AEP Industries Inc. Reports Operating Results (10-K)
Aep Inds has a market cap of $158.7 million; its shares were traded at around $24.56 with and P/S ratio of 0.2. Aep Inds had an annual average earning growth of 6.3% over the past 10 years.AEPI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Our total backlog at October 31, 2010 was approximately $54.9 million, compared with approximately $53.4 million at October 31, 2009. We do not consider any specific months backlog to be a significant indicator of sales trends due to the various factors that influence backlog.
improve quality and/or reduce production costs. During fiscal 2010, we focused a significant portion of our research and development efforts toward analyzing, merging and validating the comparable products lines of AEPs existing products with those of Atlantis. Our research and development department has developed a number of products with unique properties, which we consider proprietary, certain of which are protected by patents. In fiscal 2010, 2009 and 2008, we spent $1.8 million, $1.8 million and $1.1 million, respectively, for research and development activities for continuing operations. Research and development expense is included in cost of sales in our consolidated statements of operations.
Our ability to service our debt and to fund our operations and planned capital expenditures will depend on our operating performance. This, in part, is subject to prevailing economic conditions and to financial, business and other factors beyond our control. If our cash flow from operations is insufficient to fund our debt service obligations, we may be forced to reduce or delay capital expenditures, obtain additional equity capital or indebtedness, or refinance or restructure our debt. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations. In the absence of such operating results and resources, we could face substantial cash flow problems and might be required to sell material assets or operations to meet our debt service and other obligations. We cannot assure you as to the timing of such sales or the proceeds that we could realize from such sales or if additional debt or equity financing would be available on acceptable terms, if at all. As of October 31, 2010, we could have borrowed up to an additional $103.5 million under our U.S. credit facility and an additional $4.9 million under our Canadian credit facility.
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