The Hanover Foods annual report for 2021 came in last week.
At a share price of $63 for the HNFSA (non-voting) share class, the market capitalization of the company (with 706,846 common shares outstanding) is now about $45 million, compared with net current assets of $101 million ($144 per share), and a book value of $241 million ($341 per share).
That is 45% of current assets (net of all liabilities) and 19% of book value.
Hanover's earnings were not as good in FY 2021 as in FY 2020. Their revenue declined from $401 million to $369 million, and gross profit declined from $41 million to $28 million. On the plus side, SG&A expense shrank by $3.8 million, with the result that operating profit was still $2.4 million.
Hanover bought back stock last year: 8,329 of the voting (class B) shares for $1,304,000, which was $156.56 per share. Those trade more expensive than the class A shares, but the $156.56 is still more than double the recent trading price $71 of the B shares. (The share classes have the same economic interest.) This is the first time we have seen Hanover repurchase a significant amount of stock.
We'll have much more about Hanover Foods in the upcoming November Issue of the Oddball Stocks Newsletter.
Our past posts on Hanover Foods:
- Hanover Foods part 1, the story
- Hanover Foods part 2 the figures
- Hanover, still cheap; do changes signal a possible acquisition?
- Why "dead money" stocks can still be valuable
- Looking at the Hanover Foods Corporation Annual Results for 2019
- Hanover Foods Reports Quarterly Results
- Next generation of Warehimes at Hanover Foods?
- Hanover Foods FY 2020 Annual Report
- Hanover Foods Reports Quarterly Results $HNFSA $HNFSB
- Hanover Foods Reports Quarterly Results $HNFSA $HNFSB
- Hanover Foods Quarterly Financials
Hanover Foods Corp 2021 Annual Report by Nate Tobik on Scribd