Info for New Investors
Unifab International, Inc. UFAB is engaged in the custom fabrication of decks and modules of drilling and production equipment weighing up to 3,500 tons for offshore oil and gas platforms, and has special expertise in the fabrication of decks with complex platforms regardless of water depth. . For the nine months ended 12/31/98, revenues increased 3% to $83.7 million. Pro-forma net income increased 25% to $6.1 million. Revenues reflect revenue recognized on time and material fabrication contracts. Net income also reflects decreased cost of revenues due to lower direct costs.
On June 24, 1998 UNIFAB International, Inc. ("UNIFAB") acquired Allen Tank, Inc. for 819,000 shares of UNIFAB common stock, $400,000 in cash and notes of $800,000. Cash at closing was paid from available funds. On June 24 UFAB stock traded between $15.75 and $16.38. Using $16. As the per share value then the total $costs of the acquisition was $14.304 million ($400k cash + $800K Notes + $13.104 millions in Stock).
Allen Tank, located in New Iberia, Louisiana on property [NEARLY] adjacent to UNIFAB's Port of Iberia facilities, designs and manufactures specialized process systems, such as oil and gas separation systems, gas dehydration and treatment systems, and oil dehydration and desalting systems, and other production equipment related to the development and production of oil and gas reserves. Allen Tank also provides a full complement of engineering and field commissioning services related to production systems.
Also on June 24, 1998 UNIFAB acquired LATOKA Engineering Ltd. ("LATOKA")
from certain of the Allen Tank Shareholders for 79,000 shares of UNIFAB common stock.
LATOKA, headquartered in London, England, provides engineering and project management
services primarily in Europe and the Middle East. 79k shares @ $16. Is $1,264,000.
Earnings, Ratings and Recommendations: Note: UFAB's Fiscal Year (FY99) ends in Mar99……
Earnings for FY97 $1.15 FY98 $1.28 FY99* ($1.35) and FY00 ($1.95) (ending Mar 2000)
*Note assumes the 4Q ending 3/99 is on target. The concensus earnings forecasts of $1.95 represents a 44.44% increase over current FY99 earnings. The concensus projected earnings growth over the 3-5 year business cycle is 34.3%. Book value is approximately $7.00+.
IBES: quicken.com Rates UFAB 1 (top rating)
Zacks (YAHOO): biz.yahoo.com Rates UFAB 1 (top rating)
Vectorvest: vectorvest.com Rates UFAB "BUY" (top rating). Also, Based on its own valuation methods Vectorvest has assigned a value of $21.70 per share of UFAB.
Zacks Investment Research: biz.yahoo.com Rates UFAB #1 of 24 companies in the 'Field Machinery and Equipment' sector.
UFAB is a solid "Small Cap" "Growth Company" selling at a huge discount to its potential market value as the oil patch recovers. It has weathered the storm and grown in value during the worst of times. One can only speculate how well the company will do in a more favorable environment. The stock price hit an all time high of $42.50 on Oct 13, 1997 when the bottom fell out of the entire Oil Service Industry. Obviously, the Company's Equity value has grown at the same time Market Cap has suffered due to its association with its Sector and the industry. As the Oil Patch recovers, UFAB stockholders will be primary beneficiaries. @$8, UFAB is selling @ less than 6 times FY99 earnings and only 4 times projected FY00 earnings. It doesn't get much better than this, folks. If you can find a better bargain, .....BUY IT...!!.
SargeK |
