Baker Corp (BKR, Financial) filed Quarterly Report for the period ended 2009-06-30.
BAKER (MICHAEL) CORP. through its subsidiaries provides engineering construction and operations and technical services worldwide. Co. is organized into five market-focused business units: Transportation Civil Buildings Environmental and Energy. Baker Corp has a market cap of $364.6 million; its shares were traded at around $41.15 with a P/E ratio of 13.7 and P/S ratio of 0.5. Baker Corp had an annual average earning growth of 34.4% over the past 5 years.
Engineering. Gross profit was $23.1 million for 2009 compared to $23.3 million for 2008, reflecting a decrease of $0.2 million or 1%. The decrease in gross profit for 2009 is primarily attributable to an increase in incentive compensation accruals and a reduction in project incentive awards compared to 2008. Engineerings gross profit expressed as a percentage of revenues was 20.4% in 2009 compared to 20.5% in 2008. Gross profit expressed as a percentage of revenues decreased as a result of the aforementioned increase in incentive compensation accruals of $3.0 million and a reduction in project incentive awards of $0.4 million, partially offset by improved project mix.
Energy. Gross profit was $7.1 million for 2009 compared to $8.4 million for 2008, reflecting a decrease of $1.3 million or 16%. Gross profit was unfavorably impacted by decreased revenue volume and an increase in self-insured workers compensation expense. Gross profit expressed as a percentage of revenues was 13.9% in 2009 compared to 14.7% in 2008. Gross profit expressed as a percentage of revenues was unfavorably impacted by an increase in self-insured workers compensation expense of $0.5 million compared to 2008.
Our SG&A expenses totaled $19.3 million for 2009 compared to $18.7 million for 2008, reflecting a increase of $0.6 million or 3%. This increase in SG&A was driven by an increase in incentive compensation accruals of approximately $1.5 million based on our year-to-date achievement towards the plan targets established for 2009 as compared to a discretionary plan in 2008 under which incentive compensation was recognized primarily over the second half of the year. Also contributing to the period-over-period increase in SG&A expenses was an increase in allocated Corporate overhead costs, offset by the absence of restatement-related costs incurred in the same period in 2008. SG&A expenses expressed as a percentage of revenues increased to 11.8% for 2009 from 11.0% for 2008. This overall increase in SG&A expenses expressed as a percentage of revenues is primarily driven by the aforementioned increase in incentive compensation accruals, an increase in bad debt expense, and an increase in allocated Corporate overhead costs, partially offset by the absence of restatement-related costs.
Engineering. SG&A expenses were $14.1 million for 2009 compared to $10.5 million for 2008, reflecting an increase of $3.6 million or 35%. SG&A expenses expressed as a percentage of revenues increased to 12.4% for 2009 from 9.2% for 2008. This increase is primarily related to an increase in incentive compensation accruals of $1.0 million and allocated Corporate overhead costs of $1.7 million,
Energy. SG&A expenses were $4.6 million for 2009 compared to $8.2 million for 2008, reflecting a decrease of $3.6 million or 44%. SG&A expenses expressed as a percentage of revenues decreased to 9.0% for 2009 from 14.3% for 2008. This period-over-period decrease in SG&A expenses expressed as a percentage of revenues is primarily attributable to the favorable impact of the absence of $3.3 million in restatement-related costs in 2009, partially offset by an increase in bad debt expense of $0.7 million.
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BAKER (MICHAEL) CORP. through its subsidiaries provides engineering construction and operations and technical services worldwide. Co. is organized into five market-focused business units: Transportation Civil Buildings Environmental and Energy. Baker Corp has a market cap of $364.6 million; its shares were traded at around $41.15 with a P/E ratio of 13.7 and P/S ratio of 0.5. Baker Corp had an annual average earning growth of 34.4% over the past 5 years.
Highlight of Business Operations:
Our earnings per diluted common share were $1.67 for the six months ended June 30, 2009, compared to $1.62 per diluted common share reported for 2008. Income from operations for the six months ended June 30, 2009 was $23.2 million, compared to $23.3 million for 2008. Income from operations in our Engineering segment was $19.9 million for 2009, a decrease from $22.4 million for 2008. These results were primarily driven by an increase in incentive compensation accruals based on our year-to-date achievement towards the plan targets established for 2009 as compared to a discretionary plan in 2008 under which incentive compensation was recognized primarily over the second half of the year. As of June 30, 2009, the year-to-date amount recorded for total incentive compensation was $5.3 million compared to $0.3 million as of June 30, 2008. This decrease in our Engineering segment income from operations was partially offset by an increase in work for our unconsolidated joint venture in Iraq and profitability improvements on certain federal and state projects. Favorably impacting our overall income from operations was our Energy segments income from operations of $4.6 million for 2009, an increase from $0.1 million for 2008. Our Energy segments period-over-period improvement in income from operations was primarily attributable to a decrease of $4.2 million related to restatement-related costs incurred in the same period in 2008 (in connection with the restatement of our consolidated financial statements for the year ended December 31, 2006 and the first three quarters of 2007) coupled with the reversal of a $2.5 million reserve due to the settlement of a contract-related claim. These favorable period-over-period impacts were partially offset by an increase in bad debt expense in 2009.Engineering. Gross profit was $23.1 million for 2009 compared to $23.3 million for 2008, reflecting a decrease of $0.2 million or 1%. The decrease in gross profit for 2009 is primarily attributable to an increase in incentive compensation accruals and a reduction in project incentive awards compared to 2008. Engineerings gross profit expressed as a percentage of revenues was 20.4% in 2009 compared to 20.5% in 2008. Gross profit expressed as a percentage of revenues decreased as a result of the aforementioned increase in incentive compensation accruals of $3.0 million and a reduction in project incentive awards of $0.4 million, partially offset by improved project mix.
Energy. Gross profit was $7.1 million for 2009 compared to $8.4 million for 2008, reflecting a decrease of $1.3 million or 16%. Gross profit was unfavorably impacted by decreased revenue volume and an increase in self-insured workers compensation expense. Gross profit expressed as a percentage of revenues was 13.9% in 2009 compared to 14.7% in 2008. Gross profit expressed as a percentage of revenues was unfavorably impacted by an increase in self-insured workers compensation expense of $0.5 million compared to 2008.
Our SG&A expenses totaled $19.3 million for 2009 compared to $18.7 million for 2008, reflecting a increase of $0.6 million or 3%. This increase in SG&A was driven by an increase in incentive compensation accruals of approximately $1.5 million based on our year-to-date achievement towards the plan targets established for 2009 as compared to a discretionary plan in 2008 under which incentive compensation was recognized primarily over the second half of the year. Also contributing to the period-over-period increase in SG&A expenses was an increase in allocated Corporate overhead costs, offset by the absence of restatement-related costs incurred in the same period in 2008. SG&A expenses expressed as a percentage of revenues increased to 11.8% for 2009 from 11.0% for 2008. This overall increase in SG&A expenses expressed as a percentage of revenues is primarily driven by the aforementioned increase in incentive compensation accruals, an increase in bad debt expense, and an increase in allocated Corporate overhead costs, partially offset by the absence of restatement-related costs.
Engineering. SG&A expenses were $14.1 million for 2009 compared to $10.5 million for 2008, reflecting an increase of $3.6 million or 35%. SG&A expenses expressed as a percentage of revenues increased to 12.4% for 2009 from 9.2% for 2008. This increase is primarily related to an increase in incentive compensation accruals of $1.0 million and allocated Corporate overhead costs of $1.7 million,
Energy. SG&A expenses were $4.6 million for 2009 compared to $8.2 million for 2008, reflecting a decrease of $3.6 million or 44%. SG&A expenses expressed as a percentage of revenues decreased to 9.0% for 2009 from 14.3% for 2008. This period-over-period decrease in SG&A expenses expressed as a percentage of revenues is primarily attributable to the favorable impact of the absence of $3.3 million in restatement-related costs in 2009, partially offset by an increase in bad debt expense of $0.7 million.
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