Magnetek, Inc. (NYSE: MAG):
- Net sales for Q1 of Transition Period 2011 increased 17% over prior year Q1 sales to $29.2 million.
- Income from continuing operations increased significantly to nearly $2.0 million, or $.06 per share, compared to prior year Q1 income from continuing operations of $0.7 million, or $.02 per share.
- Cash balances increased by $1.6 million during Q1 of TP 2011 to $14.1 million as of October 2, 2012.
Magnetek, Inc. (“Magnetek” or “the Company”, NYSE: MAG) today reported the results of its first quarter of transition period 2011, ended October 2, 2011 (see below for a definition of Transition Period 2011).
First Quarter Results
In its first quarter of transition period 2011, Magnetek recorded revenue of $29.2 million, a 17% increase from the prior year first quarter and a 6% sequential decrease from the fourth quarter of fiscal 2011. The increase in sales from the prior year quarter reflects year-over-year sales growth in the Company’s served material handling, elevator and mining markets. As a result of the increased sales volume and favorable shift in the Company’s sales mix, first quarter earnings per share from continuing operations tripled to $.06 per share over prior year first quarter earnings per share from continuing operations.
“Most of our end markets continued to show signs of moderate expansion during the first quarter, particularly on the industrial side of our business. The only exception was in the renewable energy market where, as we expected, sales of wind inverters declined sequentially from prior quarter levels. While there is increasing uncertainty over future economic activity in the U.S. and a growing fear of recession, manufacturing activity remains one of the few bright spots of the U.S. economy,” said Peter McCormick, Magnetek’s president and chief executive officer. “Our incoming order rate in the first quarter does not indicate any sign of a slowdown in our business. In fact our first quarter bookings were up 14% sequentially over our fourth quarter, so that should translate into another solid performance in the current quarter. Longer-term, we remain confident in our strategic initiatives for growing our business, and as a result, we believe we are well positioned to outpace overall economic growth rates going forward. At the same time, we’re well aware that economic conditions remain dynamic and very volatile. We’re mindful that our business conditions could deteriorate in the future, and we’re well prepared to respond accordingly if that happens,” said McCormick.