Algo Group Inc -
Algo Group nine-month results
Algo Group Inc
AO.A
Shares issued 6,710,766
1999-11-25 close $0.25
Friday Nov 26 1999
Mr. Jeffrey Casselman reports
The Algo Group had a profitable third quarter and confirmed that the repositioning
plan announced on June 30, 1999, is proceeding on schedule.
For the third quarter ended Sept. 30, 1999, net earnings were $3.6-million or 17
cents per share on sales of $70.8-million. This compares with net earnings of
$5.2-million or 25 cents per share on sales of $73.8-million for the corresponding
period last year. Cash flow for the quarter improved by $9-million as a result of
the company's initiatives to improve working capital.
The net loss for the nine months ended Sept. 30, 1999, was $7.0-million or 34
cents per share (including a restructuring charge of $7.2-million) compared with a
profit for the nine months a year ago of $2.6-million or 11 cents per share. Sales
for the nine months this year were $154.9-million compared with $151.3-million a
year ago.
President and chief executive officer, Jeff Casselman, stated: "We have made
significant progress in the plans to exit unprofitable product lines, the sale of
certain assets and debt reduction. We have established the four business units and
now have in place seasoned executives to lead them."
Mr. Casselman also confirmed that Steve Silverstein has been appointed
vice-president and general manager of the ladies' fashion business unit which
includes the Algo, A-Line, Lori-Ann, Alfred Sung, Tangier Soir and En Francais
labels. "Steve has put in place a new design and sales management team in New
York, Montreal and Toronto reinforcing our commitment to growth and fashion
excellence."
Earlier this month Algo Group announced it had signed a new five-year,
$10-million term loan agreement with its principal bankers. Under terms of the
agreement, there is no reimbursement of capital before the start of the third year.
"This clearly underlines that our plan to return the company to sustained
profitability has gained credibility with our bankers. This will allow us to focus on
improving our businesses," said Raoul Heredia, Algo Group executive
vice-president and chief financial officer.
FINANCIAL HIGHLIGHTS
Nine months ended Sept. 30
(thousands of dollars)
1999 1998
Sales $ 154,884 $ 151,261
Earnings (loss)
before
restructuring
charges 160 2,609
Earnings (loss)
per share
before
restructuring
charges 1 cent 11 cents
Provision for
restructuring
charges 7,150 -
Net earnings
(loss) (6,990) 2,609
Earnings (loss)
per share (34 cents) 11 cents
FINANCIAL HIGHLIGHTS
Three months ended Sept. 30
(thousands of dollars)
1999 1998
Sales $ 70,844 $ 73,760
Earnings (loss)
before
restructuring
charges 3,572 5,181
Earnings (loss)
per share
before
restructuring
charges 17 cents 25 cents
Provision for
restructuring
charges - -
Net earnings
(loss) 3,572 5,181
Earnings (loss)
per share 17 cents 25 cents
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