MOCON Inc. (MOCO, Financial) filed Quarterly Report for the period ended 2010-06-30.
Mocon Inc. has a market cap of $57.1 million; its shares were traded at around $11 with a P/E ratio of 14.9 and P/S ratio of 2.2. The dividend yield of Mocon Inc. stocks is 3.4%. Mocon Inc. had an annual average earning growth of 3.2% over the past 10 years.
Net income was $1,092,000 in the second quarter 2010, compared to $516,000 in the second quarter 2009. Diluted net income per share was $0.20 and $0.09 in the second quarters of 2010 and 2009, respectively. For the six months ended June 30, 2010, net income was $2,014,000, or $0.38 per diluted share, compared to net income of $914,000, or $0.16 per diluted share in the prior year.
We have historically financed our operations, capital equipment and other cash requirements through our cash flows generated from operations. Total cash, cash equivalents and marketable securities decreased $3,208,000 during the first six months of 2010 to $11,123,000 as of June 30, 2010, compared to $14,331,000 at December 31, 2009. The primary reason for this decrease was due to the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland. Our working capital as of June 30, 2010 decreased $4,412,000 to $15,205,000, as compared to $19,617,000 at December 31, 2009. We invest our excess cash in marketable securities consisting primarily of municipal bonds, certificates of deposits and U.S. treasury obligations. We believe that a combination of our existing cash, cash equivalents and marketable securities, and an expected continuation of cash flow from operations, will continue to be adequate to fund our operations and working capital, capital expenditures, dividend payments and any authorized stock repurchases for at least the next twelve months. We currently do not have any committed lines of credit or other credit facilities.
Our primary source of funds is cash provided by operating activities which totaled $2,669,000 and $307,000 in the first six months of 2010 and 2009, respectively. The key components of the cash provided by operating activities in 2010 were the income for the period, an increase in accounts payable and decreases in inventories and prepaid income taxes, partially offset by an increase in prepaid expenses. The increase in accounts payable is primarily due to unpaid vendor invoices associated with the recent move of our Minneapolis headquarters.
Cash (used in) provided by investing activities totaled ($2,056,000) and $1,360,000 in the first six months of 2010 and 2009, respectively. The primary reason for cash used in investing activities in 2010 was the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland and capital expenditures of approximately $597,000, the majority of which relates to our move to new offices in Minnesota. This was offset somewhat by the net proceeds from maturities of marketable securities of $2,217,000.
Cash used in financing activities totaled $793,000 and $2,189,000 in the first six months of 2010 and 2009, respectively. During the first six months of 2010 and 2009, we made dividend payments to our shareholders of $960,000 and $1,006,000, respectively. Partially offsetting the impact of the dividend payments in 2010 were the proceeds from the exercise of stock options in the amount of $163,000.
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Mocon Inc. has a market cap of $57.1 million; its shares were traded at around $11 with a P/E ratio of 14.9 and P/S ratio of 2.2. The dividend yield of Mocon Inc. stocks is 3.4%. Mocon Inc. had an annual average earning growth of 3.2% over the past 10 years.
Highlight of Business Operations:
Research and development (R&D) expenses were $523,000, or 7.1% of sales in the second quarter 2010, compared to $462,000, or 7.2% of sales, in the same period of 2009. The increase in spending in the current quarter is primarily related to the development of products for the new food safety market. R&D expenses were $1,071,000, or 7.4% of sales in the first six months of 2010, compared to $970,000, or 7.7% of sales, in the same period of 2009. The increase in spending in the first six months of 2010 is primarily related to projects that had been delayed in the prior year due to the slowdown in the economy, as well as new product development for food safety. A significant portion of R&D expenditures in 2010 are expected to be devoted to the food safety market.Net income was $1,092,000 in the second quarter 2010, compared to $516,000 in the second quarter 2009. Diluted net income per share was $0.20 and $0.09 in the second quarters of 2010 and 2009, respectively. For the six months ended June 30, 2010, net income was $2,014,000, or $0.38 per diluted share, compared to net income of $914,000, or $0.16 per diluted share in the prior year.
We have historically financed our operations, capital equipment and other cash requirements through our cash flows generated from operations. Total cash, cash equivalents and marketable securities decreased $3,208,000 during the first six months of 2010 to $11,123,000 as of June 30, 2010, compared to $14,331,000 at December 31, 2009. The primary reason for this decrease was due to the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland. Our working capital as of June 30, 2010 decreased $4,412,000 to $15,205,000, as compared to $19,617,000 at December 31, 2009. We invest our excess cash in marketable securities consisting primarily of municipal bonds, certificates of deposits and U.S. treasury obligations. We believe that a combination of our existing cash, cash equivalents and marketable securities, and an expected continuation of cash flow from operations, will continue to be adequate to fund our operations and working capital, capital expenditures, dividend payments and any authorized stock repurchases for at least the next twelve months. We currently do not have any committed lines of credit or other credit facilities.
Our primary source of funds is cash provided by operating activities which totaled $2,669,000 and $307,000 in the first six months of 2010 and 2009, respectively. The key components of the cash provided by operating activities in 2010 were the income for the period, an increase in accounts payable and decreases in inventories and prepaid income taxes, partially offset by an increase in prepaid expenses. The increase in accounts payable is primarily due to unpaid vendor invoices associated with the recent move of our Minneapolis headquarters.
Cash (used in) provided by investing activities totaled ($2,056,000) and $1,360,000 in the first six months of 2010 and 2009, respectively. The primary reason for cash used in investing activities in 2010 was the investment of approximately $3,625,000 (2,500,000) to acquire a minority equity ownership interest in Luxcel Biosciences Limited in Ireland and capital expenditures of approximately $597,000, the majority of which relates to our move to new offices in Minnesota. This was offset somewhat by the net proceeds from maturities of marketable securities of $2,217,000.
Cash used in financing activities totaled $793,000 and $2,189,000 in the first six months of 2010 and 2009, respectively. During the first six months of 2010 and 2009, we made dividend payments to our shareholders of $960,000 and $1,006,000, respectively. Partially offsetting the impact of the dividend payments in 2010 were the proceeds from the exercise of stock options in the amount of $163,000.
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