HMM Needs To Work On Their Disclosure - Disciplined Quarter!I think Hammond needs to work on their market engagement / disclosure. Is it just me or do they not put out a press release, they just file the quarter. For a public company, they could use some help in the IR department.
Compaints aside, HMM delivered a decent and DISCIPLINED quarter.
If you take the time to go to sedar and read the actual MD&A there is a tiny bit of disclosure in there.
Some key points from MD&A for me:
1. Prices were up from previoiusly raised prices
2. Wages were up due to inflation
3. Expense control keep margins / profitability up despite a decline in sales
4. They provide an OUTLOOK that has some important items in it including:
i. Guidance to year-over-year revenue growth in the single digits (despite y-y decline in Q1)
ii. Expecting USD$ weakness (that we haven't seen happen yet)
iii. They want to grow revenues but will not do so by lowering prices
iv. Investing capital to initiatives that deliver near-term cash flow
v. They are going to focus on productivity to further drive Margins
5. Really stong cash flow from operations 6,352 vs cash consumed (651) in Q1/23.
I think from a shareholder perspective, that this guidance is very optimistic. They are going to focus on cash flow and margin which is great for shareholders. I still believe that the HMM will benefit from the ongoing AI / Cloud theme that is driving massive investments in data centers where HMM will benefit along with an improving housing market.
Actual info from MD&A:
"OUTLOOK FACTORS FOR 2024
The feedback we have from our North American markets is that we will see growth in the
low-single digit area in 2024. Our UK and European markets remain weak, and we are
watching this closely and will react accordingly.
The US dollar has remained strong but the current bank outlook for the US dollar is that it
will weaken from today’s levels. A weaker US dollar will lower our return on sales in our
US markets. We continue to competitively price our products and stimulate market share
growth.
The Company continues with the objective of sales growth and increased market share
but will weigh this against achieving acceptable margins.
Capital spending will continue to be focused on high impact projects as accommodated
by cash flows.
Our primary focus continues to be on productivity and margin improvement."
PLEASE TAKE A MOMENT TO LIKE ME POST, THANKS