SELECTED FINANCIAL DATA (unaudited)
Selected financial data for Mestek, Inc. and its subsidiaries, (the "Company") for each of the last five years is shown in the following table, which is derived from and should be read in conjunction with the Consolidated Financial Statements included elsewhere in this report.
SUMMARY OF FINANCIAL POSITION as of December 31, | ||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||
(Dollars in | thousands except per share data) | |||||||||||||
Total Assets | $ | 407,993 | $ | 385,849 | $ | 326,003 | $ | 279,320 | $ | 265,811 | ||||
Working Capital | 214,605 | 242,487 | 196,543 | 167,127 | 144,365 | |||||||||
Total Debt | 8,767 | 10,163 | 10,163 | 10,163 | 10,163 | |||||||||
Mestek Inc. Shareholders' Equity | 299,358 | 287,406 | 241,569 | 208,906 | 192,279 | |||||||||
Shareholders' Equity Per Common Share (1) | $ | 39.50 | $ | 38.29 | $ | 32.18 | $ | 27.88 | $ | 25.67 |
- Shareholders' Equity per common share amounts, a non-GAAP measure, are computed using the common shares outstanding as of December 31, 2021, 2020, 2019, 2018, and 2017.
SUMMARY OF OPERATIONS for the years ended December 31, | ||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||
(Dollars in | thousands except | per | share data) | |||||||||||
Revenues | $ | 350,795 | $ | 310,922 | $ | 341,734 | $ | 350,675 | $ | 329,283 | ||||
Net Income Attributable to Mestek, Inc. | $ | 12,408 | $ | 44,983 | $ | 31,968 | $ | 18,525 | $ | 15,026 | ||||
Earnings per Common Share: | ||||||||||||||
Basic Earnings per Common Share: | $ | 5.99 | $ | 4.26 | $ | 2.47 | $ | 2.01 | ||||||
Net Income | $ | 1.65 | ||||||||||||
Diluted Earnings per Common Share: | $ | 5.93 | $ | 4.21 | $ | 2.44 | $ | 1.99 | ||||||
Net Income | $ | 1.65 | ||||||||||||
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Independent Accountant's Review Report
Board of Directors and Shareholders
Mestek, Inc.
We have reviewed the accompanying consolidated financial statements of Mestek, Inc. and its subsidiaries (the Company), which comprise the consolidated balance sheet as of December 31, 2021, and the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for the year then ended, and the related notes to the consolidated financial statements (collectively, the financial statements). A review includes primarily applying analytical procedures to management's financial data and making inquiries of management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Accountant's Responsibility
Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.
We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our review.
Accountant's Conclusion
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.
Report on 2020 Financial Statements.
The 2020 financial statements of Mestek, Inc. and its subsidiaries were audited by us, and we expressed an unmodified opinion on them in our report, dated August 11, 2021. We have not performed any auditing procedures since that date.
Boston, Massachusetts
June 21, 2022
2
MESTEK, INC.
CONSOLIDATED BALANCE SHEETS
As of December 31, 2021 and 2020
December 31, | December 31, | |||||||
2021 | 2020 | |||||||
ASSETS | (Dollars | in thousands) | ||||||
Current Assets | ||||||||
Cash and Cash Equivalents | $ | 71,684 | $ | 71,793 | ||||
Short-Term Investments | - | 24,994 | ||||||
Accounts Receivable - less allowances of $1,690 and $1,804, respectively | 54,354 | 57,103 | ||||||
Inventories - net | 79,254 | 58,813 | ||||||
Property Held for Sale | 2,327 | 4,826 | ||||||
Commodity Investments | 73,153 | 84,253 | ||||||
Other Current Assets | 14,693 | 11,262 | ||||||
Total Current Assets | 295,465 | 313,044 | ||||||
Property and Equipment - net | 48,859 | 34,450 | ||||||
Right-of-use Assets - net | 12,949 | 10,931 | ||||||
Deferred Tax Assets | - | 1,431 | ||||||
Other Assets - net | 8,342 | 4,053 | ||||||
Goodwill | 42,378 | 21,940 | ||||||
Total Assets | $ | 407,993 | $ | 385,849 | ||||
LIABILITIES | ||||||||
Current Liabilities | ||||||||
Accounts Payable | $ | 14,226 | $ | 13,577 | ||||
Accrued Payroll and Related Expenses | 19,635 | 20,001 | ||||||
Customer Deposits | 28,145 | 15,558 | ||||||
Current Portion of Environmental Reserves | 116 | 119 | ||||||
Current Portion of Operating Lease Obligations | 4,187 | 3,917 | ||||||
Warranty Reserve | 2,757 | 2,755 | ||||||
Other Accrued Liabilities | 11,794 | 14,630 | ||||||
Total Current Liabilities | 80,860 | 70,557 | ||||||
Environmental Reserves - long term | 3,320 | 3,432 | ||||||
Operating Lease Obligations - long term | 8,763 | 7,014 | ||||||
Deferred Tax Liabilities | 1,276 | - | ||||||
Long-Term Debt | 8,767 | 10,163 | ||||||
Other Liabilities | 4,796 | 6,516 | ||||||
Total Liabilities | 107,782 | 97,682 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common Stock, no par, stated value $0.05 per share, 20,000,000 shares | ||||||||
authorized, 8,473,288 and 8,384,726 shares issued, respectively | 422 | 418 | ||||||
Paid in Capital | 5,788 | 5,792 | ||||||
Retained Earnings | 305,325 | 292,917 | ||||||
Treasury Shares, at cost (894,720 and 878,010 | (11,932) | (11,293) | ||||||
common shares, respectively) | ||||||||
Accumulated Other Comprehensive Loss | (245) | (428) | ||||||
Total Mestek, Inc. Shareholders' Equity | 299,358 | 287,406 | ||||||
Non-controlling Interests | 853 | 761 | ||||||
Total Shareholders' Equity | 300,211 | 288,167 | ||||||
Total Liabilities and Shareholders' Equity | $ | 407,993 | $ | 385,849 | ||||
See Accompanying Notes to the Consolidated Financial Statements. | ||||||||
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MESTEK, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 2021 and 2020
2021 | shares | 2020 | |||
(Dollars and | in thousands, | ||||
except earnings per common share) | |||||
Net Sales | $ | 350,795 | $ | 310,922 | |
Cost of Goods Sold | 253,305 | 214,624 | |||
Gross Profit | 97,490 | 96,298 | |||
Selling Expense | 37,943 | 34,736 | |||
General and Administrative Expense | 25,966 | 26,691 | |||
Engineering Expense | 16,626 | 16,766 | |||
Hedging and Other Income - net | (737) | (43,253) | |||
Operating Profit | 17,692 | 61,358 | |||
Interest (Expense) Income - net | (120) | 605 | |||
Other Expense - net | (273) | (197) | |||
Income Before Income Taxes | 17,299 | 61,766 | |||
Provision for Income Taxes | 4,799 | 16,776 | |||
Net Income | 12,500 | 44,990 | |||
Less: Net Income - Non-controlling Interests | 92 | 7 | |||
Net Income Attributable to Mestek, Inc. | $ | 12,408 | $ | 44,983 | |
Basic Earnings Per Common Share | |||||
$ | 1.65 | $ | 5.99 | ||
Basic Weighted Average Shares Outstanding | 7,534 | 7,507 | |||
Diluted Earnings Per Common Share | $ | 1.65 | $ | 5.93 | |
Diluted Weighted Average Shares Outstanding | 7,534 | 7,588 |
See Accompanying Notes to the Consolidated Financial Statements.
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MESTEK, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the years ended December 31, 2021 and 2020
2021 | 2020 | ||||
(Dollars in thousands) | |||||
Net Income | $ | 12,500 | $ | 44,990 | |
Other Comprehensive Income | |||||
Cumulative Translation Adjustments | 183 | 854 | |||
Other Comprehensive Income | 183 | 854 | |||
Comprehensive Income | 12,683 | 45,844 | |||
Less: Comprehensive Income-Non-controlling Interests | 92 | 7 | |||
Comprehensive Income Attributable to Mestek, Inc. | $ | 12,591 | $ | 45,837 |
See Accompanying Notes to the Consolidated Financial Statements.
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Mestek Inc. published this content on 23 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 June 2022 14:05:03 UTC.