DALLAS, Nov. 6, 2013 (GLOBE NEWSWIRE) -- PMFG, Inc. (the "Company") (Nasdaq:PMFG) today reported financial results for the quarter ended September 28, 2013.
First Quarter Fiscal Year 2014 Compared to First Quarter Fiscal Year 2013
Revenue in the first quarter of fiscal 2014 decreased $3.9 million, or 11.8%, to $29.1 million as higher revenue in the Environmental Systems segment was more than offset by lower revenue in the Process Products segment. The decline in revenue is attributed in part to lower revenue in the EMEA and APAC geographical regions, as well as the impact of transitioning to new manufacturing facilities in the United States and China.Gross profit decreased in the current quarter by $1.7 million, or 14.8%, to $9.7 million primarily due to the lower revenue. Gross margin decreased as a percent of revenue from 34.5% to 33.4% on changes in product mix between the respective quarters, as well as certain one-time costs and inefficiencies related to the transition of the manufacturing facilities. Operating expenses increased $0.4 million, or 4.0%, primarily due to higher sales commissions and personnel-related and consulting costs, partially offset by lower bad debt expense in the period. Interest expense increased in the current quarter to $0.4 million from $0.1 million as a result of an increase in borrowings related to the Company's two new manufacturing facilities. In the first quarter of fiscal 2013, there was a loss on the extinguishment of debt totaling $0.3 million. There was no similar activity in the first quarter of fiscal 2014. The net loss attributable to PMFG, Inc. common stockholders was $1.6 million, or ($0.07), per diluted share in the current quarter compared to a loss of $0.3 million, or ($0.01), per diluted share in the prior year quarter. Reporting Segments Process Products segment revenue decreased $4.2 million, or 14.6%, to $24.5 million compared to $28.7 million in the prior year. The decline in revenue is attributed to lower revenue in the EMEA and APAC geographical regions, as well as the impact of transitioning to new manufacturing facilities in the United States and China. Segment operating income decreased $2.6 million, or 48.6%, to $2.8 million as a result of the lower revenue and the fixed nature of the Company's sales and marketing and engineering costs.