Altra Holdings Inc. (AIMC, Financial) filed Annual Report for the period ended 2011-12-31.
Altra Holdings has a market cap of $537.6 million; its shares were traded at around $19.96 with a P/E ratio of 14.3 and P/S ratio of 1.
Gross profit. The decrease in gross profit as a percentage of sales was primarily due to increased material costs, specifically related to the price of copper and steel. The inclusion of Bauer negatively effected gross profit as a percentage of sales by approximately 400 basis points. Gross profit was favorably impacted by the effect of foreign exchange of $3.1 million, primarily related to the Euro and British Pound Sterling, and price increases of $7.9 million when compared to 2010, off-set by the incorporation of seven months of results for Bauer, which includes an inventory fair value charge of $0.6 million and lower gross profit margins. We forecast
Selling, general and administrative expenses. SG&A increased $14.4 million due to the acquisition of Bauer, $3.1 million of acquisition related expenses, as well as the effect of foreign exchange of $1.2 million. However, due to our cost reduction and containment efforts over the past two years that were focused on headcount reductions and the elimination of non-critical expenses, SG&A as a percentage of sales decreased in 2011 when compared to 2010. We forecast modest increases to our SG&A costs and plan to leverage them on increased sales as we invest in resources to enable us to grow faster in emerging markets and strategic industries in 2012.
Provision for income taxes. Income tax expense was $10.8 million for the year ended December 31, 2011, compared to expense of $10.0 million for the year ended December 31, 2010. Our effective tax rate was 22.2% and 29.0% for the years ended December 31, 2011 and December 31, 2010, respectively. The decrease in the tax rate was primarily driven by a reduction of the Companys reserve for uncertain tax positions due to a favorable New Jersey court ruling in a case that did not involve the Company. Additionally, the Company released a valuation allowance on state net operating losses related to projected profitability at various of our domestic entities.
Provision for income taxes. Income tax expense was $10.0 million for the year ended December 31, 2010, compared to a benefit of $2.4 million for the year ended December 31, 2009. Our effective tax rate was 29.0% and (50.5%) for the years ended December 31, 2010 and December 31, 2009, respectively. The increase in the tax rate was primarily driven by the increase in taxable earnings in 2010 as we recovered from the impact of the recession in 2009. The tax rate was partially reduced due to the release of a non-U.S valuation allowance in the third quarter of 2010.
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Altra Holdings has a market cap of $537.6 million; its shares were traded at around $19.96 with a P/E ratio of 14.3 and P/S ratio of 1.
Highlight of Business Operations:
Net sales. The increase in sales in 2011 was due to improvement in the end markets we serve compared to 2010 and the acquisition of Bauer. As a result, net sales increased at all of our operating segments. Of the increase in sales, approximately $65.9 million relates to the additional sales related to the acquisition of Bauer, $8.9 million relates to the impact of foreign exchange rate changes attributed primarily to the Euro and British Pound Sterling rates compared to 2010, and approximately $7.9 million relates to the impact of price increases. We forecast that demand in nearly all of our end markets will continue to improve in 2012 and we will benefit from the full year inclusion of Bauer.Gross profit. The decrease in gross profit as a percentage of sales was primarily due to increased material costs, specifically related to the price of copper and steel. The inclusion of Bauer negatively effected gross profit as a percentage of sales by approximately 400 basis points. Gross profit was favorably impacted by the effect of foreign exchange of $3.1 million, primarily related to the Euro and British Pound Sterling, and price increases of $7.9 million when compared to 2010, off-set by the incorporation of seven months of results for Bauer, which includes an inventory fair value charge of $0.6 million and lower gross profit margins. We forecast
Selling, general and administrative expenses. SG&A increased $14.4 million due to the acquisition of Bauer, $3.1 million of acquisition related expenses, as well as the effect of foreign exchange of $1.2 million. However, due to our cost reduction and containment efforts over the past two years that were focused on headcount reductions and the elimination of non-critical expenses, SG&A as a percentage of sales decreased in 2011 when compared to 2010. We forecast modest increases to our SG&A costs and plan to leverage them on increased sales as we invest in resources to enable us to grow faster in emerging markets and strategic industries in 2012.
Provision for income taxes. Income tax expense was $10.8 million for the year ended December 31, 2011, compared to expense of $10.0 million for the year ended December 31, 2010. Our effective tax rate was 22.2% and 29.0% for the years ended December 31, 2011 and December 31, 2010, respectively. The decrease in the tax rate was primarily driven by a reduction of the Companys reserve for uncertain tax positions due to a favorable New Jersey court ruling in a case that did not involve the Company. Additionally, the Company released a valuation allowance on state net operating losses related to projected profitability at various of our domestic entities.
Provision for income taxes. Income tax expense was $10.0 million for the year ended December 31, 2010, compared to a benefit of $2.4 million for the year ended December 31, 2009. Our effective tax rate was 29.0% and (50.5%) for the years ended December 31, 2010 and December 31, 2009, respectively. The increase in the tax rate was primarily driven by the increase in taxable earnings in 2010 as we recovered from the impact of the recession in 2009. The tax rate was partially reduced due to the release of a non-U.S valuation allowance in the third quarter of 2010.
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