Boston Sand & Gravel Company - 2018 Annual Report

See our earlier post that contains an excerpt from Issue 21 of the Newsletter (published last August) about Boston Sand & Gravel Company (BSND). The company announced that the annual meting was going to be held in Boston on July 25th, which was very short notice. Highlights from the annual report:

• They sold a 12 acre intermodal site in Everett, MA for $14.3 million. That is 24% of the market capitalization of the company. The gain on sale was $14.16 million, so the book value had significantly understated the value.
• "Capital additions for the year totaled $4.5 million as the Company focused on reinvestment in its ready mix plants and fleet, as well as continuing to improve the infrastructure for its short line railroad." Both this year and last year, capital expenditures exceeded depreciation.
• "The first quarter of 2019 has gotten off to a slow start as several downtown projects have been stalled coming out of the ground. The much discussed federal infrastructure spending package has not come to fruition, so our Company continues to rely heavily on large downtown high rise projects funded primarily by strong foreign investment."
• A dividend of $30 per share was declared and paid in January 2019. 
• Gross profit was up slightly but SG&A was up more, resulting in a decline in operating profit from $5.6 million to $4.8 million (-14%). 

At a share price of $600 and 100,327 shares issued and outstanding, the company's market capitalization is $60.2 million, compared to a book value of $54.5 million. The company has $29.2 million of cash and short term investments and $22 million of total liabilities, so the balance sheet is strong. There is also $9.6 million of real estate under development.

We'll have more about this one in the upcoming August Issue of the Oddball Stocks Newsletter. Until then, make sure you see Issue 25 of the Newsletter, and if you are missing any back Issues, you can get them here.