3% for 2009 driven in part by the Federal segments decreased revenue volume.
Other income/(expense) aggregated to income of $2.3 million for 2010 compared to $6.5 million for 2009. Other income/(expense) primarily included equity income from our unconsolidated subsidiaries of $2.1 million for 2010 compared to $6.2 million for 2009. The decrease in equity income from our unconsolidated subsidiaries was primarily due to SBHs current Iraq IDIQ contract ending in September 2009 and the associated decrease in work performed as existing task orders are completed. It is not anticipated that further contract funding will be added to this contract vehicle. A modest amount of currently funded task order work was extended beyond September 30, 2010 but the contract was materially complete by September 2010. The decrease in SBH from $6.2 million for 2009 to $1.2 million for 2010 was partially offset by an increase of $0.9 million related to the addition of LTM during the period. We do not anticipate LTM to maintain this level of income in future periods. Also included in Other income/(expense) is interest income, interest expense and other income and expense, net, which were nominal in both periods presented.
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