Magnetek, Inc. (“Magnetek” or “the Company”)(NYSE: MAG) today reported the results of its 2011 fiscal third quarter ended April 3, 2011.
Third Quarter Results
In its third quarter of fiscal 2011, Magnetek recorded revenue of $27.8 million, a 45% increase from the third quarter of fiscal 2010 and a 7% sequential increase from the second quarter of fiscal 2011. The increase in sales from the prior year quarter reflects significant year-over-year sales growth in both the Company’s traditional served markets as well as renewable energy markets. Gross profit was $8.7 million (31% of sales) in the third quarter of fiscal 2011 versus $5.5 million (29% of sales) in the same period a year ago, while third quarter income from operations improved more than $2.6 million year-over-year. Increased sales volume and, to a lesser extent, cost containment contributed to the expansion in both gross profit and operating income.
“Our third quarter results exceeded our expectations, highlighted by record sales of nearly $28 million and bookings of more than $31 million. Our end markets continue to show signs of accelerating recovery, as evidenced by strong levels of bookings and sales in each of our major served markets. Third quarter sales of renewable energy products more than doubled from prior year levels, while sales into material handling markets were up 30% year-over-year. We believe we are well positioned to outpace overall economic growth rates with our continuing focus on new product introductions, the expected increasing demand for our traditional products, and our growth prospects in renewable energy markets,” said Peter McCormick, Magnetek’s president and chief executive officer.Total operating expenses, consisting of research and development (R&D), pension expense, and selling, general and administrative (SG&A) costs, were $7.3 million in the third quarter of fiscal 2011 compared to operating expenses of approximately $6.6 million in the prior-year period. Compared to the prior year third quarter, current year operating expenses were impacted by higher R&D expenses, higher variable selling expenses and increased incentive compensation provisions, partially offset by lower pension expense.