UIC: United Industrial Kicks Into Gear
Large Cap Watch List (Track at Marketocracy) member United Industrial (UIC) reported earnings:
Net sales for the first quarter of 2007 increased 25.0% to $160.8 million from $128.7 million during the same period in 2006. The growth in net sales was primarily due to $10.7 million increased volume on aircraft Maintenance Training Device (”MTD”) programs, $7.7 million of increased sales for the Unmanned Aircraft Systems (”UAS”) One System(R) ground control system including greater developmental efforts supporting the Extended Range Multi- Purpose UAS program and production of the new Remote Video Terminal ground control systems, an increase of $6.3 million in logistical support for fielded Shadow(R) 200 Tactical Unmanned Aircraft Systems (”Shadow 200 TUAS”), and a $2.5 million increase in engineering activities primarily related to new UAS initiatives. In addition, the company’s 2006 acquisitions contributed $18.5 million to net sales in the first quarter of 2007. These increases were partially offset by a decrease of $13.8 million in the Shadow 200 TUAS production program, primarily due to the timing of material requirements in the first quarter of 2007….
Net income from continuing operations for the first quarter of 2007 increased 31.0% to $10.0 million, or $0.75 per diluted share, from $7.7 million, or $0.61 per diluted share, during the same period in 2006.
Net income, including results of both continuing and discontinued operations, for the first quarter of 2007 increased 7.3% to $9.2 million, or $0.69 per diluted share, from $8.6 million, or $0.67 per diluted share, during the same period in 2006.
Analysts had been expecting the company to earn $0.73 on $151 million in sales. Despite the strong growth in sales, orders grew at an even faster pace, boosting backlog:
During the first quarter of 2007, the company received $215.7 million of funded new orders for products and services, an increase of $48.6 million, or 29.1%, compared to $167.1 million of funded new orders during
the same period in 2006.Funded backlog for the company’s continuing operations was $717.1 million at March 31, 2007, an increase of $54.9 million, or 8.3%, from $662.2 million at December 31, 2006.
With the strong orders growth and the weakest unit now discontinued, UIC could be in for a continued strong run.
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[...] Hot on the heels of a strong earnings report, Mid Cap Watch List (Track at Marketocracy) member United Industrial Corporation (UIC) announced that its Board of Directors authorized a new $50 million stock repurchase plan. The Board also authorized an additional $50 million of stock repurchases, for a total of up to $100 million, contingent on the company executing an amended or new credit facility of at least $200 million in capacity. [...]