MOCON Reports Record Third Quarter Results
November 06 2014 - 08:00AM
Business Wire
Highlights:
- Record revenue for the quarter, up 17%
year-over-year
- Quarterly net income up 23%
year-over-year
- Record quarterly earnings per diluted
share of $0.29
- Record revenue for the nine-month
period of $47.5 million, up 12% year-over-year
MOCON, Inc. (NASDAQ: MOCO), today reported record financial
results for the third quarter ended September 30, 2014.
Commenting on the Company’s performance, MOCON’s president and
CEO, Robert L. Demorest said, “We are very pleased with the third
quarter results while we continue to focus on improved gross margin
and bottom line performance. The double digit revenue growth in the
third quarter and year-to-date results is derived primarily from
our Industrial Analyzer and Package Testing segments. MOCON’s
innovative technology has opened doors to new opportunities
resulting in these record revenue and earnings.”
Third Quarter Revenue and Earnings Summary
Third quarter 2014 results compared to third quarter 2013
- Revenue increased 17 percent to $16.6
million compared to $14.2 million for the same quarter in 2013, a
new quarterly record for the Company.
- Net income for the third quarter 2014
was $1.7 million, or $0.29 per diluted share, also a new quarterly
record for the Company. Third quarter 2014 net income represents an
increase of 23 percent compared to net income of $1.4 million, or
$0.24 per diluted share in the third quarter 2013.
- Revenue from foreign customers
accounted for 67 percent of total revenue for the third quarter of
2014.
Year-to-date 2014 results compared to year-to-date 2013
- Revenue totaled $47.5 million for the
nine-month period ended September 30, 2014, an increase of 12
percent compared to $42.3 million during the first nine months of
2013.
- Net income and diluted earnings per
share were $3.6 million and $0.62, respectively, for the
nine-months ended September 30, 2014, an increase of 18 percent
compared to net income of $3.0 million, or$0.53 per diluted share,
for the nine month period in 2013.
- Revenue from foreign customers
accounted for 71 percent of total revenue for the nine month period
ended September 30, 2014.
Revenue by Segment
Three Months Ended Nine
Months Ended September 30, September 30, ($ in
thousands)
2014 2013 %
Increase 2014 2013
% Increase Permeation $ 5,729 $ 5,597 2 % $ 16,621 $
15,550 7 % Package Testing 7,342 6,328 16 % 21,321 18,976 12 %
Industrial Analyzers and Other 3,578 2,265 58 %
9,595 7,799 23 %
Total Revenue $
16,649 $ 14,190 17 % $
47,537 $ 42,325 12 %
Revenue growth for the third quarter of 2014 was primarily
attributable to our Industrial Analyzer and Other segment that grew
58 percent year-over-year, driven by continued strong demand in the
oil and gas exploration and environmental monitoring markets. In
addition, our Package Testing segment third quarter 2014 revenue
increased 16 percent year-over-year due primarily to improved
shipments of online and headspace analyzers. Third quarter 2014
revenue generated from our Permeation segment increased 2 percent
compared to the third quarter of 2013 due primarily to steady
demand in Europe.
Gross Profit and Operating Costs Commentary
Gross profit was consistent at 57 percent of revenue for each of
the third quarters ended September 30, 2014 and 2013, and is
consistent with the company’s planned gross margin. Selling,
general and administrative expenses were slightly higher in the
third quarter and nine-months ended September 30, 2014 compared to
the same periods last year due primarily to increased commissions
and headcount, as well as higher audit and SOX consulting fees. As
a percentage of revenue, selling, general and administrative
expenses decreased for both the quarter ended and nine-months ended
September 30, 2014 compared to the same periods last year.
Balance Sheet Summary
- Cash and cash equivalents were $6.1
million on September 30, 2014 compared to $4.1 million on December
31, 2014.
- Cash provided by operations in the nine
months ended September 30, 2014 was $6.4 million compared to $4.4
million in the same period of 2013.
- Days sales outstanding were 57 for the
third quarter of 2014, a 20 day improvement compared to 77 in the
fourth quarter of 2013.
- Total debt was $6.9 million on
September 30, 2014 compared to $8.3 million on December 31,
2014.
About MOCON
MOCON is a leading provider of detectors, instruments, systems
and consulting services to research laboratories, production
facilities, and quality control and safety departments in the
medical, pharmaceutical, food and beverage, packaging,
environmental, oil and gas and other industries worldwide. See
www.mocon.com for more information.
This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include statements that can be identified by words such
as “will,” “may,” “expect,” “believe,” “anticipate,” “estimate,”
“continue,” “planned”, or other similar expressions. All
forward-looking statements speak only as of the date of this press
release. MOCON undertakes no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. In addition to the risks and
uncertainties of ordinary business operations and conditions in the
general economy and the markets in which the Company competes,
there are important factors that could cause actual results to
differ materially from those anticipated by the forward-looking
statements made in this press release. These factors include, but
are not limited to, the integration and performance of Dansensor,
the terms of our credit agreement including financial covenants
included therein, competition and technological change, setbacks in
product development programs, order cancellations, dependence on
certain key industries, pricing and lack of availability of raw
materials, product pricing, crude oil pricing impact on oil
exploration activities, and other factors set forth in the
Company’s Annual Report on Form 10-K for the year ended
December 31, 2013 and other documents MOCON files with or
furnishes to the Securities and Exchange Commission.
MOCON's shares are traded on the NASDAQ Global Market System
under the symbol MOCO.MOCON is a registered trademark of MOCON,
Inc.; other trademarks are those of their respective holders.
INCOME STATEMENT
DATA: (unaudited)
Quarters Ended Nine Months Ended
(in thousands except for per share
data)
September 30, September 30, 2014
2013 2014 2013 Revenue
Products $15,855 $13,400 $45,366
$40,088 Consulting services 794
790 2,171 2,237 Total
sales 16,649 14,190 47,537
42,325 Cost of sales Products
6,640 5,657 19,451 17,275 Consulting
services 447 474 1,413
1,357 Total cost of sales 7,087
6,131 20,864 18,632
Gross profit 9,562 8,059 26,673
23,693 Selling, general and administrative
expenses 6,125 5,258 18,215 16,529
Research and development expenses 950
886 3,064 3,084
Operating income 2,487 1,915 5,394
4,080 Other expense, net (117 )
(95 ) (267 ) (286 )
Income before income taxes 2,370 1,820
5,127 3,794 Income tax expense 696
461 1,558 767
NET INCOME $1,674 $1,359
$3,569 $3,027 Net income per common
share: Basic $0.30 $0.24 $0.63
$0.55 Diluted $0.29 $0.24 $0.62
$0.53 Weighted average common shares outstanding:
Basic 5,668 5,548 5,655 5,536
Diluted 5,775 5,685 5,768 5,674
BALANCE SHEET
DATA: (unaudited)
September 30, 2014
December 31, 2013 Assets: Cash and marketable
securities $6,141 $4,338 Accounts receivable,
net 10,462 12,609 Inventories 8,551
7,471 Other current assets 2,778 3,151
Total current assets 27,932 27,569
Property, plant and equipment, net 5,735 5,727
Investment in affiliated company 3,171 3,442
Goodwill, intangibles and other assets 19,981
21,966 Total assets $56,819 $58,704
Liabilities and Stockholders’ Equity: Revolving lines of
credit $4,500 $4,264 Notes payable,
current 1,819 2,698 Other current
liabilities 10,167 9,973 Total noncurrent
liabilities 2,812 4,300 Stockholders’
equity 37,521 37,469 Total liabilities and
stockholders’ equity $56,819 $58,704
MOCON, Inc.Elissa Lindsoe, CFO,
763-493-6370www.mocon.com
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