Ameron International Corp. (AMN, Financial) filed Quarterly Report for the period ended 2009-08-30.
Ameron International Corporation is a multinational manufacturer of highly-engineered products and materials for the chemical industrial energy transportation and infrastructure markets. Traded on the New York Stock Exchange Ameron is a leading producer of water transmission lines; fiberglass-composite pipe for transporting oil chemicals and corrosive fluids and specialized materials and products used in infrastructure projects. The Company operates businesses in North America South America Europe and Asia. It also participates in several joint-venture companies in the U.S. and the Middle East. Ameron International Corp. has a market cap of $711.7 million; its shares were traded at around $77.24 with a P/E ratio of 11.9 and P/S ratio of 1. The dividend yield of Ameron International Corp. stocks is 1.6%.
Net cash used in investing activities totaled $57.2 million in the nine months ended August 30, 2009, compared to $43.2 million used in the nine months ended August 31, 2008. Net cash used in investing activities during the first nine months of 2009 consisted of capital expenditures of $35.2 million, compared to $44.5 million in the same period of 2008. In addition to normal replacement and upgrades of machinery and equipment, the Company expanded a wind tower manufacturing facility in 2008 and fiberglass pipe plants in Texas and Brazil in 2009 and 2008. Normal replacement expenditures are typically equal to depreciation. During the year ending November 30, 2009, the Company anticipates spending between $40 and $50 million on capital expenditures. Capital expenditures are expected to be funded by existing cash balances, cash generated from operations or additional borrowings. During the first quarter of 2009, the Company contributed capital of $10.0 million to TAMCO, the Company s 50%-owned steel mini-mill in California. In addition, the Company provided $12.5 million during the third quarter of 2009 in loans to TAMCO as part of a $40.0 million senior secured credit facility provided by its shareholders to TAMCO.
Net cash used in financing activities totaled $9.0 million during the nine months ended August 30, 2009, compared to $12.5 million used in the nine months ended August 31, 2008. Net cash used in 2009 consisted of payment of Common Stock dividends of $8.3 million and treasury stock purchases of $1.0 million, related to the payment of taxes associated with the vesting of restricted shares. Also in 2009, the Company recognized tax benefits related to stock-based compensation of $.8 million. Net cash used in 2008 consisted of net repayment of debt of $4.1 million, payment of Common Stock dividends of $7.8 million and similar treasury stock purchases of $2.8 million. In 2008, the Company received $.8 million from the issuance of Common Stock related to exercised stock options and recognized tax benefits related to stock-based compensation of $1.3 million.
Cash and cash equivalents at August 30, 2009 totaled $170.2 million, an increase of $26.6 million from November 30, 2008. At August 30, 2009, the Company had total debt outstanding of $54.5 million, compared to $52.8 million at November 30, 2008, and approximately $108.3 million in unused committed and uncommitted credit lines available from foreign and domestic banks. The Company's highest borrowing and the average borrowing levels during 2009 were $54.5 million and $53.6 million, respectively.
Net income totaled $19.2 million, or $2.09 per diluted share, on sales of $410.3 million in the nine months ended August 30, 2009, compared to $41.1 million, or $4.48 per diluted share, on sales of $479.7 million in the same period in 2008. The Fiberglass-Composite Pipe and Infrastructure Products Groups had lower sales and income due to generally softer market conditions. The Water Transmission Group reported modestly lower sales but improved profitability due principally to higher wind tower sales and improved plant efficiencies and cost control. Nine-month net income was significantly lower in 2009 due to TAMCO s loss.
Fiberglass-Composite Pipe's sales decreased $13.1 million, or 18.7%, in the third quarter and $36.1 million, or 17.6%, in the first nine months of 2009, compared to the similar periods in 2008. Foreign currencies accounted for $2.6 million and $9.6 million of the sales decline in the third quarter and first nine months of 2009, respectively. Sales in the U.S. decreased $4.0 million and $8.2 million, respectively, in the third quarter and first nine months of 2009, largely due to weaker oilfield piping demand and weak industrial markets. Sales from Asian operations decreased $6.4 million and $14.3 million, respectively,
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Highlight of Business Operations:
In the nine months ended August 30, 2009, net cash of $87.0 million was generated from operating activities, compared to $59.5 million generated in the similar period in 2008. The higher operating cash flow in 2009 was primarily due to a decline in operating assets, partially offset by lower liabilities and earnings. In the nine months ended August 30, 2009, the Company's cash provided by operating activities included net income of $19.2 million, plus non-cash adjustments (depreciation, amortization, loss from joint venture and stock compensation expense) of $23.1 million, plus changes in operating assets and liabilities of $44.7 million. In the nine months ended August 31, 2008, cash from operating activities included net income of $41.1 million, plus similar non-cash adjustments (depreciation, amortization, equity income from joint ventures in excess of dividends and stock compensation expense) of $15.4 million, plus changes in operating assets and liabilities of $3.0 million. The non-cash adjustments in 2009 were higher due primarily to the Company s equity in losses of TAMCO. The positive net change in cash from operating assets and liabilities in 2009 was primarily due to decreases in receivables and inventories.Net cash used in investing activities totaled $57.2 million in the nine months ended August 30, 2009, compared to $43.2 million used in the nine months ended August 31, 2008. Net cash used in investing activities during the first nine months of 2009 consisted of capital expenditures of $35.2 million, compared to $44.5 million in the same period of 2008. In addition to normal replacement and upgrades of machinery and equipment, the Company expanded a wind tower manufacturing facility in 2008 and fiberglass pipe plants in Texas and Brazil in 2009 and 2008. Normal replacement expenditures are typically equal to depreciation. During the year ending November 30, 2009, the Company anticipates spending between $40 and $50 million on capital expenditures. Capital expenditures are expected to be funded by existing cash balances, cash generated from operations or additional borrowings. During the first quarter of 2009, the Company contributed capital of $10.0 million to TAMCO, the Company s 50%-owned steel mini-mill in California. In addition, the Company provided $12.5 million during the third quarter of 2009 in loans to TAMCO as part of a $40.0 million senior secured credit facility provided by its shareholders to TAMCO.
Net cash used in financing activities totaled $9.0 million during the nine months ended August 30, 2009, compared to $12.5 million used in the nine months ended August 31, 2008. Net cash used in 2009 consisted of payment of Common Stock dividends of $8.3 million and treasury stock purchases of $1.0 million, related to the payment of taxes associated with the vesting of restricted shares. Also in 2009, the Company recognized tax benefits related to stock-based compensation of $.8 million. Net cash used in 2008 consisted of net repayment of debt of $4.1 million, payment of Common Stock dividends of $7.8 million and similar treasury stock purchases of $2.8 million. In 2008, the Company received $.8 million from the issuance of Common Stock related to exercised stock options and recognized tax benefits related to stock-based compensation of $1.3 million.
Cash and cash equivalents at August 30, 2009 totaled $170.2 million, an increase of $26.6 million from November 30, 2008. At August 30, 2009, the Company had total debt outstanding of $54.5 million, compared to $52.8 million at November 30, 2008, and approximately $108.3 million in unused committed and uncommitted credit lines available from foreign and domestic banks. The Company's highest borrowing and the average borrowing levels during 2009 were $54.5 million and $53.6 million, respectively.
Net income totaled $19.2 million, or $2.09 per diluted share, on sales of $410.3 million in the nine months ended August 30, 2009, compared to $41.1 million, or $4.48 per diluted share, on sales of $479.7 million in the same period in 2008. The Fiberglass-Composite Pipe and Infrastructure Products Groups had lower sales and income due to generally softer market conditions. The Water Transmission Group reported modestly lower sales but improved profitability due principally to higher wind tower sales and improved plant efficiencies and cost control. Nine-month net income was significantly lower in 2009 due to TAMCO s loss.
Fiberglass-Composite Pipe's sales decreased $13.1 million, or 18.7%, in the third quarter and $36.1 million, or 17.6%, in the first nine months of 2009, compared to the similar periods in 2008. Foreign currencies accounted for $2.6 million and $9.6 million of the sales decline in the third quarter and first nine months of 2009, respectively. Sales in the U.S. decreased $4.0 million and $8.2 million, respectively, in the third quarter and first nine months of 2009, largely due to weaker oilfield piping demand and weak industrial markets. Sales from Asian operations decreased $6.4 million and $14.3 million, respectively,
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