RLT Corporation reports increased revenues, profit in first quarter.
Another great quarter.
TORONTO, Aug. 26 /CNW/ - Royal Laser Tech Corporation, a leader in the
production of custom metal and wood based products using advanced laser-based
computer integrated manufacturing systems, announced today the release of its
financial results for its first quarter ended July 31, 1999.
Revenues for the Company's first quarter ended July 31, 1999 were
$14,380,000 up from $10,548,000 in the corresponding quarter of the previous
year, an increase of 36%, representing the Company's highest quarterly
revenues to date.
Net earnings for the Company's first quarter were $1,518,000 up from
$1,364,000 in the corresponding quarter of the previous year, an increase of
approximately 11%. Earnings per share for the three month period was $0.14 (on
both a basic and fully diluted basis) as compared to $0.17 and $0.12 on a
fully diluted basis in the corresponding period of the previous year.
The Company noted that the first quarter is typically one of the weakest
in its store fixture division. Gross margins have held steady from recent
quarters and, with increased sales expected in coming quarters, gross margins
should continue to improve.
Bill Iannaci, President of Royal Laser stated, ''I am pleased with our
first quarter results, as we achieved our highest quarterly net earnings ever.
Further, by the middle of this first quarter we started to gain some real
momentum in sales and shipments especially in our store fixture division. This
momentum is carrying into the second quarter and we are very excited about our
prospects for the remainder of the year''.
The common shares of Royal Laser trade on The Toronto Stock Exchange
under the symbol ''RLT''.
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ROYAL LASER TECH CORPORATION
Interim Consolidated Balance Sheets
As at July 31, 1999 with comparative figures for April 30, 1999
(unaudited)
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July 31 April 30
1999 1999
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Assets
Current assets:
Short term investments $ 6,903,203 $ 6,903,203
Accounts receivable 12,831,995 9,364,273
Inventories 7,217,507 5,517,507
Prepaid expenses and deposits 1,014,357 973,959
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27,967,062 22,758,942
Capital assets 29,947,608 27,370,374
Goodwill 6,570,646 6,653,446
Loan receivable 552,438 574,618
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$ 65,037,754 $ 57,357,380
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Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ 5,111,981 $ 4,991,073
Accounts payable and accrued liabilities 4,298,813 3,594,281
Income taxes payable 323,431 285,431
Current portion of long-term debt 1,272,515 1,272,515
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11,006,740 10,143,300
Long-term debt 13,603,461 8,311,366
Deferred income taxes 1,008,094 1,008,094
Shareholders' equity:
Share capital 26,458,037 26,451,807
Retained earnings 12,961,422 11,442,813
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39,419,459 37,894,620
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$ 65,037,754 $ 57,357,380
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ROYAL LASER TECH CORPORATION
Interim Consolidated Statement of Earnings and Retained Earnings
Three months ended July 31, 1999 with comparative figures for 1998
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Three Months Three Months
Ended Ended
July 31 July 31
1999 1998
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Sales (note 1)
Store fixtures $ 8,974,953 $ 5,384,125
Automotive/industrial 5,405,531 5,164,058
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14,380,484 10,548,183
Cost of sales 9,009,190 6,364,334
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5,371,294 4,183,849
Expenses:
Selling, administrative and general 1,884,011 1,742,501
Amortization 947,300 640,068
Interest on long-term debt 217,992 56,438
Interest income (14,618) (176,110)
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3,034,685 2,262,897
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Earnings before income taxes (note 2) 2,336,609 1,920,952
Income taxes 818,000 556,000
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Net earnings 1,518,609 1,364,952
Retained earnings, beginning of period 11,442,813 5,860,739
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Retained earnings, end of period $ 12,961,422 $ 7,225,691
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Earnings per common share:
Basic $ 0.14 $ 0.17
Fully diluted 0.14 0.12
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Note 1. - Segmented sales information
The automotive/industrial division sales are presented net of
inter-division sales to the store fixture division of $ 1,835,367,
(July 31, 1998: $ 293,591)
Note 2. - Segmented earnings information
Earnings before income taxes
Store fixtures $ 1,022,089 $ 439,578
Automotive/industrial 1,314,520 1,481,374
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$ 2,336,609 $ 1,920,952
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ROYAL LASER TECH CORPORATION
Interim Consolidated Statement of Cash Flow
Three months ended July 31, 1999 with comparative figures for 1998
(unaudited)
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Three Months Three Months
Ended Ended
July 31 July 31
1999 1998
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Cash provided by (used in) operations:
Operations:
Net earnings $ 1,518,609 $ 1,364,952
Items not requiring cash:
Amortization 947,300 640,068
Changes in non-cash working
capital items:
Accounts receivable (3,467,722) 1,509,331
Accounts payable and accrued
liabilities 704,532 (917,105)
Income taxes payable 38,000 (456,056)
Inventories (1,700,000) (382,615)
Prepaid expenses (40,398) 130,423
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(1,999,679) 1,888,998
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Financing activities:
Issuance of special warrants and
share capital, net of expenses 6,230 10,571,103
Increase in long-term debt 5,292,095 59,670
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5,298,325 10,630,773
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Investing activities:
Purchase of capital assets (3,441,734) (4,611,479)
Purchase of subsidiaries - (260,000)
Loan receivable 22,180 (688,500)
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(3,419,554) (5,559,979)
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Increase (decrease) in cash (120,908) 6,959,792
Cash position, beginning of period (4,991,073) (172,432)
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Cash position, end of period $ (5,111,981) $ 6,787,360
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Cash position consists of cash and term deposits less bank indebtedness |
