Taylor Devices, Inc. (TAYD) research, news, and more from GeoInvesting

Company description

Wed, 14 Jan 2009 05:00:00 GMT

Taylor Devices, Inc. is a 56-year-old company engaged in the design, development, manufacture & marketing of shock absorption, rate control and energy storage devices for use in various types of vehicles, machinery, equipment & structures. The company continues to achieve growth in the developing seismic protection field and in the isolation of wind-induced vibrations.

Research

Fri, 27 Sep 2024 16:38:02 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($61.92; $193.1M market cap), announced Q1 2025 results:

Sales of $11.6 million vs $9.9million in the prior year
EPS of $0.85 vs $0.52 in the prior year
Backlog of $28.4 million vs $28.3 million in the prior year

“The very strong execution by our team in FY24 continued this first quarter of our FY25 as new company high Q1 records were set for both sales and net earnings with improvements of 17% and 44% year-on-year respectively," stated Tim Sopko, CEO. He continued, "Once again, all three of our customer product groups; Aerospace/Defense, Structural and Industrial contributed to these results with the favorable momentum in our Aerospace/Defense market continuing to offset the headwinds we have been experiencing in our Structural markets due to high interest rates and unfavorable foreign exchange rates." He further commented, "The benefit of our team's relentlessly disciplined focus on our Profitable Growth Campaigns over the past several years can be seen in our firm order backlog at the end of this Q1 of $28.4M which is not only slightly improved over the $28.3M we had at the end of last year's Q1 but well ahead of the average firm order backlog level over our past five fiscal year Q1's of $21.9M." He concluded, "As our FY25 continues, we remain focused on our growth strategies supported by our continued investments in our team, technologies (R&D) and facilities."

TAYD is a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally.

Research

Thu, 28 Mar 2024 14:51:29 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($23.57; $82.9M market cap), announced Q3 2024 results:

Sales of $12.2 million vs $9.9 million in the prior year
EPS of $0.82 vs $0.47 in the prior year
Backlog of $30.2 million vs $27.8 million in the prior year

“We continue to reap the benefits of our team's disciplined adherence to our growth strategies as well as their excellent work on continuous improvements implemented over the past several years across all functions in our business." He concluded, "As we enter the 4th and final quarter of our FY24, we will continue to focus on our growth strategies supported by our continued investments in our team, technologies (R&D) and facilities which we expect will continue to support our profitable growth going forward."

TAYD a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally,

Research

Wed, 10 Jan 2024 15:17:41 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($23.57; $82.9M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced Q2 2024 results:

Sales of $10.3 million vs $10.4 million in the prior year
EPS of $0.56 vs $0.45 in the prior year
Record Backlog of $35.5 million vs $18.1 million in the prior year

“As we enter the 2nd half of our FY24, we will continue to focus on our strategic priorities supported by continued investments in our team, technologies (R&D) and facilities which we expect will continue to support our profitable growth going forward."

Share repurchases:

“The company's Board of Directors approved the repurchase of 459,015 of the company's shares from Ira Sochet, following his unsolicited repurchase offer to the company, at a price of $19.92 per share which is a 12.4% discount off the average market price that TAYD shares traded on the day the repurchase was finalized, January 8, 2024. "Our strong balance sheet condition continues with ample working capital to support our continuing profitable growth following this value-enhancing deployment of our shareholder's cash," said Tim Sopko, CEO.

As we mentioned in the first quarter coverage, the comps get harder as the company moves forward.

Research

Fri, 29 Sep 2023 04:00:00 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($21.49; $75.6M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced Q1 2024 results:

Sales of $9.9 million vs $9.1 million in the prior year
EPS of $0.52 vs $0.29 in the prior year
Backlog of $28.3 million vs $23.0 million in the prior year

"Once again, all three of our customer product groups; Aerospace/Defense, Structural and Industrial contributed to these results thus showing the benefits of our market diversity." He concluded, "As our FY24 continues, we remain focused on our growth strategies supported by our continued investments in our team, technologies (R&D) and facilities."

While the quarterly results are strong, the quarterly comps begin to get tougher. Furthermore, the backlog, sales and EPS were down sequentially from Q4. We also noticed the company did not use the words “profitable growth going forward” as it had done in prior releases.

Research

Tue, 15 Aug 2023 18:50:06 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($18.56; $65.1M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced Q4 2023 results:

Sales of $10.7 million vs $9.6 million in the prior year
EPS of $0.59 vs $0.43 in the prior year
Backlog of $32.5 million vs $23.7 million in the prior year

"The favorable market diversity we enjoy continued with all three of our customer-facing product groups; Aerospace/Defense, Structural and Industrial, improving year on year and hence, contributing to the overall profitable growth of our business." He concluded, "As we enter FY24, we will continue to invest in our team, technologies and facilities which we expect will continue to support our profitable growth going forward."

Research

Fri, 23 Jun 2023 11:49:43 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($21.7; $76.1M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced approval of new design procedure using fluid dampers.

“After engaging in an extensive research & development project over the last few years, we are now able to fully deploy this revolutionary method to the civil engineering community. This will ultimately result in more buildings using fluid dampers that protect them from the harmful effects of earthquakes." said Alan Klembczyk, president of Taylor Devices "This new prescriptive method provides a simplified step-by-step procedure for structural engineers to follow and eliminates complex analysis that was previously required. This is a win-win as buildings can be designed to be safer during earthquakes and at less cost. We expect that this will help bolster sales and contribute to our growth."

Research

Thu, 30 Mar 2023 04:00:00 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($10.89; $44.2M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced Q3 2023 results:

Sales of $9.9 million vs $6.1 million in the prior year
EPS of $0.47 vs a loss of $0.03 in the prior year
The company's firm order backlog is $27,800,000 at the end of this February as compared to $18,100,000 three months ago and $17,400,000 at the end of February last year.

"We continue to reap the benefits of our team's disciplined adherence to our growth strategies as well as their excellent work on continuous improvements implemented over the past several years across all functions in our business." He concluded, "As we enter the 4th and final quarter of our FY23, we will continue to focus on our growth strategies supported by our continued investments in our team, technologies (R&D) and facilities which we expect will continue to support our profitable growth going forward."

Shares hit a new high in yesterday’s trading session, continuing its momentum from the strong Q2 2023 results we highlighted in December 2022.

What's most notable about this quarter is the significant increase in backlog, which could bode well for the company because they’re going up against some pretty tough sales and earnings comparisons over the next few quarters. Q4 2022 sales and EPS were $9.7 million and $0.45 and similar levels for the first 3 quarters of 2023.

One thing we’ve been watching closely is if the increases in backlog the company has been experiencing over the past several quarters is coming from an elevated average selling price of its products or actually the increase in demand for its products (or maybe both).

The breakdown of the backlog is usually included in the company's SEC quarterly filings, which has yet to be filed for this quarter. For a deeper look into this subject, please see a tweet thread on the subject by Maj.

Shares are currently selling a trailing PE ratio of 11.0 (using $18 pre market level)

Research

Thu, 29 Dec 2022 15:55:52 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($10.89; $44.2M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced Q2 2023 results:

Sales of $10.5 million vs $7.7 million in the prior year
EPS of $0.45 vs $0.19 in the prior year

"As we enter the 2nd half of our FY23, we will continue to focus on our growth strategies supported by our continued investments in our team, technologies (R&D) and facilities which we expect will continue to support our profitable growth going forward."

Strong backlog:

“The company's firm order backlog was $18,100,000 at the end of the 1st six months of this fiscal year as compared to $17,000,000 at the end of the 1st six months last fiscal year. While too late to be included in the backlog as of November 30, 2022, the Company recorded an additional $12 million of sales order bookings in the month of December. “

Research

Tue, 11 Oct 2022 04:00:00 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($10.96; $38.3M market cap) - On the heels of very strong 2022 Q4 numbers reported on August 19, 2022, TAYD announced strong Q1 2023 results on September 30, 2022, bringing the stock back on our radar. The company designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally.

TAYD’s Q1 2023 resulted in:

Sales of $9.1 million vs $7.3 million in the prior year
EPS of $0.29 vs $0.05 in the prior year
Backlog of $23.0 million up from $19.4 million in the prior year

"The positive market trends and momentum that we experienced last fiscal year continued in the first quarter of FY23 as evidenced by the year-on-year sales increase of 24% as compared to first quarter FY22 with all three of our customer product groups; Aerospace/Defense, Structural and Industrial sales respectively up over last year's Q1 levels," stated Tim Sopko, CEO. He continued, "This is also the first time in our company's history that quarterly sales have exceeded the $9 million threshold in two consecutive quarters." He further commented, "Our team has been able to manage the continuing supply chain challenges well this past quarter as evidenced not only by the higher sales volume but also the year-on-year net profit increase of 451% as compared to first quarter FY22." He concluded, "As our FY23 continues, we remain focused on our growth strategies supported by our continued investments in our team, technologies (R&D) and facilities."

We are familiar with TAYD, having successfully invested in the stock in the past. You can see our coverage here.

Maintaining positive business momentum has always been challenging with the company’s lumpy sales history.

We will monitor to see if the company is experiencing any material changes that may allow it to consistently grow top and bottom line results. An Interesting quote from the company’s strong fourth quarter report states:

“All three of our customer product groups; Aerospace/Defense, Structural and Industrial, finished at levels greater than their respective averages over the prior five years for bookings, sales and backlog which is indicative of the overall relative improvement across the business."

One last thing to point out is that in conjunction with backlog, open sales orders reported in the quarter should also be monitored. This exercise will allow us to determine if growth is coming with more orders, or with just price increases.

Stay tuned for more on this in the coming weekly email.

Shares are trading at a trailing P/E of 12.4 and a run-rate P/E of 9.4. However, leaning on a run-rate P/E is risky due to the company's history of inconsistent growth.

Research

Mon, 05 Aug 2019 15:55:21 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($11.05; $38.3M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced Q4 2019 results:

Sales of $9.0 million vs $6.4 million in the prior year
EPS of $0.28 vs $0.04 in the prior year

"The execution and delivery this past year of the second highest annual sales volume with concurrent third best net income in the company's history is an accomplishment that the team is to be commended on," said Tim Sopko, CEO. He concluded, "Additionally, we were able to concurrently progress the lean improvement initiatives in play that will not only positively impact fiscal year 2020 but enable the continued growth of the company path forward."

"After an exciting year with many new initiatives, significant challenges and setting some higher corporate goals, we are happy to announce dramatic improvements in revenue and net income. We were targeting 2019 to be an improved and profitable year and our team has delivered," said Alan Klembczyk, President. He continued, "Furthermore, we are continuing to build the team at all levels of the Company to sustain that momentum and reach our long-term goals as well."

Q4 2019 was a very strong quarter for the Company. However, the press release did not mention the backlog which was down significantly from the prior year at $13.3 million from $23.1 million.

Research

Thu, 11 Oct 2018 17:10:29 GMT

Taylor Devices, Inc. (NASDAQ:TAYD) ($11.27; $40.5M market cap), a company that designs, develops, manufactures, and markets shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in North America, Asia, and internationally, announced Q1 2019 results:

Sales of $7.3 million vs $6.5 million in the prior year
EPS of $0.21 vs $0.09

"Our current fiscal year is off to a much-improved start after a disappointing finish to our last fiscal year; in particular, net earnings are trending back towards where we want them to be to meet the Company's strategic goals," stated Alan R. Klembczyk, President. He continued, "Our firm order backlog of $22.6 million at the end of the first quarter is up slightly from the level of $21.6 million one year ago. It is quite encouraging to note that our domestic sales have increased 37% from the same period of the prior year, primarily from sales to customers in aerospace / defense. Additionally, we are continuing our aggressive sales strategies across all market sectors and more new opportunities are emerging." He concluded, "We remain committed to making 2019 an energetic & profitable year."

We are familiar with TAYD, having had successfully invested in the stock in the past. You can see our coverage here. We will take a closer look at recent developments to see if they can maintain this momentum, as the company has had a lumpy sales history. We currently have no position.

Comments & Business Outlook

Thu, 12 Oct 2017 15:23:09 GMT

TAYD ($13.42) announced Q1 2018 results:

Sales of $6.5 million vs $5.7 million
EPS of $0.09 vs $0.06

Quotes from management:

"It is encouraging to start this new fiscal year with first quarter numbers that include a better top line, bottom line and firm order backlog figure; our firm order backlog of $21.6 million at the end of the first quarter is up slightly from the year ago level of $21.3 million," stated Douglas P. Taylor, President. He continued, "Our sales to Asia have increased 30% from the same period of the prior year and sales to customers involved in construction of buildings & bridges are also up 22%; sales to industrial customers were also up 35% over the year earlier period. While it is impossible to predict full-year results from our first quarter alone, we are hopeful for improved sales & profitability levels this year."

Research

Tue, 30 Aug 2016 17:43:04 GMT

Closed Out Our Core Long In TAYD ($18.75) - Recap of Actions

In our October 13, 2015 email we stated we were buying TAYD due to strong Q1 2016 results when the stock was trading $15.00. In late January, we stated we were adding to our position as shares dipped below $14 despite recent strong Q2 2016 results.

On April 13, 2016 we stated we were taking some profits after the Company’s backlog decreased in its Q3 2016 report. The stock was trading around $16.50 at this time.

Yesterday (8/29/2016) via premium tweet, we stated we had closed our core position in TAYD on the heels of its Q4 2016 results locking in near 20% gains.

Shares reached a high of $20.45 in early August, or 36% higher than our initial alert. We will continue to track the TAYD story,. We like the management team and associated growth story. However, we feel shares are currently fairly valued.

Research

Mon, 09 May 2016 14:45:55 GMT

$TAYD ($16.24) reported strongQ3 2016 earnings on April 12, 2016 with a 191% increase in EPS. The Company expects to finish the year strong, but we are somewhat concerned that the Company’s backlog is significantly down from the prior year ($19.5 million vs $30.3 million). However, we think the Company can replenish its backlog in the current quarter. Still, investors who are long this stock need to be aware of this risk factor. The Company can still have a strong year even if they come in with weak Q4 financial results. Shares are basically flat since we initiated our long position in early October.

Research

Mon, 18 Apr 2016 15:20:14 GMT

TAYD ($16.06) - A new law in Los Angeles that requires the retrofitting of wood-frame apartment buildings may give TAYD a boost. (Source; LA TIMES)

“City inspectors spent about two years developing a list of 13,500 so-called soft-story buildings that will probably need seismic strengthening.”

One of TAYD’s key products include seismic dampers that are designed to ameliorate the effects of earthquake tremors on structures.

Research

Wed, 13 Apr 2016 15:32:48 GMT

Took Some Profits In TAYD

TAYD ($16.40) - Yesterday, via premium tweet we stated we were taking a closer look at TAYD’s Q3 2016 results. The Company reported:

Sales of $8.3 million vs $6.5 million in the prior year period
EPS of $0.35 vs $0.12 in the prior year period

Quotes from management:

"Our shipments year to date are at record levels and our firm order backlog is at a healthy $19.5 million," stated Douglas P. Taylor, President. He continued, "We have two ongoing construction projects at our Tonawanda Island site that will soon permit us to test & deliver the largest dampers we have ever made; both of these projects are being completed utilizing the Company's internal funds." He concluded, "Our current fiscal year will be either one of the best (in our 61 year history) or our very best."

While the Company stated the order backlog is “healthy”, it is down from last year’s backlog of $30.3 million. We reached out to management yesterday to discuss the backlog. The Company stated some large projects are in the works, so we want to gain more color on the backlog situation.

On January 19, 2015, wehighlighted TAYD as one of four stocks we were watching to bounce back with market stabilization. On January 25, 2016 we stated we had slightly added to our long position (Stock was 14.00 at the time of our add).

Research

Mon, 25 Jan 2016 15:48:02 GMT

Slightly Added To Our Long Position in $TAYD

On Friday, via premium tweet we stated we had slightly added to our long position in TAYD ($13.92). On January 19, 2015 we highlighted TAYD as one of four stocks we are watching to bounce back when the market stabilizes. TAYD recently reported strong Q2 2016 results, and shares had a brief bump over $16.00 on the results before retracing with the overall market.

Research

Wed, 13 Jan 2016 16:20:21 GMT

Maintaining Our Long Position In TAYD

Yesterday during the trading day, TAYD released strong second quarter 2016 results:

Sales of $8.8 million vs $6.7 million in the prior year
EPS of $0.27 vs $0.15 in the prior year

Bullish commentary from management:

"We are receiving new seismic orders for dampers that are quite frankly larger than ones we have previously manufactured & shipped," stated Douglas P. Taylor, President. He continued, "To that end, we have started a new 10,000 square foot addition to 90 Taylor Drive for the testing & assembly of seismic products; we hope to have the related construction completed by next year." He concluded, "Our sales are continuing at a record pace and all indications suggest that we will have another strong year."

On October 13, 2015 we stated we were taking a long position in TAYD when stock was trading around these levels. See our initial research note here. We may look to add to our long position on pullback.

Research

Tue, 13 Oct 2015 14:33:57 GMT

Buying TAYD ($15.44) For a Trade

It's been awhile since we highlighted ex-GeoBargain TAYD. However, the following reasons have given us reason to be bullish on TAYD’s share price, even though the stock is up 18% in the last 5 days.

Strong Q1 2016 top and bottom line results
- Sales of $9.4 million vs $6.5 million
- EPS of $0.30 vs $0.12
Backlog is being replenished as it's being filled
New product offerings will meet demand of expanding industry standard requirements.
From our casual observation of the stock over the last couple years, it's rare that the stock trades at less than a trailing 12 month P/E of 25. Given this observation, and what appears to be one of the most bullish periods for the company in some time, we are placing a bet that shares could trade at a trailing P/E of 25, or $20.50, in the near term. (25 x trailing EPS of $0.82)

Commentary from the release:

"Our sales increased by almost $3 million while our net earnings more than doubled," stated Douglas P. Taylor, President. He continued, "It pleases me greatly that these results were achieved while our firm order backlog actually increased to $26.4 million from the year ago level of $24.1 million." He concluded, "It is safe to say that our company is now firing on all cylinders.

Taylor Devices is moving forward on a building expansion project, adding additional space for accommodating assembly and testing of ever-larger seismic dampers, approaching 50 ft. in length. The increased physical size of these products is due to upgraded seismic codes world-wide, requiring larger seismic energy absorption products.”

Comments & Business Outlook

Wed, 29 Aug 2012 04:00:00 GMT

Fourth Quarter 2012 Results

Record sales for the fourth quarter of $9,643,520, up significantly from last year's fourth quarter sales of $7,125,138.
Net earnings for the fourth quarter were $862,860, up from last year's fourth quarter profit of $722,796.
EPS for the fourth quarter were $0.26 vs $0.23 in last year's fourth quarter.

"Our full year sales and net income figures for 2012 set new company records," stated Douglas P. Taylor, President. He continued, "Our firm order backlog at year-end was $17.5 million; up substantially from the year ago level of $15 million." He continued "Record shipments of Seismic Dampers to Asia have been influenced by major earthquakes over the past several years; we had 10 new order announcements to Asian clients alone in the last quarter." He concluded, "The expansion of our manufacturing space in our three new buildings is on budget and schedule; 2013 should be another good year."

Comments & Business Outlook

Thu, 12 Apr 2012 04:00:00 GMT

Third Quarter 2012 Results

Sales for the third quarter were $8,008,836, up significantly from last year's third quarter sales of $4,979,343.
Third quarter net earnings of $514,213, up from last year's third quarter earnings of $386,100.
Earnings per share for the third quarter were $0.16 vs $0.12 in prior year quarter

"Our firm order backlog continues to be very strong; it is currently at $23 million up significantly from the $13.6 million level reported in the year ago period," stated Douglas P. Taylor, President. He continued, "Sales of both seismic and aerospace products are increasing and we expect our performance to continue through the balance of the fiscal year." He concluded, "Our previously disclosed, self funded expansion of our manufacturing space is proceeding on schedule and we expect the first of the three buildings being renovated to be fully in service by the summer of 2012."

Comments & Business Outlook

Thu, 12 Jan 2012 05:00:00 GMT

Second Quarter 2012 Results

Sales of $6,781,754, up significantly from last year's 2nd quarter sales of $4,525,002
Net earnings for the 2nd quarter were $413,741, up sharply from last year's 2nd quarter earnings of $122,975.
Earnings per share for 2nd quarter were $0.13 vs. $0.04 in last year's 2nd quarter.

"Our firm order backlog is now at a record $25 million; last year at this time it was $13 million. The product mix for this backlog is now approximately 19% aerospace/military with the remaining 81% comprised of commercial/seismic orders," stated Douglas P. Taylor, President. He concluded, "We are self funding a multi-year expansion plan that will more than double the Company's manufacturing space by the end of 2013.

Notable Share Transactions

Fri, 18 Nov 2011 05:00:00 GMT

NORTH TONAWANDA, N.Y., Nov. 17, 2011 /PRNewswire/ -- Taylor Devices, Inc. (NASDAQ: TAYD) announced today that the Board of Directors of Taylor Devices, Inc. voted unanimously to continue the share repurchase agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") under which the Company repurchases shares of its common stock. Of the $500,000 of the Company's cash on hand authorized by the Board last year to repurchase shares of its outstanding common stock, $419,815 remains available for open-market purchases. To date, a total of 15,600 shares have been purchased at an average price per share of $5.14. Repurchases are made by MLPF&S for the benefit of the Company.

GeoSpecial Notes

Wed, 07 Sep 2011 04:00:00 GMT

On September 8, 2011 the GeoTeam coded Taylor Devices (TAYD) as a GeoSpecial @ $6.80.

Notable Observations

Strong end of year backlog (which we think is a conservative number):

"Our firm order backlog at year-end was $15 million; up significantly from the year ago level of $13 million."

Company is successfully penetrating Asian markets. Sales to Asian customers grew to represent 35% of all corporate sales.
For the fiscal 2011 fourth quarter, TAYD experienced both revenue and EPS breakouts with net revenue of $7.1 million and EPS of $0.23. The previous eleven quarters had seen revenues top out at $4.9 million, while EPS had never exceeded $0.10.
Demand for its products is getting a boost from increased efforts by its customers to build structures that are more resistant to natural disasters such as earthquakes.

"Seismic product sales increased by 75% over the previous year"
Recent increase in earthquake activity is helping to propel demand.
Another factor that points to strong demand for its products includes the company's intent to increase production capacity that is currently tapped out.

Caveats

There is meaningful risk for volatile quarters, although we believe that volatility will become less of an issue in 2013 when new product capacity comes on line, allowing the company to target diversified markets.
We need more than one solid quarterly performance at current levels to solidify the assumption that the fiscal 2011 fourth quarter was a breakout.
Shares have run up sharply in recent weeks which could lead to a pull back in this volatile market.
Investors may view this story as a concept play where investor appetite will depend on natural disaster activity.

Shareholder Letters

Tue, 06 Sep 2011 04:00:00 GMT

Taylor Devices, Inc. 2011 Annual Report

President's Letter

Dear Shareholder,

Our 2011 fiscal year was marked by an unprecedented increase in sales of Taylor Devices' seismic and wind protection products. The result was all-time record sales of $20,906,306, up 17% from sales of $17,875,371 in 2010. Operating income decreased to $1,482,491 compared to $1,763,653 in the previous year. Net income after taxes of $1,416,509 was the third highest in our corporate history, compared to 2010's all-time record income of $1,586,957. The reduction in income from the previous year appears to be due to product line mix and the need to expedite delivery for commercial customers.

During 2011, sales of seismic and wind protection products increased by 75% from the previous year. Conversely, aerospace/defense product sales decreased by 22%, due mostly to the winding down of NASA's manned space programs coupled with reductions in our armed forces' activity in Iraq. The strongest geographic sales increases came from sales to the Asian market place which in 2011 increased to represent 35% of all corporate sales. This is compared to 25% of all sales in 2010. In comparison, North American seismic product sales remain stagnant, reflecting the lack of any significant recovery in the Western U.S. construction markets in which the Company traditionally does significant business. Even with the 17% sales increase, Taylor Devices' firm order backlog at fiscal year-end increased to $15 million, up substantially from $13 million reported in the previous year.

This year's Annual Report features a major project in Canada -- the BC Place Stadium in Vancouver. BC Place is a downtown stadium, yet must also serve as an emergency shelter in the event of a major earthquake or similar natural catastrophe. The stadium, built in 1983, is relatively modern, but the applicable seismic codes have been upgraded several times in the ensuing years. Recent major earthquakes occurring in nations bordering the Pacific Ocean have subjected many construction projects to very stringent review by owners and engineers, requiring higher levels of ultimate seismic capacity. In the past, many considered a maximum quake level of magnitude 8.5 as an example of the ultimate input to a structure. But today, the magnitude 9 Japanese quake of 2011, and the magnitude 8.8 Chilean quake of 2010 have revised expectations upward. The seismic upgrade of BC Place involved the addition of 96 Taylor Devices' Seismic Dampers, each rated for up to 225 tons of force during a major earthquake

Also featured this year is one of our new products, the Modular Machine Spring. Sales of this product demonstrate that Taylor Devices' Modular Machined Springs have essentially created new market sectors for high precision springs for aerospace/defense and industrial use. The Company has established the capability of manufacturing relatively large machined springs from virtually any material, including exotic alloys which previously could not be made into springs using conventional technology. This has resulted in numerous contracts for these products from major aerospace/defense prime contractors. Recently, industrial use of these products has begun and indeed the Company is currently performing Government funded research to develop uses for this new product in the field of wind protection of buildings.

The Company expects to maintain increased sales levels in 2012, from our new and existing product lines.

Comments & Business Outlook

Tue, 06 Sep 2011 04:00:00 GMT

Several years ago the demand for our large seismic dampers reached a level where the Company had reached the floor space capacity in our Tonawanda Island facilities complex. As a direct result, the Company eventually added 12,000 square feet of leased facilities several miles away in Kenmore, NY as a short-term solution.

The past three years' sales volume combined with a product mix skewed heavily towards larger seismic dampers has stretched all of our current facilities to their limits. Thus, the Company again has a need for additional manufacturing space. This was noted in the Spring 2011 Newsletter. The Company Management believes that the recent series of major earthquakes worldwide will dramatically increase sales of the Company's products to the world construction market in the ensuing years.

In 2010 we began a study considering additional buildings for our Tonawanda Island site. This study determined that to maintain proper production flow through the buildings required many costly changes to our existing site. The study concluded that it is not cost-effective to add additional floor space to our present site. As a result, Taylor Devices is contemplating three possible nearby locations, each with enough building space to house all of our present machining operations. The existing Tonawanda Island site would then have enough free floor space to assemble and test all products for the foreseeable future. The new facilities would essentially become the Company's parts manufacturing center with the main facilities on Tonawanda Island continuing as the product assembly and testing center in addition to housing Corporate, Sales, Engineering and Accounting functions. In the near term, an aggressive schedule contemplates having new capabilities come on-line beginning in the Spring of 2012.

Comments & Business Outlook

Thu, 25 Aug 2011 04:00:00 GMT

NORTH TONAWANDA, N.Y., Aug. 25, 2011 /PRNewswire/ -- Taylor Devices, Inc. (NASDAQ SmallCap: "TAYD") announced today that its sales for the 4th quarter were $7,125,138, up from last year's 4th quarter sales of $4,589,548.

Net earnings for the 4th quarter were $722,796, up substantially from last year's 4th quarter profit of $439,496.
Sales for the full year were an all-time record of $20,906,306, up from last year's $17,875,371. Net earnings for the full 2010-11 fiscal year were $1,416,509, down from the earnings of $1,586,957 reported for the comparable 2009-10 period.

"We expected to have a good & profitable year and we did," stated Douglas P. Taylor, President. He continued, "Our full year sales for 2011 set a new company record and net income (for the full year) was surpassed only by F/Y 2010 & F/Y 2008." He continued, "Our firm order backlog at year-end was $15 million; up significantly from the year ago level of $13 million." He concluded, "Seismic product sales increased by 75% over the previous year while sales to Asian customers grew to 35% of the Company's total revenues compared with 25% in 2010."