Post by
Bean_and_Dunn on Apr 02, 2015 12:32pm
Liabilities / Shareholder Equity 75.5% versus 74.7%
The figures below are taken directly from the unauditted 9 months statements. Moody's I believe are using the previous 12 months figures. These rolling 12 month figures include the ugly 4th quarter where Nordex admits to writing off some bad inventory, but did not say exactly what they wrote off, nor how much that item(s) was(were). I think the 4th quarter of 2013 should be treated as a special one time charge and not as proof of deteriorating profitability. The fourth quarter of 2013 stunk. Management and the board's treatment of the 4th quarter charges stunk even worse, but I do not believe that quarter is indicative of Nordex's business model as a whole.
Other than that liabilities /equity, I do not find any proof of a a deteriorating financial capability. Indeed they have greatly diversified their customer base. Previously Nordex supplied gold mines as well as some construction projects, now they service these plus various quarries. Looking forward somewhat I can see them servicing Vale and others quite profitably with their Johnex product line. When you look at revenue it has increased dramatiacally. Gross profit has jumped by 2.3% from 21 to 23.3. Net income has more than doubled. For crying out loud Nordex is picking up all kinds of accolades for growing their business. Every time business increases inventory has to increase as well. Look at the press release from Feb 2015 regarding the loan with the Royal Bank of Canada. The Royal increased their financial commitment to Nordex and they lowered their cost of credit. I know banks well enough that they don't do that unless they have had a good look at the year end finacil condition and they liked what they saw. Have another look, and if you agree, do what I am doing. Load up while the stock is on sale!
Nine Months Ended September 30 2014 2013 2012
Total Revenue $14,759,036 $12,678,237 $10,867,921
Cost of Goods Sold $11,317,328 $10,012,625 $8,706,620
Gross Profit $3,441,708 $2,665,612 $2,161,301
Gross Profit Margin 23.3% 21.0% 19.9%
Administrative Expense $1,501,111 $1,412,188 $998,811
Depreciation Expense $797,773 $680,542 $556,582
Finance Expense (net of interest income) $196,368 $141,658 $157,121
Net Income (Loss) for the Period - Before Tax $946,456 $431,224 $448,787
Net Income (Loss) for the Period - After Tax $689,846 $296,701 $329,652
Profit (Loss) Margin 4.7% 2.3% 3.0%
Earnings (Loss) per Share $0.03 $0.01 $0.04
Cash Provided By (Used In) Operations ($150,891) $241,234 ($326,786)
Cash (Bank Overdraft) at End of Period ($98,181) $390,543 ($102,224)
Loans Payable $2,309,166 $2,439,950 $1,509,857
Total Assets $17,708,512 $17,030,343 $11,269,065
Total Liabilities $7,620,120 $7,282,522 $6,407,848
Shareholders' Equity $10,088,392 $9,747,791 $4,861,217
Total Shares Outstanding at Period End (Weighted) 20,371,577 20,314,835 9,069,255