Penford to Release Second Quarter 2008 Results on April 9, 2008
PENX Div & Yield: 0.24 (1.20%)
P/E (ttm): 14.60
PERIOD ENDING ...30-Nov-07 .31-Aug-07 .31-May-07 .28-Feb-07
Retained Earnings 91,977 .. 89,486 .. 85,750 .. 81,335 <--growth
Total Revenue.... 94,861 .. 96,217 .. 95,406 .. 85,241
Sale of Stock...... 47 .... 1,849 .... 195 ......209 <--sell Less
Net Borrowings ...7,506 ... (5,255).. (7,118).... 11,447 <-----
http://stockcharts.com/charts/gallery.html?penx
<--missed the rally
secondary base below $20... $19/18?
Short % of Float (as of 26-Feb-08): 2.10%
Qtrly Revenue Growth (yoy): 10.90% <--------good
Qtrly Earnings Growth (yoy): 22.90% <----------v.g.
Total Debt (mrq): 87.89M <-------23% of revenue.....poor
Penford Cor****ation, together with its subsidiaries, engages in the
development, manufacture, and marketing of specialty natural-based
ingredient systems for various industrial and food applications in North
America and Australia. It develops and manufactures ingredients with
starch as a base, providing value-added applications to its customers.
The starch products are manufactured primarily from corn, potatoes, and
wheat, and are used as binders and coatings in paper and food production.
The various forms of starches include ethylated, oxidized, and cationic.
Ethylated and oxidized starches are used in coatings and as binders,
providing strength and printability to fine white, magazine, and catalog
paper. Cationic and other liquid starches are used in the paper-forming
process in paper production, providing bonding of paper fibers and other
ingredients. Penford markets its products in the United States,
Australia, and New Zealand through its direct sales force, as well as
through distributor agreements. The company was founded in 1894 and is
headquartered in Centennial, Colorado.
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FROM THE 10 QUARTERLY RE****T
[[[[HUH? ETHANOL??]]]]For the first quarter of fiscal 2008, the Company
had $12.7 million of capital expenditures related to the ethanol
facility. As of November 30, 2007, the Company had a total of $32.7
million in capital expenditures related to the ethanol facility which
includes $0.7 million in related capitalized interest costs. Currently,
the Company estimates its total capital expenditures in fiscal 2008 to be
$47 million, including $27 million related to the ethanol facility.
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[[[[YES ETHANOL... FROM LAST YEAR'S ANNUAL RE****T]]]]In June 2006, the
Company announced plans to invest $42 million for up to 40 million
gallons of ethanol production capacity per year at its Cedar Rapids, Iowa
facility. In October 2006, Penford refinanced its credit facility and
obtained a $45 million capital expansion loan commitment under its credit
facility maturing December 2012 to finance construction of the ethanol
plant. The designed capacity has been expanded to 45 million gallons with
construction cost estimates maintained at $1.00 to $1.05 per gallon.
Contracts valued at $40 million have been awarded for this project as of
the end of October 2007. Penford already has much of the infrastructure
within the Cedar Rapids plant to manufacture ethanol cost effectively,
with sufficient grain handling, separation processes, utilities and
logistic capabilities. The factory is centrally located near rail and
ground trans****t arteries and the ethanol facility will occupy available
space within the existing site footprint. Once complete, this enhancement
of the Company's bio-refining capabilities will give management the
ability to select from multiple output choices to capitalize on changing
industry conditions and selling op****tunities. This increased flexibility
will allow the Company to direct production towards the most attractive
mix of returns and margins. Additionally, by improving throughput
capacity and adding fermentation capability, Penford is better positioned
to participate in emerging bio-processing trends and technologies that
may represent future platforms for growth.
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Penford uses derivative instruments, primarily futures contracts, to
reduce exposure to price fluctuations of commodities used in the
manufacturing processes in the United States. Penford has elected to
designate these activities as hedges. This election allows the Company to
defer gains and losses on those derivative instruments until the
underlying commodity is used in the production process. To reduce
exposure to variable short-term interest rates, Penford uses interest
rate swap agreements.
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