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Espey Mfg. & Electronics Corp Reports Operating Results (10-K)

September 09, 2010 | About:

Espey Mfg. & Electronics Corp (ESP) filed Annual Report for the period ended 2010-06-30.

Espey Mfg. & Electronics Corp has a market cap of $48.6 million; its shares were traded at around $20.951 with a P/E ratio of 12.5 and P/S ratio of 1.7. The dividend yield of Espey Mfg. & Electronics Corp stocks is 4.3%. Espey Mfg. & Electronics Corp had an annual average earning growth of 19.2% over the past 10 years.ESP is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

At September 8, 2010, the Company's backlog was approximately $31 million. The total backlog at June 30, 2010 was approximately $31 million compared to approximately $39.1 million at June 30, 2009. The Company s total backlog represents the estimated remaining sales value of work to be performed under firm contracts. The Company's backlog and risks associated with government contracts is discussed in greater detail in Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in Item 6 below.

The Company paid cash dividends on common stock of $1.90 and $2.40 per share for the fiscal years ended June 30, 2010 and 2009, respectively, which included a special dividend of $1.00 and $1.50 per share during the fiscal years ended June 30, 2010 and 2009, respectively. The Board of Directors has authorized the payment of a fiscal 2011 first quarter dividend of $.225 payable September 24, 2010 to shareholders of record on September 3, 2010.

Management expects revenues in fiscal 2011 to remain in line with fiscal year 2010. Expectations are for product mix and margins to remain favorable for fiscal year 2011. During fiscal 2010 new orders received by the Company were approximately $21 million. The order backlog of approximately $31 million at June 30, 2010 gives the Company a solid base of future sales. It is presently anticipated that a minimum of $25 million of orders comprising the June 30, 2010 backlog will be filled during the fiscal year ending June 30, 2011. The minimum of $25 million does not include any shipments, which may be made against orders subsequently received during the fiscal year ending June 30, 2011.

Net income for fiscal 2010, was $3,564,962 or $1.67 per share, both basic and diluted, compared to net income of $2,733,240 or $1.30 and $1.29 per share, basic and diluted, respectively, for fiscal 2009. The increase in net income per share was primarily due to higher sales, higher gross profit on sales, offset by higher selling, general and administrative expenses and decreased interest income.

The Company's working capital as of June 30, 2010 and 2009 was $25,844,991 and $25,726,492, respectively. During the three months ended June 30, 2010 and 2009 the Company did not repurchase any shares of its common stock. During the fiscal year ended June 30, 2010 and 2009 the Company repurchased 23,513 and 19,899 shares, respectively, of its common stock for a total purchase price of $452,155 and $311,545, respectively. All shares were purchased from the Company's ESOP. Under existing authorizations from the Company's Board of Directors, as of June 30, 2010, management is authorized to purchase an additional $1,236,300 million of Company stock.

During fiscal year 2010 and fiscal 2009, the Company expended $436,502 and $280,790, respectively, for plant improvements and new equipment. The Company has budgeted approximately $500,000 for new equipment and plant improvements in fiscal 2011. Management anticipates that the funds required will be available from current operations.

Read the The complete Report

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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