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Luxor Industrial (LRL.v)...0.36



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By Bobwins

Posted: Wednesday Nov 16 7:01:14AM 2016

Sold out of LRL.v last week at C$.27.  I got nervous after looking at the share count.  Great Q2 was based on ~40million shares outstanding.  If you count the 20million they are going to pay the sellers of the framing business plus the 16+ they are issuing now plus the 16+ warrants plus options outstanding, you are close to 100 million shares.  If they can repeat Q2 in 2017, you get around C$4million in net profits.  That would be around .04eps.  So not that much upside.  AND they are talking about improving gross margins above 10% by automating the factory.  Don't know if that money has been raised or if they need to issue more shares for that.  

Construction is a tough business and framing is one of the lowest margin components of that business.  They will need more financing if the business continues to grow at the current pace because the low gross margin doesn't provide enough cash to grow very fast.  

They appear to be in the right place at the right time(Seattle construction boom) but I'm not sure about the impact of the financings on the bottom line eps vs the share price.  


By Bobwins

Posted: Monday Oct 3 9:18:18AM 2016

Ryan Irvine posted this about Luxor:

LRL.v  +.01 to C$.35

Ryan Irvine: The Profit Breakthrough

Posted by Ryan Irvine

on Tuesday, 27 September 2016 14:23

The single most powerful driver of a stock long term is profits or earnings.

One of the most powerful inflection points in the evolution of any company is when it first begins to breakthrough into profitability or positive earnings.

From earnings corporations can growth their business organically, grow it by acquisition, and pay dividends to shareholders – without diluting shareholders – this is the secret to long-term growth.

But it is just prior to or in the quiet months following the release of a Breakthrough Profit report that potentially explosive share gains can be made.

That is precisely why KeyStone just released its 2016 Breakthrough Canadian Growth Stock Report which focuses on 20+ Canadian small and micro-cap growth stocks that have either just hit profitability or show a high likelihood of producing earnings for the first time over the next 6-12 months

We conduct full analysis and management interviews on the 11 stocks in our Mini-Reports Section and introduce 3 new SPEC BUY recommendations and one Focus Buy. Our 9 Micro-Reports highlight stocks that are currently on our Breakthrough Monitor List with full analyst notes. Included are breakthrough software, gold, energy, pharma, manufacturing, other technology, and infrastructure stocks.

Each has potentially hit or is about to hit that highly important inflection point and is positioned to potentially produce breakthrough profits for those buying early.

In fact, in many cases, these profitable businesses have little to no analyst coverage, so the potential to find a mispriced stock is greater.

To give Money Talks readers an idea of the type of growth stocks we include in this report we have pulled one recommendation which offers solid risk to reward potential over the next 1-2 years.

We want to be clear that while the Breakthrough Stocks we profile in this just released report have strong potential to grow near and long-term, they possess a higher risk level generally than the Growth Stocks we include in our Focus BUY Portfolio. We consider these stocks only suitable for the risk capital portion of an investor’s portfolio and they should not make up the core.

Luxor Industrial Corporation (TSX-V: LRL)

Industry: Construction/Infrastructure

Current Price: $0.34

Market Cap: $12,813,505

Shares Outstanding: 39,936,779

Fully Diluted: ~ 60,000,0000

Key Management Share Ownership: 18 per cent

Luxor is a manufacturer and distributor of commercial and residential engineered wood products. In the industrial sector, the company manufacturers wood mat products. In the residential sector it manufactures its patented IBS 2000® engineered floor bridging, fire protect- ed architectural wood products, and FastFrameTM wall components. The company recently completed two transformational acquisitions, vertically integrating with the purchase of turnkey framing companies in Canada and the United States. Luxor now distributes Pre-Fabricated Wall Panels and a complete line of Multi-Family Engineered Lumber.

Building window and door openings is time consuming and tedious for the framers. Luxor’s pre- fabricated wall and door openings are precision made for easy assembly on site. Framers save money as less time is required to put the openings into the walls. With Luxor’s option there is no waste in materials as is typically the case on traditional jobsites where long lengths are randomly cut to smaller pieces for the various openings resulting in considerable wood wastage. With Luxor’s precision cut openings no re work is required after the walls are framed.

Recent Second Quarter Profit Breakthrough

 

Q2 2016

Q2 2015

Revenues: 

$9,503,494

$683,616

Income (loss):

$909,315

$51,426

Income (loss)/Shr.:

$0.022

$0.00

Fully Diluted Income (loss)/Shr.:

$0.015

$0.00

Forecasts:

2016e Annual: CDN$30 million range in revenues. The company achieved a breakthrough hinto profitability ahead of schedule in its second quarter. The potential for continued breakthrough into profitability over the second half of 2016 is real. However, management expects the step up in terms of margins from the 6-8 per cent range to 10-12 per cent to occur with new automation for its Canadian plants which is scheduled to come online for 2017.

2017e Annual: Potential for ~ CDN$40 million revenue, margin improvement beyond 10% and the earnings per share in the range of $0.06-$0.07.

KeyStone Comments: The revenue targets for 2016 and 2017 of CDN$30 and CDN$40 million respectively may seem aggressive but given the fact management has already reported around CND$25 million in US framing business in 2016, the former number is achievable. The number we see as aggressive is the earnings target for 2017. This will take very strong execution and a true step-up in terms of earnings margins from the present level. If the company hits these targets in 2017, the stock is undervalued.

Conclusion

With the company’s two recent framing business acquisitions, Luxor has taken its operations to the next level in terms of revenue growth. Luxor has already announced that its first half 2016 sales exceeded $10.8 million a huge step-up from the $1.69 million in the same period in 2015. The increase in sales is the result of Luxor entering into the framing business in the United States and Canada in 2016. The next and most important step is taking that revenue growth and producing meaningful per share cash flow and earnings growth.

We were very impressed with Luxor’s second quarter results. The company should also post very strong revenue growth in the second half of 2016, given the large and growing order book for the current fiscal year. We expect the company to be positioned to produce better margins as the year moves forward and as it invests to automate some operations at its Canadian plants into 2017. Management believes it can then achieve net income margins in the range of 10- 12 per cent. This would produce 2017 earnings of over $0.06 per share if the goal of CDN$40 million is achieved. If these targets are achieved, the stock is undervalued trading at around 5 times potential 2017 earnings – we stress there is a great deal of risk in these projections.

There is execution risk as well as business risk in these forecasts as the company’s market can change greatly over the course of a year. Having said this, management delivered strong results breaking through into profitability in a big way in Q2 2016.

Action: We are initiating coverage on the stock with a SPEC BUY and recommend investors purchase a HALF POSITION in the stock in its current range. We intend to fill the full position over the next 3-6 months. The stock is only suitable for clients with a higher than average tolerance for risk.

http://moneytalks.net/portfolio-updates/18282-ryan-irvine-the-profit-breakthrough.html


Read more at http://www.stockhouse.com/companies/bullboard#0zdWfK2FG8CyD4ja.99


By rodball

Posted: Thursday Sep 22 6:58:48PM 2016

Luxor with another contract announcement today...another repeat customer, continuing to add to its order backlog over the next year.  LRL closed the day at 0.39.

 

Have a great weekend!

 

Luxor unit receives $3M (U.S.) framing contract

 

2016-09-22 08:25 ET - News Release


Mr. Terry Lashman reports

LUXOR'S MILL FRAME LLC AWARDED US $ 3 MILLION TURNKEY FRAMING CONTRACT FOR A PROJECT IN SHORELINE, WASHINGTON BY THE RUSH COMPANIES

Luxor Industrial Corp.'s subsidiary, USA Mill Frame LLC, was awarded a $3-million (U.S.) turnkey framing contract for the Shoreline project in Shoreline, Wash., by the Rush Companies. This is the company's second contract with Rush. Luxor's 2016 and 2017 USA framing contracts now total approximately $29-million (U.S.) or approximately $37-million with total U.S. and Canadian contracts totalling approximately $39-million.

Luxor's subsidiary Mill Frame Inc. will be supplying all framing materials for the project, scheduled to commence in April, 2017, including prefabricated walls and engineered floor systems produced from its manufacturing facilities in Chilliwack, B.C., in addition to on-site labour.

Larry Hutchinson, senior project manager of the Rush Companies, stated, "We chose Mill Frame for our own project because they have in-house design and manufacturing and we can get our projects built quicker with their wall panels and precision-cut engineered wood floor and roof systems."

About Luxor Industrial

The company distributes prefabricated wall panels and a complete line of multifamily engineered lumber.

Luxor is involved in the development, engineering, manufacturing and marketing of engineered wood products. In the industrial sector, it manufacturers wood mat products. In the residential sector it manufactures its patented IBS 2000 engineered floor bridging, fire-protected architectural wood products, and FastFrame wall components.

We seek Safe Harbor.

© 2016 Canjex Publishing Ltd. All rights reserved.


By Bobwins

Posted: Monday Sep 19 10:58:25AM 2016

LRL.v  C$.37   bought a small position in Luxor Industrial Corporation.  Company announced a 1.2 million project win and a total of C$33million in contracts for 2016 and 2017.

Earned .023eps for June Qtr on 9+million in sales.  Also said sales should be around C$2million a month thru year end 2016.  So subsequent qtrs may be lower in total revs than the huge Q2.  

 


By rodball

Posted: Wednesday Aug 31 2:34:47PM 2016

Their framing acquisition this year seems to be an accretive bonanza for them.  Not sure about the seasonality.  I imagine there will be some "lumpiness"; however it's surprising the construction that still occurs during the winter months.  At any rate, guess time will tell.

 

Bobwins, have a look at Vigil Health Solutions as well.  They recently reported and look promising.  I don't own...waiting...hoping for a pullback before next quarterlies.

 

Have a good night!

 


By Bobwins

Posted: Wednesday Aug 31 11:31:52AM 2016

This looks really good.  I wonder what the seasonality would be?  One of the contracts they announced was for Arizona so if they could get work in the Southern and Southwest US, there wouldn't be much of a slowdown but I doubt they can generate that much work in dry climates.  So I would think they would have two great qtrs(2&3) and two slower qtrs.  So maybe they make .05eps in the great qtrs and lose .01 in the slower qtrs? So they end up with .04 eps??  Just a wild guess.  Nice find.  


By rodball

Posted: Tuesday Aug 30 7:27:12PM 2016

Luxor Industrial makes a variety of prefabricated construction materials such as floor joist supports, trusses, etc. as well as contract framing.  The company reported Q2/6 mth financials today.  It closed the day at 0.36.

 

Luxor had sales for Q2 of $9,507,657, compared to $689,795 in 2015.

Earnings for the quarter were $922,616 or 0.023/share compared to $51,426 in 2015.

The company currently has framing contracts totalling approx. $30 million for the remainder of 2016-2017.

See nr below.

 

Luxor Industrial earns $922,616 in Q2

 

2016-08-30 09:25 ET - News Release

 

Mr. Terry Lashman reports

LUXOR REPORTS NET PROFIT OF $922,616 OR $.023 EARNINGS PER SHARE FOR SECOND QUARTER 2016 ON SALES OF $9,507,657

Luxor Industrial Corp. has provided second quarter results. Sales for the three-month period ending June 30, 2016, were $ 9,507,657 compared with $689,795 for the same period in 2015. Net profit for the three-month period ending June 30, 2016, was $ 922,616 compared with a net profit of $51,426 for the same period in 2015. Earnings per share were 2.3 cents for the second quarter 2016 and 1.6 cents for the six-month period ending June 30, 2016.

Sales for the six-month period ending June 30, 2016, were $ 12,091,823 compared with $1,688,622 for the same period in 2015. Net profit for the six-month period ending June 30, 2016, was $619,881 compared with a net profit of $ 207,539 for the same period in 2015.

Luxor's strong second quarter results are the result of turnkey framing sales, a business that the company entered into at the beginning of 2016. Luxor has secured framing contracts in excess of $30-million for 2016 and 2017 in the United States and Canada. To date the contracts average over $2-million per month for the 10-month period March to December, 2016.

Earlier, for the three-month period ending March 31, 2016, the company reported a net loss of $ 302,734 on sales of $ 2,584,000. The loss was the result of significant administrative and legal costs incurred in the acquisitions of Mill Frame LLC and Mill Frame Inc., the securing of a $5,275,000 credit facility with HSBC and the increased overhead to secure turnkey framing contracts for the second quarter 2016 onward.

Terry Lashman, chief executive officer of Luxor, comments: "We are pleased with the second quarter results following a busy start-up period. Management is confident that sales will continue to grow in the forward period. Our customers are appreciative of the company's performance and wish to work with us in the long term. Also, the shortage of skilled labour is expected to continue and the multifamily construction is expected to experience strong growth in the forward period. I would like to thank management and our employees for their hard work and dedication during this stressful start-up situation."

 


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