National Challenge Systems Inc. announces results for its fiscal year ending July 31,
1999
VANCOUVER, Oct. 14. /CNW-PRN/ - National Challenge Systems Inc.
TSE Symbol: NLC
National Challenge Systems Inc. (the ``Company') is pleased to announce the results for its fiscal year ending July 31, 1999. There were three major events that impacted the
Company's performance and Balance Sheet during this period:
1. The purchase of 2250 compactors from Canadian Waste Services Inc.
(``CWS') as announced April 2, 1998 (560 compactors in Western
Canada) and August 4, 1998 (1690 compactors in Eastern Canada).
These compactors are all under long term lease rental agreements.
The Revenues for the fiscal year ending July 31, 1998 include seven
months of income from the purchase of CWS's Western fleet. The
Balance Sheet as of July 31, 1998 also includes the assets and
liabilities resulting from both of these purchases.
2. The sale of its manufacturing operations as of October 31, 1998 to
ESC Envirotech Systems Corp. ``ESC' is now trading on the
Vancouver Stock Exchange under its new name, SWI Steelworks Inc.
(symbol `SSW'); and
3. A $1,699,650 Private Placement of 1,259,000 units (each unit is
comprised of one common share and one share purchase warrant) to a
private investment group, which took place on January 8, 1999.
COMPARATIVE TWELVE MONTHS RESULTS
Revenues more than doubled during the reporting period increasing from $4,094,600 for the twelve months ending July 31, 1998 to $8,700,758 for the period ending July 31,
1999. Net Income grew from a loss of ($709,188) to a profit of $1,116,765.
While most Expense categories increased in line with the Company's rapid growth during the period, the Pre-Tax Profit Margin improved by 6.3% percentage points to 13.1%.
Earnings Before Interest and Taxes for the year grew from $401,014 to $1,912,827.
Earnings per Share rose significantly from a negative ($.044) per share to $0.061 per share for the year ending July 31, 1999.
Total Long Term Debt and Total Obligations under Capital Leases dropped sharply from $10,538,923 to $8,773,091, a reduction of over $1,750,000 due to the Company's
normal debt repayment program.
As of July 31, 1999, Shareholders' Equity increased from $12,489,559 to $15,873,511 as a result of the above mentioned Private Placement, substantial earnings for the year,
and the exercise of the large number of options and warrants. The combination of the decrease in Long Term Liabilities and the increase in Shareholders' Equity caused the
Company's Leverage Ratio (Total Liabilities divided by Shareholders' Equity) to improve from 1.22:1 to 0.61:1.
ON BEHALF OF THE BOARD,
``signed'
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Floyd A. Wandler
President & C.E.O.
SOURCE: National Challenge Systems Inc. |
