Continental Materials Corp (CUO, Financial) filed Quarterly Report for the period ended 2012-06-30.
Continental Materials Corporation has a market cap of $22.9 million; its shares were traded at around $13.4989 with and P/S ratio of 0.2.
excluding flow-fill material for a particular project, increased by just 1%. The market in Colorado Springs exhibited meaningful improvement compared to the prior year but the market in Pueblo weakened even further. Sales of aggregates (sand, crushed limestone and gravel) including those used internally were 26.6% higher in the 2012 quarter compared to the comparable quarter of 2011. However, most of the increased aggregate volume was for secondary, lower priced materials. The gross profit ratio for the CACS segment as a whole was approximately 4 points lower in the second quarter of 2012. The gross profits of the aggregates operations fell substantially due to the unfavorable shift in product mix, competitive pricing and an increase in repairs and maintenance expenditures. The Pikeview Quarry remains closed although the Company continues to work with the Colorado Division of Reclamation, Mining and Safety on a plan to resume operations there. The litigation over the insurance claim pertaining to the 2008 landslide at the Pikeview Quarry is ongoing. A pre-trial conference is scheduled for the latter part of September. Selling and administrative expenses were lower in the second quarter of 2012 principally due to reduced litigation costs related to the Pikeview insurance claim. The operating loss for the CACS segment in the second quarter of 2012 includes a $17,000 gain on the sale of equipment. There was $140,000 of such gains in the second quarter of 2011.
Consolidated sales in the first half of 2012 were $54,143,000, 2.7% higher than in the first six months of 2011. Sales results at all of the four Companys business segments showed improvement compared to the first half of 2011. The consolidated gross profit ratio was 19.0% in the first half of 2012 compared to 19.7% in the first six months of 2011. In the first half of 2012 three of the Companys four business segments experienced reduced gross profit ratios. The Heating & Cooling segment realized a higher gross profit ratio as profit margins on fan coils improved from rather depressed levels a year ago. Consolidated selling and administrative expenses were $502,000 higher in the first half of 2012 compared to the first half of the prior year. Consolidated selling and administrative expenses, as a percentage of consolidated sales, increased from 18.7% to 19.2%. The Companys two HVAC businesses incurred higher selling and administrative expenses in the first half of 2012 compared to the first half of the prior year. The other two business segments had lower or the same level of expense. Operating income in 2012 includes a $17,000 gain on the sale of some equipment. In the first half of 2011, gains on the sale of depreciable equipment were $140,000.
Sales in the Heating and Cooling segment increased by $367,000 (2.5%) in the first half of 2012 from the comparable period in 2011. Furnace sales for the first six months of 2012 declined by 10.6% compared to the first six months of 2011. In 2011 some rehabilitation projects at multi-family dwellings boosted furnace sales. There were little of these same sales opportunities available in 2012. Fan coil sales were significantly higher on a percentage basis as that particular market is showing signs of a recovery from a particularly slow period. The gross profit ratio for this segment improved by 3.3 points due a substantial improvement in fan coil margins from an unacceptably low level experienced in the first half of 2011. Selling and administrative expenses increased by $551,000 due to increased sales incentives for furnace customers and higher legal expenses related to product liability claims.
Sales in the Evaporative Cooling segment increased by 2.3% in the first six months of 2012 compared to the 2011 first half. However, unit shipments were down by 2%. The gross profit ratio was modestly lower than a year ago. Some increased material costs and higher factory overheads more than offset the increase in selling prices. Selling and administrative costs increased by $214,000. Additional sales promotion and advertising expenses and new product development efforts contributed to the higher sales and administrative expenses. As a percentage of sales, these expenses increased from 10.6% to 11.7%.
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Continental Materials Corporation has a market cap of $22.9 million; its shares were traded at around $13.4989 with and P/S ratio of 0.2.
Highlight of Business Operations:
Consolidated sales in the second quarter of 2012 were $29,747,000 or $1,772,000 (6.3%) more than second quarter of 2011. Sales in three of the Companys four segments were moderately higher in 2012 while sales in the Heating and Cooling segment slightly declined. Business conditions in the Construction, Aggregates and Construction Supply (CACS) and Door segment were particularly weak in the second quarter of 2011 and were only marginally improved in the second quarter of 2012. The consolidated gross profit ratio for the current year quarter was 18.5% compared to 21.8% in the second quarter of 2011. All four of the Companys business segments experienced lower gross profit ratios due to a number of varying factors including price competition, sales mix and higher manufacturing costs. Consolidated selling and administrative expenses were only $32,000 higher in the 2012 quarter compared to the prior year. Lower litigation expenses associated with the Pikeview insurance claim were offset by increased sales expenses in the Companys HVAC business units. Consolidated selling and administrative expenses, as a percentage of consolidated sales, decreased from 18.1% to 17.1%. The operating loss for the second quarter of 2012 was $629,000 compared to $83,000 of operating income in the second quarter of 2011.excluding flow-fill material for a particular project, increased by just 1%. The market in Colorado Springs exhibited meaningful improvement compared to the prior year but the market in Pueblo weakened even further. Sales of aggregates (sand, crushed limestone and gravel) including those used internally were 26.6% higher in the 2012 quarter compared to the comparable quarter of 2011. However, most of the increased aggregate volume was for secondary, lower priced materials. The gross profit ratio for the CACS segment as a whole was approximately 4 points lower in the second quarter of 2012. The gross profits of the aggregates operations fell substantially due to the unfavorable shift in product mix, competitive pricing and an increase in repairs and maintenance expenditures. The Pikeview Quarry remains closed although the Company continues to work with the Colorado Division of Reclamation, Mining and Safety on a plan to resume operations there. The litigation over the insurance claim pertaining to the 2008 landslide at the Pikeview Quarry is ongoing. A pre-trial conference is scheduled for the latter part of September. Selling and administrative expenses were lower in the second quarter of 2012 principally due to reduced litigation costs related to the Pikeview insurance claim. The operating loss for the CACS segment in the second quarter of 2012 includes a $17,000 gain on the sale of equipment. There was $140,000 of such gains in the second quarter of 2011.
Consolidated sales in the first half of 2012 were $54,143,000, 2.7% higher than in the first six months of 2011. Sales results at all of the four Companys business segments showed improvement compared to the first half of 2011. The consolidated gross profit ratio was 19.0% in the first half of 2012 compared to 19.7% in the first six months of 2011. In the first half of 2012 three of the Companys four business segments experienced reduced gross profit ratios. The Heating & Cooling segment realized a higher gross profit ratio as profit margins on fan coils improved from rather depressed levels a year ago. Consolidated selling and administrative expenses were $502,000 higher in the first half of 2012 compared to the first half of the prior year. Consolidated selling and administrative expenses, as a percentage of consolidated sales, increased from 18.7% to 19.2%. The Companys two HVAC businesses incurred higher selling and administrative expenses in the first half of 2012 compared to the first half of the prior year. The other two business segments had lower or the same level of expense. Operating income in 2012 includes a $17,000 gain on the sale of some equipment. In the first half of 2011, gains on the sale of depreciable equipment were $140,000.
Sales in the Heating and Cooling segment increased by $367,000 (2.5%) in the first half of 2012 from the comparable period in 2011. Furnace sales for the first six months of 2012 declined by 10.6% compared to the first six months of 2011. In 2011 some rehabilitation projects at multi-family dwellings boosted furnace sales. There were little of these same sales opportunities available in 2012. Fan coil sales were significantly higher on a percentage basis as that particular market is showing signs of a recovery from a particularly slow period. The gross profit ratio for this segment improved by 3.3 points due a substantial improvement in fan coil margins from an unacceptably low level experienced in the first half of 2011. Selling and administrative expenses increased by $551,000 due to increased sales incentives for furnace customers and higher legal expenses related to product liability claims.
Sales in the Evaporative Cooling segment increased by 2.3% in the first six months of 2012 compared to the 2011 first half. However, unit shipments were down by 2%. The gross profit ratio was modestly lower than a year ago. Some increased material costs and higher factory overheads more than offset the increase in selling prices. Selling and administrative costs increased by $214,000. Additional sales promotion and advertising expenses and new product development efforts contributed to the higher sales and administrative expenses. As a percentage of sales, these expenses increased from 10.6% to 11.7%.
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