AmpcoPittsburgh Corp. Reports Operating Results (10-Q)
Ampcopittsburgh Corp. has a market cap of $235.48 million; its shares were traded at around $22.98 with a P/E ratio of 7.49 and P/S ratio of 0.79. The dividend yield of Ampcopittsburgh Corp. stocks is 3.13%. Ampcopittsburgh Corp. had an annual average earning growth of 11.8% over the past 10 years.AP is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Net Sales. Net sales for the three months ended March 31, 2010 and 2009 were $82,326,000 and $85,755,000, respectively. Backlog approximated $467,796,000 at March 31, 2010 versus $501,311,000 as of December 31, 2009 and $618,935,000 as of March 31, 2009. A discussion of sales and backlog for the Corporation s two segments is included below.
Selling and Administrative. The increase in selling and administrative expenses is primarily due to the recognition of stock-based compensation costs associated with the February 2010 stock option grant of $1,264,000 for the three months ended March 31, 2010. Total stock-based compensation expense equaled $1,644,000 and $664,000 for the three months ended March 31, 2010 and 2009, respectively.
Forged and Cast Rolls. Sales for the quarter were better than the comparable prior year period attributable to an improvement in the volume of shipments, particularly for the U.K. cast roll operations. Despite the contribution from the additional sales and increased production volumes, operating income was less than the prior year quarter which benefited from significantly higher variable-index surcharge revenues. Backlog approximated $432,741,000 at March 31, 2010 against $468,500,000 as of December 31, 2009 and $566,436,000 as of March 31, 2009. The decline is a result of shipments outpacing new orders. In addition, the Forged and Cast Rolls group has commitments of approximately $56,000,000 from customers under long-term supply arrangements which will be included in backlog upon receipt of specific purchase orders closer to the requirement dates for delivery. Approximately $254,000,000 of the current backlog is expected to ship after 2010.
Air and Liquid Processing. Sales and operating income for the segment decreased when compared to the three months ended March 31, 2009. Specifically, Buffalo Pumps has been adversely affected by a reduction in the volume of pumps supplied to the energy sector and for the U.S. Navy. With minimal new-construction activity, Buffalo Air Handling continues to operate at a break-even level. Although sales for Aerofin have declined as a result of reduced activity with its utility customers, the impact to operating income was minimized by lower commissions and operating costs. As of March 31, 2010, backlog approximated $35,055,000 in comparison to $32,811,000 as of December 31, 2009 and $52,499,000 as of March 31, 2009. The reduction in backlog from a year ago is reflective of the economic slowdown in its markets and the fall off in new business which began in the latter part of 2009. The majority of the current backlog is expected to ship in 2010.
Net Income and Earnings per Common Share. As a result of the above, the Corporation s net income for the three months ended March 31, 2010 and 2009 equaled $8,211,000 or $0.80 per common share and $7,319,000 or $0.72 per common share, respectively.
As a result of the above, cash and cash equivalents decreased $4,616,000 in 2010 and ended the period at $61,825,000 in comparison to $66,441,000 at December 31, 2009.
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