Nice numbers!!!
Company Press Release
Advanced Materials Group Reports First Quarter Results
ADMG Posts Earnings of $.03 Per Share
Sales Up 28.5% For First Quarter
RANCHO DOMINGUEZ, Calif.--(BUSINESS WIRE)--March 22, 2000-- Advanced Materials Group, Inc. (Nasdaq:ADMG - news) today reported record sales and improved earnings from operations for the first fiscal quarter ended Feb. 27, 2000.
Net sales for the first quarter of fiscal 2000 were $9.5 million versus $7.4 million for the comparable period of fiscal 1999. Net earnings for the first quarter of fiscal 2000 were $251,000, compared to a net loss of $390,000 for the first quarter of fiscal 1999.
Basic earnings per share for the first quarter were three cents per share on an average of 8.5 million shares, compared to basic loss per share of five cents per share on an average of 8.7 million shares, in the year-ago period. Diluted earnings per share for the first quarter were three cents per share on an average of 8.6 million shares.
Chief Executive Officer Comments on Results
Commenting on the results, Advanced Materials Group CEO and President Steve F. Scott said: ``Sales were very strong during the first quarter, resulting in a new first quarter sales record. We are particularly pleased with the strong sales in Ireland.
``The cost reductions we made are also paying off. The combination of higher sales volumes and lower overheads resulted in improving gross profit margins. Margin performance for the first quarter of fiscal 2000 was 15.6% compared to 11.5% for the comparable period of fiscal 1999. Cost containment of SG&A expenses continues to be a priority as well, with operating expenses remaining at the year-ago level.
``Looking ahead, we expect strong sales volume growth in the second quarter. 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 U.S. and abroad.
Some statements contained in this 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-K.
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Feb. 27,
2000 1999
Net sales $ 9,481,000 $7,380,000
Cost of Sales 8,003,000 6,534,000
Gross profit 1,478,000 846,000
Operating expenses:
Selling, general and administrative 1,051,000 1,096,000
Depreciation and amortization 66,000 49,000
Total operating expenses 1,117,000 1,145,000
Income (loss) from operations 361,000 (299,000)
Other income (expense):
Interest expense (119,000) (83,000)
Foreign Exchange Gain 11,000 11,000
Other, net (2,000) (19,000)
Total other income and expenses (110,000) (91,000)
Income (loss) before income taxes 251,000 (390,000)
Income tax expense -- --
Net Income (loss) $ 251,000 $ (390,000)
Basic earnings per common share $ 0.03 $ (0.05)
Diluted earnings per common share $ 0.03 $ (0.05)
Basic weighted average
common shares outstanding 8,548,222 8,651,622
Diluted weighted average
common shares outstanding 8,592,549 8,651,622
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
Feb. 27, 2000 and Nov. 30, 1999
2000 1999
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 625,000 $ 496,000
Accounts receivable, net 6,525,000 7,238,000
Inventories, net 4,053,000 3,857,000
Income tax receivable 261,000 261,000
Deferred income taxes 337,000 337,000
Prepaid expenses and other 108,000 172,000
Total current assets 11,909,000 12,361,000
Property and equipment, net 2,507,000 2,507,000
Goodwill, net 499,000 514,000
Deferred income taxes 473,000 473,000
Other assets 184,000 237,000
Total assets $15,572,000 $16,092,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,207,000 $ 4,448,000
Income taxes payable 308,000 308,000
Accrued liabilities 840,000 1,130,000
Discontinued operations 642,000 677,000
Deferred income 302,000 337,000
Line of credit 130,000 --
Current portion of
long-term obligations 298,000 282,000
Total current liabilities 6,727,000 7,182,000
Line of credit 3,482,000 3,823,000
Term loan 360,000 396,000
Convertible debentures 405,000 405,000
Deferred compensation 1,086,000 1,056,000
Other 238,000 243,000
Total liabilities 12,298,000 13,105,000
Stockholders' equity:
Preferred stock - $.001 par value;
5 million shares authorized
no shares issued and outstanding -- --
Common stock - $.001 par value;
25 million shares authorized;
8,551,555 and 8,519,055 shares issued
and outstanding at Feb. 27, 2000 and
Nov. 30, 1999, respectively 9,000 9,000
Additional paid-in capital 7,024,000 6,987,000
Accumulated deficit (3,759,000) (4,009,000)
Total stockholders' equity 3,274,000 2,987,000
Total liabilities and
stockholders' equity $15,572,000 $16,092,000
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Contact:
Advanced Materials Group, Inc., Rancho Dominguez
Steve F. Scott/J. Douglas Graven, 310/537-5444
sscott@advmatl.com
dgraven@advmatl.com
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