RE: RE: RE: RE: Impressive sales and earnings grow The company, in the news release, stated that there was spill over from anticipated Q1 deliveries which were actually made in Q2, so I think it would be safe to average both quarters when analyzing the company's historical results. For comparison purposes, I'm going to look at pre-tax net income, adjusted to remove the effects of foreign exchange as well as exceptional items - like the employment contract settlement with the former Pres/CEO and corporate reorganization expenses. (I'm using the past 8 quarters only because quarterly pre-tax adjusted net income was all over the map prior to that time period.) Doing this yields the following pre-tax net income:
Q3 11 - $112k
Q4 11 - $145k
Q1 12 - $105k
Q2 12 - $94k
Q3 12 - $322k
Q4 12 - $296k
Q1 13 - $166k (averages to $305k)
Q2 13 - $443k (averages to $305k)
Looking at this, it seems to me that the company earned around $100k in pre-tax net income for four quarters, then earned around $300k in pre-tax adjusted net income for four more quarters. During the eight quarters, the company, as per the MD&A, introduced "two new products – the Company’s aviation on-demand water heaters and IWG-A6 water treatment unit – that is continuing through fiscal 2013 and beyond." So, it seems these introductions have taken the company to the next level of pre-tax adjusted net income, from about $100k to about $300k/quarter.
That's pretty good, but doesn't yet include the contracts won over the past while, like this..."With the completion of the development phase of the FACC contract during the third quarter, the Company will soon be making initial deliveries of its Compact Water Systems." Hopefully this as well as ACJC will take the company yet again to a new and higher earnings level.
As I recall, the company has been trying to break into the commercial airline business for a number of years, so I would consider that somewhat of a long shot. Nonetheless, things are going well for IWG and the future looks bright.
By the way, did anyone notice that they're hedging more currency than last quarter. I'm assuming they're doing so in anticipation of higher future sales.
Note: I try to be accurate, but I'm not perfect. If you find any errors, please let me know.