|MEAS beat big high estimates on rev and eps!! Low floater tomorrow $20+ easy|
Measurement Specialties Announces Record Results for Quarter Ended June 30, 2010
Net Income of $5.6 Million on Net Sales of $61.2 Million
HAMPTON, Va., Aug. 4, 2010 (GLOBE NEWSWIRE) -- Measurement Specialties, Inc. (Nasdaq:MEAS), a global designer and manufacturer of sensors and sensor-based systems, announces results for the first quarter of fiscal year 2011.
The Company reported an increase in consolidated net sales of $17.4 million or 40% to $61.2 million for the quarter ended June 30, 2010, as compared to the corresponding period last year. The overall increase in sales is largely attributable to improvements in overall global economic conditions, as well as sales from broader product adoptions and new programs. For the quarter ended June 30, 2010, the Company reported net income of $5.6 million, or $0.37 per diluted share, as compared to net loss of $1.5 million, or $0.10 per diluted share, for the same period last year. The increase in net income primarily reflects improved gross margins due to higher volumes of production and sales and the resulting improvements in leverage and overhead absorption. The financial performance during the quarter was adversely impacted by a non-cash, discrete tax adjustment of $0.3 million associated with an IRS audit and settlement, as well as the write-off of deferred financing costs of $0.6 million attributable to the Company's prior credit facility, which was replaced in June 2010. Together, the two items accounted for approximately $0.06 per diluted share.
In accordance with new accounting standards for consolidation of variable interest entities ("VIE"), the Company no longer consolidates the financial results of Nikkiso-THERM ("NT"), a joint venture in Japan and the Company's one VIE. Rather, profits associated with the Company's 50% ownership interest in NT are reflected in Equity income in unconsolidated joint venture. Accordingly, financial statements and related information for prior periods have been adjusted to conform with current year presentation, resulting in a decrease in the Company's previously reported net sales for the quarter ended June 30, 2009 of $1 million.
Frank Guidone, Company CEO, commented, "We believe this quarter represents an important milestone for the Company. Sales exceeded the pre-recession baseline of $60 million, resulting in strong growth over last year, as well as last quarter, despite headwind from a weaker euro. As a result of improved leverage of fixed overhead, gross margin also improved to pre-recession levels. While we posted record earnings in terms of EPS and Adjusted EBITDA of $0.37 and $12.1 million, respectively, we are particularly encouraged about the improvement in Adjusted EBITDA margin. At 19.8%, we have clearly demonstrated that the earnings model is capable of operating at 20% margin, supporting our FY13 goal of $60 million Adjusted EBITDA on sales of $300 million.
Guidone continued, "Our book to bill was 1.06 for the quarter, a little below the prior 3 quarters, supporting the general belief that economic growth is slowing as global supply chains stabilize inventory levels. Based on bookings, we expect Q2 will be comparable to Q1, with the potential for modest contraction in the second half of the fiscal year. While we remain cautious about our second half given the general mood and instability in our end markets, we have 4 quarters with book to bill well above 1, which signals growth. We therefore continue to monitor the incoming booking activity closely."
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