Financial Condition and Cash Flows
At December 29, 2012, the Company reported $69.2 million of cash and cash equivalents including $8.5 million of cash and cash equivalents which is restricted as security for outstanding letters of credit, total assets of $185.0 million, net working capital of $79.7 million and a current ratio of 2.9 to 1.0.
Unrestricted cash and cash equivalents increased $8.3 million during the six month period ended December 29, 2012, compared to a decrease of $0.4 million in the prior year, attributed in part to an improvement in the collection of accounts receivable. Cash flows in year to-date fiscal 2013 include $10.4 million provided by operating activities, ($3.8) million used in investing activities, $1.6 million provided by financing activities and $0.2 million effect of exchange rate changes on cash. Investing activities in the period include payment of deferred consideration from the acquisition of Burgess-Manning GmbH and capital expenditures related to the construction of new facilities in the United States and China.
Industry Conditions and Forward Outlook
Peter Burlage, President and Chief Executive Officer of PMFG, stated, "While we continue to experience delays in energy-related capital expenditures, we believe the long-term outlook for the Company remains strong.
"Our investment in incremental sales resources in China focused on driving growth in the Process Products segment is expected to create significant opportunities for us in the future. The demand for Process Products in the Asia-Pacific region resulting from the investment of natural gas infrastructure combined with a re-start of the China nuclear energy program make the Asia-Pacific region critical to our future growth. The construction of the new facility to be located in Zhenjiang, China remains on track and critical to meeting the increased demand within the region. Further, the increased focus on air quality within China should allow us to expand our product offerings within the region.