) reported second-quarter 2013 adjusted earnings of 42 cents,
which beat the Zacks Estimate of 39 cents by 7.7%. Quarterly
earnings were flat year over year.
Revenues for the reported quarter were $117.3 million, down
5.7% compared with $124.4 million in the second quarter of 2012.
The decline in net sales was primarily attributable to $14.3
million decline in wind sales and military sales, partially
offset by growth in industrial sales.
However, new orders booked during the quarter increased 9.2%
year over year to $12.32 million, which is equivalent to a
book-to-bill ratio of 1.05%. Orders were up 3.2% sequentially. As
of Jun 29, 2013, backlog was $158.1 million, compared with $169.5
million in the year-ago period.
Adjusted EBITDA during the quarter was $25.6 million compared
with $27.3 million during the prior-year quarter. Gross margin
increased during the quarter to 38.6% from 33.7% in the
year-earlier quarter, but it remained flat sequentially. The
increased operating leverage derived from restructuring
activities that were undertaken in the previous year and
favorable product mix boosted the performance.
Cash Flow and Balance Sheet
Free cash flow during the first quarter of 2013 was $18.7
million compared with $13.3 million during the second quarter of
2012. The increase in free cash flow was due to improved
performance by the company during the quarter. As a result of the
debt repayment initiatives, cash and cash equivalents were $69.9
million with long-term debt of $156.2 million.
Capital expenditures during the quarter amounted to $3 million
compared with $4.8 million in the prior-year quarter. The company
repaid $7.9 million of debt during the reported quarter. In
addition, dividends totaling to $6.4 million were also paid by
the company to its shareholders.
Kaydon currently has Zacks Rank #3 (Hold). Other sector
participants that are worth mentioning include
), having a Zacks Rank #1 (Strong Buy), while
Norsk Hydro ASA
Precision Castparts Corp
) have Zacks Rank #2 (Buy).
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PRECISION CASTP (PCP): Free Stock Analysis
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