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Donaldson Company Inc T.DCI


Primary Symbol: DCI

Donaldson Company, Inc. provides technology-led filtration products and solutions, serving a range of industries and advanced markets. The Company operates in three segments: Mobile Solutions, Industrial Products, and Life Sciences. The Mobile Solutions segment consists of the Off-Road, On-Road and Aftermarket business units. Its products include replacement filters for both air and liquid filtration applications as well as exhaust and emissions. The Industrial Solutions segment consists of the Industrial Filtration Solutions (IFS) and Aerospace and Defense business units. The products under IFS business units include dust, fume and mist collectors and air filtration systems for gas turbines. The Life Sciences segment consists of micro-environment gas and liquid filtration for food, beverage and industrial processes, bioprocessing equipment. The Company also offers biomanufacturing solutions for cell and gene therapy research, development, and commercial manufacturing.


NYSE:DCI - Post by User

Post by torontoguy1972on May 15, 2015 7:54am
331 Views
Post# 23731692

Q1 2015 - Ouch!

Q1 2015 - Ouch!Hi All,

Normally, I would wait until I've had an opportunity to analyze MD&A prior to commenting, however, as I made a rather bold prediction a few weeks ago, I thought I would touch on some of the numbers that have just been released.

In the past year, DCI has only made a single significant transaction, EZE ATM in Australia, bringing on 1,325 ATMs for A$12.8 Million. I estimated the overall declines in revenue, due to a number of systemic factors, would not be completely offset by this purchase, and I therefore forecast that EBITDA would decrease year over year about 15%, from $19.37 Million to $16.8 Million. I was wrong. EBITDA actually decreased down to $16.6 Million.

Other key metrics are lower as well. From Q1 2014 to Q1 2015:
  • Gross profit has decreased 9.8%;
  • Gross profit margin has decreased by 3.9%; and
  • Net loss jumped 72%, up to (-$2.9 Million).
As I've stated on numerous occasions, DCI has systemic issues which makes it difficult for them to grow interally, or even maintain the status quo. Unless DCI is actively and aggressively borrowing money and buying out their competition, their business will slowly and steadily decrease.

We'll see what the MD&A provides, however, there are still a couple a major hurdles that need to be overcome before the decline in revenue slows to a more manageable number.

More to follow....

 

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