MOCON Inc. (MOCO, Financial) filed Quarterly Report for the period ended 2010-03-31.
Mocon Inc. has a market cap of $58.42 million; its shares were traded at around $11.3 with a P/E ratio of 17.94 and P/S ratio of 2.19. The dividend yield of Mocon Inc. stocks is 3.36%. Mocon Inc. had an annual average earning growth of 3.2% over the past 10 years.
Based on current projected annual operating results and current income tax rates, we expect the effective tax rate for the remainder of 2010 to be in the range of 29% to 34%. This rate fluctuates over time based on the income tax rates in the various jurisdictions in which we operate, and also the level of profits in those jurisdictions. Net Income Net income was $922,000 in the first quarter 2010, compared to $399,000 in the first quarter 2009. Diluted net income per share was $0.17 and $0.07 in the first quarters of 2010 and 2009, respectively.
cash flows generated from operations. Total cash, cash equivalents and marketable securities decreased $2,950,000 during the first three months of 2010 to $11,381,000 as of March 31, 2010, compared to $14,331,000 at December 31, 2009. The primary reason for this decrease was due to the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland. Our working capital as of March 31, 2010 decreased $3,264,000 to $16,353,000, as compared to $19,617,000 at December 31, 2009. We invest our excess cash in marketable securities consisting primarily of municipal bonds, certificates of deposits and U.S. treasury obligations. We believe that a combination of our existing cash, cash equivalents and marketable securities, and an expected continuation of cash flow from operations, will continue to be adequate to fund our operations and working capital, capital expenditures, dividend payments and any authorized stock repurchases for at least the next twelve months. We currently do not have any committed lines of credit or other credit facilities, and it is uncertain whether such facilities could be obtained in sufficient amounts or on acceptable terms.
Cash Flow from Investing Activities Cash (used in) provided by investing activities totaled ($1,810,000) and $1,070,000 in the first three months of 2010 and 2009, respectively. The primary reason for cash used in investing activities in 2010 was the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland, offset somewhat by the proceeds from maturities of marketable securities of $1,959,000. For the remainder of 2010, we expect to incur capital expenditures in the range of $1,100,000 to $1,400,000, the majority of which relates to our move to new offices in Minnesota.
Cash used in financing activities totaled $361,000 and $522,000 in the first three months of 2010 and 2009, respectively. During the first three months of 2010 and 2009, we made dividend payments to our shareholders of $467,000 and $503,000, respectively. Partially offsetting the impact of the dividend payment in 2010 were the proceeds from the exercise of stock options in the amount of $104,000.
Accrual for excess and obsolete inventories We perform an analysis to identify excess and obsolete inventory. We record a charge to cost of sales for amounts identified. Our analysis includes inventory levels, the nature of the components and their inherent risk of obsolescence and the on-hand quantities relative to the sales history of that component. We believe that our financial results could be materially different if historical trends are not predictive of future results or if demand for our products decreased because of economic or competitive conditions or otherwise. As of March 31, 2010 and 2009, we had $333,000 and $304,000, respectively, accrued for excess and obsolete inventories.
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Mocon Inc. has a market cap of $58.42 million; its shares were traded at around $11.3 with a P/E ratio of 17.94 and P/S ratio of 2.19. The dividend yield of Mocon Inc. stocks is 3.36%. Mocon Inc. had an annual average earning growth of 3.2% over the past 10 years.
Highlight of Business Operations:
Comparison of Financial Results for the Three-Month Periods Ended March 31, 2010 and 2009 Sales Sales for the three-month period ended March 31, 2010 were $7,093,000, up 15% compared to $6,172,000 for the same period in 2009. We experienced increases in sales in all our major product groups as the global economic conditions that had negatively affected the prior years results showed signs of improvement. Domestic and foreign sales accounted for 45% and 55%, respectively, of our consolidated first quarter sales in 2010, and 47% and 53% of our consolidated sales, respectively, for the same period in 2009.Based on current projected annual operating results and current income tax rates, we expect the effective tax rate for the remainder of 2010 to be in the range of 29% to 34%. This rate fluctuates over time based on the income tax rates in the various jurisdictions in which we operate, and also the level of profits in those jurisdictions. Net Income Net income was $922,000 in the first quarter 2010, compared to $399,000 in the first quarter 2009. Diluted net income per share was $0.17 and $0.07 in the first quarters of 2010 and 2009, respectively.
cash flows generated from operations. Total cash, cash equivalents and marketable securities decreased $2,950,000 during the first three months of 2010 to $11,381,000 as of March 31, 2010, compared to $14,331,000 at December 31, 2009. The primary reason for this decrease was due to the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland. Our working capital as of March 31, 2010 decreased $3,264,000 to $16,353,000, as compared to $19,617,000 at December 31, 2009. We invest our excess cash in marketable securities consisting primarily of municipal bonds, certificates of deposits and U.S. treasury obligations. We believe that a combination of our existing cash, cash equivalents and marketable securities, and an expected continuation of cash flow from operations, will continue to be adequate to fund our operations and working capital, capital expenditures, dividend payments and any authorized stock repurchases for at least the next twelve months. We currently do not have any committed lines of credit or other credit facilities, and it is uncertain whether such facilities could be obtained in sufficient amounts or on acceptable terms.
Cash Flow from Investing Activities Cash (used in) provided by investing activities totaled ($1,810,000) and $1,070,000 in the first three months of 2010 and 2009, respectively. The primary reason for cash used in investing activities in 2010 was the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland, offset somewhat by the proceeds from maturities of marketable securities of $1,959,000. For the remainder of 2010, we expect to incur capital expenditures in the range of $1,100,000 to $1,400,000, the majority of which relates to our move to new offices in Minnesota.
Cash used in financing activities totaled $361,000 and $522,000 in the first three months of 2010 and 2009, respectively. During the first three months of 2010 and 2009, we made dividend payments to our shareholders of $467,000 and $503,000, respectively. Partially offsetting the impact of the dividend payment in 2010 were the proceeds from the exercise of stock options in the amount of $104,000.
Accrual for excess and obsolete inventories We perform an analysis to identify excess and obsolete inventory. We record a charge to cost of sales for amounts identified. Our analysis includes inventory levels, the nature of the components and their inherent risk of obsolescence and the on-hand quantities relative to the sales history of that component. We believe that our financial results could be materially different if historical trends are not predictive of future results or if demand for our products decreased because of economic or competitive conditions or otherwise. As of March 31, 2010 and 2009, we had $333,000 and $304,000, respectively, accrued for excess and obsolete inventories.
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