Williams Controls Inc. (WMCO, Financial) filed Quarterly Report for the period ended 2010-03-31.
Williams Controls Inc. has a market cap of $66 million; its shares were traded at around $9.07 with a P/E ratio of 151.2 and P/S ratio of 1.7. WMCO is in the portfolios of Chuck Royce of Royce& Associates.
The types of expenses included in cost of sales include raw materials consumption; freight and duty; warranty; wages and benefits; depreciation and amortization; production utilities; shipping and production supplies; repairs and maintenance; production facility property insurance; and other production overhead. As a percent of sales, cost of sales decreased primarily due to higher sales volumes to distribute fixed overhead costs. Additionally, the second quarter of fiscal 2009 included settlement of outstanding labor issues and severance costs totaling $275 and a $116 write-down to our capitalized license fee related to adjustable pedal technology due to the significant decline in business in the recreational vehicle industry. Repairs and maintenance costs and pension costs decreased $110 and $29, respectively, quarter over quarter. Warranty costs were up slightly quarter over quarter as the Company increased its warranty accrual related to warranty claims with one customer.
Gross profit was $3,355, or 26.5% of net sales in the second quarter of fiscal 2010, an increase of $2,132 compared to the gross profit of $1,223, or 13.4% of net sales, in the comparable fiscal 2009 period.
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Williams Controls Inc. has a market cap of $66 million; its shares were traded at around $9.07 with a P/E ratio of 151.2 and P/S ratio of 1.7. WMCO is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Net sales increased to $12,649 for the second quarter of fiscal 2010, up 8% compared to the first quarter of fiscal 2010. The low point of the economic cycle relevant to our operations appears to have occurred during our third fiscal quarter of 2009 and sales have steadily increased since that time with second quarter 2010 sales being 20% higher than the fourth quarter of fiscal 2009 and 50% higher than the third quarter of fiscal 2009. Although we have seen improvement from our low point in fiscal 2009, the heavy truck industry is still significantly below levels prior to the economic downturn with our second quarter sales run rate being approximately 23% below fiscal 2008 sales levels. While we continue to closely monitor all of our costs, we remain committed to spending on new product development and technology for existing and new customers. Additionally, if a settlement is ultimately reached in the Cuesta class action lawsuit, it is likely the Company will incur a financial obligation and has accrued $775 for that potential obligation. Although no assurances can be given, management believes that it is likely that our $9,560 in cash will be adequate to sustain the Company through the foreseeable future.The types of expenses included in cost of sales include raw materials consumption; freight and duty; warranty; wages and benefits; depreciation and amortization; production utilities; shipping and production supplies; repairs and maintenance; production facility property insurance; and other production overhead. As a percent of sales, cost of sales decreased primarily due to higher sales volumes to distribute fixed overhead costs. Additionally, the second quarter of fiscal 2009 included settlement of outstanding labor issues and severance costs totaling $275 and a $116 write-down to our capitalized license fee related to adjustable pedal technology due to the significant decline in business in the recreational vehicle industry. Repairs and maintenance costs and pension costs decreased $110 and $29, respectively, quarter over quarter. Warranty costs were up slightly quarter over quarter as the Company increased its warranty accrual related to warranty claims with one customer.
Gross profit was $3,355, or 26.5% of net sales in the second quarter of fiscal 2010, an increase of $2,132 compared to the gross profit of $1,223, or 13.4% of net sales, in the comparable fiscal 2009 period.
Read the The complete Report
