NATCO Group Inc. reported revenue for the fourth quarter 2007 of $156.8 million, an increase of 12% over fourth quarter 2006 revenue of $140.4 million. Net income available to common stockholders for the fourth quarter 2007 was $12.8 million, or $0.66 per diluted share, compared to net income available to common stockholders for the fourth quarter 2006 of $10.4 million, or $0.55 per diluted share. Segment profit increased to $21.1 million for the fourth quarter 2007 from $16.4 million for the fourth quarter 2006.
Bookings for the fourth quarter 2007 were $136.9 million compared with fourth quarter 2006 bookings of $127.2 million.
For the full year 2007, the Company posted revenue of $570.1 million, up 10% over full year 2006; segment profit of $77.8 million, up 19% over full year 2006; and net income available to common stockholders, in 2007, of $45.1 million, or $2.36 per diluted share, compared with $36.2 million, or $1.96 per diluted share for 2006.
John U. Clarke, NATCO's Chairman and CEO said, "We are pleased with another strong financial performance in 2007. Importantly, along with record revenue, segment profit and earnings per share, the Company made great strides in extending our global reach through targeted acquisitions and joint ventures in Malaysia, Saudi Arabia and in the FPSO market. Each of these alliances is aimed at faster deployment of NATCO's industry leading technologies with the help of world recognized partners."
Clarke added, "We further supplemented our internal business processes during 2007 to keep pace with the rapid expansion of our business to date and adopted a new Project Delivery System to enhance execution capabilities to support continued growth. These investments are important to our goals of expanding our geographic reach to new markets and broadening the scope of supply offered to our customers which, in turn, reduces our dependency on any particular job or market in meeting our growing bookings targets."
The comparison of 2007 to 2006 net income available to common stockholders for the full year was negatively affected by an increase in the Company's effective tax rate to 35.3% from 33.9% for 2006. The increase resulted from the reversal of valuation allowances against deferred tax assets in the prior year which reduced the 2006 effective tax rate. Weighted average diluted shares of 19.8 million for the fourth quarter 2007 increased from 19.5 million in the fourth quarter of 2006, primarily as a result of stock options and restricted stock issued pursuant to the Company's stock compensation plans. Additionally, approximately 200,000 shares of common stock were issued as consideration in the ConSepT acquisition on December 3, 2007.
The Company had no debt and $63.6 million of cash and cash equivalents at December 31, 2007.
Mr. Clarke added, "While our results were records for revenue, segment profit and earnings per share for 2007, uncertainty in timing of project awards remained a challenge to forecasting our business. As demonstrated by a very active start to 2008, this work has not gone away. We expect this momentum to continue across all of our markets, especially in South East Asia, the Middle East, Mexico and West Africa. Additional awards, combined with a strong competitive position in our standard and traditional equipment business and international field services as well as benefits from recent acquisitions, support our continuing confidence in another record year for 2008. As such we are issuing first quarter 2008 guidance and reaffirming full-year 2008 guidance."
The Company expects first quarter 2008 revenue of $150 million to $160 million and segment profit of $19 million to $22 million. For 2008, the Company is reaffirming its expectation for revenue to be within a range of $620 million and $650 million with segment profit of $90 million to 98 million and diluted earnings per share of $2.75 to $3.00.
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