GormanRupp Company Reports Operating Results (10-Q)
Gorman-rupp Company has a market cap of $554.8 million; its shares were traded at around $26.43 with a P/E ratio of 17.5 and P/S ratio of 1.5. The dividend yield of Gorman-rupp Company stocks is 1.5%. Gorman-rupp Company had an annual average earning growth of 9.6% over the past 10 years. GuruFocus rated Gorman-rupp Company the business predictability rank of 3-star.
Highlight of Business Operations:Net sales during the third quarter 2012 were $91.6 million compared to $90.2 million during the same period in 2011. Net income during the quarter was $6.7 million compared to $7.7 million in the third quarter 2011, a 13.0% decrease. Earnings per share were $0.32 and $0.37 for the respective periods.
Net sales for the nine months ended September 30, 2012 increased 7.7% to a record $287.0 million compared to $266.4 million during the same period in 2011. Both years benefited from increases in our seasonal agriculture market business contributed by our 2010 acquisition of National Pump Company. Net income increased 3.4% to a record $24.5 million compared to $23.7 million in the first nine months of 2011. Earnings per share were $1.17 and $1.13 for the respective periods.
The increase in SG&A expenses was principally due to increases in professional fees of $223,000 primarily due to the acquisition of Pumptron and associated legal fees, and in travel and advertising expenses of $139,000 related to trade shows. Also, a change in the allocation of profit sharing in the third quarter 2012 compared to the same period last year resulted in an increase of $268,000.
Record nine-month sales included increases in both the water and non-water market groups. The larger water markets group increased $13.2 million primarily due to improved sales of $9.5 million in the fire protection market due to an increase in sales internationally and higher sales of $4.5 million in the agriculture market due to agricultural cash-flow benefits from high commodity prices and drought conditions in the United States. The non-water markets group increased $8.0 million primarily due to higher sales in the petroleum and industrial markets related to oil and natural gas drilling.
The increase in SG&A expenses was principally due to increases of $449,000 in wage costs and $501,000 in travel and advertising expenses related to trade shows. Also, a change in the allocation of profit sharing in 2012 compared to 2011 resulted in an increase of $470,000.
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