Hammond Power Solutions Inc. ("HPS") (TSX: HPS.A) a leading
manufacturer of dry type transformers and magnetic, today announced
its financial results for the second quarter of 2011.
"Hammond Power Solutions Inc. has come through a more
challenging quarter than expected due to severe spring weather
which delayed over $3,000 in Canadian sales, which now will be
shipped later in 2011. Our vastly improved booking and backlog
performance bodes well for the remainder of the year. We have
implemented market specific price increases in the United States
which will improve our profit performance going forward." commented
Bill Hammond, Chairman & Chief Executive Officer of Hammond
Power Solutions Inc.
SECOND QUARTER RESULTS
Sales for the quarter-ended July 2, 2011, were $52,330 up $1,510
or 3.0% from the comparative quarter last year, and were higher by
$10,014 or 10.5% year-to-date, finishing at $105,107 compared to
$95,093 last year. Due to an increased order booking activity,
sales in the United States stated in U.S. dollars were $31,258 in
Quarter 2, 2011, an increase of $830 or 2.7% from Quarter 2, 2010.
Year-to-date sales in the United States were $61,186, an increase
of $3,582 or 6.2%, when compared to $57,604 in 2010. The sales
increase can be attributed to higher shipments in both the American
and Canadian markets and additional European market sales
attributed to the Company's recent acquisition.
Bill Hammond stated, "The Company continues to grow sales in its
strategic markets, geographically and as well has seen a moderate
improvement in overall market activity in the electrical industry
in the U.S. and Canada as evidenced by increased quotation and
order booking activities."
Sales growth initiatives combined with better market conditions
produced a 20 % increase in Quarter 2, 2011 bookings as compared to
Quarter 1, 2010.Due to the increased level of bookings our order
backlog increased by 21.4% from the Quarter 1, 2011 and increased
23.0% from Quarter 2, 2010.
The Company's gross margin rates were impacted by negative
selling price pressures, and the detrimental impact that a stronger
Canadian dollar has on U.S. resale margins. These influences
resulted with Quarter 2, 2011 gross margin rates finishing at 22.9%
versus 24.8% in Quarter 2, 2010, a decrease of 1.9%. On a
year-to-date basis, gross margin rates were 23.6% compared to 25.7%
in 2010, down 2.1%.
"Gross margin rates will benefit from market specific price
increases as well as increased manufacturing throughput in the
second half of the year. The Company is also focused on
productivity improvements and cost reductions throughout the
organization, which will improve our financial performance going
forward." Bill Hammond commented.
Total selling and distribution expenses were $5,506 in Quarter
2, 2011, versus $4,889 in Quarter 2, 2010, an increase of $617 or
12.6%. Year-to-date, selling and distribution costs were $10,893
versus $9,425 in 2010, an increase of $1,468 or 15.6%. Due to sales
increases, variable selling expenses in Quarter 2, 2011 were
impacted by higher freight and commission expense and increased
salaries associated with strategic hires to support the sales
strategies of the Company.
The general and administrative expenses for Quarter 2, 2011
totaled $4,764, an increase of $395 or 9.0%, compared to Quarter 2
2010, costs of $4,369. Almost all of this increase was attributed
to additional general and administrative costs relating to its new
Italian operation. Year to date, general and administrative costs
are higher by $1,359 or 16.7%, totaling $9,511 when compared to
$8,152 for 2010. On a year to date basis, the company has seen
increases in stock option expense, costs related to the company's
ongoing acquisition activities, and R & D engineering costs.
Also, half of this increase was attributed to additional general
and administrative costs relating to its new Italian operation.
The interest expense for Quarter 1, 2011, finished at $77
compared to $24 in Quarter 2, 2010, an increase of $53. Year to
date interest cost was $107, an increase of $46 when compared to
year to date 2010 expense of $61.
The foreign exchange loss in Quarter 2, 2011 was $180 compared
to a foreign exchange loss of $1,378 in Quarter 2, 2010. For the
first six months of 2011 the exchange loss of $482 was compared to
a foreign exchange loss of $305 for the same period of 2010.
Net earnings for Quarter 2, 2011, decreased by $488 or 41.7%,
finishing at $682 compared to $1,170 in Quarter 2, 2010. On a year
to date basis net earnings finished at $2,253 a decrease of $1,893
when compared to year to date 2010 net earnings of $4,146.
Net cash used in operating activities for Quarter 2, 2011 was
$6,504 versus cash provided of $2,012 in Quarter 2, 2010, a
difference of $8,516. Year to date cash used from operations was
$9,061 compared to 2010 cash provided of $3,619 a change of
$12,680.
Quarter 2, 2011 usage was primarily a net result of an increase
in inventory warehouse stocking levels in the United States, a rise
in accounts receivable primarily caused by a postal service
interruption in Canada, partially offset by an increase in accounts
payable.
The Company's overall debt, net of cash was $7,520 in Quarter 2,
2011, compared to a net cash position of $10,626 in Quarter 2,
2010, a reduction in cash position of $18,156. The major
contributing factors to this were the Quarter 1, 2011 purchase of
Euroelettro S.p.A. for $7,786 plus the assumed debt of $6,573.
Mr. Hammond concluded, "We have taken prudent measures to
enhance our financial performance and we remain confident that HPS
will deliver respectable financial results in the remaining
quarters, especially in light of the continuing economic and
financial challenges that the world still faces"
THREE MONTHS ENDED:
(dollars in thousands)
----------------------------------------------------------------------------
July 2, 2011 July 3, 2010 Change
----------------------------------------------------------------------------
Sales $ 52,330 $ 50,820 $ 1,510
----------------------------------------------------------------------------
Earnings from Operations $ 1,726 $ 3,361 $ (1,635)
----------------------------------------------------------------------------
Exchange Loss $ 180 $ 1,378 $ (1,198)
----------------------------------------------------------------------------
Net Earnings $ 682 $ 1,170 $ (488)
----------------------------------------------------------------------------
Earnings per share
Basic .06 .10 (0.04)
Diluted .06 .10 (0.04)
----------------------------------------------------------------------------
Cash (Used) Provided by
Operations $ (6,504) $ 2,012 $ (8,516)
----------------------------------------------------------------------------
SIX MONTHS ENDED:
(dollars in thousands)
----------------------------------------------------------------------------
July 2, 2011 July 3, 2010 Change
----------------------------------------------------------------------------
Sales $ 105,107 $ 95,093 $ 10,014
----------------------------------------------------------------------------
Earnings from Operations $ 4,395 $ 6,867 $ (2,472)
----------------------------------------------------------------------------
Exchange Gain / (Loss) $ 482 $ 305 $ (177)
----------------------------------------------------------------------------
Net Earnings $ 2,253 $ 4,146 $ (1,893)
----------------------------------------------------------------------------
Earnings per share
Basic 0.20 0.36 (0.16)
Diluted 0.20 0.35 (0.15)
----------------------------------------------------------------------------
Cash (Used in) Provided by
Operations $ (9,061) $ 3,619 $ (12,680)
----------------------------------------------------------------------------
TELECONFERENCE
Hammond Power Solutions Inc. will hold a conference call on
Friday, July 22, 2011 at 10:00 a.m. EST, to discuss the Company's
financial results for the Second quarter 2011.
Listeners may attend the conference by dialing:
1-416-340-2216 or 1-866-226-1792.
About Hammond Power Solutions Inc.
Hammond Power Solutions Inc., ("HPS" or the "Company") is the
North American leader for the design of custom electrical
engineered magnetic as well as the leading manufacturer of standard
electrical dry type transformers. Advanced engineering
capabilities, high quality products and fast responsive service to
customers' needs has established the Company as a technical and
innovative leader in the electrical and electronic industries. The
Company has manufacturing facilities in Canada, the United States,
Mexico and Italy.
Contacts: Hammond Power Solutions Inc. Dawn Henderson Manager
Investor Relations (519) 822-2441 x414
ir@hammondpowersolutions.com
Hammond Power Solutions (TSX:HPS.A)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Hammond Power Solutions (TSX:HPS.A)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024