Espey Mfg. & Electronics Corp (ESP, Financial) filed Quarterly Report for the period ended 2009-12-31.
Espey Mfg. & Electronics Corp has a market cap of $46.3 million; its shares were traded at around $19.82 with a P/E ratio of 12.5 and P/S ratio of 1.8. The dividend yield of Espey Mfg. & Electronics Corp stocks is 4.5%. Espey Mfg. & Electronics Corp had an annual average earning growth of 29.7% over the past 5 years.
Net sales for the three months ended December 31, 2009 were $5,866,331 as compared to $6,194,177 for the same period in 2008, representing a 5.3% decrease. Net sales for the six months ended December 31, 2009 were $12,741,271 as compared to $12,247,696 for the same period in 2008, representing a 4% increase. Generally, these fluctuations can be attributed to the contract specific nature of the Company's business. The decrease for the three months ended December 31, 2009 was due to an overall decrease in power supply shipments offset by an increase in transformer shipments. The increase for the six months ended December 31, 2009 was due to an overall increase in transformer shipments offset by a decrease in power supply shipments.
For the three months ended December 31, 2009 and 2008 gross profits were $1,462,093 and $625,930, respectively. Gross profit as a percentage of sales was 24.9% and 10.1%, for the three months ended December 31, 2009 and 2008, respectively. For the six months ended December 31, 2009 and 2008 gross profits were $3,520,295 and $1,777,205, respectively. Gross profit as a percentage of sales was 27.6% and 14.5%, for the six months ended December 31, 2009 and 2008, respectively. The primary factor in determining gross profit and net income is product mix. The gross profits on mature products and build to print contracts are higher as compared to products which are still in the engineering development stage or in the early stages of production. In any given accounting period the mix of product shipments between higher margin mature programs and less mature programs, including loss contracts, has a significant impact on gross profit and net income. The increased gross profit and gross profit percentage in the three and six months ended December 31, 2009, was primarily the result of favorable product mix with only minor cost overruns related to loss contracts. For the six months ended December 31, 2008 the Company had unexpected losses incurred on two programs with significant engineering and production time required for design efforts. These two programs experienced significant cost overruns due to extended product qualification testing and difficulties moving the products from engineering design into full production. Currently, one program has completed qualification testing and has moved into full production. The other program is still in qualification testing and has made significant progress towards completion.
Selling, general and administrative expenses were $796,749 for the three months ended December 31, 2009; an increase of $7,164, compared to the three months ended December 31, 2008. Selling, general and administrative expenses were $1,549,135 for the six months ended December 31, 2009; an increase of $81,323 compared to the six months ended December 31, 2008. The increase for the three and six months ended December 31, 2009, relates primarily to an increase in salary expense, consulting fees, and director fees.
Net income (loss) for the three months ended December 31, 2009, was $514,171 or $0.24 per share, both basic and diluted compared to $(42,412) or $(.02) per share, both basic and diluted, for the three months ended December 31, 2008. Net income for the six months ended December 31, 2009, was $1,506,934 or $0.71 per share, both basic and diluted, compared to $355,884 or $.17 per share, both basic and diluted, for the six months ended December 31, 2008. The increase in net income per share was mainly due to higher gross profit on sales offset by higher selling, general and administrative expenses and decreased interest income.
The Company's working capital as of December 31, 2009 and 2008 was approximately $24.1 million and $23.8 million, respectively. During the three months ended December 31, 2009 and 2008 the Company repurchased 23,513 and 2,805 shares, respectively, of its common stock for a total purchase price of $452,155 and $50,471, respectively. Of the total purchases, 23,513 shares and 800 shares, respectively, were purchased from the Company's Employee Retirement Plan and Trust ("ESOP") for a purchase price of $452,155 and $14,400, respectively. All remaining shares were purchased on the open market. During the six months ended December 31, 2009 and 2008 the Company repurchased 23,513 and 5,549 shares, respectively, of its common stock for a total purchase price of $452,155 and $102,510, respectively. Of the total purchases, 23,513 shares and 800 shares, respectively, were purchased from the Company's Employee Retirement Plan and Trust ("ESOP") for a purchase price of $452,155 and $14,400, respectively. All remaining shares were purchased on the open market. Under existing authorizations from the Company's Board of Directors, as of December 31, 2009, management is authorized to purchase an additional $1,236,300 million of Company stock.
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Espey Mfg. & Electronics Corp has a market cap of $46.3 million; its shares were traded at around $19.82 with a P/E ratio of 12.5 and P/S ratio of 1.8. The dividend yield of Espey Mfg. & Electronics Corp stocks is 4.5%. Espey Mfg. & Electronics Corp had an annual average earning growth of 29.7% over the past 5 years.
Highlight of Business Operations:
New orders received in the first six months of fiscal 2010 were approximately $7.6 million, representing a 34% decrease over the amount of new orders received in the first six months of fiscal 2009. These orders are in line with the Company s strategy of getting involved in long-term high quantity military and industrial products and are predominately for follow-on production of mature products. The Company's backlog was $33.9 million at December 31, 2009 which includes $23.0 million from three significant customers compared to $44.0 million at December 31, 2008 which included $24.6 million from two significant customers. The backlog for the Company represents the estimated remaining sales value of work to be performed under firm contracts.Net sales for the three months ended December 31, 2009 were $5,866,331 as compared to $6,194,177 for the same period in 2008, representing a 5.3% decrease. Net sales for the six months ended December 31, 2009 were $12,741,271 as compared to $12,247,696 for the same period in 2008, representing a 4% increase. Generally, these fluctuations can be attributed to the contract specific nature of the Company's business. The decrease for the three months ended December 31, 2009 was due to an overall decrease in power supply shipments offset by an increase in transformer shipments. The increase for the six months ended December 31, 2009 was due to an overall increase in transformer shipments offset by a decrease in power supply shipments.
For the three months ended December 31, 2009 and 2008 gross profits were $1,462,093 and $625,930, respectively. Gross profit as a percentage of sales was 24.9% and 10.1%, for the three months ended December 31, 2009 and 2008, respectively. For the six months ended December 31, 2009 and 2008 gross profits were $3,520,295 and $1,777,205, respectively. Gross profit as a percentage of sales was 27.6% and 14.5%, for the six months ended December 31, 2009 and 2008, respectively. The primary factor in determining gross profit and net income is product mix. The gross profits on mature products and build to print contracts are higher as compared to products which are still in the engineering development stage or in the early stages of production. In any given accounting period the mix of product shipments between higher margin mature programs and less mature programs, including loss contracts, has a significant impact on gross profit and net income. The increased gross profit and gross profit percentage in the three and six months ended December 31, 2009, was primarily the result of favorable product mix with only minor cost overruns related to loss contracts. For the six months ended December 31, 2008 the Company had unexpected losses incurred on two programs with significant engineering and production time required for design efforts. These two programs experienced significant cost overruns due to extended product qualification testing and difficulties moving the products from engineering design into full production. Currently, one program has completed qualification testing and has moved into full production. The other program is still in qualification testing and has made significant progress towards completion.
Selling, general and administrative expenses were $796,749 for the three months ended December 31, 2009; an increase of $7,164, compared to the three months ended December 31, 2008. Selling, general and administrative expenses were $1,549,135 for the six months ended December 31, 2009; an increase of $81,323 compared to the six months ended December 31, 2008. The increase for the three and six months ended December 31, 2009, relates primarily to an increase in salary expense, consulting fees, and director fees.
Net income (loss) for the three months ended December 31, 2009, was $514,171 or $0.24 per share, both basic and diluted compared to $(42,412) or $(.02) per share, both basic and diluted, for the three months ended December 31, 2008. Net income for the six months ended December 31, 2009, was $1,506,934 or $0.71 per share, both basic and diluted, compared to $355,884 or $.17 per share, both basic and diluted, for the six months ended December 31, 2008. The increase in net income per share was mainly due to higher gross profit on sales offset by higher selling, general and administrative expenses and decreased interest income.
The Company's working capital as of December 31, 2009 and 2008 was approximately $24.1 million and $23.8 million, respectively. During the three months ended December 31, 2009 and 2008 the Company repurchased 23,513 and 2,805 shares, respectively, of its common stock for a total purchase price of $452,155 and $50,471, respectively. Of the total purchases, 23,513 shares and 800 shares, respectively, were purchased from the Company's Employee Retirement Plan and Trust ("ESOP") for a purchase price of $452,155 and $14,400, respectively. All remaining shares were purchased on the open market. During the six months ended December 31, 2009 and 2008 the Company repurchased 23,513 and 5,549 shares, respectively, of its common stock for a total purchase price of $452,155 and $102,510, respectively. Of the total purchases, 23,513 shares and 800 shares, respectively, were purchased from the Company's Employee Retirement Plan and Trust ("ESOP") for a purchase price of $452,155 and $14,400, respectively. All remaining shares were purchased on the open market. Under existing authorizations from the Company's Board of Directors, as of December 31, 2009, management is authorized to purchase an additional $1,236,300 million of Company stock.
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