MFRI Inc. (MFRI, Financial) filed Quarterly Report for the period ended 2008-10-31.
MFRI INC. is engaged in the manufacture and sale of filter bags for use inindustrial air pollution control systems known as ``baghouses``. Co. alsoengineers designs and manufactures specialty piping systems and leakdetection and location systems. MFRI Inc. has a market cap of $32.57 million; its shares were traded at around $5.6 with a P/E ratio of 159.67 and P/S ratio of 0.14.
General and administrative expense increased to $7,629,000 or 3.5% of consolidated net sales in the current-year nine-month period from $6,337,000 or 3.5% in the prior-year period. The increase was mainly due to the profit-based increased management incentive expense, increased incremental expenses of $259,000 incurred to comply with SOX 404 (including consulting fees) that were not incurred in the first half of 2007, stock compensation expense of $296,000, and additional staffing, offset by a decrease in deferred compensation expense of $410,000.
Interest expense, net of capitalized interest, increased to $2,022,000 for the current-year period from $1,751,000 for the corresponding period in the prior year primarily due to increased borrowings. Capitalized interest of $152,000 was recorded in 2008 and was attributable to the building preparations for the relocation of the Filtration Products business Cicero, Illinois operations to Bolingbrook, Illinois which occurred in the second and third quarters of 2008. The building was purchased in March 2008 for $6,400,000, and improvements and modifications cost an additional $1,600,000.
Cash and cash equivalents as of October 31, 2008 were $2,690,000 as compared to $2,665,000 at January 31, 2008. The Company used $1,077,000 from operations during the first nine months of 2008. Operating cash flows increased by $1,979,000 from the corresponding period in the prior year. During the first nine months of 2008, net borrowings of $22,756,000 were made from mortgages and the Companys credit facility. Exercise of stock options for the first nine months of 2008 resulted in proceeds of $37,000.
Net cash used for investing activities for the nine months ended October 31, 2008 was $16,925,000. Capital expenditures increased $12,695,000 from the prior year to $17,217,000. The Filtration Products business Cicero, Illinois operations relocated in the summer of 2008 to a building in Bolingbrook, Illinois, purchased in March 2008 for $6,400,000. Improvements and modifications cost an additional $1,600,000. The Company has financed such expenditures through real estate mortgages, equipment financing loans, internally generated funds and its revolving line of credit.
Debt totaled $55,866,000, an increase of $21,626,000 since the beginning of the current fiscal year. The Companys borrowing under its revolving line increased $17,623,000 since the beginning of the current fiscal year, primarily to fund inventory purchases for the increased sales. Net cash provided by financing activities was $19,222,000. Stock option activity resulted in $443,000 of cash outflow, which included $480,000 tax expense of stock options exercised in addition to stock option proceeds of $37,000.
Read the The complete Report
More on MFRI:
Gurus buys and sells of MFRI
10-year financial history of MFRI.
Insider buys/sells of MFRI.
MFRI INC. is engaged in the manufacture and sale of filter bags for use inindustrial air pollution control systems known as ``baghouses``. Co. alsoengineers designs and manufactures specialty piping systems and leakdetection and location systems. MFRI Inc. has a market cap of $32.57 million; its shares were traded at around $5.6 with a P/E ratio of 159.67 and P/S ratio of 0.14.
Highlight of Business Operations:
Net sales of $107,067,000 for the nine months increased 36.3% from $78,528,000 for the corresponding period in the prior year, attributed to achieving market traction in the U.A.E., as well the GCC countries. The U.A.E. facilitys net sales were $31,279,000 in the current year compared to $16,601,000 in the corresponding period of the prior year. In addition, DHC sales increased, and the India pipeline project had sales of $4,102,000. As of October 31, 2008, the Company had completed one fourth of the contract.General and administrative expense increased to $7,629,000 or 3.5% of consolidated net sales in the current-year nine-month period from $6,337,000 or 3.5% in the prior-year period. The increase was mainly due to the profit-based increased management incentive expense, increased incremental expenses of $259,000 incurred to comply with SOX 404 (including consulting fees) that were not incurred in the first half of 2007, stock compensation expense of $296,000, and additional staffing, offset by a decrease in deferred compensation expense of $410,000.
Interest expense, net of capitalized interest, increased to $2,022,000 for the current-year period from $1,751,000 for the corresponding period in the prior year primarily due to increased borrowings. Capitalized interest of $152,000 was recorded in 2008 and was attributable to the building preparations for the relocation of the Filtration Products business Cicero, Illinois operations to Bolingbrook, Illinois which occurred in the second and third quarters of 2008. The building was purchased in March 2008 for $6,400,000, and improvements and modifications cost an additional $1,600,000.
Cash and cash equivalents as of October 31, 2008 were $2,690,000 as compared to $2,665,000 at January 31, 2008. The Company used $1,077,000 from operations during the first nine months of 2008. Operating cash flows increased by $1,979,000 from the corresponding period in the prior year. During the first nine months of 2008, net borrowings of $22,756,000 were made from mortgages and the Companys credit facility. Exercise of stock options for the first nine months of 2008 resulted in proceeds of $37,000.
Net cash used for investing activities for the nine months ended October 31, 2008 was $16,925,000. Capital expenditures increased $12,695,000 from the prior year to $17,217,000. The Filtration Products business Cicero, Illinois operations relocated in the summer of 2008 to a building in Bolingbrook, Illinois, purchased in March 2008 for $6,400,000. Improvements and modifications cost an additional $1,600,000. The Company has financed such expenditures through real estate mortgages, equipment financing loans, internally generated funds and its revolving line of credit.
Debt totaled $55,866,000, an increase of $21,626,000 since the beginning of the current fiscal year. The Companys borrowing under its revolving line increased $17,623,000 since the beginning of the current fiscal year, primarily to fund inventory purchases for the increased sales. Net cash provided by financing activities was $19,222,000. Stock option activity resulted in $443,000 of cash outflow, which included $480,000 tax expense of stock options exercised in addition to stock option proceeds of $37,000.
Read the The complete Report
More on MFRI:
Gurus buys and sells of MFRI
10-year financial history of MFRI.
Insider buys/sells of MFRI.
