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Peerless Manufacturing Co. (PMFG)
F2Q09 Earnings Call
February 09, 2009; 10:00 am ET
Peter Burlage - President & Chief Executive Officer
Hank Schopfer - Chief Financial Officer
Kevin McGrath - Investor Relations
Richard Hoss - Roth Capital Partners LLC
Sunil Sibal - Natixis
Richard Ryan - Dougherty & Company
Theodor Kundtz- Needham & Co.
Brian Drab - William Blair
Paul Casali - Oppenheimer & Co.
Previous Statements by PMFG
» Peerless Manufacturing Co. F4Q09 (Qtr End 06/30/09) Earnings Call Transcript
» Peerless Manufacturing Co. F1Q09 (Qtr End 30/09/08) Earnings Call Transcript
» Peerless Manufacturing Co. F4Q08 (Qtr End 06/30/08) Earnings Call Transcript
I’d now to turn the call over to Kevin McGrath of Cameron Associates. Mr. McGrath, you may begin your conference call.
Good morning every one and thank you for joining at PMFG conference call and webcast to discuss the company’s financial results for the second quarter fiscal year 2009 ended December 31, 2008. During this call non-GAAP financial measures will be discussed. Reconciliation’s to the most directly comparable GAAP financial measures are included in the company’s earnings release for the first quarter, which is available on the Investor Relation’s page at the company’s website at www.peerlessmfg.com.
Before I turn the call over to Peter Burlage, President and CEO of PMFG, I need to inform you that certain statements made in this conference call are forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
All statements other than statements of historical fact, made during this call are forward-looking statements. These forward-looking statements include statements that reflect the current views of PMFG’s senior management with respect to our financial performance, and future events with respect to our business and our industry in general.
Statements that include the words anticipate, preliminary, expect, believe, intend and similar statements of a future or forward-looking nature, identify forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements address matters that involve risks and uncertainties. Accordingly there are or will be important factors that could cause the company’s actual results to differ materially from those indicated in the statements.
Important information regarding factors that may affect the company’s future performance are included in the public reports that the company files with the Securities and Exchange Commission, including the information in items 1.A, Risk Factors of part one to our annual report on Form 10-K for the fiscal year ended June 30, 2008 and for our 10-Q for the period ended September 31, 2008, which we intend to file later today.
The company undertakes no obligation to publicly update or revise any forward -looking statement. The Inclusion of any statement in this conference call does not constitute an admission by the company or any person of the events or circumstances described in such statements are material.
I will now like to turn the call over to Peter Burlage, President and CEO of PMFG.
Thanks Kevin. It’s my pleasure to welcome all of you to our conference call. Joining me today is Hank Schopfer, our Chief Financial Officer. I will make a few introductory comments regarding our business activities and then Hank will provide you with our financial results for the second quarter.
We started of with fiscal year 2009 with a strong backlog; an active pipeline of opportunities in both of our business segments, and with the expectation that we would have a solid performance for the year. While we continue to expect fiscal 2009 to be a good year, we are beginning to see the impact of the slowdown of many of the economies around the world and the impacts on the markets we serve at least in the short-term.
Our second quarter results were impacted by two primary challenges. First, our environmental segment was up against a tough comparison due to the one large order flowing through our second quarter of fiscal year 2008. This did not come to us as a surprise. We knew replacing that order in time would be very difficult.
Second, we have begun to see the effect of the challenging global economic environment and restrictive credit markets that has impacted our customers. In particular, we have begun to experience a slowdown in some market segments that are processed products groups serves as customer reevaluates the demand for energy capacity.
Revenue in for the second quarter was up modestly to $39.1 million or 5.4%. This was our second full quarter of operating results that included Nitram Energy and we continue to be pleased with their contributions. Our net earnings per diluted share on a non-GAAP basis were a $0.11. Hank will provide more details on our financial results later in the call.
Environmental System segment revenues for the second quarter decreased 51% compared to the second quarter of 2008. As I had stated in previous calls both the timing of orders and the size of orders can significantly impact quarterly comparisons. This was the case for Q2, 2009 as the second quarter for fiscal year 2008 included approximately $10.5 million for one large environmental order than began in the fourth quarter of fiscal 2007. Process Products formerly referred to as Separation/Filtration group revenues for the second quarter increased 71% and benefited from the inclusion of Nitram operating results.