Q3...................notes
This was a great quarter and we are now able to see more clearly the performance of the remaining two subsidiaries (ST and MI ) , given that TT was sold in late Q3 for net cash proceeda of $190 million.
For the ST division, sales increased 14 % to $36.5 million and net earnings increased 24 % to $17.8 million.
For the MI division, sales incresased 9 % to $24 million and net earnings increased 29 % to $5.9 million.
For TT ( which was sold in Q3 ) , sales declined 15 % to $11.1 million and net earnings declined 87 % to $0.5 million.
Its clear that selling TT was a great move.
Its also clear that the remaining two divisions are growing their sales and even better, growing their net earnings at much faster rates than sales.
Taken over 4 quarters and assuming no further growth, sales of the ST and MI should be approx $240 million , with net earnings of about $95 million.
Remove from this approx $16 million for corporate losses, and consolidated net earnings should be about $79 million or about $1.25 per share.
This is much higher than my earlier estimate and elevates faire value to over $17 million when the huge cash position is included.
Re the cash position, they will continue to hold it....................perhaps to acquire a diversying acquisition..
Load up.
Theres are double here..