MEDIROM Healthcare Technologies (MRM) research, news, and more from GeoInvesting

Company description

Mon, 29 Jun 2009 04:00:00 GMT

Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix(R) micro-multifunction modules (MMFM(R)), for the worldwide Defense, Satellite Communications (Satcom), Commercial Wireless and Homeland Security market segments. Merrimac is focused on providing Total Integrated Packaging Solutions(R) with Multi-Mix(R) Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. Multi-Mix(R) MMFM(R) provides a patented and novel packaging technology that employs a platform modular architecture strategy that incorporates embedded semiconductor devices, MMICs, resistors, passive circuit elements and plated-through via holes to form a three-dimensional integrated module used in High Power, High Frequency and High Performance mission-critical applications. Merrimac Industries facilities are registered under ISO 9001:2000, an internationally developed set of quality criteria for manufacturing operations.

Research

Wed, 05 Sep 2012 04:00:00 GMT

Here is a review of Past research on Merrimac Industries (at the time symbol MRM):

Thursday, December 24, 2009

Thursday, December 17, 2009

GeoBargain Notes

In line with the GeoTeam's constant search for clues related to significant company events, we have uncovered a development that is boosting MRM's stock shares. Yesterday, the company released an 8-K insinuating that the Merrimac is on the sell block. We will monitor this story as it develops.

Friday, August 28, 2009

GeoBargain Notes

GeoNuggets - Quick Check List Highlighting Undiscovered Opportunities

Merrimac Industries Inc. ( NYSE Amex:MRM)
Added to Geo Bargain list on June 30, 2009. ($9.00)

Company Description: Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix(R) micro-multifunction modules (MMFM(R)), for the worldwide Defense, Satellite Communications (Satcom), Commercial Wireless and Homeland Security market segments.

Data Ended 8/27/09 (see notes a,b,c)

Price = $8.05
Trailing GAAP EPS = $0.89
Geo Calculated Fully-Taxed Trailing Non-GAAP EPS = $0.68
Fully-Taxed EPS Estimate = $1.08
P/E based on Fully-Taxed Trailing Non-GAAP EPS = 11.83
Geo Calculated PEG Ratio: $0.59

Reasons for Optimism

MRM meets 8 out of 10 GeoBargain Requirements.

	Requirement	Comments
	Recent 52-week High (generally within 3 months)	Must Reach $13.38
	Strong EPS Growth Rate	2nd Qtr. 2009 EPS increased 425.0%; Full year 2009 Geo estimates implies a Non-GAAP EPS growth rate of 391.0%
	>10% Revenue Growth	2nd Qtr. 2009 revenue increased 8.0%; Full year 2009 Geo estimate implies a revenue growth rate of 20.7%
	Strong Operating Cash Flow and Balance Sheet	As of 2nd Qtr 2009
	yes - Positive Cash Flow	$612 K as of 6 Mo. 2009
	yes - Debt to Equity Ratio less than 20%	14.37%
	yes - Current Ratio is at least 2:1	4.48:1
	Return on Equity is at least 15%	11.3%
	Minimum Pre-tax Operating Margins of 8%	11.9% as of 2nd Qtr. 2009
	Preferably Under 50 Million Shares (diluted)	3.0 Million shares as of 2nd Qtr. 2009
	High Insider Ownership (generally greater than 15%)	23.9%
	Limited Institutional Ownership (generally less than 20%)	>20%
	P/E Divided by Growth Rate (PEG Ratio) is Less Than 1.	0.59

Restructuring efforts are paying off; In 1997 under new management direction, MRM embarked on an ongoing mission to refocus the company's efforts.
- Reduced target customer count from 1000 to approximately 100. This made it easier for Merrimac to track and focus on its strongest customers, while giving them added attention.
- Visibility - Working closely with a more defined list of companies allows Merrimac to better assess the future project pipelines of its customers and efficiently deploy resources.
- Made a strategic decision to reduce its reliance on speculative commercial projects.
- Focus on military and Satellite customers who are increasingly seeing the benefits that multi mix technology offers.
Customer Loyalty.
- Merrimac works closely with its customers to meet product goals. This can happen at several steps in the development process including RD and manufacturing.
- Once a company has found a reliable "partner" such as Merrimac, it would rather stay with the Company than have to restart the development process.
- Once Merrimac has successfully worked with a division of a particular client, attracting other inter-company divisions becomes a natural occurrence.
The Company is the pioneer of Multi-Mix(R) technology allowing for a reduction in size and weight of subassemblies while maintaining reliability and performance.
- Offers greater flexibility than old technology.
- Performance efficiencies.
- Lighter weight .
- Ultimately saves companies money.
Note: The GeoTeam encourages investors to familiarize themselves with Merrimac 's multi-mix technology in order to fully understand its numerous growth opportunities.

Positive outlook

Positive comments in 2nd quarter 2009 conference call.

"We are in pricing negotiations on large pieces of business that we expect to be booking in Q3 and Q4 respectively. If this timing holds up in the third quarter it will set a new quarterly booking record."

"For the year 2009 we expect that the book to bill ratio will exceed 1-to-1. We are pleased with our six months 2009 operating results. We are clearly executing our new strategy well, as reflected in our financial highlights. As mentioned earlier, we anticipate our Q3 bookings will be a record and we also anticipate a strong Q3 operating performance."

Multi-Mix technology is still in its infancy and just beginning to gain industry wide awareness.

Potential Valuation Scenarios if the company can achieve its EPS growth goals

Short-Term Potential value based on fully taxed adjusted trailing EPS

P/E 25 * $0.68 = $17.00
P/E 20 * $0.68 = $13.60

Short-term Potential Value based on GeoTeam Fully-Taxed EPS Estimate

P/E 15 * $1.08 = $16.20

a) MRM is not paying a full U.S. tax rate. Therefore, all EPS numbers have been adjusted by the GeoTeam to reflect a U.S. tax rate of 36%
b) Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information. The GeoTeam � Non-GAAP figures may, from time to time, differ from company supplied figures.
c) Based on GeoTeam implied 2009 revenue growth rate of 20%, as previously stated.

These scenarios are not intended to be investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.

Tuesday, August 25, 2009

GeoBargain Notes

The GeoTeam is delving further into items in Merrimac 's filings. The net result may result in an $0.08 increase in our trailing non-GAAP earnings per share assumption highlighted in our potential valuation scenarios. For the meantime we will remain conservative in our assumptions.

Friday, August 21, 2009

Conference Call Notes

The GeoTeam participated in Merrimac's 2009 second quarter conference call. The Company reported solid financial results.

Sales increased 8.0% to $8.1 million
GAAP EPS from continuing operations increased to$0.23 from $0.01
Geo calculated Fully-taxed adjusted non-GAAP EPS increased to $0.21 from $0.04

The GeoTeam had two minor concerns going into the call

1. Why the slight sequential decease in 2009 GAAP EPS from the first quarter?

Answer Per Conference Call: "We had certain non-recurring charges in the second quarter that will probably bring us down to a running rate on SG&A about $180,000 (close to $0.06 a share)."

2. Although commentary in the press release was positive, the following comment leaves the door open to a wide degree of interpretation:

First half of fiscal year 2009 was very strong and with new orders meeting or exceeding our internal targets. We are well positioned to finish the second half of 2009 with profitable results."

A more specific outlook would have been ideal

Answer Per Conference Call: We are in pricing negotiations on large pieces of business that we expect to be booking in Q3 and Q4 respectively. If this timing holds up in the third quarter it will set a new quarterly booking record. For the year 2009 we expect that the book to bill ratio will exceed 1-to-1.

We are pleased with our six months 2009 operating results. We are clearly executing our new strategy well, as reflected in our financial highlights. As mentioned earlier, we anticipate our Q3 bookings will be a record and we also anticipate a strong Q3 operating performance.

Investors may start to take notice of Merimac's stock once this commentary filters through to the masses.

Acquisition Activity

Wed, 16 Dec 2009 05:00:00 GMT

The following verbiage in an 8K filed today has us presuming that MRM is on the sell block, sooner rather than later:

"On December 10, 2009, the board of directors of Merrimac Industries, Inc. (the “Company”) approved a bonus for Mason N. Carter, the Chairman, President and Chief Executive Officer of the Company, in the event that the on-going process of investigating strategic alternatives for the company results in a sale of the Company or similar transaction. The bonus would be based on a percentage of the sale price of the Company and the estimated range of the bonus is $300,000 to $1,200,000."

Potential Valuation Scenarios

Wed, 01 Jul 2009 04:00:00 GMT

Valuation Scenarios

Added to Geo Bargain on the radar list on June 29, 2009. ($7.70).

Added to Geo Bargain list on June 30, 2009. ($9.00)

Data Inputs:

Fiscal Year Ends in December

Date	06/30/09
Price	$8.47
12 Months Trailing Non-GAAP EPS ^a,b	$0.70
GeoTeam® 2009 EPS Estimate ^a,b,c	$1.08
Future EPS Growth Rate Based on Estimates ^a,b,c,d	391.0%
Trailing P/E Ratio ^a,b	12.1
PEG Ratio (P/E divided by growth rate) ^a,b,c,d	0.03

^a Merrimac is not paying a full U.S. tax rate. Therefore, all EPS numbers have been adjusted by the GeoTeam ® to reflect a U.S. tax rate of 36%.

^b Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . The GeoTeam ® non-GAAP figures may, from time to time, differ from company supplied figures.

^c The GeoTeam ® derived a 2009 EPS estimate by using prior revenue relationships and applying current margin trends. Over the past three years Merrimac's revenues have comprised about 20% of total year revenues. This would imply that 2009 full year revenues could approach $35 million. The GeoTeam ® derived a 2009 non-GAAP EPS estimate by:

Using the margins for the company's first quarter.
Applying a 36% tax rate.
Making non-GAAP adjustments similar to that of the first quarter.

Please be aware that the EPS estimate calculation is only an initial guide, as many other factors should be considered to derive a more accurate estimate.

^dThe future growth rate of 391% may be somewhat misleading as the company's 2008 EPS figures were depressed due to restructuring moves. Using the GeoTeam ® implied 2009 revenue growth rate of 20%, which yields a PEG Ratio of .61, may be a more realistic scenario.

Short-Term Valuation Scenarios

Date	06/30/09
Price Based on P/E of 25 on Four Quarters Trailing EPS	$17.50
Price Based on P/E of 20 on Four Quarters Trailing EPS	$14.0
Price Based on P/E of 15 on GeoTeam® 2009 EPS Estimate	$16.2

Long-Term (12 Months Forward) Valuation Scenarios

Date	06/30/09
Price Based on P/E of 25 on GeoTeam® 2009 EPS Estimate	$27.0
Price Based on P/E of 20 on GeoTeam® 2009 EPS Estimate	$21.6

Peg Ratio Analysis - Common rule of thumb that PEG ratio should be less than 1.0

PEG Ratio Less than 1?

YES

These scenarios are not investment advice, but are scenarios based on some commonly used investment guidelines. They are provided to aid investors in making their own investment decisions.

Financials

Tue, 30 Jun 2009 04:00:00 GMT

1st QUARTER 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED MARCH

	1st Quarter 2009	1st Quarter 2008	Period Change
GAAP Revenue	$7.6 million	$5.8 million	31.0%
GAAP EPS	$0.29	-$0.29	n/a
GEO Supplied Non-GAAP EPS ^a	$0.34	-$0.25	n/a
Tax Rate (After non-GAAP Adjustments)	4.1%	00.0%	n/a
Fully Tax-Adjusted GAAP EPS ^b	$0.18	-$0.29	n/a
Fully Tax-Adjusted GEO Supplied Non-GAAP EPS ^b	$0.23	-$0.25	n/a
Fully Diluted Shares	2,952,324	2,932,521	0.7%

Source: See Release, May 19, 2009

FULL YEAR 2009 vs. 2008 FINANCIAL SNAPSHOT ENDED DECEMBER

	Full Year 2009	Full Year 2008	Period Change
GAAP Revenue	$29.2 million	$21.9 million	33.3%
GAAP EPS	$0.08	-$0.48	n/a
GEO Supplied Non-GAAP EPS ^a	$0.33	-$0.34	n/a
Tax Rate (After non-GAAP Adjustments)	8.1%	00.0%	n/a
Fully Tax-Adjusted GAAP EPS ^b	-$0.03	-$0.48	93.8%
Fully Tax-Adjusted GEO Supplied Non-GAAP EPS ^b	$0.22	-$0.34	n/a
Fully Diluted Shares	2,966,383	2,962,575	0.1%

Source: See Release, April 21, 2009

^a Non-GAAP EPS Figures exclude certain non-operating gains and losses as well as certain non-cash items contained in the company's filings. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

^b For valuation purposes, The GeoTeam® prefers to adjust EPS to reflect a standard United States tax rate of 36%