Cohesant (NASDAQ:COHT)
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From Jun 2019 to Jun 2024
Cohesant Technologies Inc. (Nasdaq:COHT) today reported record sales for
the second quarter and first half of fiscal 2007.
The Company’s GlasCraft subsidiary also
reported record sales and net income for the quarter and for the first
half of fiscal 2007. For the three and six months ended May 31, 2007,
GlasCraft’s revenues were $4,760,083 and
$8,596,317 an increase of 23% and 22%, respectively, over the prior year
periods. Net income was up 12% to $542,921 for the quarter and 11% to
$880,056 for the first half when compared to the comparable periods last
year.
In addition to GlasCraft’s performance, the
Company also saw improved revenues over last quarter at each of the
Company’s other business segments.
Consolidated net revenues for the quarter increased 8% to $7,362,900
from $6,792,400 realized in the 2006 period. This marks the first time
in Cohesant’s history that it has topped $7.0
million in quarterly revenues. Consolidated year to date revenues of
$13,545,229 also set a record improving 2% from $13,257,997 last year.
Strong sales also helped the Company return to profitability and offset
its first quarter loss. Consolidated net income was $77,835, or $.02 on
a fully diluted per share basis compared to $502,254, or $.15 earned in
the prior year period. For the six months ended May 31, 2007 the Company
had consolidated net income of $24,694, or $.01 on a fully diluted per
share basis compared to $881,926, or $.27 earned in the same period last
year.
CIPAR Rehabilitation division revenues of $996,429 increased 28% from
last quarter. Despite this quarterly increase, revenues were down
$120,440 or 11% from the same period last year. A $243,150, or 144%
increase in pipe lining revenues in Western Canada over the same quarter
last year could not completely offset the decline in pipe replacement
revenues caused by a downturn in pipe replacement in that market. For
these same reasons, year to date revenues of $1,744,056 for the first
half of fiscal 2007, were $731,466 or 29% less than last year despite a
$400,275, or 138% increase in year to date pipe lining revenues in
Western Canada. Despite the improvement in our core pipe lining
business, the division suffered a quarterly loss of ($154,572) and a
year to date loss of ($258,259). As in the past quarter, this loss was
primarily caused by overhead costs added to support the launch of two
new businesses – CuraFlo Midwest, the company
owned CuraFlo franchise in Cleveland, and CuraFlo Spincast Services
which was formed with the assets of Triton Insitutech purchased in
September 2006 – and was exacerbated by low
margins experienced on a pipe lining project in the Pacific Northwest
region. Neither CuraFlo Midwest nor CuraFlo Spincast Services has yet
produced meaningful revenues.
CIPAR’s Franchising and Licensing division
also showed some revenue growth over first quarter. Sales of Raven
products were up $202,210, or 18% over last quarter. Despite these
quarter over quarter improvements, second quarter revenues of the
Franchising and Licensing division were $194,788 or 11% less than the
same period last year. This quarterly decline results primarily from
lower equipment sales to CuraFlo dealers as a result of the delay in
launching the CuraFlo commercial franchise program. For the year to date
period, total revenues of $3,031,489 represent a decrease of $538,653 or
15% from the same period last year. This year to date decrease resulted
primarily from the weak first quarter performance of our Raven products.
Franchising and Licensing experienced a net loss of ($83,960) for the
quarter and ($162,425) for the first half. Despite the improvement in
the sales of Raven products over the first quarter, overhead costs
related to the launch of the CuraFlo Commercial franchise are not yet
being offset by revenues from the program launched in March. However,
Management expects revenues from the new venture to improve the picture
in the third quarter.
Morris H. Wheeler, the Company’s President and
Chief Executive Officer, stated, “GlasCraft
continues as our strongest performing subsidiary with substantial sales
increases in both its domestic and international markets. In addition,
our strategic shift in favor of pipe lining services in the Western
Canada region of the Rehabilitation division is beginning to pay off as
the triple digit growth in pipe lining revenues begins to offset the
decline in the pipe replacement revenues there. Although I am
disappointed in the continued lack of revenues at CuraFlo Spincast
Services and CuraFlo Midwest, I am hopeful that patience and strategic
adjustments at those entities will begin to pay off in the second half
of the year. Perhaps most significantly, one of CuraFlo’s
oldest and most profitable dealers in early June signed an agreement
converting his Florida dealership into a franchise. The sale of our
first franchise to one of oldest dealers validates the newly launched
franchise program. We are making efforts during the third quarter to
convince other existing dealers to convert to franchises.”
Cohesant Technologies Inc., based in Indianapolis, Indiana is engaged in
the protection and renewal of drinking water distribution systems and
wastewater collection systems for municipal, industrial, commercial and
residential infrastructure, the design, development, manufacture and
sale of specialized dispense equipment systems, replacement parts and
supplies used in the operation of the equipment in the Composites,
Polyurethane Foam, Polyurea, and Specialty Coatings markets, and the
design, development, manufacture and sale of specialty coatings. The
Company markets its products under numerous trade names including;
AquataPoxy, CuraFlo, CuraPoxy, GlasCraft, Guardian, Probler and Raven.
COHESANT TECHNOLOGIES INC.Summary Financial Data
(Unaudited)
Three Months Ended
May 31, 2007
Three Months Ended
May 31, 2006
Net sales
$ 7,362,900
$ 6,792,400
Income before income taxes
125,547
810,213
Net income
$ 77,835
$ 502,254
Net income per share
Basic
$ 0.02
$ 0.16
Diluted
$ 0.02
$ 0.15
Average number of commonshares outstanding:
Basic
3,284,493
3,129,898
Diluted
3,306,921
3,270,232
Six Months Ended
May 31, 2007
Six Months Ended
May 31, 2006
Net sales
$ 13,545,229
$ 13,257,997
Income before income taxes
39,829
1,422,589
Net income
$ 24,694
$ 881,926
Net income per share
Basic
$ 0.01
$ 0.28
Diluted
$ 0.01
$ 0.27
Average number of commonshares outstanding
Basic
3,280,398
3,127,367
Diluted
3,308,334
3,255,062
Certain statements contained in this report that are not historical
facts are forward-looking statements that are subject to certain risks
and uncertainties that could cause actual results to differ materially
from those set forth in the forward-looking statement. These
risks and uncertainties include, but are not limited to, a slow-down in
domestic and international markets for plural component dispensing
systems, a reduction in growth of markets for the Company’s
epoxy coating systems, customer resistance to Company price increases,
the Company’s ability to expand its
rehabilitation operations, and the successful launch of its CuraFlo
Franchise, CuraFlo Midwest and CuraFlo Spincast Services operations.