National Presto Industries Inc. (NPK, Financial) filed Quarterly Report for the period ended 2009-04-05.
National Presto Industries manufactures and distributes small electrical appliances and housewares including comfort appliances pressure cookers and canners private label and premium sales products. Electrical appliances and housewares sold by the company include pressure cookers and canners; the Presto Control Master heat control single thermostatic control line of fry pans in several sizes griddles and combination griddle/warmers and multi-purpose cookers; deep fryers of various sizes; can openers slicer/shredders; electric heaters; corn poppers. National Presto Industries Inc. has a market cap of $483.5 million; its shares were traded at around $70.61 with and P/S ratio of 1.2. The dividend yield of National Presto Industries Inc. stocks is 1.3%. National Presto Industries Inc. had an annual average earning growth of 14.6% over the past 10 years.
Housewares/small appliance net sales increased by $4,747,000 from $19,373,000 to $24,120,000, or 25%, 59% of which was attributable to an increase in units shipped, with the remaining increase attributable to price increases. Defense net sales increased by $22,277,000 from $42,894,000 to $65,171,000, or 52%, stemming primarily from an increase in sales related to the US Department of the Army 40mm Systems program. Absorbent products net sales increased by $3,757,000 from $14,878,000 to $18,635,000, or 25%, stemming from an increase in unit shipments, 14% of which was offset by price decreases.
Housewares/small appliance gross profits were essentially flat, increasing by $16,000 from $3,854,000 (20%) in the prior quarter to $3,870,000 (16%) in the current quarter. The decrease in gross profit percentage primarily reflected increased product costs. Defense gross profits increased $6,112,000 from $8,935,000 (21%) from the prior year's quarter to $15,047,000 (23%). The dollar increase reflected the sales increase noted above, while the percent increase related to a more favorable product mix. Absorbent products gross profits were $741,000 in the current quarter versus $149,000 in the prior period, a favorable change of $592,000, primarily reflecting decreased commodity costs, augmented by higher production levels/improved efficiency.
Earnings before provision for income taxes increased $6,556,000 from $10,130,000 to $16,686,000. The provision for income taxes increased from $3,880,000 to $5,832,000, which resulted in an effective income tax rate decrease from 38% to 35%, reflecting the increase in the FIN 48 tax reserve made in the prior period that was not repeated in the current period, which was only partially offset by an increase in earnings subject to income tax. Net earnings increased $4,604,000 from $6,250,000 to $10,854,000, or 74%.
Net cash provided by operating activities was $40,935,000 and $12,940,000 for the three months ended April 5, 2009 and March 30, 2008, respectively. The principal factors contributing to the increase can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows. Of particular note during the current quarter were: net earnings of $10,854,000 and lower accounts receivable levels stemming from cash collections on customer sales. Of particular note during the prior quarter were: net earnings of $6,250,000, lower accounts receivable levels stemming from cash collections on customer sales, higher inventory levels in the Defense segment related to the inability to bill several lots of ammunition that were produced to specifications and accepted, but subsequently placed on hold, and lower payable levels in the Defense segment.
Net cash used by investing activities during the first three months of 2009 was $8,515,000, as compared to $2,596,000 used during the first three months of 2008. The change in investing activity cash flow is attributable to the increased net purchases of marketable securities stemming from increased cash provided by operating activities.
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National Presto Industries manufactures and distributes small electrical appliances and housewares including comfort appliances pressure cookers and canners private label and premium sales products. Electrical appliances and housewares sold by the company include pressure cookers and canners; the Presto Control Master heat control single thermostatic control line of fry pans in several sizes griddles and combination griddle/warmers and multi-purpose cookers; deep fryers of various sizes; can openers slicer/shredders; electric heaters; corn poppers. National Presto Industries Inc. has a market cap of $483.5 million; its shares were traded at around $70.61 with and P/S ratio of 1.2. The dividend yield of National Presto Industries Inc. stocks is 1.3%. National Presto Industries Inc. had an annual average earning growth of 14.6% over the past 10 years.
Highlight of Business Operations:
On a consolidated basis, sales increased by $30,781,000 (40%), gross margins increased by $6,720,000 (52%), selling and general expense decreased by $97,000 (2%), and other income decreased by $261,000 (19%). Earnings before the provision for income taxes increased by $6,556,000 (65%), as did net earnings by $4,604,000 (74%). Details concerning these changes can be found in the comments by segment below.Housewares/small appliance net sales increased by $4,747,000 from $19,373,000 to $24,120,000, or 25%, 59% of which was attributable to an increase in units shipped, with the remaining increase attributable to price increases. Defense net sales increased by $22,277,000 from $42,894,000 to $65,171,000, or 52%, stemming primarily from an increase in sales related to the US Department of the Army 40mm Systems program. Absorbent products net sales increased by $3,757,000 from $14,878,000 to $18,635,000, or 25%, stemming from an increase in unit shipments, 14% of which was offset by price decreases.
Housewares/small appliance gross profits were essentially flat, increasing by $16,000 from $3,854,000 (20%) in the prior quarter to $3,870,000 (16%) in the current quarter. The decrease in gross profit percentage primarily reflected increased product costs. Defense gross profits increased $6,112,000 from $8,935,000 (21%) from the prior year's quarter to $15,047,000 (23%). The dollar increase reflected the sales increase noted above, while the percent increase related to a more favorable product mix. Absorbent products gross profits were $741,000 in the current quarter versus $149,000 in the prior period, a favorable change of $592,000, primarily reflecting decreased commodity costs, augmented by higher production levels/improved efficiency.
Earnings before provision for income taxes increased $6,556,000 from $10,130,000 to $16,686,000. The provision for income taxes increased from $3,880,000 to $5,832,000, which resulted in an effective income tax rate decrease from 38% to 35%, reflecting the increase in the FIN 48 tax reserve made in the prior period that was not repeated in the current period, which was only partially offset by an increase in earnings subject to income tax. Net earnings increased $4,604,000 from $6,250,000 to $10,854,000, or 74%.
Net cash provided by operating activities was $40,935,000 and $12,940,000 for the three months ended April 5, 2009 and March 30, 2008, respectively. The principal factors contributing to the increase can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows. Of particular note during the current quarter were: net earnings of $10,854,000 and lower accounts receivable levels stemming from cash collections on customer sales. Of particular note during the prior quarter were: net earnings of $6,250,000, lower accounts receivable levels stemming from cash collections on customer sales, higher inventory levels in the Defense segment related to the inability to bill several lots of ammunition that were produced to specifications and accepted, but subsequently placed on hold, and lower payable levels in the Defense segment.
Net cash used by investing activities during the first three months of 2009 was $8,515,000, as compared to $2,596,000 used during the first three months of 2008. The change in investing activity cash flow is attributable to the increased net purchases of marketable securities stemming from increased cash provided by operating activities.
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