Thursday July 29, 8:51 am Eastern Time
Company Press Release
GTR Group Inc. Announces First Quarter Results
BRAMPTON, Ontario--(BUSINESS WIRE)--July 29, 1999--(TSE:GTR. - news) GTR
Group Inc. (formerly Games Trader Inc.) today announced financial results for the first quarter ended June 30, 1999.
For the first quarter ended June 30, 1999 sales increased by $740,350 to $5.8 million, compared to $5.0 million in the first
quarter of fiscal 1998, an increase of 14.7 percent. Gross profit margin for the first quarter was 30.7 percent compared to 23.1
percent for the same period last year. Net income for the first quarter was $452,542 or $0.02 per share (basic and fully
diluted) compared to a loss of $332,585 or $0.03 per share (basic and fully diluted) for the same period last year. Working
capital doubled during the first quarter to stand at $28.1 million as at June 30,1999. This increase is primarily due to the special
warrant financing completed in April of 1999.
Mr. Peter Kozicz, President and Chief Executive Officer of the company commented: ''We are particularly pleased with the
results of the first quarter completed June 30, 1999. For the first time in its history GTR Group has been able to show a profit
in what has traditionally been the company's weakest quarter. This strong performance is due to several factors including a solid
increase in sales and an improvement in gross profit margins. We expect continued growth in our core business for the
remainder of the current fiscal year.''
Mr. Kozicz concluded: ''As a result of our strong balance sheet and a cash position of almost $13 million as at June 30, 1999
we are now well positioned to implement our e-commerce strategy and to actively pursue strategic acquisitions that will help us
achieve our objective of building a fully integrated interactive entertainment company.''
GTR Group Inc., through its subsidiary, Games Trader Inc. is a leading supplier of republished and previously played video
games for Nintendo, Sega and Sony video games systems to mass merchant retailers and speciality retailers in the United
States and Canada. The shares of GTR Group Inc. are listed on The Toronto Stock Exchange and trade under the ticker
symbol GTR.
GTR Group Inc.
(FORMERLY GAMES TRADER INC.)
Consolidated Cash Flow Statements - Unaudited
Three months ended June 30, 1999 with comparative figures for the
period April 1, 1998 to June 30, 1998
Three months Three months
ended ended
30-Jun-99 30-Jun-98
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Cash flows from operating activities
Net Income (loss) $452,542 $(332,585)
Adjustments for:
Amortization 431,384 427,652
Foreign exchange gain -141,755 -42,756
Income tax receivable 3,808 -
Changes in non-Cash operating working capital
Decrease in trade
and other receivables 1,028,024 3,186,472
Increase in prepaid expenses -724,516 -27,874
Increase in inventories -7,839,440 -2,790,255
Increase in trade payables
and accrued liabilities 1,924,011 -1,575,379
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Cash flows from operating activities -4,865,942 -1,154,725
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Cash flows from investing activities
Purchase of capital assets -177,870 -122,067
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Cash flows used in investing activities -177,870 -122,067
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Cash flows from financing activities
Proceeds from issue of share capital 14,860,610 -
Transaction costs -1,482,678 -
Repayment of bank term loan -113,546 -
Repayment of secured debenture -160,714 -
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Cash flows used in
financing activities 13,103,672 -
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Foreign exchange gain on cash
held in foreign currency 141,755 42,756
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Net increase in cash
and cash equivalents 8,201,615 -1,234,036
Cash at beginning of period 4,758,419 -43,963
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Cash and cash
equivalents at end of period $12,960,034 $-1,277,999
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Cash and cash equivalents at end of period include the following
components:
Cash on hand and bank indebtedness $960,034 $-1,277,999
Short term investments 12,000,000 0
---------- ----------
Total cash and cash equivalents $12,960,034 $-1,277,999
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GTR Group Inc.
(FORMERLY GAMES TRADER INC.)
Consolidated Statements of Operations - Unaudited
Three months ended June 30, 1999 with comparative figures for the
period April 1, 1998 to June 30, 1998
Three months Three months
ended ended
30-Jun-99 30-Jun-98
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Sales $5,784,290 $5,043,940
Cost of sales 4,007,969 3,880,116
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Gross profit 1,776,321 1,163,824
Expenses:
Selling expenses 378,639 378,720
Administrative expenses 712,053 411,851
Interest on term loan and debentures - 314,425
Interest on shareholder loan 15,403 -
Interest on bank term loan 14,871 -
Amortization 431,384 427,652
Other (income) expenses -86,816 6,517
Foreign exchange gain -141,755 -42,756
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1,323,779 1,496,408
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Income (loss) before income taxes 452,542 -332,585
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Income (loss) before income taxes 452,542 -332,585
Income taxes - -
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Net income (loss) 452,542 -332,585
Retained earnings (deficit),
beginning of period 2,457,584 -1,826,443
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Retained earnings
(deficit), end of period $2,910,126 $-2,159,028
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Earnings (loss) per share $0.02 $-0.03
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Fully diluted earnings (loss) per share $0.02 $-0.03
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Weighted average number of common
shares outstanding 29,573,978 9,809,629
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GTR Group Inc.
(FORMERLY GAMES TRADER INC.)
Consolidated Balance Sheets
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-----------------------------------------------------------------
30-Jun-99 31-Mar-99
Unaudited Audited
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ASSETS
Current assets:
Cash $960,034 $4,758,419
Short term investments 12,000,000 -
Accounts receivable 5,434,515 6,462,537
Inventories 15,181,880 7,342,439
Prepaid expenses
and deposits 985,768 261,252
Current portion of future
income tax assets 83,905 83,905
Income tax receivable 357,015 360,823
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35,003,117 19,269,375
Future income tax assets 1,201,388 1,201,388
Capital assets 2,765,142 2,873,144
Shareholder advances 22,063 28,015
Goodwill and intangibles 4,511,446 4,656,958
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$43,503,156 $28,028,880
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LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $6,172,103 $4,248,092
Current portion of
bank term loan 210,454 324,000
Shareholder loan 500,004 666,667
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6,882,561 5,238,759
Bank term loan 375,361 375,361
Shareholders' equity:
Capital stock 33,335,108 19,957,176
Retained earnings 2,910,126 2,457,584
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36,245,234 22,414,760
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$43,503,156 $28,028,880
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Contact:
GTR Group Inc.
Peter Kozicz, 905/799-4700
905/799-4799 (FAX)
Email: pkozicz@gamestradeinc.com
or
GTR Group Inc.
Louis Nagy, 905/799-4700
905/799-4799 (FAX)
Email: lnagy@gamestraderinc.com
More Quotes and News:
Games Trader Inc (Toronto:GTR.TO - news)
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