Insituform Technologies Inc. (INSU, Financial) filed Quarterly Report for the period ended 2010-03-31.
Insituform Technologies Inc. has a market cap of $913.8 million; its shares were traded at around $23.35 with a P/E ratio of 22.6 and P/S ratio of 1.2. INSU is in the portfolios of Chuck Royce of Royce& Associates.
Total contract backlog improved to $497.1 million at March 31, 2010 compared to $388.7 million at March 31, 2009, a 27.9% increase. The March 31, 2010 level of backlog was 7.3% higher than total contract backlog of $463.4 million at December 31, 2009.
Revenues increased by $8.6 million, or 10.7%, in our North American Sewer Rehabilitation segment in the first quarter of 2010 compared to the first quarter of 2009. The increase in revenues was primarily due to the increase in workable backlog that started in the second half of 2009. Additionally, revenue growth was realized throughout most of our geographic markets but, in particular, in the eastern United States. The increase in first quarter 2010 revenues was also helped by stronger foreign exchange rate of the Canadian dollar of approximately $1.8 million compared to the U.S. dollar. The increase was partially offset by project delays and postponements caused by poor weather conditions in the northern United States during much of the first quarter of 2010. Third-party product sales in this segment were $2.3 million and $3.6 million in the first quarter of 2010 and 2009, respectively. The decrease was primarily due to certain one-time orders received in the first quarter of 2009.
Gross profit in our North American Sewer Rehabilitation segment increased $2.6 million, or 14.2%, in the first quarter of 2010 compared to the first quarter in 2009, primarily due to execution efficiencies on projects and the ongoing transfer price optimization from manufacturing to contracting. The increase in gross profit was partially offset by inefficiencies caused by delays and postponements related to poor weather conditions in the northern half of the United States. The first quarter 2010 results also included a favorable adjustment of $0.9 million related to the recording of an insurance claim receivable.
Contract backlog in our European Sewer Rehabilitation segment was $24.7 million at March 31, 2010. This represents a decrease of $1.4 million, or 5.3%, compared to March 31, 2009. The decrease was principally due to our exit from the contracting markets in Poland, Romania and Belgium, as well as lower backlog in France due to a re-valuation of existing contracts. On the positive side, backlogs remain strong in the Netherlands and increased in the United Kingdom as a result of improved market conditions and win-rate. Despite the decrease in the first quarter of 2010, European orders and backlogs have been fairly steady and we believe this trend will continue through 2010.
Contract backlog in our Asia-Pacific Sewer Rehabilitation segment was $73.3 million at March 31, 2010. This represented an increase of $33.2 million, or 82.9%, compared to March 31, 2009. Backlog at March 31, 2010 increased $15.9 million, or 27.8%, compared to December 31, 2009. This increase in backlog can be attributed primarily to growth associated with Insituform-Singapore.
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Insituform Technologies Inc. has a market cap of $913.8 million; its shares were traded at around $23.35 with a P/E ratio of 22.6 and P/S ratio of 1.2. INSU is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Consolidated Income from continuing operations was $8.5 million for the first quarter of 2010 versus a loss from continuing operations in the first quarter of 2009 of $1.1 million. The improvement in consolidated income from continuing operations for the first quarter of 2010 was partially related to the inclusion of $6.1 million (net of income tax) of costs associated with the acquisitions of Bayou and Corrpro in the results for the first quarter of 2009. The inclusion of Corrpro and Bayou in the first quarter of 2010 also contributed to the improvement in consolidated income. In addition, the first quarter results in our North American Sewer Rehabilitation segment and European Sewer Rehabilitation segment were improved over the prior year quarter. These improvements were offset somewhat by our Asia-Pacific Sewer Rehabilitation segment, which performed significantly lower in the first quarter of 2010 compared to the first quarter of 2009. Results in our Asia-Pacific Sewer Rehabilitation segment were lower due to increased resin costs and performance and efficiency issues on several projects in India.Total contract backlog improved to $497.1 million at March 31, 2010 compared to $388.7 million at March 31, 2009, a 27.9% increase. The March 31, 2010 level of backlog was 7.3% higher than total contract backlog of $463.4 million at December 31, 2009.
Revenues increased by $8.6 million, or 10.7%, in our North American Sewer Rehabilitation segment in the first quarter of 2010 compared to the first quarter of 2009. The increase in revenues was primarily due to the increase in workable backlog that started in the second half of 2009. Additionally, revenue growth was realized throughout most of our geographic markets but, in particular, in the eastern United States. The increase in first quarter 2010 revenues was also helped by stronger foreign exchange rate of the Canadian dollar of approximately $1.8 million compared to the U.S. dollar. The increase was partially offset by project delays and postponements caused by poor weather conditions in the northern United States during much of the first quarter of 2010. Third-party product sales in this segment were $2.3 million and $3.6 million in the first quarter of 2010 and 2009, respectively. The decrease was primarily due to certain one-time orders received in the first quarter of 2009.
Gross profit in our North American Sewer Rehabilitation segment increased $2.6 million, or 14.2%, in the first quarter of 2010 compared to the first quarter in 2009, primarily due to execution efficiencies on projects and the ongoing transfer price optimization from manufacturing to contracting. The increase in gross profit was partially offset by inefficiencies caused by delays and postponements related to poor weather conditions in the northern half of the United States. The first quarter 2010 results also included a favorable adjustment of $0.9 million related to the recording of an insurance claim receivable.
Contract backlog in our European Sewer Rehabilitation segment was $24.7 million at March 31, 2010. This represents a decrease of $1.4 million, or 5.3%, compared to March 31, 2009. The decrease was principally due to our exit from the contracting markets in Poland, Romania and Belgium, as well as lower backlog in France due to a re-valuation of existing contracts. On the positive side, backlogs remain strong in the Netherlands and increased in the United Kingdom as a result of improved market conditions and win-rate. Despite the decrease in the first quarter of 2010, European orders and backlogs have been fairly steady and we believe this trend will continue through 2010.
Contract backlog in our Asia-Pacific Sewer Rehabilitation segment was $73.3 million at March 31, 2010. This represented an increase of $33.2 million, or 82.9%, compared to March 31, 2009. Backlog at March 31, 2010 increased $15.9 million, or 27.8%, compared to December 31, 2009. This increase in backlog can be attributed primarily to growth associated with Insituform-Singapore.
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