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Blaine Kitchenware Inc

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Blaine Kitchenware Inc
Blaine Kitchenware Inc, was founded in the year 1927 and is a mid-size player in production of branded appliances. It is a public limited company but is closely held company as most of the shares are held by family members. It has a decent market share of 10% of the overall industry size of USD 2.3 million.
Upon analysis of current financial policy of the organization it is evident that Blaine Kitchenware is very conservative in its financial policy. Company has never borrowed debt, it is cash rich indicating it’s over liquid nature and therefore is pretty underleveraged. Between 2003 - 2006, its annual sales grew by 2% and Annual return to its shareholders grew by 11% per year on CAGR basis. During 2006, it clocked a net income of the USD 53.6 million with top line of USD 342 million. But off-late margins have declined on account of high cost towards integration and write down in inventory related to its acquisitions Company’s strategy towards shifting to higher end products has led to slight dip in margins in over last 2 years.

Operating Results:
2004
2005
2006
Revenue
291,940
307,964
342,251
Less: Cost of Goods Sold
204,265
220,234
249,794
Gross Profit
87,676
87,731
92,458
Less: Selling, General & Administrative
25,293
27,049
28,512
Operating Income
62,383
60,682
63,946
Plus: Depreciation & Amortization
6,987
8,213
9,914
EBITDA
69,370
68,895
73,860

EBIT
62,383
60,682
63,946
Plus: Other Income (expense)
15,719
16,057
13,506
Earnings Before Tax
78,101
76,738
77,451
Less: Taxes
24,989
24,303
23,821
Net Income
53,112
52,435
53,630
Dividends
18,589
22,871
28,345

Margins:

Revenue Growth
3.2%
5.5%
11.1%
Gross Margin
30.0%
28.5%
27.0%
EBIT Margin
21.4%
19.7%
18.7%
EBITDA Margin
23.8%
22.4%
21.6%
Effective Tax Rate (1)
32.0%
31.7%
30.8%
Net Income Margin
18.2%
17.0%
15.7%
Dividend payout ratio
35.0%
43.6%
52.9%

Company’s profitability: ROE is Below Average: PAT
Equity
Ratio
Home & Hearth Design
$53,698
475,377.00
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