And it reports monster numbers: 10.8 cents per share in earnings for Q4 and 28 cents per share in earnings for 2010. From the company’s press release (N.B.: the company's fiscal year ends on 9/30):
During the quarter ended September 30, 2010, total quarterly sales increased to $8.8 million as compared to $4.2 million in the fourth quarter of 2009. These sales consist solely of the Company’s Arcoplate products. Income before tax for the fourth quarter of 2010 was $2.7 million or $0.16 per common share, compared with income before tax of $0.5 million or $0.03 per common share for the same period in 2009.
For the year ended September 30, 2010, total sales increased to $24.5 million as compared to $8.8 million for the same period in 2009. Net income after tax for 2010 was $4.9 million or $0.28 per common share, compared with a net loss after tax of ($0.07) million or ($0.004) per common share for the same period in 2009.
Results of Operations
For the year ended September 30, 2010, sales have improved by 178 percent compared to sales for the year ended September 30, 2009. This occurred due to an increase in demand for ArcoPlate facilitated by increased production. It was previously announced in the fourth quarter 2009 that the second mill had commenced production, although problems were encountered. During the commissioning process, it became evident that further enhancements were required to make the mill more efficient. The increased productive capacity of the Company is reflected in the quarterly production and sales for the fourth quarter 2010 and beyond.
The Company has a unique product being manufactured by newly developed technology, invented by the current Chairman and CEO, Mr. Gene Kostecki and the team at Alloy Steel.
Mr. Kostecki stated, “The Company is very pleased with this significant result that has come at an important time in its development. The Company has posted record quarterly and annual sales and a record net income after tax and is poised to continue growth. We are further encouraged with the continued response by our customers to our range of wear plate products and our order book remains strong.”
The stock is up about 110% so far on this news, and even after that spike is only trading at about 5x its trailing earnings.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.