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Peerless Manufacturing Company Reports Operating Results (10-Q)

February 08, 2013 | About:
10qk

10qk

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Peerless Manufacturing Company (PMFG) filed Quarterly Report for the period ended 2012-12-29.

Pmfg, Inc. has a market cap of $156.065 million; its shares were traded at around $7.46 with a P/E ratio of 588.235 and P/S ratio of 1.1471.

Highlight of Business Operations:

Our sales and marketing expenses increased $0.4 million in the second quarter of fiscal 2013 compared to the second quarter of fiscal 2012, primarily due to higher commissions expense and increased costs associated with additional sales resources located in China. Our engineering and project management expenses decreased $0.1 million in the second quarter of fiscal 2013 compared to the same period in fiscal 2012. General and administrative expenses decreased $1.0 million during the second quarter of fiscal 2013 compared to the same period last year, primarily due to the expense of $2.1 million for accelerated vesting of restricted stock in the second quarter of fiscal 2012 that was not replicated in the same period in fiscal 2013, partially offset by increased costs of maintaining foreign offices, and increased professional services fees.

Process Products operating income for the second quarter of fiscal 2013 decreased $0.8 million, or 14.8%, compared to the second quarter of fiscal 2012. The decrease in operating income in the second quarter of fiscal 2013 was primarily a result of decreased revenue in the period. As a percentage of revenue, operating income remained relatively flat at 16.5% and 16.9% for the quarters ended December 29, 2012 and December 31, 2011, respectively.

Our sales and marketing expenses increased $0.5 million in the six months ended December 29, 2012 compared to the same period last year, primarily due to higher commissions expense and increased costs associated with additional sales resources located in China. Our engineering and project management expense increased $0.2 million in the six months ended December 29, 2012 compared to the same period last year due largely to the addition of international engineering and project management resources. Our general and administrative expenses decreased $0.5 million in the six months ended December 29, 2012 compared to the same period last year. The decrease in general and administrative expense during the current six month period was primarily due to the expense of $2.1 million for accelerated vesting of restricted stock in the same period last year that was not replicated in the current six month period in fiscal 2013, partially offset by increased costs of maintaining foreign offices, and a write off of a customer receivable that was identified as uncollectible in the first quarter of fiscal 2013.

Backlog includes contractual purchase orders for products that are deliverable in future periods less revenue recognized on such orders to date. Our backlog was down $23.1 million to $87.9 million at December 29, 2012, compared to $111.0 million at December 31, 2011. The decrease in backlog was the result of lower net bookings, reflecting significant international net bookings received in the second quarter of fiscal 2012, and the removal from backlog of a customer purchase order in the amount of $11.4 million in the fourth quarter of fiscal 2012. At December 29, 2012, approximately 85% of our backlog related to Process Products sales orders with the balance pertaining to Environmental Systems sales orders. Approximately 14% of our backlog at December 29, 2012 remains on customer hold. Although the customer has communicated they expect the capital project to move forward, the timing and impact on our project scope is not yet known. Orders in backlog are subject to change, delays or cancellation by our customers.

The increase in our stockholders equity of $2.6 million, or 2.0%, from $130.9 million at June 30, 2012 to $133.5 million at December 29, 2012 is attributable to an increase in contribution to non-controlling interest in a subsidiary, an increase in Other Comprehensive Income, stock awards, and our net earnings for the six months ended December 29, 2012. Our ratio of debt (total liabilities)-to-equity was 0.4-to-1.0 at December 29, 2012 and June 30, 2012.

Read the The complete Report

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