Graco Inc. supplies technology and expertise for the management of fluids in both industrial and commercial settings. Based in Minneapolis, Minnesota, Graco serves customers around the world in the manufacturing, processing, construction and maintenance industries. It designs, manu-factures and markets systems and equipment to move, measure, control, dispense and apply fluid materials. The Company helps customers solve difficult manufacturing problems, increase productivity, improve quality, conserve energy, and save expensive materials.
Industry:MACH-GENL INDL Sector: Industrial Products Fiscal Year End:December Last Reported Quarter:12/31/11 Next EPS Date:04/25/12
Capital Structure Solvency and Cash Flow
Balance Sheet
The Company had cash and equivalents of $9.7 million at the end of 3Q10, versus $4.9 at the end of 2Q10. Accounts receivable were $135.6 million at the end of 3Q10, versus $138.3 million at the end of 2Q10. Inventories were $85.3 million, up $9.1 million sequentially.
Graco’s long-term debt was $90.0 million at the end of 3Q10, up $10.0 million from the previous quarter. The Company has $171.0 million unused credit lines.
Cash Flow
In 3Q10, cash from operation was $34.0 million, versus $40.7 million in 3Q09. The Company used $3.5 million cash for capital expenditure in 3Q10, versus $0.2 million in 3Q09.
Dividends
On December 3, 2010, the Company’s Board of Directors announced a regular quarterly dividend of 21 cents per common share, an increase of 5.0%, payable on February 2, 2011, to shareholders of record date January 18, 2011.
In the first nine months of FY10, the Company paid dividends of $36.0 million.
Repurchases
On September 18, 2009, the Board of Directors authorized the Company to repurchase 6,000,000 shares, primarily through open-market transactions. The authorization will expire on September 30, 2012.
In the first nine months of FY10, the Company spent $24.0 million for share repurchases.
Last edited Mon Jan 10, 2011 03:21 AM by SreelaBose (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
Sound corporate governance is essential to the continued success of Graco Inc. The capable, highly independent Board of Directors leads the system of corporate governance and ensures that Graco’s affairs are conducted ethically and for the benefit of all the stakeholders. The members of the Board, each of whom is an experienced business leader, also provides Management with valuable advice and counsel on matters of major strategic significance.
Last edited Fri Dec 11, 2009 03:13 AM by PritiDhanuka (Zacks Investment Research)
• The Company operates in a highly competitive and fragmented industry. It competes with one or more international, national or regional players serving each of Graco's existing and potential markets. The competitors are striving to increase market share at the cost of their margins, which would negatively affect Graco’s results.
• Construction industry influences the Company’s Contractor division. The current U.S. residential construction slowdown has had a negative impact on the Contractor segment, which is expected to continue to FY10.
• Graco’s results depend on general industrial end markets and U.S. industrial economy.
• Contractor segment derives revenue from few customers. Decline in the level of purchases by these customers could reduce the Company’s sales.
• Graco’s plan to aggressively look for acquisitions is subject to risks. Failure to successfully integrate existing and future acquisitions could negatively impact its earnings power.
• The Company conducts a large amount of business overseas (52.0% sales were outside US in FY09), and is thus subject to fluctuations in the exchange rates of the currencies in these countries.
Last edited Mon Jan 10, 2011 03:24 AM by SreelaBose (Zacks Investment Research)
Created by: WikiMigrationBot.
Last Modification: Thursday 03 of June, 2010 07:16:17 CDT by WikiMigrationBot.
