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Good results. Nesbitt rate: 4/5
Target price $21.00
What do you think?
MXA 1999-04-29 (provided courtesy of Canadian Corporate News.)
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MAAX INC. - Record Results For A Third Consecutive Year
SAINTE-MARIE-DE-BEAUCE, QUEBEC--
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Fiscal year ended February 28, 1999:
- Sales of $312.9 million, up 79 percent
- Net earnings of $19.2 million, up 57 percent
- Earnings per share of $0.88, as opposed to $0.68 last year
- Cash flow of $31.8 million, or $1.46 per share, up 58.7 percent
/T/
MAAX Inc., one of North America's leading manufacturers of
bathroom fixtures and accessories, has increased sales by 79
percent for the fiscal year ended February 28, 1999, through
strategic acquisitions and internal growth. Sales totalled $312.9
million, compared with $174.8 million in the preceding year. Net
earnings stood at $19.2 million, an increase of 57 percent over
the $12.2 million figure last year. Despite a 27.7 percent
increase in the weighted average number of shares outstanding as a
result of a public offering in July, earnings per share stood at
$0.88 on 21,824,804 shares outstanding, compared to $0.68 on
18,029,349 shares outstanding in 1997-98, for an increase of 29.4
percent. Cash flow increased 58.7 percent to $31.8 million or
$1.46 per share, as opposed to $20.1 million or $1.11 per share
last year. Over the last five years, MAAX has achieved a 56.7
percent compounded annual growth rate in sales and a 38.6 percent
in net earnings.
Company sales increased 47.4 percent in the bathroom fixtures and
accessories sector, which accounts for 65.2 percent of total
sales; 182.0 percent in the shower door and medicine cabinet
sector, which itself represents 26.1 percent of sales; and 265.0
percent in the spa sector, with 8.7 percent of sales. In the last
year, 64.4 percent of sales were in the U.S., 34.2 percent in
Canada, and 1.4 percent in international market.
Fourth Quarter
Over the last three months of fiscal 1998-99, Company sales
increased 84.5 percent from $42.6 million in the corresponding
quarter last year to $78.6 million this year. MAAX posted growth
of 145.5 percent in net earnings, which stood at $3.6 million or
$0.15 per share on 23,643,359 shares outstanding, as compared to
$1.5 million or $0.08 per share on 18,171,887 shares outstanding
in the fourth quarter of the preceding year.
Outlook
The industry is very dynamic currently, and there are distribution
networks to be expanded and a host of innovative products to be
introduced. These factors will combine to enable MAAX to post
internal growth of over 15 percent in the current year. In this
regard, we are very happy to announce that MAAX will be expanding
into the faucet and bathroom vanity markets in the coming months.
MAAX is thus intensifying the horizontal integration of its
activities and enhancing its potential as a one-stop shop for all
bathroom and kitchen products.
Overall MAAX should exceed $445 million in sales for the current
year, while posting profit margins consistent with our historical
performance. "We are proud to deliver such tremendous growth,"
commented Placide Poulin, President and CEO of the Company, "and
we continue to position the company for accelerated growth in both
sales and profitability in the coming months and years. In
addition to our horizontal product integration, MAAX's operational
strategy is to aggressively pursue our automation program and
vertical integration to maximize productivity and substantially
reduce costs and offering all our clients optimal service
logistics. This combined with our systematic acquisition program
should contribute to bring the Company ever closer to our
objective of $665 million in sales by the year 2002."
MAAX Inc. is one of North America's leading manufacturers of
bathroom fixtures and accessories, spas and kitchen cabinets, with
more than 2,300 employees. MAAX operates 20 plants and 8
distribution centres across North America. The Company's common
shares are traded on the Montreal Exchange and the Toronto Stock
Exchange under ticker symbol MXA.
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FOR FURTHER INFORMATION PLEASE CONTACT:
MAAX Inc.
Placide Poulin
President and CEO
(418) 387-3646
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