Espey Mfg. & Electronics Corp (ESP, Financial) filed Quarterly Report for the period ended 2010-12-31.
Espey Manufacturing & Ele has a market cap of $52 million; its shares were traded at around $23.6499 with a P/E ratio of 14.4 and P/S ratio of 1.7. The dividend yield of Espey Manufacturing & Ele stocks is 4%. Espey Manufacturing & Ele had an annual average earning growth of 20.6% over the past 10 years. GuruFocus rated Espey Manufacturing & Ele the business predictability rank of 3-star.Hedge Fund Gurus that owns ESP: Jim Simons of Renaissance Technologies LLC.
Net sales for the three months ended December 31, 2010 were $6,581,342 as compared to $5,866,331 for the same period in 2009, representing a 12.2% increase. Net sales for the six months ended December 31, 2010 were $12,607,672 as compared to $12,741,271 for the same period in 2009, representing a 1% decrease. Generally, these fluctuations can be attributed to the contract specific nature of the Company's business. The increase for the three months ended December 31, 2010 was due to an overall increase in power supply shipments offset by a decrease in transformer shipments. The decrease for the six months ended December 31, 2010 was primarily due to a decrease in engineering design related billings and the overall timing of contract shipments.
For the three months ended December 31, 2010 and 2009 gross profits were $1,624,799 and $1,462,093, respectively. Gross profit as a percentage of sales was 24.7% and 24.9%, for the three months ended December 31, 2010 and 2009, respectively. For the six months ended December 31, 2010 and 2009 gross profits were $3,275,331 and $3,520,295, respectively. Gross profit as a percentage of sales was 26.0% and 27.6%, for the six months ended December 31, 2010 and 2009, respectively. The primary factor in determining gross profit and net income is product mix. The gross profits on mature products and build to print contracts are higher as compared to products which are still in the engineering development stage or in the early stages of production. In any given accounting period the mix of product shipments between higher margin mature programs and less mature programs, including loss contracts, has a significant impact on gross profit and net income. The increased gross profit in the three months ended December 31, 2010, was primarily the result of higher net sales with only minor cost overruns related to loss contracts. The decreased gross profit and gross profit percentage in the six months ended December 31, 2010, was primarily the result of decreased sales, product mix and minor cost overruns related to certain products.
Net income for the three months ended December 31, 2010, was $649,747 or $0.30 per share, both basic and diluted compared to $514,171 or $0.24 per share, both basic and diluted, for the three months ended December 31, 2009. Net income for the six months ended December 31, 2010, was $1,403,286 or $0.65 per share, both basic and diluted, compared to $1,506,934 or $0.71 per share, both basic and diluted, for the six months ended December 31, 2009. The increase in net income per share for the three months ended December 31, 2010 was mainly due to higher sales and lower selling, general and administrative expenses offset by decreased interest income. The decrease in net income per share for the six months ended December 31, 2010 was mainly due to lower sales offset by lower selling, general and administrative expenses.
The Company's working capital as of December 31, 2010 and 2009 was approximately $24.0 million and $24.1 million, respectively. During the three and six months ended December 31, 2010 and 2009 the Company repurchased 3,548 and 23,513 shares, respectively, of its common stock from the Company's Employee Retirement Plan and Trust ("ESOP") for a purchase price of $83,662 and $452,155, respectively. Under existing authorizations from the Company's Board of Directors, as of December 31, 2010, management is authorized to purchase an additional $1,152,638 million of Company stock.
During the six months ended December 31, 2010 and 2009, the Company expended $543,613 and $290,965, respectively, for plant improvements and new equipment. The Company had budgeted approximately $500,000 for new equipment and plant improvements in fiscal 2011. Currently total expenditures are expected to be approximately $800,000. Management anticipates that the funds required will be available from current operations.
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Espey Manufacturing & Ele has a market cap of $52 million; its shares were traded at around $23.6499 with a P/E ratio of 14.4 and P/S ratio of 1.7. The dividend yield of Espey Manufacturing & Ele stocks is 4%. Espey Manufacturing & Ele had an annual average earning growth of 20.6% over the past 10 years. GuruFocus rated Espey Manufacturing & Ele the business predictability rank of 3-star.Hedge Fund Gurus that owns ESP: Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
New orders received in the first six months of fiscal 2011 were approximately $24.6 million, representing a 224% increase over the amount of new orders received in the first six months of fiscal 2010. These orders are in line with the Company s strategy of getting involved in long-term high quantity military and industrial products and are predominately for follow-on production of mature products. The Company's backlog was $42.9 million at December 31, 2010 which includes $32.2 million from three customers, compared to $33.9 million at December 31, 2009 which included $23.0 million from two significant customers. The backlog for the Company represents the estimated remaining sales value of work to be performed under firm contracts.Net sales for the three months ended December 31, 2010 were $6,581,342 as compared to $5,866,331 for the same period in 2009, representing a 12.2% increase. Net sales for the six months ended December 31, 2010 were $12,607,672 as compared to $12,741,271 for the same period in 2009, representing a 1% decrease. Generally, these fluctuations can be attributed to the contract specific nature of the Company's business. The increase for the three months ended December 31, 2010 was due to an overall increase in power supply shipments offset by a decrease in transformer shipments. The decrease for the six months ended December 31, 2010 was primarily due to a decrease in engineering design related billings and the overall timing of contract shipments.
For the three months ended December 31, 2010 and 2009 gross profits were $1,624,799 and $1,462,093, respectively. Gross profit as a percentage of sales was 24.7% and 24.9%, for the three months ended December 31, 2010 and 2009, respectively. For the six months ended December 31, 2010 and 2009 gross profits were $3,275,331 and $3,520,295, respectively. Gross profit as a percentage of sales was 26.0% and 27.6%, for the six months ended December 31, 2010 and 2009, respectively. The primary factor in determining gross profit and net income is product mix. The gross profits on mature products and build to print contracts are higher as compared to products which are still in the engineering development stage or in the early stages of production. In any given accounting period the mix of product shipments between higher margin mature programs and less mature programs, including loss contracts, has a significant impact on gross profit and net income. The increased gross profit in the three months ended December 31, 2010, was primarily the result of higher net sales with only minor cost overruns related to loss contracts. The decreased gross profit and gross profit percentage in the six months ended December 31, 2010, was primarily the result of decreased sales, product mix and minor cost overruns related to certain products.
Net income for the three months ended December 31, 2010, was $649,747 or $0.30 per share, both basic and diluted compared to $514,171 or $0.24 per share, both basic and diluted, for the three months ended December 31, 2009. Net income for the six months ended December 31, 2010, was $1,403,286 or $0.65 per share, both basic and diluted, compared to $1,506,934 or $0.71 per share, both basic and diluted, for the six months ended December 31, 2009. The increase in net income per share for the three months ended December 31, 2010 was mainly due to higher sales and lower selling, general and administrative expenses offset by decreased interest income. The decrease in net income per share for the six months ended December 31, 2010 was mainly due to lower sales offset by lower selling, general and administrative expenses.
The Company's working capital as of December 31, 2010 and 2009 was approximately $24.0 million and $24.1 million, respectively. During the three and six months ended December 31, 2010 and 2009 the Company repurchased 3,548 and 23,513 shares, respectively, of its common stock from the Company's Employee Retirement Plan and Trust ("ESOP") for a purchase price of $83,662 and $452,155, respectively. Under existing authorizations from the Company's Board of Directors, as of December 31, 2010, management is authorized to purchase an additional $1,152,638 million of Company stock.
During the six months ended December 31, 2010 and 2009, the Company expended $543,613 and $290,965, respectively, for plant improvements and new equipment. The Company had budgeted approximately $500,000 for new equipment and plant improvements in fiscal 2011. Currently total expenditures are expected to be approximately $800,000. Management anticipates that the funds required will be available from current operations.
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