ALDA » Topics » Gross Profit

This excerpt taken from the ALDA 10-Q filed May 14, 2009.

Gross Profit

 

 

 

As of March 31,

 

 

 

2009

 

2008

 

Chg

 

% Chg

 

Composite Products

 

$

2,450

 

$

3,849

 

$

(1,399

)

(36

)%

Composite Materials

 

412

 

710

 

(298

)

(42

)%

Total Gross Profit

 

$

2,862

 

$

4,559

 

$

(1,697

)

(37

)%

 

Total gross profit decreased by approximately $1.7 million, or 37%, in the 2009 Period as compared to the 2008 Period.  The decrease in Composite Products gross profit was mainly attributed to the decrease in net sales in the 2009 Period as compared to 2008 Period.  The Company has attempted to mitigate this decrease by actively managing its expenses and shifting more of manufacturing to Asia from Mexico.  The Company continues to analyze its operations in Mexico for further potential cost cutting efforts.  Composite Products gross margin decreased to 20% for the 2009 Period as compared to 27% for the 2008 Period, which is mainly attributed to lower volumes to spread our manufacturing costs.  The Composite Materials gross profit decreased by approximately $298,000, or 42%, in the 2009 Period as compared to the 2008 Period.  The decrease was mainly attributed to a decrease in the quantity of Composite Materials shipped in the 2009 Period as compared to the 2008 Period.  Composite Materials gross margin was 28% for the 2009 Period and 2008 Period.

 

These excerpts taken from the ALDA 10-K filed Mar 16, 2009.

Gross Profit

 
  2008   2007   Chg   % Chg  

Composite Products

  $ 7,771   $ 15,528   $ (7,757 )   (50 )%

Composite Materials

    1,795     4,437     (2,642 )   (60 )%
                   
 

Total Gross Profit

  $ 9,566   $ 19,965   $ (10,399 )   (52 )%
                   

Composite Products—

        Composite Products gross profit decreased by approximately $7.8 million, or 50% in 2008 as compared to 2007. The decrease in Composite Products gross profit was mainly attributed to the decrease in branded and co-branded golf shaft sales in 2008 as compared to 2007. Composite Products gross profit also suffered from increases in manufacturing costs attributed to lower manufacturing volumes of Composite Products and Composite Materials and increases in research and development

23


Table of Contents


spending. Composite Products gross margin decreased to 17% for 2008 as compared to 26% for 2007. The Company believes that its gross margin will improve as it continues to build more shafts in Vietnam as compared to Mexico. The Company is continuing to transfer programs to Vietnam as they become qualified. The Company's gross profit was negatively affected by additional inventory reserves of $619,000 in 2008 as compared to $640,000 in 2007. The increase in reserves in 2008 and 2007 were offset by the sales of product that was fully reserved for of $128,000 in 2008 and $36,000 in 2007. The net effect of the inventory reserve adjustments was a decrease in gross profit of $491,000 in 2008 and a decrease in gross profit of $604,000 in 2007.

Composite Materials—

        The Composite Materials gross profit decreased by approximately $2.7 million, or 60%, in 2008 as compared to 2007. The decrease was mainly attributed to a decrease in contribution provided by the operations of CFT in 2008 versus 2007, as the Company sold its remaining 50% interest in CFT to its joint venture partner during the fourth quarter of 2007, the loss of sales of Composite Materials and higher manufacturing costs based on lower production volumes in 2008 as compared to 2007.

Gross Profit












































































































 
 2008  2007  Chg  % Chg  

Composite Products

 $7,771 $15,528 $(7,757)  (50)%

Composite Materials

  1,795  4,437  (2,642)  (60)%
          
 

Total Gross Profit

 $9,566 $19,965 $(10,399)  (52)%
          




Composite Products—



        Composite Products gross profit decreased by approximately $7.8 million, or 50% in 2008 as compared to 2007. The decrease in
Composite Products gross profit was mainly attributed to the decrease in branded and co-branded golf shaft sales in 2008 as compared to 2007. Composite Products gross profit also suffered
from increases in manufacturing costs attributed to lower manufacturing volumes of Composite Products and Composite Materials and increases in research and development



23









HREF="#bg46001a_main_toc">Table of Contents






spending.
Composite Products gross margin decreased to 17% for 2008 as compared to 26% for 2007. The Company believes that its gross margin will improve as it continues to build more shafts in Vietnam
as compared to Mexico. The Company is continuing to transfer programs to Vietnam as they become qualified. The Company's gross profit was negatively affected by additional inventory reserves of
$619,000 in 2008 as compared to $640,000 in 2007. The increase in reserves in 2008 and 2007 were offset by the sales of product that was fully reserved for of $128,000 in 2008 and $36,000 in 2007. The
net effect of the inventory reserve adjustments was a decrease in gross profit of $491,000 in 2008 and a decrease in gross profit of $604,000 in 2007.



Composite Materials—



        The Composite Materials gross profit decreased by approximately $2.7 million, or 60%, in 2008 as compared to 2007. The decrease
was mainly attributed to a decrease in contribution provided by the operations of CFT in 2008 versus 2007, as the Company sold its remaining 50% interest in CFT to its joint venture partner during the
fourth quarter of 2007, the loss of sales of Composite Materials and higher manufacturing costs based on lower production volumes in 2008 as compared to 2007.



This excerpt taken from the ALDA 10-Q filed Nov 7, 2008.

Gross Profit

 

 

 

For the nine month period ended September 30,

 

 

 

2008

 

2007

 

Chg

 

% Chg

 

Composite Products

 

$

6,648

 

$

12,871

 

$

(6,223

)

(48

)%

Composite Materials

 

1,597

 

3,656

 

(2,059

)

(56

)%

Total Gross Profit

 

$

8,245

 

$

16,527

 

$

(8,282

)

(50

)%

 

Total gross profit decreased by approximately $8.3 million, or 50% in 2008 Period as compared to the 2007 Period.  The decrease was attributed to decrease in Composite Products and Composite Materials gross profit.  The decrease in Composite Products gross profit was mainly attributed to the decrease in branded and co-branded sales in the 2008 Period as compared to 2007 Period.  In addition, the Composite Products gross profit in the 2007 Period benefited from approximately $250,000 in gross profit from hockey stick sales in the 2007 Period.  As noted before, the Company discontinued its hockey stick sales during the second quarter of 2007.  In addition, the 2008 Period has been impacted by increased manufacturing costs attributed to lower manufacturing volumes of Composite Products and Composite Materials.  Composite Products gross margin decreased to 19% for the 2008 Period as compared to 29% for the 2007 Period.  The Company’s Vietnam factory is ramping up and many of the Company’s customers have toured this facility and have come away impressed.  The Company plans to continue to move more of its manufacturing to Vietnam, which should help to offset the rising costs in China and improve the Company’s gross profit in the future.  The Company recorded additional inventory reserves of $355,000 in the 2008 Period as compared to $436,000 for the 2007 Period.  The Composite Materials gross profit decreased by approximately $2.1 million, or 56% in the 2008 Period as compared to the 2007 Period.  The decrease was mainly attributed to a decrease in contribution provided by the operations of CFT and to a lesser extent, gross profit provided by composite materials sales.  The Company sold its remaining 50% interest in CFT to its joint venture partner during the fourth quarter of 2007.  As such,  the Composite Materials segment did not benefit from CFT during the 2008 Period.

 

18



This excerpt taken from the ALDA 10-Q filed Aug 8, 2008.

Gross Profit

 

 

 

For the six month period ended June 30,

 

 

 

2008

 

2007

 

Chg

 

% Chg

 

Composite Products

 

$

5,843

 

$

10,467

 

$

(4,624

)

(44

)%

Composite Materials

 

1,333

 

2,655

 

(1,322

)

(50

)%

Total Gross Profit

 

$

7,176

 

$

13,122

 

$

(5,946

)

(45

)%

 

Total gross profit decreased by approximately $5.9 million, or 45%, in 2008 Period as compared to the 2007 Period.  The decrease was attributed to decrease in Composite Products and Composite Materials gross profit.  The decrease in Composite Products gross profit was mainly attributed to the decrease in branded and co-branded sales in the 2008 Period as compared to 2007 Period.  In addition, the Composite Products gross profit in the 2007 Period benefited from approximately $250,000 in gross profit from hockey shaft sales in the 2007 Period.  As noted before, the Company discontinued its hockey shaft sales during the second quarter of 2007.  Composite Products gross margin decreased to 23% for the 2008 Period as compared to 32% for the 2007 Period.  The Company’s Vietnam factory is ramping up and many of the Company’s customers have toured this facility and have come away impressed.  The Company plans to continue to move more of its manufacturing to Vietnam, which should help to offset the rising costs in China and improve the Company’s gross profit in the future.  The Company recorded additional inventory reserves of $216,000 in the 2008 Period as compared to $359,000 for the 2007 Period.  The Composite Materials gross profit decreased by approximately $1.3 million, or 50% in the 2008 Period as compared to the 2007 Period.  The decrease was mainly attributed to a decrease in contribution provided by the operations of CFT and to a lesser extent, gross profit provided by composite materials sales.  The Company sold its remaining 50% interest in CFT to its joint venture partner during the fourth quarter of 2007.  As such the Composite Materials segment did not benefit from CFT during the 2008 Period.

 

This excerpt taken from the ALDA 10-Q filed May 9, 2008.

Gross Profit

 

 

 

As of March 31,

 

 

 

2008

 

2007

 

Chg

 

% Chg

 

Composite Products

 

$

3,849

 

$

5,691

 

$

(1,842

)

(32

)%

Composite Materials

 

710

 

1,499

 

(789

)

(53

)%

Total Gross Profit

 

$

4,559

 

$

7,190

 

$

(2,631

)

(37

)%

 

Total gross profit decreased by approximately $2.6 million, or 37% in 2008 Period as compared to the 2007 Period.  The decrease in Composite Products gross profit was mainly attributed to the decrease in branded and co-branded sales in the 2008 Period as compared to 2007 Period.  Branded and co-branded shafts typically sell at higher selling prices and contribute more to gross profit.  Composite Products gross margin decreased to 27% for the 2008 Period as compared to 32% for the 2007 Period.  The Company’s Vietnam factory is ramping up and many of the Company’s customers have toured this facility and have come away impressed.  The Company plans to continue to move more of its manufacturing to Vietnam, which should help to offset the rising costs in China and improve the Company’s gross profit in the future.  There were no significant changes in inventory reserves during the 2008 or 2007 Period.  The Composite Materials gross profit decreased by approximately $789,000, or 53%, in 2008 Period as compared to the 2007 Period.  The decrease was mainly attributed to a decrease in contribution provided by the operations of CFT.  The Company sold its remaining 50% interest in CFT to its joint venture partner during the fourth quarter of 2007, as such the Composite Materials segment did not benefit from CFT during the 2008 Period.

 

These excerpts taken from the ALDA 10-K filed Mar 28, 2008.

Gross Profit

 

 

 

2005

 

2004

 

Chg

 

% Chg

 

Composite Products

 

$

27,271

 

$

17,505

 

$

9,766

 

56

%

Composite Materials

 

2,339

 

471

 

1,868

 

397

%

Total Gross Profit

 

$

29,610

 

$

17,976

 

$

11,634

 

65

%

 

Gross profit increased by approximately $11.6 million for 2005 from 2004.  The Company’s gross profit margin

 

 

24



 

 

increased to 38% in 2005 from 34% in 2004.  The increase in gross profit was mainly attributed to the increased gross profit contributed by Composite Products and to a lesser extent a gross profit increased provided by Composite Materials.  The increase in sales of the Company’s branded and co-branded products, which typically have higher gross margins than that of the Company’s other Composite Products, were the reason for the increased gross profit in Composite Products.  In addition, the Company’s gross profit was negatively affected by additional inventory related reserves of approximately $710,000 in 2005, versus an increase of  $97,000 in 2004.  The increase in reserves in 2005 and 2004 were offset by the sales of product that was fully reserved for of $147,000 in 2005 and $285,000 in 2004.  The net effect of the inventory reserve adjustments was a decrease in gross profit of $563,000 in 2005 and an increase in gross profit of $186,000 in 2004.

 

Gross
Profit



 





























































 



 



2005



 



2004



 



Chg



 



% Chg



 



Composite Products



 



$



27,271



 



$



17,505



 



$



9,766



 



56



%



Composite Materials



 



2,339



 



471



 



1,868



 



397



%



Total Gross Profit



 



$



29,610



 



$



17,976



 



$



11,634



 



65



%






 



Gross
profit increased by approximately $11.6 million for 2005 from 2004.  The Company’s gross profit margin



 



 



24
















 



 



increased
to 38% in 2005 from 34% in 2004.  The
increase in gross profit was mainly attributed to the increased gross profit
contributed by Composite Products and to a lesser extent a gross profit
increased provided by Composite Materials. 
The increase in sales of the Company’s branded and co-branded products,
which typically have higher gross margins than that of the Company’s other
Composite Products, were the reason for the increased gross profit in Composite
Products.  In addition, the Company’s
gross profit was negatively affected by additional inventory related reserves
of approximately $710,000 in 2005, versus an increase of  $97,000 in 2004.  The increase in reserves in 2005 and 2004
were offset by the sales of product that was fully reserved for of $147,000 in
2005 and $285,000 in 2004.  The net
effect of the inventory reserve adjustments was a decrease in gross profit of
$563,000 in 2005 and an increase in gross profit of $186,000 in 2004.



 



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