RE:RE:What now Q1
Revenue hasn't had significant growth for 7 years despite acquisitions but it was a cold winter in the east & mid-west since late Dec. Dry/mild in other parts of the country - California, BC. Net Loss lowest they ever had looking at results available on the website back to 2004 at $6M. A recurring theme from 2013 year end and I'm sure there has been some bad weather in that 10 year time period. This is looking at the net income excl impact of derivatives. Heck back in Q1 2006, they had $5M of net income on $63M. And in 2010 when the construction industry was depressed as per their investor charts, net income was $2.5M on $76M revenue. 2011 $3M on $82M revenue when they had high steel prices. 2013 Q1 only $72M revenue and the impact on Westeel of the Viterra sale, Quebec construction impact of the Carbonneau inquiry and some restructuring costs out west - loss $5.7M. I won't get into the divisional trends but they are interesting. Also to note International sales (everything except US and Canada) were at the lowest they have been since they started reporting these numbers. Although there was some wet weather in Europe, they did not experience the cold winter North America had. Troubles in the Ukraine, potential sanctions in Russia, and unrest in other potential markets may have an impact on prospects.
They say record backlog at end of this Q1 - difficult to gauge given we only have 2 numbers to compare and one is last March when they were suffering from a 'temporary change in ordering patterns' on the Westeel side due to Viterra changing hands. If it's a record, let's see the historical numbers on the selected quarterly info chart.
Steel price increases and supply issues are a concerning. Steel a significant cost component of these products. Supply planning and risks seems to have caught them by surprise.
I could go on but you must get the gist.