Advanced Materials Group Reports Fourth-Quarter Results
ADMG Posts Eatnings of $.04 Per Share
Sales Up 45% for Fourth Quarter
Rancho Dominguez, Calif. Jan. 26, 2000
Advanced Materials Group Inc. (Nasdaq: ADMG) today reported sales and income from operations for the fourth fiscal quarter ended Nov. 30, 1999.
Net sales for the fourth quarter of fiscal 1999 were $10.6 million vs. $7.3 million for the comparable period of fiscal 1998. Net earnings for the fourth quarter of fiscal 1999 were $343,000, compared to a net loss from continuing operations of $2,017,000 for the fourth quarter of fiscal 1998. Basic earnings per share for the fourth quarter were 4 cents per share on an average of 8.5 million shares, compared to basic loss per share from continuing operations of 23 cents per share on an average of 8.7 million shares in the year-ago period.
Net sales for the 12 months of fiscal 1999 were $34.8 million vs. $28.9 million for the comparable period of fiscal 1998. Net loss for the 12 months of fiscal 1999 was $874,000, compared to net loss from continuing operations of $704,000 for the 12 months of fiscal 1998. Basic loss per share for the 12 months was 10 cents per share on an average of 8.6 million shares, compared to basic loss per share of 8 cents per share from continuing operations on an average of 8.7 million shares, in the year-ago period.
Chief Executive Officer Comments on Results
Commenting on the results, Advanced Materials Group CEO and President Steve F. Scott said: ``We posted strong sales volumes in the fourth quarter, especially in the U.S. Company sales of $10.6 million set a new record.
``Growth in U.S. volumes was the main contributor to our profitability in the fourth quarter. Our operations in Ireland also reported profitable results for the quarter. The key challenges for the coming year continue to be growing sales volumes in the U.S. and Ireland, while continuing to focus on the reduction of operating expense ratios and optimization of manufacturing processes in order to improve profitability. We are seeing results in both areas.
``Looking ahead, we expect sales volumes to be ahead of plan in the first quarter. Sales in December were on plan and January sales volumes are running well ahead of plan. We completed the closure of manufacturing operations in Portland in November. We expect increased plant utilization rates to play a key role in reaching profit targets in 2000. We continue to stay sharply focused on company wide cost containment.''
Advanced Materials Group Inc. is a leading manufacturer and fabricator of specialty foams, foils, films and pressure-sensitive adhesive components for a broad base of customers in the computer, medical, automotive and aerospace industries both in the United States and abroad.
Some statements contained in this news release are forward-looking statements that involve a number of risks and uncertainties. In addition to the factors discussed, the following are among other factors that could cause actual results to differ materially: general business conditions, competitive factors, concentration of sales in markets and customers, concentration of raw materials suppliers, delays or cancellations in orders, fluctuations in margins, timing of significant orders and other risks and uncertainties outlined by management in the company's most recent Form 10-KSB.
Contact: Steve F. Scott
President and CEO
310/537-5444
sscott@advmatl.com J. Douglas Graven
Vice President and CFO
310/537-5444
dgravens@advmatl.com
Advanced Materials Group, Inc.
Executive Offices:
20211 S. Susana Rd.
Rancho Dominguez, CA 90221 USA
Phone: (310) 537-5444
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