Peerless Manufacturing Co. F1Q09 (Qtr End 30/09/08) Earnings Call Transcript

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2008-11-10 12:38:09.0

Tags: Call Transcript, Quarter, Earnings, Seasonality, Peerless Manufacturing Co., Separation/Filtration, Strategy, Management, Seeking Alpha, Call Transcript, Quarter, Earnings, Seasonality, Peerless Manufacturing Co., Separation/Filtration, Strategy, Management, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Rick Hoss - Roth Capital Partners.

Rick Hoss – Roth Capital Partners

I was hoping you could give a little bit more detail into what is in backlog as far as a segment composition and if it’s a loose percentage of Separation/Filtration versus Environmental Systems that fine?

Peter Burlage

I think, our backlog, as a ratio is very similar to what the ratios and revenue is just as we recognizing there in the quarter, its still very similar type back as a percentage. I don’t have exact value there, but those aren’t exact value, but it’s very close to that ratio that we just reported.

Rick Hoss – Roth Capital Partners

The vast majority of separation/Filtration is in that backlog?

Peter Burlage

Yes. With this I don’t see any transfer, yes absolute.

Rick Hoss – Roth Capital Partners

Okay and then looking at the segments results and I realize that the Environmental Systems is going to be lumpy; Separation/Filtration looked extremely strong for the quarter. Were there some one-time benefits or acceleration of projects or give any additional detail you can share there?

Hank Schopfer

Sure. This is Hank. The Separation/Filtration now in a quarter is all of Nitram. That’s the Separation/Filtrations segment and that’s the largest reason for the increase year-over-year in Separation/Filtration segment.

Rick Hoss – Roth Capital Partners

Okay. So, but it should a relatively stable quarter-over-quarter type business, correct or is there seasonally involved?

Peter Burlage

There is a little bit of seasonality, so there is larger projects that are associated with the transmission industry and pipeline industry, so they’ll take delivery on those units in the spring for summer time projects. The work we do up in the oil sands for example, obviously it work that has no more seasonality to it. It has a tendency to have some seasonality in acquire and traditionally our fourth quarters are usually our higher quarters, because we ship in the fourth quarter for summer installation of that equipment for those larger capital projects.

Rick Hoss – Roth Capital Partners

Okay, but this quarter, I would imply an installation or shipping in the wintertime right? So, I mean, this quarter should be fairly low quarters as far as Separation/Filtration goes correct?

Peter Burlage

Traditionally, yes. That’s our expectations here that this and this is not the peak quarter for the year.

 

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