This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Blount International, Inc. Q2 2010 Earnings Call Transcript

Now, I would like to turn the call over to Josh Collins, our Chairman and CEO.

Josh Collins

Thanks, Cal; and thank you all for joining us on today's call. First, I will take a few moments to discuss the highlights of the second quarter. After that, Cal will cover some financial details. I will then conclude our prepared remarks by outlining our revised forecast for 2010, discussing some of the significant recent events related to Blount.

We are pleased with the results of our performance over the second quarter. There continue to be a number of positive signs within our business as we progress through the year. Order intake continues to increase, indicating a solid demand for the last half of 2010, and we continue to achieve solid operating margins as a result of the volume leverage on our manufacturing plants. The second quarter of 2010 marked the third consecutive quarter of sequential sales growth for our company, and the highest revenue and operating income levels since the record third quarter of 2008. Sales were up over 30% in the second quarter of 2010 compared to last year's second quarter. Second quarter operating margins continued to show strength at over 50% of sales as we achieved good cost performance, plant efficiencies, and lower steel costs year over year. Additionally, we generated over $20 million of free cash flow.

Customer orders continued to show strength, with orders on hand increasing over 50% from both June 2009 and December 2009 levels. Back orders now only $6.9 million below the record level at the end of June 2008. As a result, we are optimistic about sales growth over the remainder of 2010. Overall, our solid operating performance and cash generation has led to net debt leverage of 1.9 times.

This morning, we successfully completed the amendment of our senior credit facility. This was a significant achievement, as it provides us with our desired operating flexibility, and reduces our overall cost of borrowing.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs