Flow International Corp. Reports Operating Results (10-K)
Flow International Corporation has a market cap of $137.4 million; its shares were traded at around $3.25 with a P/E ratio of 19.1 and P/S ratio of 0.6.
Highlight of Business Operations:We generated net income of $9.4 million or earnings per share of $0.20, compared to net income of $0.8 million or $0.02 per share in the comparative prior year;
Sales in our Standard segment increased $42.4 million or 23% over the prior year. Excluding the impact of foreign currency changes, sales in the Standard segment increased $40.5 million or 22% in fiscal year 2012 compared to the prior year.
Sales in our Standard segment increased $50.4 million or 37% over the prior year. Excluding the impact of foreign currency changes, sales in Standard segment increased $50.3 million or 37% in fiscal year 2011 compared to the prior year. These increases were driven by the following:
Gross margin in fiscal year 2011 amounted to $6.1 million or 21% of sales compared to $11.7 million or 32% of sales in the prior year. The decrease in gross margin as a percentage of sales when compared to the prior year is attributable to adjustments in original cost estimates on certain aerospace contracts during fiscal year 2011 as more experience was gained and new information obtained regarding installation constraints and customer expectations. The revised cost estimates amounted to $3.4 million, representing an amount valued at less than 10% of the total value of the contracts involved, resulting in lower overall margin for the fiscal year ended April 30, 2011.
Cash generated by operating activities for the respective fiscal years ended April 30, 2012, 2011 and 2010 was $12.7 million, $2.9 million and $3.8 million. Changes in our working capital resulted in a net use of cash of $14.0 million, $14.1 million, and $2.8 million for the respective fiscal years ended April 30, 2012, 2011, and 2010. The changes in working capital are attributable to the timing of inventory purchases and collection of accounts receivable, purchases from vendors, and deferred revenue and customer deposits due to the timing of contract awards and shipments to customers.
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