I made this comparison sheet after ESE acquired Encore Electronics in May 2011. As you can see, revenue from the Encore Electronics subsidiary has gone up almost 1000% in 5 years. We are still waiting for Q4 results, but I am confident that Encore Electronics sold around $4 million US dollars in 2016. However, this positive cash flow is offset by Allan R Engineering which I hope the company has reduced costs from or should consider closing down. If you look at Encore Electronics website, they deal with some major groups like the US Government, NASA, Ford, Toyota, and major corporations. Therefore, if their products are good for the most high end clients, then any company would want to use them. This means their growth potential could increase substantially and major deals could come at anytime. If oil prices ever do come back, then the Engineering department should also start producing positive cash flow. Another advantage of Encore Electronics over Allan R Engineering is that it's a US subsidiary, that means the conversion from US to Canadian dollars will only add extra cash to ESE's balance sheet.
2011 Year End
Allan R Engineering - $1,843,864 – Loss of $179,101
Encore Electronics - $422,616 – Loss of $215,547
Total Sales for 2011 - $2,266,480 - Total loss of $394,648
2012 Year End
Allan R Engineering - $2,722,196 – Net Income $438,388
Encore Electronics - $2,391,052 – Loss of $257,351
Total Sales of 2012 - $5,113,248 - Total net income of $181,037
2013 Year End
Allan R Engineering - $2,397,536 – Loss of $45,488
Encore Electronics - $3,178,949 – Net Income $397,902
Total Sales for 2013 - $5,576,485 - Total net income of $352,414
2014 Year End
Allan R Engineering - $2,017,208 – Loss of $499,565
Encore Electronics - $3,231,516 – Net Income $267,994
Total Sales for 2014 - $5,248,724 - Total loss of $231,571
2015 Year End
Allan R Engineering - $2,159,901 – Loss of $121,360
Encore Electronics - $3,674,444 – Net Income $656,550
Total Sales for 2015 - $5,834,345 - Total net income of $535,190
2016(9 Months)
Allan R Engineering - $905,361 – Loss of $272,683
Encore Electronics - $3,224,296 – Net Income $234,450
Sales for 9 Months - $4,129,657 - Total loss of $38,233
List of Encore Electonics Clients: http://encore-elec.com/about-us/our-customers/ |
