Lydall Inc. (LDL, Financial) filed Annual Report for the period ended 2011-12-31.
Lydall Inc has a market cap of $156.8 million; its shares were traded at around $9.58 with a P/E ratio of 19 and P/S ratio of 0.5.
The increase in 2010 net sales of $76.4 million, or 31.9%, compared with 2009, was primarily attributable to higher sales volumes from the Thermal/Acoustical segment of $51.3 million, or 40.1%, and the Performance Materials segment of $25.1 million, or 25.6%. Net Sales of OPS increased by $1.0 million or 6.6%. Included in these figures is foreign currency translation, which decreased net sales by $6.6 million, or 2.8%, in 2010 compared to 2009, impacting the Thermal/Acoustical segment by $4.5 million and the Performance Materials segment by $2.1 million.
Segment net sales increased by $10.9 million, or 8.9%, in 2011 compared to 2010 primarily from volume growth, and to a lesser extent, marginal increases in prices of certain products. Net sales of Industrial Filtration products increased by $1.4 million, or 2.0%, in 2011 compared to 2010, due to foreign currency translation of $1.7 million. Beginning in the fourth quarter of 2011, the segment began to see a reduction in demand from the European and Asian Industrial Filtration markets as OEMs cautiously managed inventory levels as they evaluated their markets and demand for their products during a period of economic uncertainty. As a result, net sales of Industrial Filtration products decreased by $4.1 million in the fourth quarter of 2011 compared to the fourth quarter of 2010. Net sales of Industrial Thermal Insulation products increased by $8.3 million, or 21.4%, in 2011 compared to 2010, primarily from improvement in capital project investments across all markets, resulting in increased demand for the Company’s products. Net sales of Life Sciences Filtration products increased by $1.2 million, or 9.2%, in 2011 compared to 2010, primarily due to increased volumes of products sold for respiration and life protection applications.
The Performance Materials segment reported operating income of $18.2 million in 2011, or 13.6% of net sales, compared to operating income of $17.2 million, or 14.0% of net sales in 2010. Excluding the impact of the gain on sale from the electrical papers product line of $1.6 million in 2011 and $2.5 million in 2010, operating income in 2011 increased $1.9 million and was 12.4% and 11.9% of net sales, respectively. This increase in operating income was driven primarily by higher net sales, partially offset by higher selling, product development and administrative expenses of $0.9 million. Higher expenses were primarily related to increases in selling expenses of $0.6 million and added costs associated with product development of $0.2 million.
The Performance Materials segment reported operating income of $17.2 million in 2010, or 14.0% of net sales, compared to operating income of $7.6 million, or 7.7% of net sales in 2009. Excluding the impact of the gain on sale from the electrical papers product line of $2.5 million in 2010, operating income in 2010 increased $7.1 million, compared to 2009, and operating margin was 11.9% in 2010 compared to 7.7% in 2009. Higher net sales and an increase in gross margin due to improved absorption of fixed costs resulted in higher operating income in 2010 compared to 2009. Partially offsetting the improved operating results were higher selling, product development and administrative expenses of $1.8 million in 2010 compared to 2009. This increase was primarily due to higher incentive compensation expense of $0.9 million, new product development trial costs of $0.4 million, and severance related charges of $0.4 million. Because the segment and Company met certain 2010 bonus plan targets it recorded incentive compensation expense in 2010, while in 2009, no bonus plan targets were met.
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Lydall Inc has a market cap of $156.8 million; its shares were traded at around $9.58 with a P/E ratio of 19 and P/S ratio of 0.5.
Highlight of Business Operations:
The Performance Materials segment reported record net sales of $134.1 million in 2011, which represented an increase of 8.9% from 2010, and operating income of $18.2 million, or 13.6% of net sales, compared to operating income of $17.2 million, or 14.0% of net sales in 2010. Included in 2011 and 2010 operating income was $1.6 million and $2.5 million, respectively, of gain recognized from the 2010 sale of the electrical papers product line and services provided by the Company under a license agreement associated with that sale. Excluding this gain in both periods, operating margin in 2011 was 12.4% compared to 11.9% in 2010. This increase was primarily a result of a reduction in selling, product development and administrative expenses as a percentage of net sales as gross margin in 2011 remained essentially flat compared to 2010.The increase in 2010 net sales of $76.4 million, or 31.9%, compared with 2009, was primarily attributable to higher sales volumes from the Thermal/Acoustical segment of $51.3 million, or 40.1%, and the Performance Materials segment of $25.1 million, or 25.6%. Net Sales of OPS increased by $1.0 million or 6.6%. Included in these figures is foreign currency translation, which decreased net sales by $6.6 million, or 2.8%, in 2010 compared to 2009, impacting the Thermal/Acoustical segment by $4.5 million and the Performance Materials segment by $2.1 million.
Segment net sales increased by $10.9 million, or 8.9%, in 2011 compared to 2010 primarily from volume growth, and to a lesser extent, marginal increases in prices of certain products. Net sales of Industrial Filtration products increased by $1.4 million, or 2.0%, in 2011 compared to 2010, due to foreign currency translation of $1.7 million. Beginning in the fourth quarter of 2011, the segment began to see a reduction in demand from the European and Asian Industrial Filtration markets as OEMs cautiously managed inventory levels as they evaluated their markets and demand for their products during a period of economic uncertainty. As a result, net sales of Industrial Filtration products decreased by $4.1 million in the fourth quarter of 2011 compared to the fourth quarter of 2010. Net sales of Industrial Thermal Insulation products increased by $8.3 million, or 21.4%, in 2011 compared to 2010, primarily from improvement in capital project investments across all markets, resulting in increased demand for the Company’s products. Net sales of Life Sciences Filtration products increased by $1.2 million, or 9.2%, in 2011 compared to 2010, primarily due to increased volumes of products sold for respiration and life protection applications.
The Performance Materials segment reported operating income of $18.2 million in 2011, or 13.6% of net sales, compared to operating income of $17.2 million, or 14.0% of net sales in 2010. Excluding the impact of the gain on sale from the electrical papers product line of $1.6 million in 2011 and $2.5 million in 2010, operating income in 2011 increased $1.9 million and was 12.4% and 11.9% of net sales, respectively. This increase in operating income was driven primarily by higher net sales, partially offset by higher selling, product development and administrative expenses of $0.9 million. Higher expenses were primarily related to increases in selling expenses of $0.6 million and added costs associated with product development of $0.2 million.
The Performance Materials segment reported operating income of $17.2 million in 2010, or 14.0% of net sales, compared to operating income of $7.6 million, or 7.7% of net sales in 2009. Excluding the impact of the gain on sale from the electrical papers product line of $2.5 million in 2010, operating income in 2010 increased $7.1 million, compared to 2009, and operating margin was 11.9% in 2010 compared to 7.7% in 2009. Higher net sales and an increase in gross margin due to improved absorption of fixed costs resulted in higher operating income in 2010 compared to 2009. Partially offsetting the improved operating results were higher selling, product development and administrative expenses of $1.8 million in 2010 compared to 2009. This increase was primarily due to higher incentive compensation expense of $0.9 million, new product development trial costs of $0.4 million, and severance related charges of $0.4 million. Because the segment and Company met certain 2010 bonus plan targets it recorded incentive compensation expense in 2010, while in 2009, no bonus plan targets were met.
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