Peerless Manufacturing Co. (PMFG)
F4Q08 (Qtr End 06/30/08) Earnings Call
September 9, 2008 10:00 am ET
Kevin McGrath - IR
Peter Burlage - President and CEO
Hank Schopfer - CFO
Fanyl Fable - Detexis
Brian Drab - William Blair
Dick Ryan – Dougherty
Bill McCann - Brown Advisory
David Cohen - Midwood Capital
Previous Statements by PMFG
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I would now like to turn the call over to Mr. Kevin McGrath of Cameron Associates. Please proceed.
Good morning everyone, and thank you for joining the PMFG conference call and webcast to discuss the company's financial results for the fourth quarter and fiscal year ended June 30th, 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 fourth quarter and fiscal year 2008, which is available on the Investor Relations 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 1A, risk factors in part one to our annual report on Form 10-K for the fiscal year ended June 30th, 2008, which we intend to file later today. Company undertakes no obligation to publicly update or revise any forward -looking statement.
Inclusion of any statement in this conference call does not constitute an admission by the company or any person that the events or circumstances describe in such statements are material. With that said, I will now like to turn the call over the Peter Burlage, President and CEO of PMFG.
Thanks, Kevin. It is my pleasure to welcome all of you to our conference call. Joining me today is Hank Schopfer, our Chief Financial Officer.
I want to first make a few introductory comments regarding our business activities, our recent acquisition of Nitram Energy, and then Hank will provide you with our financial results for the fourth quarter and fiscal year 2008.
PMFG had a strong performance for the fourth quarter and full year with revenue up 56% and 87% respectively. Our earnings per diluted share on a non-GAAP basis increased more than 15% and 218% respectively. Hank will provide more details on our financial results later in the call. The growth in both of our business segments was solid.
Environmental system segment revenues for the fourth quarter and full year increased 18.5 and 118.6% respectively. The increased demand was primarily driven by increased global demand for natural gas peek power generation, as well as natural gas fired combined cycle power generation, EPA mandated NOx emission standards, and increasingly stringent emission targets worldwide.
Specifically, we are seeing solid business pipeline activity in our areas of combined cycle power plants that are seeking multiple unit auctions, growing demand for biofuel and renewable fuel power generation, and significant activity with [peaker] power generation. PMFG has extensive experience with these types of projects, and we believe the demand for these segments will continue to be strong.
Separation/Filtration System segments revenues for the fourth quarter and full year increased by $118.2 and 68.4% respectively. Our Separation/Filtration segment continues to benefit from the growth and global gas transmission and pipeline expansions, the increase demand for equipment to facilitate, two facilities located in Canada, particularly to the tar sands region, new gas processing plants in the Middle East, and nuclear power plants that continue to invest in life extension, as well as new generation of power.
Here again, our business pipeline activity remains strong. In particular, we have seen a noticeable uptick in the demand for nuclear projects around the world with Europe, China and the U.S. at the forefront of the activity. PMFG is a leader in the nuclear plant steam separator business, and we believe this experience positions us well to capture growing number of nuclear plants that are expected to be built in the coming years.
The other area in the Separation/Filtration segment that we continue to see strong activity is in the gas transmission, and this is occurring on a global basis. The scale of the projects is growing as companies and countries seeking to secure reliable supply of gas for their energy needs. Emerging markets like China, South America and India continue to be very active areas for PMFG. We are pleased that both segments of our business have been performing well.