hope this helps. will probably see much of this in analyst's reports. the obvious questions regarding backlog and gross... management is always so damn monotone and never seem excited about anything. it's very frustrating listening to them....
some highlights:
-3rd straight qtr of record sales and earnings
-reduction of backlog largely due to completion of Exxon Power co-generation plant
-intl backlog declined and u.s. backlog became a larger % of overall backlog.
-Gross margin of 16.1%, down from 16.9% last qtr., due mainly to Prospect continuing to be retooled (see this turning around spring and summer qtr--should be accretive at that point) and increase in construction business. Looking for 20% gross going forward for next year.
-SG&A down from last quarter due to cost cutting as mentioned in previous qtr--at 9%. could decrease a little more, but most of the major cost cutting has been accomplished.
-total debt to cap was down.
Notes on projects:
-Prospect-retooling as above mentioned. business is stronger in europe in spring and summer and should be accretive at that point.
-Venezuela-should be running close to capacity in q1.
-shipyard acquisition should be completed q1 and due to additional work being brought in by Bagwell should add to earnings.
-China joint venture is proceeding slow and there is no time-table that can be accurately given at this time. However, contracts in China continue to move forward.
Questions and comments:
Hoake Breedlove-
-positive comments regarding SG&A
-backlog did not include a $15 mil power plant project (all domestic) that was signed in July. backlog in this area looks very strong going forward.
-bidding activity very strong
-Intl power- see article today as reported about Bectel
-bidding activity even increased in SE Asia
Jeffries-
-Gross margin comments...wanted to specify the #'s from Prospect
-BOOKINGS FOR THE Q WERE $125MIL
-LOOKING FOR $500 MIL FOR FISCAL '98
DLJ
-New orders for Q? $125mil booked, power work is steady, looking for an uptick in chemical, refining is very active in Venez., oil and gas has seen a small decline, but nothing that is significant.
-Any projects lost due to commodity prices? Only one power plant in Indonesia, which was just pushed back 18months, but not eliminated ($5mil)
Rauscher-
-stainless prices have been firm for the qtr-flat
-chinese jt venture going slow
greg |
