Seems like they are managing their finances skillfully and there is hope in the recent increase in orders (cut-n-pasted snippets from the report): "The Company's backlog of orders was $138.8 million at September 30, 2015 compared to $170.0 million a year ago and $160.7 million at December 31, 2014. The decrease in backlog from a year ago is due primarily to approximately $37.5 million of shipments related to the PCCP project in the last twelve months. Although not yet enough to offset our order slowness compared to 2014, we did experience our highest amount of incoming orders of the last four quarters in the current quarter ended September 30, 2015. Approximately $17.8 million of orders related to the PCCP project remain in the September 30, 2015 backlog total. Approximately $8.1 million of the remaining PCCP project orders are scheduled to ship during the fourth quarter of 2015 and $9.7 million of related installation services are scheduled during the first three quarters of 2016.
Cash and cash equivalents totaled $33.8 million, and there was $2.0 million in outstanding bank debt at September 30, 2015, having been reduced by $12.0 million since December 31, 2014. The Company assumed $2.0 million in bank debt as part of the acquisition of the Hydro companies in the third quarter. In addition, the Company had $24.0 million available in bank lines of credit after deducting $6.0 million in outstanding letters of credit primarily related to customer orders. The Company was in compliance with its nominal restrictive covenants, including limits on additional borrowings and maintenance of normal operating and financial ratios, at September 30, 2015.
Working capital rose $11.1 million from December 31, 2014 to $147.4 million at September 30, 2015 principally due to the net decrease of short-term debt of $10.0 million during the period.
The primary driver of operating cash flows during the first nine months of 2015 was cash earnings during the period and a planned decrease in inventory levels. During this same period in 2014 operating cash flows were primarily driven by record sales during the period. "