ADDvantage Technologies Group Inc (AEY, Financial) filed Quarterly Report for the period ended 2010-05-12.
Addvantage Technologies Group Inc has a market cap of $31.8 million; its shares were traded at around $3.1401 with a P/E ratio of 11.2 and P/S ratio of 0.7. AEY is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Total Net Sales. Total net sales decreased $0.7 million, or 3%, to $22.3 million for the six months ended March 31, 2010 from $22.9 million for the six months ended March 31, 2009. This decrease was due primarily to our large and small MSO customers delaying plant expansions and bandwidth upgrades as part of their continued efforts to conserve cash and limit capital expenditures, largely offset by sales of headend equipment needed by customers to add channels to their cable systems or upgrade their equipment in order to provide HD programming on their cable system. Sales of new equipment decreased $0.5 million, or 4%, to $14.4 million for the six months ended March 31, 2010 from $14.9 million for the six months ended March 31, 2009. Net refurbished equipment sales decreased $0.3 million, or 5%, to $5.1 million for the six months ended March 31, 2010 from $5.4 million for the same period last year. In addition to the above discussion, net refurbished equipment sales were also impacted by a $0.6 million
Operating, Selling, General and Administrative Expenses. Operating, selling, general and administrative expenses include all personnel costs, which include fringe benefits, insurance and business taxes, as well as occupancy, communication and professional services, among other less significant cost categories. Operating, selling, general and administrative expenses decreased $0.4 million, or 10%, to $3.4 million for the six months ended March 31, 2010 compared to $3.8 million for the six months ended March 31, 2009. The decrease was due primarily to decreases in personnel costs of $0.2 million, resulting primarily from headcount reductions taken in fiscal year 2009.
Interest Expense. Interest expense was $0.4 million for the six months ended March 31, 2010 and $0.5 million for the six months ended March 31, 2009. The decline in interest expense was due primarily to reduced borrowing levels under our $16.3 million term loan and Line of Credit for the six months ended March 31, 2010 as compared to the same period last year and lower interest rates for the $2.8 million term loan for the six months ended March 31, 2010 as compared to the six months ended March 31, 2009.
We finance our operations primarily through internally generated funds and a bank line of credit of $7.0 million. During the six months ended March 31, 2010, we generated approximately $3.8 million of cash flow from operations. The cash flow from operations was impacted by a $0.7 million net increase in our accounts receivable. Our trade receivables increased from fiscal year end 2009 due primarily to increased revenues in the second fiscal quarter 2010. We have not experienced a significant deterioration in collections on accounts receivables, so we have kept our reserve for doubtful accounts at the same level as fiscal year end 2009. The cash flow from operations was also impacted by a $1.7 million net decrease in inventory. Our inventory decreased from fiscal year end 2009 due primarily to management s continuing efforts to reduce our overall inventory levels. The cash flow from operations was impacted by a $0.6 million increase in our accounts payable. Our accounts payable increased from fiscal year end 2009 due primarily to inventory purchases that were made at the end of the second fiscal quarter 2010.
term loan is payable over a five year period through November 2012 with quarterly payments of $0.4 million plus accrued interest. In connection with this term loan, we entered into an interest rate swap to effectively fix the interest rate on this term loan at 5.92%. The notional value of the interest rate swap amortizes quarterly with payments that mirror the $16.3 million term loan. The $2.8 million term loan requires monthly payments of $15,334 plus accrued interest through November 2021.
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Addvantage Technologies Group Inc has a market cap of $31.8 million; its shares were traded at around $3.1401 with a P/E ratio of 11.2 and P/S ratio of 0.7. AEY is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Total Net Sales. Total net sales increased $1.9 million, or 19%, to $12.1 million for the three months ended March 31, 2010 from $10.1 million for the three months ended March 31, 2009. The overall increase was due primarily to a $1.6 million increase in sales of new and refurbished equipment consisting mostly of headend equipment needed by customers to add channels to their cable systems or upgrade their equipment in order to provide HD programming on their cable system. However, our large and small MSO customers continued to delay significant plant expansions and bandwidth upgrades as part of their continued efforts to conserve cash and limit capital expenditures. Sales of new equipment increased $1.1 million, or 17%, to $7.8 million for the three months ended March 31, 2010 from $6.7 million for the three months ended March 31, 2009. Net refurbished equipment sales increased $0.5 million, or 24%, to $2.9 million for the three months ended March 31, 2010 from $2.3 million for the same period last year. In addition to the above discussion, net refurbished equipment sales were also impacted by a $0.4 million increase in sales of converter boxes for the three months ended March 31, 2010 as compared to the same period last year. Net repair service revenues increased $0.3 million, or 23%, to $1.4 million for the three months ended March 31, 2010 from $1.1 million for the same period last year. The repair revenue increase for the three months ended March 31, 2010 was primarily due to our continued efforts to promote and expand this line of business.Total Net Sales. Total net sales decreased $0.7 million, or 3%, to $22.3 million for the six months ended March 31, 2010 from $22.9 million for the six months ended March 31, 2009. This decrease was due primarily to our large and small MSO customers delaying plant expansions and bandwidth upgrades as part of their continued efforts to conserve cash and limit capital expenditures, largely offset by sales of headend equipment needed by customers to add channels to their cable systems or upgrade their equipment in order to provide HD programming on their cable system. Sales of new equipment decreased $0.5 million, or 4%, to $14.4 million for the six months ended March 31, 2010 from $14.9 million for the six months ended March 31, 2009. Net refurbished equipment sales decreased $0.3 million, or 5%, to $5.1 million for the six months ended March 31, 2010 from $5.4 million for the same period last year. In addition to the above discussion, net refurbished equipment sales were also impacted by a $0.6 million
Operating, Selling, General and Administrative Expenses. Operating, selling, general and administrative expenses include all personnel costs, which include fringe benefits, insurance and business taxes, as well as occupancy, communication and professional services, among other less significant cost categories. Operating, selling, general and administrative expenses decreased $0.4 million, or 10%, to $3.4 million for the six months ended March 31, 2010 compared to $3.8 million for the six months ended March 31, 2009. The decrease was due primarily to decreases in personnel costs of $0.2 million, resulting primarily from headcount reductions taken in fiscal year 2009.
Interest Expense. Interest expense was $0.4 million for the six months ended March 31, 2010 and $0.5 million for the six months ended March 31, 2009. The decline in interest expense was due primarily to reduced borrowing levels under our $16.3 million term loan and Line of Credit for the six months ended March 31, 2010 as compared to the same period last year and lower interest rates for the $2.8 million term loan for the six months ended March 31, 2010 as compared to the six months ended March 31, 2009.
We finance our operations primarily through internally generated funds and a bank line of credit of $7.0 million. During the six months ended March 31, 2010, we generated approximately $3.8 million of cash flow from operations. The cash flow from operations was impacted by a $0.7 million net increase in our accounts receivable. Our trade receivables increased from fiscal year end 2009 due primarily to increased revenues in the second fiscal quarter 2010. We have not experienced a significant deterioration in collections on accounts receivables, so we have kept our reserve for doubtful accounts at the same level as fiscal year end 2009. The cash flow from operations was also impacted by a $1.7 million net decrease in inventory. Our inventory decreased from fiscal year end 2009 due primarily to management s continuing efforts to reduce our overall inventory levels. The cash flow from operations was impacted by a $0.6 million increase in our accounts payable. Our accounts payable increased from fiscal year end 2009 due primarily to inventory purchases that were made at the end of the second fiscal quarter 2010.
term loan is payable over a five year period through November 2012 with quarterly payments of $0.4 million plus accrued interest. In connection with this term loan, we entered into an interest rate swap to effectively fix the interest rate on this term loan at 5.92%. The notional value of the interest rate swap amortizes quarterly with payments that mirror the $16.3 million term loan. The $2.8 million term loan requires monthly payments of $15,334 plus accrued interest through November 2021.
Read the The complete Report
