COLFAX CORPORATION (CFX, Financial) filed Quarterly Report for the period ended 2012-06-29.
Colfax Corporation has a market cap of $2.88 billion; its shares were traded at around $31.16 with a P/E ratio of 22.8 and P/S ratio of 4.2.
The $38.5 million and $64.2 million sales growth due to existing businesses, as discussed and defined under “Sales, Orders and Backlog” above, during the second quarter and six months ended June 29, 2012, respectively, in comparison to the comparable 2011 period was primarily due to increased consumable and equipment sales in North America and the Middle East. Year over year comparison of the other selected financial data above is not practical, as further discussed above. Additionally, Gross profit and gross profit margin for the six months ended June 29, 2012 were impacted by acquisition-related amortization expense of $17.0 million.
The $263.2 million increase in Gross profit during the second quarter of 2012 in comparison to the second quarter of 2011 was attributable to increases of $92.7 million in our gas- and fluid-handling segment and $170.5 million in our fabrication technology segment. Additionally, changes in foreign exchange rates had a $26.3 million negative impact on Gross profit in comparison to the second quarter of 2011. The $465.4 million increase in Gross profit during the six months ended June 29, 2012 in comparison to the six months ended July 1, 2011 was attributable to increases of $171.3 million in our gas- and fluid-handling segment and $294.1 million in our fabrication technology segment. Additionally, changes in foreign exchange rates had a $35.9 million negative impact on Gross profit in comparison to the six months ended July 1, 2011.
Selling, general and administrative expense increased $388.5 million during the six months ended June 29, 2012 in comparison to the comparable period of 2011 primarily due to the Charter Acquisition. The increase in Selling, general and administrative expense as a percentage of Net sales during the six months ended June 29, 2012 in comparison to the comparable prior year period resulted primarily from $36.0 million of higher intangible amortization expense, partially offset by the benefit of higher sales volumes and efforts to reduce costs. During the six months ended June 29, 2012, we incurred $43.6 million of advisory, legal, audit, valuation and other professional service fees and realized losses on acquisition-related foreign exchange derivatives in connection with the Charter Acquisition.
Cash flows from financing activities were also significantly impacted by the Charter Acquisition. As discussed above under “—Equity Capital,” we raised $805.0 million of cash from sales of our equity securities to the BDT Investor, Steven and Mitchell Rales and Markel, and $293 million in a primary offering settled in March 2012. Also, as further discussed above under “—Borrowing Arrangements,” we borrowed approximately $1.8 billion of term loans, $65.8 million of which was repaid in the six months ended June 29, 2012. The additional payment of borrowings under term loans of $455 million primarily represents the repayment of borrowings under our Bank of America Credit Agreement, in conjunction with the financing of the Charter Acquisition. We also made quarterly cash payments of preferred stock dividends of $7.2 million. Net repayments of $2.0 million during the six months ended July 1, 2011 resulted from the use of cash generated from our operating activities to repay outstanding indebtedness.
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Colfax Corporation has a market cap of $2.88 billion; its shares were traded at around $31.16 with a P/E ratio of 22.8 and P/S ratio of 4.2.
Highlight of Business Operations:
The $115.0 million sales growth due to existing businesses, as discussed and defined under “Sales, Orders and Backlog” above, during the six months ended June 29, 2012 in comparison to the six months ended July 1, 2011 was primarily due to growth in all end markets, except marine. Additionally, $4.4 million and $26.8 million of acquisition-related amortization expense is reflected in Gross profit and Selling, general and administrative expense, respectively, for the six months ended June 29, 2012, and recurring intangible amortization expense included in Selling, general and administrative expense increased by $5.7 million in comparison to the six months ended July 1, 2011.The $38.5 million and $64.2 million sales growth due to existing businesses, as discussed and defined under “Sales, Orders and Backlog” above, during the second quarter and six months ended June 29, 2012, respectively, in comparison to the comparable 2011 period was primarily due to increased consumable and equipment sales in North America and the Middle East. Year over year comparison of the other selected financial data above is not practical, as further discussed above. Additionally, Gross profit and gross profit margin for the six months ended June 29, 2012 were impacted by acquisition-related amortization expense of $17.0 million.
The $263.2 million increase in Gross profit during the second quarter of 2012 in comparison to the second quarter of 2011 was attributable to increases of $92.7 million in our gas- and fluid-handling segment and $170.5 million in our fabrication technology segment. Additionally, changes in foreign exchange rates had a $26.3 million negative impact on Gross profit in comparison to the second quarter of 2011. The $465.4 million increase in Gross profit during the six months ended June 29, 2012 in comparison to the six months ended July 1, 2011 was attributable to increases of $171.3 million in our gas- and fluid-handling segment and $294.1 million in our fabrication technology segment. Additionally, changes in foreign exchange rates had a $35.9 million negative impact on Gross profit in comparison to the six months ended July 1, 2011.
Selling, general and administrative expense increased $388.5 million during the six months ended June 29, 2012 in comparison to the comparable period of 2011 primarily due to the Charter Acquisition. The increase in Selling, general and administrative expense as a percentage of Net sales during the six months ended June 29, 2012 in comparison to the comparable prior year period resulted primarily from $36.0 million of higher intangible amortization expense, partially offset by the benefit of higher sales volumes and efforts to reduce costs. During the six months ended June 29, 2012, we incurred $43.6 million of advisory, legal, audit, valuation and other professional service fees and realized losses on acquisition-related foreign exchange derivatives in connection with the Charter Acquisition.
Cash flows from financing activities were also significantly impacted by the Charter Acquisition. As discussed above under “—Equity Capital,” we raised $805.0 million of cash from sales of our equity securities to the BDT Investor, Steven and Mitchell Rales and Markel, and $293 million in a primary offering settled in March 2012. Also, as further discussed above under “—Borrowing Arrangements,” we borrowed approximately $1.8 billion of term loans, $65.8 million of which was repaid in the six months ended June 29, 2012. The additional payment of borrowings under term loans of $455 million primarily represents the repayment of borrowings under our Bank of America Credit Agreement, in conjunction with the financing of the Charter Acquisition. We also made quarterly cash payments of preferred stock dividends of $7.2 million. Net repayments of $2.0 million during the six months ended July 1, 2011 resulted from the use of cash generated from our operating activities to repay outstanding indebtedness.
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