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Ameron International Corp. (AMN) filed Quarterly Report for the period ended 2011-05-29.
Ameron International Corp. has a market cap of $780.4 million; its shares were traded at around $85.4 with a P/E ratio of 23.9 and P/S ratio of 1.5. The dividend yield of Ameron International Corp. stocks is 1.4%.
This is the annual revenues and earnings per share of AMN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AMN.
Highlight of Business Operations:
In the six months ended May 29, 2011, net cash of $37.6 million was used by operating activities, compared to $4.1 million used in the similar period in 2010. In the six months ended May 29, 2011, the Company's cash used by operating activities included net loss of $3.3 million, plus non-cash adjustments (depreciation, amortization, loss from asset sales and stock compensation expense) of $15.4 million, reduced by changes in operating assets and liabilities of $49.7 million. In the six months ended May 30, 2010, the Company's cash used by operating activities included net income of $10.6 million, plus non-cash adjustments (depreciation, amortization, loss from affiliate, gain from asset sales and stock compensation expense) of $15.4 million, reduced by changes in operating assets and liabilities of $30.1 million. The difference in net cash used by operating activities between 2011 and 2010 was primarily due to higher earnings in 2010 and the payment in 2011 of income taxes, totaling $18.0 million, associated with the gain on the sale of the Company's investment in TAMCO in the fourth quarter of 2010.
Net cash used in financing activities totaled $20.7 million during the six months ended May 29, 2011 and $5.2 million in the similar period in 2010. Net cash used in 2011 consisted of purchases of treasury stock of $15.3 million (related to the previously-announced, open-market stock repurchase program and the payment of taxes associated with the vesting of restricted shares) and payment of Common Stock dividends of $5.5 million. Net cash used in financing activities in 2010 consisted of payment of Common Stock dividends of $5.6 million and treasury stock purchases of $1.1 million, related to the payment of taxes associated with the vesting of restricted shares, partially offset by net issuance of debt of $1.2 million and the issuance of Common Stock related to exercised stock options.
Cash and cash equivalents at May 29, 2011 totaled $169.5 million, a decrease of $67.3 million from November 30, 2010. At May 29, 2011, the Company had total debt outstanding of $32.2 million, compared to $31.1 million at November 30, 2010, and $111.9 million in unused committed and uncommitted credit lines available from foreign and domestic banks. The Company's highest borrowing and the average borrowing levels during 2011 were $33.2 million and $32.3 million, respectively.
Fiberglass-Composite Pipe's sales increased $2.3 million, or 3.5%, in the second quarter of 2011, and $5.6 million, or 4.7%, in the first six months of 2011, compared to the similar periods in 2010. Sales from operations in the U.S. increased $.3 million and $7.9 million in the three and six months ended May 29, 2011, respectively, as onshore oilfield sales continued to grow significantly while industrial sales were slightly lower compared to strong prior-year results. Sales from Asian operations decreased $.9 million and $6.2 million in the second quarter and first six months of 2011, respectively. Asian sales into the marine and offshore market were lower, partially offset by increased sales into industrial markets and favorable exchange rates. Sales from European operations increased $5.2 million and $7.4 million in the second quarter and first six months of 2011. Strong shipments into the industrial and oilfield markets of Turkey, Eastern Europe and Russia drove the European sales increase. Sales from Brazilian operations decreased $2.4 million and $3.5 million in the second quarter and first six months of 2011, respectively, due to slower-than-expected acceptance of products from the Company's new Brazilian factories. The onshore oilfield market remains strong, and sales into the marine and offshore markets are expected to increase later in 2011. However, the unrest in the Middle East and Libya could temper near-term results. Looking forward, the Fiberglass-Composite Pipe Group continues to see strong demand primarily due to energy-related projects.
Water Transmission Group's gross profit decreased $2.5 million in the second quarter and $6.2 million in the first six months of 2011, compared to the similar periods in 2010. Profit margins were 5.3% in the second quarter and 1.6% in the first six months of 2011, compared to 11.1% in the second quarter and 10.7% in the first six months of 2010. Pipe operations reported a gross profit of $2.7 million in the second quarter and $3.9 million in the first six months of 2011. Lower margin projects and plant inefficiencies due to low volumes contributed to the weak profit margins in the pipe business. Wind towers reported a negative margin of $.7 million in the second quarter and $2.8 million in the first six months of 2011. The negative margins were due to thin margins on orders due to weak demand. As a result of the depressed market for wind towers, Management performed an impairment analysis at the end of the third quarter of 2010 of certain assets used to manufacture wind towers, which totaled $55.1 million at the time of the assessment. Based on internal and third party forecasts, the estimated future undiscounted cash flows of the wind tower facility exceeded the carrying value of the related long-lived assets. The impairment analysis assumed that sales related to the assets used to produce wind towers would increase to approximately $42 million in 2011, to over $60 million in 2012 and up to over $100 million in subsequent years. However, if market conditions do not improve as expected, a potential impairment of the Company's long-lived assets used for the production of wind towers could occur. No events or circumstances occurred since August 29, 2010 that indicate that the carrying amounts of these assets may not be recoverable. The current 2011 forecast related to the assets used to produce wind towers, both sales and cash flows, exceeds the assumptions included in the impairment assessment.
Selling, general and administrative ("SG&A") expenses totaled $27.8 million, or 20.7% of sales, in the second quarter of 2011, compared to $24.1 million, or 17.7% of sales, in the second quarter of 2010. In the six months ended May 29, 2011, SG&A expenses totaled $53.6 million, or 21.9% of sales, compared to $51.4 million, or 20.9% of sales, in the same period in 2010. The $3.7 million increase in the second quarter was due to higher legal expenses of $2.7 million, higher stock compensation expense of $.2 million, unfavorable foreign exchange impact of $.6 million and higher other expenses of $2.0 million, partially offset by lower incentive accrual of $1.3 million and lower pension expense of $.5 million. The $2.2 million increase in the first half of 2011 was due to higher legal fees of $3.7 million, unfavorable foreign exchange of $.8 million and higher other expenses of $1.7 million, partially offset by lower incentive accrual of $2.2 million, lower pension expense of $1.0 million and lower severance expense of $.8 million.
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