Envirostar Inc (EVI, Financial) filed Quarterly Report for the period ended 2010-09-30.
Envirostar Inc has a market cap of $7.2 million; its shares were traded at around $1.03 with a P/E ratio of 17.1 and P/S ratio of 0.4.
During the first quarter of fiscal 2011, cash increased by $878,950 compared to an increase of $361,086 during the same period of fiscal 2010. The following summarizes the Company s Consolidated Statement of Cash Flows.
For the three months ended September 30, 2010, operating activities provided cash of $880,876 compared to $367,362 of cash provided during the same period of fiscal 2010. The cash provided by operating activities was primarily due to an increase of $748,522 in customer deposits as incoming orders increased during the quarter. In addition, cash was provided by the Company s net earnings of $131,952, supplemented by non-cash expenses for depreciation and amortization of $14,748 and a $18,796 provision for deferred taxes. A reduction in inventories provided cash of $120,809, which was partially offset by a $44,603 reduction in an inventory reserve. This reserve was placed against returned machinery in prior years which the Company resold during the first quarter of fiscal 2011. Additional cash was provided by a decrease of $124,599 in accounts and trade notes receivable and an increase of $139,119 in accounts payable and accrued expenses, each resulting in the ordinary course of business. These increases in cash were partially offset by a $315,420 decrease in accrued employee expenses as year end accrued bonuses were paid out during the first quarter. Cash of $73,459 was also used to increase lease and mortgage receivables as the Company is allotting some of its cash to increase leasing contracts, which will increase interest income and secure some orders which the Company would normally lose due to credit issues.
For the three month period ended September 30, 2009, operating activities provided cash of $367,362 compared to $365,542 of cash provided during the same period of fiscal 2009. The cash provided by operating activities in the fiscal 2010 period was primarily due to a decrease in accounts, trade notes and lease receivables of $258,245 as a result of a decrease in sales during that quarter, an increase of $257,967 in accounts payable and accrued expenses which was the result of normal business activities and an increase of $322,705 in customer deposits which reflected a slight increase in backlog at the end of the quarter. Accrued employee expenses used cash of $326,448 as fiscal 2009 year end accrued bonuses were paid during the quarter. Cash was also used to fund the Company s operating loss of $70,898, supplemented by the collection of a $35,000 account receivable which resulted in the reversal of a previously recognized bad debt expense, partially offset by the non-cash expense of $20,476 for depreciation and amortization. Additional cash was used to increase inventories by $62,979 and as a result of an increase in refundable income taxes of $56,561 due to the loss in the first quarter of fiscal 2010.
Investing activities used cash of $1,926 and $6,276 during the first quarters of fiscal 2011 and 2010 respectively, mostly for capital expenditures.
Net sales for the three month period ended September 30, 2010 increased by $1,092,127 (30.5%) from the same period of fiscal 2010. The increase in sales was primarily attributed to an improvement in laundry equipment sales which increased by 53.7% over the same period of last year and reflected the general improvement in economic conditions, and sales of the Company s new boiler line, introduced in late fiscal 2009, which was the primary reason for a 170.7% increase in boiler sales. Spare parts sales also improved by 5.5%. These increases were offset, in part, by a decrease in drycleaning equipment sales of 13.7%. Revenues of development fees, franchise and license fees, commission and other income increased by $133,651 (303.7%) due principally to a substantial commission received on a sale by another distributor for an installation made in the Company s territory. Royalty and license fee income were similar to the same period of fiscal 2010.
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Envirostar Inc has a market cap of $7.2 million; its shares were traded at around $1.03 with a P/E ratio of 17.1 and P/S ratio of 0.4.
Highlight of Business Operations:
Revenues for the first quarter of fiscal 2011 increased by 33.8% over the first quarter of fiscal 2010 as the economy started to improve. Sales for the first quarter do not reflect a large installation made in the Company s territory; however, the Company earned a substantial commission thereon. The improved sales picture resulted from an increase of 53.7% in laundry equipment sales and a 170.7% increase in boiler sales. Net earnings during the first quarter were $131,952 or $.02 per share compared to a loss of $70,898 or $.01 per share during the first quarter of fiscal 2010.During the first quarter of fiscal 2011, cash increased by $878,950 compared to an increase of $361,086 during the same period of fiscal 2010. The following summarizes the Company s Consolidated Statement of Cash Flows.
For the three months ended September 30, 2010, operating activities provided cash of $880,876 compared to $367,362 of cash provided during the same period of fiscal 2010. The cash provided by operating activities was primarily due to an increase of $748,522 in customer deposits as incoming orders increased during the quarter. In addition, cash was provided by the Company s net earnings of $131,952, supplemented by non-cash expenses for depreciation and amortization of $14,748 and a $18,796 provision for deferred taxes. A reduction in inventories provided cash of $120,809, which was partially offset by a $44,603 reduction in an inventory reserve. This reserve was placed against returned machinery in prior years which the Company resold during the first quarter of fiscal 2011. Additional cash was provided by a decrease of $124,599 in accounts and trade notes receivable and an increase of $139,119 in accounts payable and accrued expenses, each resulting in the ordinary course of business. These increases in cash were partially offset by a $315,420 decrease in accrued employee expenses as year end accrued bonuses were paid out during the first quarter. Cash of $73,459 was also used to increase lease and mortgage receivables as the Company is allotting some of its cash to increase leasing contracts, which will increase interest income and secure some orders which the Company would normally lose due to credit issues.
For the three month period ended September 30, 2009, operating activities provided cash of $367,362 compared to $365,542 of cash provided during the same period of fiscal 2009. The cash provided by operating activities in the fiscal 2010 period was primarily due to a decrease in accounts, trade notes and lease receivables of $258,245 as a result of a decrease in sales during that quarter, an increase of $257,967 in accounts payable and accrued expenses which was the result of normal business activities and an increase of $322,705 in customer deposits which reflected a slight increase in backlog at the end of the quarter. Accrued employee expenses used cash of $326,448 as fiscal 2009 year end accrued bonuses were paid during the quarter. Cash was also used to fund the Company s operating loss of $70,898, supplemented by the collection of a $35,000 account receivable which resulted in the reversal of a previously recognized bad debt expense, partially offset by the non-cash expense of $20,476 for depreciation and amortization. Additional cash was used to increase inventories by $62,979 and as a result of an increase in refundable income taxes of $56,561 due to the loss in the first quarter of fiscal 2010.
Investing activities used cash of $1,926 and $6,276 during the first quarters of fiscal 2011 and 2010 respectively, mostly for capital expenditures.
Net sales for the three month period ended September 30, 2010 increased by $1,092,127 (30.5%) from the same period of fiscal 2010. The increase in sales was primarily attributed to an improvement in laundry equipment sales which increased by 53.7% over the same period of last year and reflected the general improvement in economic conditions, and sales of the Company s new boiler line, introduced in late fiscal 2009, which was the primary reason for a 170.7% increase in boiler sales. Spare parts sales also improved by 5.5%. These increases were offset, in part, by a decrease in drycleaning equipment sales of 13.7%. Revenues of development fees, franchise and license fees, commission and other income increased by $133,651 (303.7%) due principally to a substantial commission received on a sale by another distributor for an installation made in the Company s territory. Royalty and license fee income were similar to the same period of fiscal 2010.
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