GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

HECKMANN CORPORATION Reports Operating Results (10-Q/A)

March 14, 2011 | About:
insider

10qk

18 followers
HECKMANN CORPORATION (HEK) filed Amended Quarterly Report for the period ended 2010-06-30.

Heckmann Corp. has a market cap of $626.17 million; its shares were traded at around $5.75 with and P/S ratio of 17.41.

Highlight of Business Operations:

Our net sales for the three months ended June 30, 2010 were $11.6 million, which represents $9.1 million of sales of bottled water and $2.5 million of revenues from water disposal compared to $8.3 million for the three months ended June 30, 2009, all of which represents sales of bottled water. Sales for the three months ended June 30, 2010 included approximately $1.0 million of bottled drink sales from the Xian facility, which started production in March 2010, and for sales of the Howmax line of private-label fruit beverage products. Sales for the three months ended June 30, 2009 included approximately $0.2 million of bottled water sales from the Beijing and Shen Yang Aixin factories. In September 2009 the Company announced the restructuring of the Beijing factory and the deconsolidation of the Shen Yang Aixin factory (see Notes 2 and 4 in our Annual Report on Form 10-K for the year ended December 31, 2009). Accordingly there are no sales reported in the three months ended June 30, 2010 for either Beijing or Shen Yang Aixin. Effective June 1, 2010 the Company divested itself of the Harbin facility (Note 9). Sales for the Harbin facility were approximately $1.7 million for the three months ended June 30, 2009 and approximately $1.1 million for the two months ended May 31, 2010.

The cost of goods sold for the three months ended June 30, 2010, including approximately $1.1 million of depreciation expense, was $8.6 million, resulting in total gross profit of approximately $3.0 million, or 25.6% of net sales. Gross profit from bottled water sales was $2.3 million, or 24.8% of net sales. Gross profit of $0.7 million, or 28.7%, was attributable to HWRs water disposal revenues. The cost of goods sold for the three months ended June 30, 2009, including approximately $0.4 million of depreciation expense, was $6.2 million, resulting in total gross profit of $2.0 million, or 24.7% of net sales.

General and administrative expenses for the three months ended June 30, 2010 were $4.7 million and includes approximately $0.2 million of stock-based compensation and amortization expense of approximately $0.4 million. Also included in general and administrative expense are approximately $1.6 million of expenses relating to undertaking the rescission of the Harbin business acquisition (Note 9). General and administrative expenses for the three months ended June 30, 2009 were $5.5 million and includes approximately $1.1 million of amortization expense and $1.7 million of stock-based compensation expense.

Our net sales for the six months ended June 30, 2010 were $20.2 million, which represents $15.7 million of sales of bottled water and $4.5 million of revenues from water disposal compared to $16.1 million for the six months ended June 30, 2009, all of which represents sales of bottled water. Sales for the six months ended June 30, 2010 included approximately $1.1 million of bottled drink sales from the Xian facility, which started production in March 2010, and for sales of the Howmax line of private label fruit beverage products. Bottled water sales for the six months ended June 30, 2009 included approximately $0.9 million of sales from the Beijing and Shen Yang Aixin factories. In September 2009 the Company announced the restructuring of the Beijing factory and the deconsolidation of the Shen Yang Aixin factory (see Notes 2 and 4 in our Annual Report on Form 10-K for the year ended December 31, 2009). Accordingly, there are no sales reported in the six months ended June 30, 2010 for either Beijing or Shen Yang Aixin. Effective June 1, 2010 the Company has divested itself of the Harbin facility (Note 9). Sales for the Harbin facility were approximately $2.5 million for the period January 1 to May 31, 2010 with no reported sales in June 2010, and $1.7 million for the six months ended June 30, 2009.

The cost of goods sold for the six months ended June 30, 2010, including approximately $2.0 million of depreciation expense, was $15.5 million, resulting in total gross profit of $4.8 million, or 23.5% of net sales. Gross profit from bottled water sales was $3.6 million, or 23.0% of net sales. Gross profit of $1.2 million, or 25.3%, was attributable to HWRs water disposal revenues. The cost of goods sold for the six months ended June 30, 2009, including approximately $0.8 million of depreciation expense, was $11.4 million, resulting in total gross profit of $4.7 million, or 28.9% of net sales.

General and administrative expenses for the six months ended June 30, 2010 were $7.5 million and includes approximately $0.4 million of stock-based compensation and amortization expense of approximately $0.8 million. Also included in general and administrative expense are approximately $1.6 million of expenses relating to undertaking the rescission of the Harbin business acquisition (Note 9). General and administrative expenses for the six months ended June 30, 2009 were $10.9 million and includes approximately $2.1 million of amortization expense, $1.7 million of stock-based compensation expense and approximately $2.0 million of bad debt expense.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.7/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide