Envirostar Inc Reports Operating Results (10-K)
Envirostar Inc has a market cap of $10.1 million; its shares were traded at around $1.398 with a P/E ratio of 14.3 and P/S ratio of 0.5.
Highlight of Business Operations:Cash provided by operating activities in fiscal 2012 was primarily provided by the Company’s net earnings of $511,689 and non-cash expenses for depreciation and amortization of $49,924, bad debt expenses of $26,269 and a benefit of $25,752 in deferred income taxes. Additional cash was provided by a decrease in leases and mortgages receivables of $31,313 and deferred income of $20,000. These increases in cash were offset by an increase in accounts and trade notes receivables of $199,551 as shipments were heavy during the last month of fiscal 2012 and payments were not yet due. Cash of $81,059 was used to increase inventories to support new orders. In addition a decrease of $98,683 in accounts payable and accrued expenses represents early payments to vendors so that discounts could be realized. Cash was also used to decrease accrued employee expenses by $56,748. Income taxes payable and refundable income taxes used cash of $66,247. Customer deposits decreased by $99,928 due to shipments made in the third quarter from the Company’s backlog while newer orders did not require deposits due to their smaller size. Other assets used cash of $25,197 in the normal course of business.
For the twelve month period ended June 30, 2012, equipment and parts sales increased by 6.6% and 4.6%, respectively, over fiscal 2011 attributable to a reorganized sales staff which enabled the Company to have greater penetration of its territory. Although the economy is still unstable, new orders have been trending higher, increasing the Company’s backlog at year end 2012 compared to 2011. During the year foreign sales also increased by 3.8%.
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