Just listened to the latest quarterly confernce call. Not too much new information, just that MPAC is operating at 70% to 75% capacity. There was only one question about gross margins.
Here is my take on the quarter....
Earnings were $.14/share, which is a tremendous improvement over $.01/share. EBITDA was $1.6MM vs. $900k in year ago period. Can MPAC keep going and only be at 3X cash flow?
MPAC TTM is now about $.59 share. So now we are at about a 10 P/E. We are also getting about 8% ROE. IF MPAC can keep going, we should be seeing a stock trading at book value.
CAP-EX is going up! It is expected to be about $2MM to $2.5MM which is about $1MM more than previously expected. According to the balance sheet, most of MPAC's equipment has already been depreciated. I wonder how much useful life is left. Will cap-ex be much high late this year and next year? How much free cash flow will MPAC have?
MPAC has not bought back any shares this latest quarter.
GOOD: Sales & earnings up strongly BAD: higher cap-ex, & no share buyback
I would like to see a cash dividend initiated in about a year.