To the benefit of all:
PALLET PALLET ANNOUNCES THIRD QUARTER FISCAL '97 RESULTS
TORONTO, March 31 /CNW/ - (All figures expressed in U.S. dollars) Pallet
Pallet Inc. today announced financial results for the Company's third quarter
of fiscal 1997 ending February 28, 1997. Sales revenues for the three month
period were $20.7 million with an EBITDA of $(0.2) million and a loss before
provision for income taxes of $1.1 million, or 2 cents per share. After
eliminating discontinued operations and nonrecurring items, comparative
figures for the same period of fiscal 1996, based on revenues of $23 million,
produced an EBITDA of $(2.2) million and a loss before provision for income
taxes of $3.1 million, or 7 cents per share.
When combined with the Company's first two quarters of fiscal 1997
financial results, sales revenues for the nine month period were $70.6 million
generating a positive EBITDA of $1.4 million and a loss before provision for
income taxes of $1.1 million, or 2 cents per share. These figures compare
favourably with those for the same period of fiscal 1996, which after
eliminating discontinued operations and nonrecurring items, based on revenues
of $81.5 million, produced an EBITDA of $(1.7) million and a loss before
provision for income taxes of $4.4 million, or 10 cents per share.
Mr. Douglas Moore, President and Chief Executive Officer, Pallet Pallet
Inc. stated, ``Historically, November, December and January are slow months
for the pallet industry. This year, in addition to the seasonality, we
experienced erosion in gross margins resulting from unexpected increases in
lumber prices due to abnormal weather conditions. Compounding this further,
the marketplace was unwilling to accept price increases as rapidly as lumber
costs rose. While performance for the third quarter was below expectations,
good progress continues to be made in restructuring the company which will
enhance future results.''
``Our North American distribution network of `Authorized Service Centers'
which to-date totals approximately 230, continues to illustrate its importance
in growing our national programs. One such program, Palletbanking(R), signed
several major clients in the third quarter alone, due entirely to the strength
and geographical coverage of this network. We would expect revenue to increase
in the coming months as these new customers come on line.''
Pallet Pallet Inc. operates North America's largest integrated
distribution network for new and recycled wood pallets, reusable plastic
pallets and containers, and related products. The Company is listed on the
Toronto Stock Exchange under the symbol ``PLT''.
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For further information: S.M. (Sue) Topping, Secretary/Treasurer, Pallet Pallet Inc., 144 Front Street West, Suite 580, Toronto, Ontario M5J 2L7, Tel: (416) 971-7088, Fax: (416) 971-8673
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