Jerry, there are actually companies that are hitting the long ball. I started buying this for a long term investment at $6.20 and even at today's prices it carries a single digit P/E...Not a trading stock but you can get rich slowly.
BTW...KLIC SUCKS!
Gundle/SLT Environmental, Inc. Announces 2002 Second Quarter Results;
Sales, Net Income, Margins Improve Dramatically Through Acquisition
HOUSTON, July 24 /PRNewswire-FirstCall/ -- Gundle/SLT Environmental, Inc.
(NYSE: GSE), a leading global provider of geosynthetic lining solutions,
products and services, today announced second quarter 2002 results.
GSE reported net income of $5.1 million, or 43 cents per share, for the
quarter ended June 30, 2002. Net income included an extraordinary charge of
$328,000, or 3 cents per share, from adjustments to the purchase price of
Serrot International, Inc. acquired on February 4, 2002, and $636,000 after
tax, or 5 cents per share, from other non-recurring items. Before these one-
time charges, GSE recorded net income of $6.0 million, or 52 cents per share,
compared to net income of $846,000, or 8 cents per share, for the second
quarter of 2001. Last year's second quarter included goodwill amortization of
2 cents per share excluded from this year. Revenue for the second quarter of
2002 was $81.9 million compared with $47.0 million for the second quarter of
last year.
"Although we expected a strong second quarter with a full three-month's
effect from the Serrot acquisition, the quarter was actually even better than
we anticipated," said Samir Badawi, chairman, president and chief executive
officer. "Gross margin increased to 23.8% for the second quarter, a
significant jump from 16.7% a year ago. This was due primarily to the
synergies afforded us through the Serrot acquisition and better spread over
resin cost. Increased volumes raised utilization of our North American
manufacturing facilities and effectively spread our fixed costs. In addition,
we shipped products manufactured from lower cost resin purchased earlier in
the year, enhancing our spread over resin cost," said Badawi.
Badawi also pointed out that selling, general and administrative expenses
fell sharply as a percent of sales. SG&A was $7.8 million in the second
quarter, or 9.6% of sales, compared with $6.0 million, or 12.7% of sales in
the same quarter of 2001, a decrease of approximately 25% on a percentage
basis. "This is another indication of the efficiencies and economies of scale
that we had targeted as major benefits of the acquisition," Badawi said. He
also added that the integration of Serrot's operations has proceeded on
schedule.
For the six months ended June 30, 2002, the company recorded a net income
of $27.3 million, or $2.38 per share. Net income included an extraordinary
gain of $24.3 million, or $2.11 per share, from the purchase of Serrot reduced
by an extraordinary loss from the extinguishment of debt of $741,000 or
6 cents per share. Before these extraordinary charges, GSE recorded a net
income of $3.8 million, or 33 cents per share compared to a net loss of
$1.9 million, or 18 cents per share, for the first half of 2001. Last year's
first six months included goodwill amortization of 3 cents per share excluded
from this year. Revenue for the first six months of 2002 was $120.7 million
compared to $70.6 million in the 2001 period.
The dollar value of the company's backlog at June 30, 2002 was up to
$100 million from $63 million at the same time last year.
"Our balance sheet remains strong after completing the Serrot
acquisition," said Badawi. "In fact, at June 30, 2002, debt has declined to
$23.9 million from $31.6 million at June 30 last year, and our cash position
has also improved to $10.5 million at June 30 from $7.2 on the same date last
year," Badawi said. Debt-to-equity improved to 19.9% at June 30, 2002
compared with 37.2% at June 30 last year.
"We expect the benefits of the Serrot acquisition to continue to be
reflected in our future results," said Badawi. "Our best estimate for the
year remains that 2002 revenue will be close to $290 million with gross profit
margins around 20%." Investors are invited to join the company's conference
call webcast on Thursday, July 25 at 10:00 a.m. ET by logging on to
www.gseworld.com under the investor relations icon to hear more details.
Gundle/SLT Environmental, Inc., headquartered in Houston Texas, is a
global manufacturer and marketer of geosynthetic lining solutions, products
and services used in containment and management of solids, liquids and gases
for organizations engaged in waste management, mining, water and wastewater
treatment, aquaculture, and other industrial activities. |
