Layne Christensen Company (LAYN, Financial) filed Quarterly Report for the period ended 2011-10-31.
Layne Christensen Company has a market cap of $483.5 million; its shares were traded at around $24.63 with a P/E ratio of 13.4 and P/S ratio of 0.5. Layne Christensen Company had an annual average earning growth of 11.9% over the past 10 years.
Income tax expense of $4,243,000 (an effective rate of 30.7%) and $21,989,000 (an effective rate of 39.0%) was recorded for the three and nine months ended October 31, 2011, respectively, compared to $5,183,000 (an effective rate of 38.7%) and $17,570,000 (an effective rate of 45.3%) for the same periods last year. The decrease in the effective rate was primarily attributable to the continued increase in the forecasted equity earnings of affiliates as a percentage of forecasted income before income taxes. As a substantial part of the non-dividend portion of these earnings is considered indefinitely re-invested, it tends to lower our effective tax rate.
Water Infrastructure Division revenues increased 2.6% to $215,319,000 and 9.1% to $629,102,000 for the three and nine months ended October 31, 2011, respectively, compared to $209,870,000 and $576,765,000 for the same periods last year. The increase for the three months was primarily attributable to additional revenues of $18,275,000 from acquired operations and $8,588,000 from our specialty drilling operations, partially offset by declines of $7,279,000 in our heavy construction operations, $11,212,000 in our non-acquisition related geoconstruction projects and $4,623,000 from our water supply project in Afghanistan. The increase for the nine months was primarily attributable to additional revenues of $43,980,000 from acquired operations, $17,279,000 from our specialty drilling operations, partially offset by a decline of $7,948,000 in our heavy construction operations, $13,982,000 in our non-acquisition related geoconstruction projects and $6,754,000 from our water supply project in Afghanistan. The increases in our specialty drilling operations were largely due to our entry into the deep wastewater injection well markets in Florida. The heavy construction decreases were due to weather related project delays and reduced activity levels due to increased competition in our markets, while the geoconstruction declines were due in large part to shifting our resources to acquired operations following the completion of large projects in New Orleans and San Francisco. Drilling operations in Afghanistan were completed earlier in the year and we are nearing the completion of demobilizing our equipment.
Income before income taxes for the Water Infrastructure Division decreased 66.8% to $4,339,000 and 18.2% to $26,167,000 for the three and nine months ended October 31, 2011, respectively, compared to $13,072,000 and $31,997,000 for the same periods last year. The nine months ended October 31, 2011, included a gain of $5,282,000 (including $307,000 amortization of deferred gain) on the sale of a facility in Fontana, California. Excluding the gain, the decreases in the periods were primarily attributable to declines of $5,412,000 and $11,535,000 from our heavy construction operations, $4,666,000 and $4,193,000 from our Afghanistan project, $1,392,000 and $4,540,000 in our non-acquisition related geoconstruction projects and $1,172,000 and $890,000 from our Inliner business. The decreases were partially offset by increases of $4,558,000 and $10,525,000 from acquired operations and $2,229,000 and $4,038,000 from our specialty drilling operations. The heavy construction declines were due to continued downward pressure on margins for municipal bid projects, inefficiencies due to weather related project delays and cost overruns. We expect profit margins for projects in the municipal sector to remain under pressure for some time. The declines in earnings from the non-acquisition related geoconstruction and Afghanistan projects correspond with the revenue declines noted above.
Income before income taxes for the Mineral Exploration Division increased 78.6% to $16,074,000 and 96.4% to $52,139,000 for the three and nine months ended October 31, 2011, respectively, compared to $9,000,000 and $26,543,000 for the same periods last year. The increases resulted primarily from a combination of higher activity levels and improved pricing in substantially all of our operations, and the increased equity earnings from our affiliates. Equity earnings from our affiliates increased $1,054,000 to $5,284,000 and $9,147,000 to $16,864,000 for the three and nine months ended October 31, 2011, respectively, compared to $4,230,000 and $7,717,000 for the same periods last year. Our affiliates had significant increases in activity at copper mine sites in Chile. The increases were partially offset by increased legal and professional expenses for the FCPA investigation of $351,000 and $1,934,000 for the three and nine months, and, for the three months, severance related costs of $820,000 and an operating tax expense assessment of $2,008,000.
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Layne Christensen Company has a market cap of $483.5 million; its shares were traded at around $24.63 with a P/E ratio of 13.4 and P/S ratio of 0.5. Layne Christensen Company had an annual average earning growth of 11.9% over the past 10 years.
Highlight of Business Operations:
Cost of revenues increased $19,532,000, or 9.3%, to $229,201,000 (77.7% of revenues) and $81,518,000, or 14.1% to $660,845,000 (77.1% of revenues) for the three and nine months ended October 31, 2011, compared to $209,669,000 (77.7% of revenues) and $579,327,000 (76.9% of revenues) for the same periods last year. The increase as a percentage of revenues for the nine months was primarily due to margin pressures and cost overruns in the Water Infrastructure Division.Income tax expense of $4,243,000 (an effective rate of 30.7%) and $21,989,000 (an effective rate of 39.0%) was recorded for the three and nine months ended October 31, 2011, respectively, compared to $5,183,000 (an effective rate of 38.7%) and $17,570,000 (an effective rate of 45.3%) for the same periods last year. The decrease in the effective rate was primarily attributable to the continued increase in the forecasted equity earnings of affiliates as a percentage of forecasted income before income taxes. As a substantial part of the non-dividend portion of these earnings is considered indefinitely re-invested, it tends to lower our effective tax rate.
Water Infrastructure Division revenues increased 2.6% to $215,319,000 and 9.1% to $629,102,000 for the three and nine months ended October 31, 2011, respectively, compared to $209,870,000 and $576,765,000 for the same periods last year. The increase for the three months was primarily attributable to additional revenues of $18,275,000 from acquired operations and $8,588,000 from our specialty drilling operations, partially offset by declines of $7,279,000 in our heavy construction operations, $11,212,000 in our non-acquisition related geoconstruction projects and $4,623,000 from our water supply project in Afghanistan. The increase for the nine months was primarily attributable to additional revenues of $43,980,000 from acquired operations, $17,279,000 from our specialty drilling operations, partially offset by a decline of $7,948,000 in our heavy construction operations, $13,982,000 in our non-acquisition related geoconstruction projects and $6,754,000 from our water supply project in Afghanistan. The increases in our specialty drilling operations were largely due to our entry into the deep wastewater injection well markets in Florida. The heavy construction decreases were due to weather related project delays and reduced activity levels due to increased competition in our markets, while the geoconstruction declines were due in large part to shifting our resources to acquired operations following the completion of large projects in New Orleans and San Francisco. Drilling operations in Afghanistan were completed earlier in the year and we are nearing the completion of demobilizing our equipment.
Income before income taxes for the Water Infrastructure Division decreased 66.8% to $4,339,000 and 18.2% to $26,167,000 for the three and nine months ended October 31, 2011, respectively, compared to $13,072,000 and $31,997,000 for the same periods last year. The nine months ended October 31, 2011, included a gain of $5,282,000 (including $307,000 amortization of deferred gain) on the sale of a facility in Fontana, California. Excluding the gain, the decreases in the periods were primarily attributable to declines of $5,412,000 and $11,535,000 from our heavy construction operations, $4,666,000 and $4,193,000 from our Afghanistan project, $1,392,000 and $4,540,000 in our non-acquisition related geoconstruction projects and $1,172,000 and $890,000 from our Inliner business. The decreases were partially offset by increases of $4,558,000 and $10,525,000 from acquired operations and $2,229,000 and $4,038,000 from our specialty drilling operations. The heavy construction declines were due to continued downward pressure on margins for municipal bid projects, inefficiencies due to weather related project delays and cost overruns. We expect profit margins for projects in the municipal sector to remain under pressure for some time. The declines in earnings from the non-acquisition related geoconstruction and Afghanistan projects correspond with the revenue declines noted above.
Income before income taxes for the Mineral Exploration Division increased 78.6% to $16,074,000 and 96.4% to $52,139,000 for the three and nine months ended October 31, 2011, respectively, compared to $9,000,000 and $26,543,000 for the same periods last year. The increases resulted primarily from a combination of higher activity levels and improved pricing in substantially all of our operations, and the increased equity earnings from our affiliates. Equity earnings from our affiliates increased $1,054,000 to $5,284,000 and $9,147,000 to $16,864,000 for the three and nine months ended October 31, 2011, respectively, compared to $4,230,000 and $7,717,000 for the same periods last year. Our affiliates had significant increases in activity at copper mine sites in Chile. The increases were partially offset by increased legal and professional expenses for the FCPA investigation of $351,000 and $1,934,000 for the three and nine months, and, for the three months, severance related costs of $820,000 and an operating tax expense assessment of $2,008,000.
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