Fuel Systems Solutions Inc. (FSYS, Financial) filed Quarterly Report for the period ended 2009-09-30.
IMPCO Technologies Inc. manufactures and markets products and systems that allow on-highway and off-highway engines to operate on clean burning gaseous fuels such as propane and natural gas. Company's products and just as important company's integration expertise enable Original Equipment Manufacturers to satisfy both customer specifications and government emissions regulations for application in the transportation industrial and power generation markets. IMPCO Technologies focuses on the total systems approach in servicing our customers. It is the only company to provide complete tank-to-tailpipe solutions for both on and off highway applications using gaseous fuels. The products we sell range from fuel storage and fuel metering components to electronic fuel control systems exhaust catalysts and fully dressed low emission certified engine packages. Fuel Systems Solutions Inc. has a market cap of $779.1 million; its shares were traded at around $44.31 with a P/E ratio of 26.5 and P/S ratio of 2.
On May 5, 2009, the Company purchased the remaining 50% ownership interest in WMTM Equipamentos de Gases, Ltda (WMTM), from White Martin Gases Industriais S.A. (White Martin), BRC Brasils 50% joint venture partner in WMTM, for approximately R$5.0 million (approximately $2.7 million U.S. dollars excluding $0.6 million of cash acquired) of which R$1.0 million (approximately $0.5 million U.S. dollars) was paid on the closing date and a monthly installment of R$0.5 million was paid in June, July, August and September 2009. The remaining R$2.0 million (approximately $1.2 million U.S. dollars) at September 30, 2009 will be paid in two monthly installments of R$0.5 million (approximately $0.3 million U.S. dollars) from October 5, 2009 through November 5, 2009 and a last installment of R$1.0 million (approximately $0.6 million U.S. dollars) to be paid on December 5, 2009. The results of WMTM have been included in the accompanying condensed consolidated statements of income from the date of acquisition within the BRC operations segment.
For the quarter ended September 30, 2009, revenue increased approximately $10.7 million, or 10.1%, to $116.2 million from $105.5 million for the three months ended September 30, 2008. The increase in revenue was due primarily to an increase in revenue from BRC operations of approximately $13.2 million offset by a decrease from IMPCO operations of approximately $2.6 million. Revenues for the three months ended September 30, 2009 includes approximately $14.8 million associated with companies acquired in 2009 ($7.0 million from BRC operations and $7.8 from IMPCO Operations). Revenue for the third quarter of 2009 includes a decrease of approximately $4.6 million from weakening of local currencies compared to the dollar from the third quarter of 2008. For the nine months ended September 30, 2009, revenue decreased approximately $9.8 million, or 3.3%, to $288.6 million from $298.4 million for the nine months ended September 30, 2008. The decrease in revenue for the nine months ended September 30, 2009 is primarily due to a decrease in revenue from IMPCO operations of $25.0 million, partially offset by an increase of $15.2 million in revenue from our BRC operations. Revenues for the nine months ended September 30, 2009 includes approximately $21.7 million associated with companies acquired in 2009 ($13.9 million from BRC operations and $7.8 from IMPCO operations). Revenue for the nine months ended September 30, 2009 includes a decrease of approximately $26.5 million from weakening of local currencies compared to the dollar from the same nine month period of 2008.
For the quarter ended September 30, 2009, operating income increased approximately $4.9 million or 27.1% to $23.1 million from $18.2 million for the three months ended September 30, 2008. The increase in operating income for the quarter ended September 30, 2009 was primarily composed of an increase in operating income from BRC operations of $9.7 million, partially offset by a decrease in IMPCO operations operating income of $5.1 million and a decrease in corporate expenses of $0.3 million. For the nine months ended September 30, 2009, operating income increased approximately $5.1 million, or 12.3%, to $46.9 million from $41.8 million for the nine months ended September 30, 2008. The increase in operating income for the nine months ended September 30, 2009 was composed of an increase in operating income from BRC operations of $13.7 million, partially offset by a decrease in IMPCO operations operating income of $9.0 million and a decrease in corporate expenses of $0.5 million.
For the three months ended September 30, 2009, the operating loss for IMPCO operations was $3.6 million, or (18.4)% of revenue, compared to operating income of $1.5 million or 6.8% of revenue, for the same period in 2008. For the nine months ended September 30, 2009, operating loss was $2.9 million, or (5.9%) of revenue, compared to operating income of $6.2 million or 8.4% of revenue for the same period in 2008. The operating loss is a result of a decrease in revenue combined with erosion in gross margins due to decreased absorption of fixed costs, as start up costs of $1.5 million associated with the automotive business and approximately $1.2 million of costs associated with the acquisition of the Power Systems Business.
BRC Operations. For the three months ended September 30, 2009, revenue increased by approximately $13.2 million, or 15.8%, compared to the same period in the prior year. For the nine months ended September 30, 2009, revenue for this segment increased by $15.2 million, or 6.8% from the same nine month period in 2008. The increase in revenue in 2009 was due to an increase in sales for post production OEM conversions, partially offset by the slowdown of sales for aftermarket conversion kits in the transportation market driven by decreasing gasoline prices, seasonality and the global economic climate. Revenue for the three and nine months ended September 30, 2009 includes approximately $7.0 and $13.9 million of revenue, respectively, associated with acquisitions. The weakening of local currencies compared to the US dollar negatively impacted revenues by approximately $4.4 million and $24.7 million for the three and nine months ended September 30, 2009 respectively.
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IMPCO Technologies Inc. manufactures and markets products and systems that allow on-highway and off-highway engines to operate on clean burning gaseous fuels such as propane and natural gas. Company's products and just as important company's integration expertise enable Original Equipment Manufacturers to satisfy both customer specifications and government emissions regulations for application in the transportation industrial and power generation markets. IMPCO Technologies focuses on the total systems approach in servicing our customers. It is the only company to provide complete tank-to-tailpipe solutions for both on and off highway applications using gaseous fuels. The products we sell range from fuel storage and fuel metering components to electronic fuel control systems exhaust catalysts and fully dressed low emission certified engine packages. Fuel Systems Solutions Inc. has a market cap of $779.1 million; its shares were traded at around $44.31 with a P/E ratio of 26.5 and P/S ratio of 2.
Highlight of Business Operations:
Net income for the three months ended September 30, 2009 was $15.5 million, or $0.88 per diluted share, as compared to net income of $11.9 million, or $0.75 per diluted share, for the same period in 2008. Net income for the nine months ended September 30, 2009 was $30.0 million, or $1.80 per diluted share compared to $22.7 million or $1.44 per diluted share during the same period in the prior year. The increase in net income during third quarter 2009 was due to an increase in sales for post production OEM conversions as well as a gain associated with our acquisition of the remaining 50% of WMTM Equipamentos de Gases, Ltda of approximately $2.0 million, partially offset by the slowdown of sales for aftermarket conversion kits in the transportation market and sales in the industrial market.On May 5, 2009, the Company purchased the remaining 50% ownership interest in WMTM Equipamentos de Gases, Ltda (WMTM), from White Martin Gases Industriais S.A. (White Martin), BRC Brasils 50% joint venture partner in WMTM, for approximately R$5.0 million (approximately $2.7 million U.S. dollars excluding $0.6 million of cash acquired) of which R$1.0 million (approximately $0.5 million U.S. dollars) was paid on the closing date and a monthly installment of R$0.5 million was paid in June, July, August and September 2009. The remaining R$2.0 million (approximately $1.2 million U.S. dollars) at September 30, 2009 will be paid in two monthly installments of R$0.5 million (approximately $0.3 million U.S. dollars) from October 5, 2009 through November 5, 2009 and a last installment of R$1.0 million (approximately $0.6 million U.S. dollars) to be paid on December 5, 2009. The results of WMTM have been included in the accompanying condensed consolidated statements of income from the date of acquisition within the BRC operations segment.
For the quarter ended September 30, 2009, revenue increased approximately $10.7 million, or 10.1%, to $116.2 million from $105.5 million for the three months ended September 30, 2008. The increase in revenue was due primarily to an increase in revenue from BRC operations of approximately $13.2 million offset by a decrease from IMPCO operations of approximately $2.6 million. Revenues for the three months ended September 30, 2009 includes approximately $14.8 million associated with companies acquired in 2009 ($7.0 million from BRC operations and $7.8 from IMPCO Operations). Revenue for the third quarter of 2009 includes a decrease of approximately $4.6 million from weakening of local currencies compared to the dollar from the third quarter of 2008. For the nine months ended September 30, 2009, revenue decreased approximately $9.8 million, or 3.3%, to $288.6 million from $298.4 million for the nine months ended September 30, 2008. The decrease in revenue for the nine months ended September 30, 2009 is primarily due to a decrease in revenue from IMPCO operations of $25.0 million, partially offset by an increase of $15.2 million in revenue from our BRC operations. Revenues for the nine months ended September 30, 2009 includes approximately $21.7 million associated with companies acquired in 2009 ($13.9 million from BRC operations and $7.8 from IMPCO operations). Revenue for the nine months ended September 30, 2009 includes a decrease of approximately $26.5 million from weakening of local currencies compared to the dollar from the same nine month period of 2008.
For the quarter ended September 30, 2009, operating income increased approximately $4.9 million or 27.1% to $23.1 million from $18.2 million for the three months ended September 30, 2008. The increase in operating income for the quarter ended September 30, 2009 was primarily composed of an increase in operating income from BRC operations of $9.7 million, partially offset by a decrease in IMPCO operations operating income of $5.1 million and a decrease in corporate expenses of $0.3 million. For the nine months ended September 30, 2009, operating income increased approximately $5.1 million, or 12.3%, to $46.9 million from $41.8 million for the nine months ended September 30, 2008. The increase in operating income for the nine months ended September 30, 2009 was composed of an increase in operating income from BRC operations of $13.7 million, partially offset by a decrease in IMPCO operations operating income of $9.0 million and a decrease in corporate expenses of $0.5 million.
For the three months ended September 30, 2009, the operating loss for IMPCO operations was $3.6 million, or (18.4)% of revenue, compared to operating income of $1.5 million or 6.8% of revenue, for the same period in 2008. For the nine months ended September 30, 2009, operating loss was $2.9 million, or (5.9%) of revenue, compared to operating income of $6.2 million or 8.4% of revenue for the same period in 2008. The operating loss is a result of a decrease in revenue combined with erosion in gross margins due to decreased absorption of fixed costs, as start up costs of $1.5 million associated with the automotive business and approximately $1.2 million of costs associated with the acquisition of the Power Systems Business.
BRC Operations. For the three months ended September 30, 2009, revenue increased by approximately $13.2 million, or 15.8%, compared to the same period in the prior year. For the nine months ended September 30, 2009, revenue for this segment increased by $15.2 million, or 6.8% from the same nine month period in 2008. The increase in revenue in 2009 was due to an increase in sales for post production OEM conversions, partially offset by the slowdown of sales for aftermarket conversion kits in the transportation market driven by decreasing gasoline prices, seasonality and the global economic climate. Revenue for the three and nine months ended September 30, 2009 includes approximately $7.0 and $13.9 million of revenue, respectively, associated with acquisitions. The weakening of local currencies compared to the US dollar negatively impacted revenues by approximately $4.4 million and $24.7 million for the three and nine months ended September 30, 2009 respectively.
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