Sergio I posted this on the amigo thread. I see that you have posted something over hear already. Some of which was in my post. I'll repost here for the additional information. I think it was a very positive filing. Hopefully ATPX will be found soon.
Dave the volume on this one is kind of scary isn't it. We really feel it is simply a matter of management and the PR firm getting the word out to wallstreet. Which hopefully will happen shortly.
Here are some of reasons why we think the company is undervalued more so now than before the 10K
1. From 1996 to 97 current asset increased from 40 million to 60.5 million. Total assets increased from 44.5 to 88.5.
2. granted this is including Lunn's numbers but when you take total liabilities which also include Lunn's numbers. You get 36 million to 58 million. When you divide those by the total assets you get a much better % for97 than you do 96. 47.4% to 23.6 %. Again extremely positive
3. They have increased there working capital
4. Something I personally was not aware of was the renegotiation of their bank loan. Not only did they get a higher line of credit, they also got a better rate.
5. In taking a look at the numbers from the last 4 quarters I notice a trend moving forward not backwards. The growth is there and they haven't even completely got settled in from the merger yet
19. SUMMARY OF QUARTERLY INFORMATION (UNAUDITED)
1997 QUARTERS
------------------------------------------------
FIRST SECOND THIRD FOURTH(A)
------- ------- ------- ---------
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Net sales................... $23,822 $28,110 $28,608 $ 38,893
Gross profit................ 5,086 6,906 6,742 9,387
Operating income............ 159 2,213 2,253 4,490
Net income (loss)........... (196) 1,049 1,017 2,338
Basic earnings per share.... (b) $0.26 $0.25 $0.48
======= ======= ======= =========
Diluted earnings per share.. (b) $0.25 $0.24 $0.46
======= ======= ======= =========
1996 QUARTERS
------------------------------------------------
FIRST SECOND THIRD FOURTH(C)
------- ------- ------- ---------
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Net sales............................ $27,048 $30,704 $34,409 $ 34,373
Gross profit......................... 6,447 7,860 8,670 9,192
Operating income..................... 1,223 2,528 3,334 3,326
Income (loss) before extraordinary
item............................... 495 1,241 1,752 1,453
Extraordinary loss................... -- -- -- 667
Net income........................... 495 1,241 1,752 786
Basic earnings per share:
Income before extraordinary
item.......................... $ 0.12 $ 0.31 $ 0.44 $ 0.36
Extraordinary item, net......... -- -- -- (0.17)
------- ------- ------- ---------
Net income...................... $ 0.12 $ 0.31 $ 0.44 $ 0.19
======= ======= ======= =========
Diluted earnings per share:
Income before extraordinary
item.......................... $ 0.12 $ 0.31 $ 0.42 $ 0.36
Extraordinary item, net......... -- -- -- (0.18)
------- ------- ------- ---------
Net income...................... $ 0.12 $ 0.31 $ 0.42 $ 0.18
Finally the company did 119 million in business last year. Here is a part from the 10K in regards to backlog.
>>At December 31, 1997, ATP's backlog of orders and long-term contracts was approximately $552 million compared to $283 million at December 31, 1996. The backlog includes scheduled or released orders of approximately $192 million compared to $120 million at December 31, 1996. The backlog includes both firm orders supported by customer purchase orders with fixed delivery dates and blanket orders against which customers issue production releases. The increase in the backlog reflects (i) a change in management's strategy, since acquiring the Brunswick Business in 1995, to obtain longer-term contracts than its predecessor; (ii) improved economic conditions in the aerospace industry; and (iii) the military's commitment to develop systems to combat chemical warfare. <<
That gives them almost 5 years worth of business already!! Assuming that all of the backlog is filled. Even the scheduled or released orders alone already total 1 1/2 years of work.
Hope some of this helps. Anybody have any thoughts?
Cary |
