May 21, 2009
2008 and Q1 2009
1.Major Business.
(1)Drilling equipment: 60%. Percentage increased during the past five years.
(2)Truck & Trailer: 40%. Income down and are negative now.
Geographic: Canada 60%, U.S.A: 25%, International: 15%.
2.Price/Book ratio.
Shares: 26.5m. Recent price $1.00. Book value $1.70.
3.Current ratio. Debt/Current Asset ratio. Inventory level. Debt maturity and interest.
Current Asset: $49m. Current liability: $17.3m. Total debt: $7.9m. Inventory: $25m.
Debt: must pay $2m to $3m each year for next 3 years. Interest cost $0.8m per year.
4.P/E ratio.Deficit check.Revenue/price ratio.
Earning per share(2008-2004): (0.38+0.36+0.45+0.35+0.16)/5=$0.34.
2003: 0.05
2002: -0.17
2001: 0.02
Revenue around $170m. revenue/price = 6.4.
5.Dividend history.
1c in 2004, 3c in 2005, 4c in 2006, 8c in 2007, 12c in 2008. Now back to 1c per quarter.
6.Cash flow
FCF 2008-2004: $7.0m , $-16m, $-15m, $4m. -$8m
In 2007, it got $40m by offered new shares around $5 per share.
7.Grows related.
It acquired almost one business per year since 2004 and target to become $500m revenue in 2013. Seems not possible now.
8.Management. Employee numbers. Revenue/Employee.
SG&A increased a lot for the past several years. This includes new business acquired each year.
Employee around 676. Revenue/Employee around $250,000.
9.Management compensation. Options.
Top 5 officers: $1.7m and no options for 2008 compare $1.4m and some options in 2007.
10.Industry comparison.
1. Eckel Manufacturing: US company. Seems a major player focus on Hydraulic power tongs.
11.Buy back, insider holding and trading info.
By year end Dec. 2008. Bought back 1.4m share at price $1.65. Around 5% of total shares. No more buy back until Sept. 2009.
Insider control around $11m share which is 43%.
12.Major events.
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