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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

The L. S. Starrett Company Reports Fiscal 2012 Fourth Quarter And Full Year Results

The L. S. Starrett Company today reported fiscal 2012 fourth quarter and full year financial results for the periods ended June 30, 2012.

Annual Highlights

  • Revenues of $260 million were the second highest in the history of the Company
  • Non-GAAP fiscal 2012 earnings, which were adjusted to exclude a pension adjustment, were $10.0 million or $1.48 per share compared to GAAP earnings of $6.8 million or $1.02 per share in fiscal 2011
  • GAAP fiscal 2012 earnings, including the pension adjustment, were $0.9 million or $0.13 per share
  • A $15.2 million non-cash pension adjustment was recorded in the fourth quarter of fiscal 2012.

“Our Company had a strong year with growth in revenue and operating income in both the North American and International markets,” said President and CEO Douglas Starrett.

The table below illustrates the impact of the non-cash pension adjustment in the fourth quarter and full year.

      $(Millions)
Fourth Quarter     Annual
                       
FY2012 Pension FY2012 FY2011 FY2012 Pension FY2012 FY2011

GAAP

Adj

Non-GAAP

GAAP

GAAP

Adj

Non-GAAP

GAAP

Net Sales

$

70.0

$

70.0

$

71.20

$

260.1

$260.1

$

244.8

 

Gross Margin

13.0

$

12.0

25.0

23.7

78.1

$

12.0

90.1

81.8

% of Sales 18.6 % 35.7 % 33.3 % 30.0 % 34.6 % 33.4 %
 

S, G & A Expenses

22.7

3.2

19.5

19.5

79.9

3.2

76.7

70.8

 

Net Earnings (Loss)

($4.6

)

$

9.1

$

4.5

$

1.5

$

0.9

$

9.1

$10.0

$

6.8

Earnings (loss) per share ($0.68 ) $ 1.35 $ 0.67 $ 0.23 $ 0.13 $ 1.35 $1.48 $ 1.02

Solid revenue growth continued in fiscal 2012 as sales increased $15.3 million or 6.3% over a strong fiscal 2011. The Company was not immune to the financial volatility of the past twelve months as lower long-term interest rates driven by Federal Reserve policy led to the discount rate falling to historic lows. As a result, the Company recognized a significantly higher pension liability, and a $17.2 million non-cash annual pension expense, including a $15.2 million pension adjustment, recorded in the fourth quarter of fiscal 2012. The eight fold increase in normal pension expense negatively impacted gross margin and selling, general and administrative expenses and was the prime driver in the net loss for the fourth quarter and the small profit results for the year.

Stock quotes in this article: SCX 

Select the service that is right for you!

COMPARE ALL SERVICES
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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