When Beacon Enterprise Solutions gave its end of year conference call in December, good things were anticipated, but the scale of positive news took some by surprise. After all, the global economy remains largely stagnant, with limited growth in most major industrialized markets. But you would never know it from Beacon.
• For the fiscal year ending September 30th, 2011, net sales for Beacon were up 35%.
• Operating expenses were down 18%.
• Gross margins were within the target range at 39%.
• Quarterly income from core business operations was positive for the first time in Beacon’s history.
• Beacon’s cash position grew, and continues to improve.
• A/R collections improved, and A/R turnover has increased.
• Efficiency has increased throughout the company’s operations.
• Total liabilities were down, resulting in improved shareholders equity.
• Debt financing was positively restructured, with outstanding debt replaced and investor equity raised.
In addition to all this, the growth in sales volume, along with the company’s continued performance in driving margin and managing expenses, resulted in the company’s second consecutive quarter of breakeven EBIT, excluding a non-cash loss recorded from the sale of a middle market business unit. Beacon expects to continue strong performance in cost management and margins. Total operating expenses were down $1.4 million from fiscal 2010, a reduction of 12%, which would have been even greater but for the mentioned non-cash charge.
Significantly, Beacon achieved a major milestone by generating positive income from operations during the fourth quarter of fiscal 2011. The company ended the quarter with approximately $0.9 million in cash, up from $0.2 million at the end of 2010, and concluded 2011 with $6 million in current assets, and $11.9 million in total assets.
For additional information, visit the company’s website at www.AskBeacon.com
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