Richard - this was released state side but not to us good old Canadians.... although they have some serious good revenue growth aren't you worried about their building losses???
AIMGLOBAL TECHNOLOGIES SECOND QUARTER RESULTS - REVENUES UP 59% IN AIMTRONICS - ORDER BACKLOG BALLOONS TO $70 MILLION
AIMGLOBAL TECHNOLOGIES SECOND QUARTER RESULTS - REVENUES UP 59% IN
AIMTRONICS - ORDER BACKLOG BALLOONS TO $70 MILLION
AUSTIN, TX, Nov 11, 1999 /CNW-PRN via COMTEX/ -- AimGlobal
Technologies (AMEX and TSE: AGT) AimGlobal Technologies today announced
fiscal 2000 financial results for the second quarter ending September
30, 1999. The Company confirmed that results are on track with the
Company's plan, and that investment into the businesses is now clearly
indicative of the upside potential for the Company's developing
business model. Steve deJaray, President and Chief Executive Officer of
AimGlobal stated, ''With electro-technologies manufacturing revenues,
in Aimtronics alone, up over 59% over the same quarter last year and
over-all revenues up over 28% in the same period, we are seeing a clear
increase and developing demand for our products and services. We are
pleased that current order backlog continues to grow in line with our
projections and expectations. Order backlog for the next 12 months
currently exceeds $70 million, a first for the Company and a
considerable milestone in our evolving business model.'' deJaray
continued, ''We have invested aggressively this year in our future. For
example, our JD Edwards ERP system implementation, a $4.5 million
investment, is now successfully integrated into 50% of our facilities.
Capacity utilization - a key to growing profits has consistently
increased month over month. We have seen margins increase to 44% of
sales in consumer gas-related products. We are encouraged and
optimistic and we are looking forward to the successful following and
consecutive quarters with continued growth and bottom-line results.
AIMGLOBAL TECHNOLOGIES COMPANY INC. SECOND QUARTER REPORT Ending
September 30, 1999
(Unaudited - Prepared by Management) Management's Discussion and
Analysis
General AimGlobal Technologies through three operating subsidiaries,
serves the Medical, Aerospace, Communications, Industrial, Military,
Power Utility, Emergency Services Consumer markets and Internet
business applications markets. With operations in Texas, New York
State, Ontario and British Columbia, AimGlobal Technologies is a
recognized technical innovator and a leading manufacturer of
proprietary microelectronic solutions and hazardous air and gas
monitoring products for life, health and safety applications. During
September 1999, the Company acquired Catouzer Electronic Publishing and
Consulting Inc. (Aimagine Global Software) a software engineering and
technical support company. Catouzer provides further develop and market
of Synergy, an internet-enabling business software product.
Sales Revenue from AimGlobal for the six months ended September 30,
1999, increased by $9.4 million, or 28%, to $43.1 million from $33.7
million in the six months ended September 30, 1998. Aimtronics' sales
increased by $13.2 million or 59%, to $35.6 million in the six months
September 30, 1999 from $22.4 million in the six months September 30,
1998. Aim Safe-Air's total sales for the six months ended September 30,
1999 of $7.4 million represents a lag of $4.0 million or 35%, over the
six months ended September 30, 1998 sales of $11.4 million. Sales of
consumer carbon monoxide products are seasonal.
Gross Profit AimGlobal's gross profit for the six months ended
September 30, 1999 decreased to $4.6 million from $5.8 million in the
same six months last year, a decrease of $1.2 million, or 20%. Total
Aimtronics gross profit decreased by $0.8 million to $1.2 million, or
3.4% of sales, for the six months ended September 30, 1999 compared to
$2.0 million or 8.3% of sales, for the six months ended September 30,
1998. The decrease in gross profit from the prior year was primarily
due to increased capacity during late fiscal 1999. Aim Safe-Air's gross
profit for the six months ended September 30, 1999 decreased to $3.3
million, or 44.2% of sales, from $3.9 million, or 33.7% of sales, in
the six months ended September 30, 1998, an decrease of $0.6 million,
or 15.0%.
Operating Costs Operating expenses increased $4.4 million, or 65%, for
the six months ended September 30, 1999 to $11.1 million (26% of
revenue) from $6.7 million (20% of revenue) for the same period last
year. The increased expense levels are a result of higher selling and
marketing expenses incurred to support both current and future revenue
growth as well as expenses incurred by the operations acquired during
the second half of fiscal 1999.
Financial Position Working capital at the end of the quarter totaled
$18.2 million, as compared with $40.6 million in the prior year. This
decrease resulted from the current and prior year's losses and the
acquisition of Pachena Industries Ltd. During last year.
About the Company Founded 14 years ago, and through three operating
subsidiaries, AIMGlobal Technologies serves the Medical, Aerospace,
Communications, Industrial, Military, Power Utility, Emergency Services
Consumer markets and Internet business applications markets. With
operations in Texas, New York State, Ontario and British Columbia,
AIMGlobal Technologies is a recognized technical innovator and a
leading manufacturer of proprietary microelectronic solutions and
hazardous air and gas monitoring products for life, health and safety
applications.
Safe Harbor Statement Certain information in this press release
contains ''forward looking statements'' within the meaning of the
Securities Exchange Act of 1934, including those concerning the
Company's future results and strategy. Actual results could differ from
those in the forward looking statements due to a number of
uncertainties, including, but not limited to, the demand for the
Company's products and services; the size, timing and recognition of
revenue from significant orders; increased competition, changes in
Company strategy; product life cycles; the impact of rapid
technological advances, evolving industry standards, changes in
customer requirements, and fluctuations in foreign exchange rates. The
Company's expense levels are based, in part, on its expectations as to
future revenue and a significant portion of the Company's expenses do
not vary with revenue. As a result, if revenue is below expectations,
results of operations are likely to be materially adversely effected.
<< AimGlobal Technologies Company Inc. Incorporated under the laws of
British Columbia
CONSOLIDATED BALANCE SHEETS (Unaudited - in thousand of Canadian
Dollars)
As at September 30, 1999 1998 $ $
------------------------------------------------------------------------
ASSETS Current Cash and cash equivalents 64 19,045 Accounts receivable
17,943 13,363 Inventory 24,570 15,502 Prepaid expenses 513 513
------------------------------------------------------------------------
Total current assets 43,090 48,423
------------------------------------------------------------------------
Capital assets 23,929 17,082 Intangible and other assets 28,461 20,666
------------------------------------------------------------------------
95,480 86,171
------------------------------------------------------------------------
------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY Current Bank Indebtedness 7,067 -
Accounts payable and accrued liabilities 17,711 7,599 Current portion
of capital lease 595 240
------------------------------------------------------------------------
Total current liabilities 25,373 7,839
Obligations under capital lease 4,120 1,346 Loan and mortgage payable 2,
022 - Deferred income taxes 721 647
------------------------------------------------------------------------
Total liabilities 32,236 9,832
------------------------------------------------------------------------
Shareholders' equity Share capital 83,403 83,330 Cumulative translation
adjustments 462 352 Deficit (20,621) (7,343)
------------------------------------------------------------------------
Total shareholders' equity 63,244 76,339
------------------------------------------------------------------------
95,480 86,171
------------------------------------------------------------------------
------------------------------------------------------------------------
On behalf of the Board: (signed) Steven A. W. deJaray (signed) Bernie
M. Joyce Steven A. W. deJaray, Director Bernie M. Joyce, Director
AimGlobal Technologies Company Inc. Incorporated under the laws of
British Columbia
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND DEFICIT (Unaudited - in
thousand of Canadian Dollars)
Three Six months ended months ended September 30, September 30, 1999
1998 1999 1998 $ $ $ $
------------------------------------------------------------------------
Sales 21,891 17,147 43,134 33,765 Cost of sales 18,935 13,795 38,483 27,
903
------------------------------------------------------------------------
Gross profit 2,956 3,352 4,651 5,862 Interest and other income 188 403
210 555
------------------------------------------------------------------------
3,144 3,755 4,861 6,417
------------------------------------------------------------------------
Expenses General and administration 2,960 1,919 5,336 3,189
Professional fees 101 166 323 291 Salaries 2,418 1,502 4,454 2,577
Depreciation and amortization 575 339 1,075 678
------------------------------------------------------------------------
6,054 3,926 11,188 6,735
------------------------------------------------------------------------
Income (loss) before income taxes (2,910) (171)(6,327) (318)
------------------------------------------------------------------------
Income taxes Income tax (recovery) provision - (135) (495) (294)
Reduction in income taxes resulting from application of losses not
previously recorded - - - -
------------------------------------------------------------------------
(135) (495) (294)
------------------------------------------------------------------------
Net income (loss) for the period (2,910) (36)(5,832) (24) Deficit,
beginning of period (17,711)(7,307)(14,789) (7,319)
------------------------------------------------------------------------
Deficit, end of period (20,621) (7,343)(20,621) (7,343)
------------------------------------------------------------------------
Basic earnings (loss) per share (0.26) (0.00) (0.52) (0.00)
------------------------------------------------------------------------
Weight Average Number of shares outstanding 11,156,845 11,123,512
11,140,178 11,123,512
------------------------------------------------------------------------
AimGlobal Technologies Company Inc. Incorporated under the laws of
British Columbia
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - in thousand of
Canadian Dollars)
Six months period ended September 30, 1999 1998 $ $
------------------------------------------------------------------------
OPERATING ACTIVITIES Net income (loss) for the period (5,832) (24) Add
items not involving cash Depreciation and amortization 2,876 2,114
------------------------------------------------------------------------
(2,956) 2,090 Net change in assets and liabilities (3,887) (69)
------------------------------------------------------------------------
Cash provided by (used in) operating activities (6,843) 2,021
------------------------------------------------------------------------
FINANCING ACTIVITIES Repayment of obligations under capital lease (295)
(258) Obligations under capital lease 1,804 - Repayment of loan and
mortgage payable (474) (798) Loan payable 1,900 - Proceeds from
revolving overdraft loan, net 4,493 -
------------------------------------------------------------------------
Cash provided by (used in) financing activities 7,428 (1,016)
------------------------------------------------------------------------
INVESTING ACTIVITIES Business acquisition (600) - Purchase of capital
assets (3,457) (1,105)
------------------------------------------------------------------------
Cash provided by (used in) investing activities (4,057) (1,105)
------------------------------------------------------------------------
Effect of exchange rate changes on cash (195) (193)
------------------------------------------------------------------------
Net increase (decrease) in cash during the period (3,667) (293) Cash,
beginning of period 3,731 19,338
------------------------------------------------------------------------
Cash, end of period 64 19,045
------------------------------------------------------------------------
------------------------------------------------------------------------
AimGlobal Technologies Company Inc. Incorporated under the laws of
British Columbia
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited - in thousand of
Canadian Dollars)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated
financial statements have been prepared by management in accordance
with accounting principles generally accepted in Canada. Because a
precise determination of many assets and liabilities depends on future
events, the preparation of financial statements necessarily involves
the use of management's estimates and approximations. Actual results
could differ from those estimates.
The following is a summary of significant accounting policies used in
the preparation of these financial statements.
Basis of consolidation These consolidated financial statements include
the accounts of the company and its subsidiary companies as follows:
Aim Safe Air Products Ltd. 100% owned Allanco Flamex International
Corp. 95% owned Glacier Environmental Manufacturing Company Inc. 100%
owned AIM USA Inc. 100% owned AIM Safety Technologies Limited 100%
owned AIM Safety Home Products Ltd. 100% owned 1997 - 51% Aimtronics
Corporation Inc. 100% owned Aimtronics Holdings Inc. 100% owned
American Computer Assembly, Inc. 100% owned Catouzer Electronic
Publishing and Consulting Inc.100% owned
On February 28, 1998, the company acquired the remaining 49% of AIM
Safety Home Products Ltd. at a nominal value. In periods prior to the
purchase of the minority interest, the company fully consolidated the
results of operations of AIM Safety Home Products Ltd. as the
non-controlling interest was not required to contribute capital to fund
the subsidiary's previous losses.
Inventory Inventory is valued at the lower of cost, determined on a
first in first out basis, and net realizable value for finished goods
and work in process and replacement cost for raw materials. Cost of
finished goods and work in process includes direct costs and an
allocation of overhead, which includes amortization of capital assets.
Product development costs The company defers costs related to the
development of new products when the product is determined to be
technically feasible and a future market for the product is clearly
defined. The costs are amortized from the commencement of commercial
production over a period not exceeding the lesser of the expected life
of the new product and four years. If management determines that such
costs exceed net recoverable value, such excess costs are charged to
operations.
Capital assets and amortization Capital assets are recorded at cost and
are amortized over their estimated useful lives using the following
rates and methods:
Buildings 5% declining-balance Computer equipment 30% declining-balance
Computer software 2 years straight-line Furniture and fixtures 20%
declining-balance Leasehold improvements over the remaining lease term
Production equipment and tools - gas safety 3-4 years straight-line -
electro-technologies 20%-30% declining-balance
Intangible and other assets Intangible and other assets include amounts
paid for a non-competition agreement and goodwill. Amortization of the
non-competition agreement is provided on a straight-line basis over the
42 month period of the agreement. Goodwill represents the excess of the
purchase price over the fair values of net assets acquired, and is
being amortized on a straight-line basis over 25 years. On an ongoing
basis, management reviews the valuation and amortization of goodwill
and intangibles, based on future estimated operating income and taking
into consideration any events and circumstances which might have
impaired the fair value.
Foreign currency translation The company follows the temporal method of
accounting for the translation of foreign currency amounts into
Canadian dollars. Under this method, all monetary assets and
liabilities expressed in foreign currencies are translated at rates of
exchange in effect at the year end, and non-monetary assets and
liabilities are translated at historical rates of exchange. Income and
expense items expressed in foreign currencies are translated at the
rate of exchange prevailing on the date of the transaction. The company
translates the accounts of its integrated foreign subsidiary on the
same basis. Financial statements of the self-sustaining foreign
subsidiary are translated under the current rate method. Under this
method, assets and liabilities are translated at the exchange rate in
effect as of the balance sheet date and income and expense items are
translated at the average exchange rate for the period. Net unrealized
exchange adjustments arising on translation of foreign currency are
included in shareholders' equity as unrealized foreign currency
translation adjustments. Realized exchange gains or losses are included
in income. Gains and losses arising on foreign currency translation are
included in income except for gains and losses arising on long term
monetary items, which are deferred and amortized over the term of the
related items.
Earnings (loss) per share Basic earnings (loss) per share are
calculated using the weighted average number of common shares
outstanding. Fully diluted earnings per share, calculated assuming that
all of the options were exercised at the beginning of the period, have
not been presented as the exercise of the options would be
anti-dilutive.
Income taxes The company follows the deferred tax allocation method of
accounting for income taxes under which the income tax provision is
based on the income reported in the accounts.
Leases Leases are classified as either capital or operating. Those
leases which transfer substantially all the benefits and risks of
ownership of property to the company are accounted for as capital
leases. The capitalized lease obligation reflects the present value of
future lease payments, discounted at the appropriate interest rate.
Financial instruments The fair value of the financial instruments
approximates their carrying value in the financial statements unless
otherwise indicated.
Revenue recognition The company recognizes revenue upon the shipment of
product to its customers.
Research and development Research costs are expensed in the period in
which they are incurred. Development costs are expensed in the period
incurred unless such costs meet the criteria under generally accepted
accounting principles for deferral and amortization.
Uncertainty due to the Year 2000 Issue The Year 2000 Issue arises
because many computerized systems use two digits rather than four to
identify a year. Date-sensitive systems may recognize the year 2000 as
1900 or some other date, resulting in errors when information using
year 2000 dates is processed. In addition, similar problems may arise
in some systems which use certain dates in 1999 to represent something
other than a date. The effects of the Year 2000 Issue may be
experienced before, on, or after January 1, 2000, and, if not
addressed, the impact on operations and financial reporting may range
from minor errors to significant systems failure which could affect an
entity's ability to conduct normal business operations. It is not
possible to be certain that all aspects of the Year 2000 Issue
affecting the entity, including those related to the efforts of
customers, suppliers, or other third parties, will be fully resolved.
2. ACQUISITION During the period, the company acquired 100% of the
outstanding common shares of Catouzer Electronic Publishing and
Consulting Inc. for consideration of 100,000 common shares at a fair
value of approximately $10 per share. Catouzers' principal business is
in software engineering and technical support business sector. The
acquisition has been accounted for as a purchase and, accordingly,
these consolidated financial statements include the results of
operations from the date of acquisition. Substantially all of the
purchase is allocated to software technology included in intangible
assets.
SOURCE AimGlobal Technologies Company Inc.
(C) 1999 PR Newswire. All rights reserved.
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