Q3 Results, Launches Flex Logistics
Toronto, Ontario -- February 28, 2000
Beamscope Canada Inc. today reported its results for the quarter
ended December 31, 1999.
----------------------------------------------------------------
Period Ended Three Months Three Months Nine Months Nine Months
December 31 1999 1998 1999 1998
----------------------------------------------------------------
Sales $ 205,596 $ 202,589 $ 464,004 $ 486,979
----------------------------------------------------------------
Net Income (loss) $ (810) $ (16,680) $ (6,060) $ (14,012)
----------------------------------------------------------------
Net Income (loss)
Per $ (0.07) $ (1.42) $ (0.54) $ (1.19)
Common Share
----------------------------------------------------------------
Weighted average
Number of 10,907,947 11,778,780 11,125,486 11,769,115
Common Shares
----------------------------------------------------------------
The company reported revenue of $205.6 million for the third
quarter ended December 31, 1999, up 1.5% from the corresponding
quarter a year ago. Sales for the nine months ended December 31,
1999 were $464.0 million, down 4.7% from the prior year. Net
loss for the quarter was $810,000 or $0.07 per common share,
compared to a net loss of $16.7 million or $1.42 per common
share, for the same quarter a year ago. The prior year's quarter
included an after-tax charge in Canada of $19.9 million, or $1.69
per common share, that addressed growth-related issues.
Net loss for the nine months ended December 31, 1999 was $6.1
million or $0.54 per common share, compared to a net loss of
$14.0 million or $1.19 per common share for the prior year. The
quarter's results include a loss of $0.2 million, or $0.02 per
common share for the company's share of the equity loss in
Ironside Technologies. Year-to-date results include a loss of
$2.0 million, or $0.18 per common share for its 16.4% share of
Ironside.
"While the results did not meet our expectations, we believe that
we are making the necessary changes in the business to continue
to improve profitability and address the changing market
conditions", said Beamscope President, Thomas P. Reeves. "One of
these key strategic initiatives was the January launch of Flex
Logistics, an independent third-party logistics organization,
focused on providing a wide range of logistics services for
suppliers, retailers and e-tailers both within and outside the
industry. As end-user fulfillment becomes an increasingly
important element of the internet supply chain, we are now well
positioned to offer this service. We see this as a natural
extension to our existing distribution business."
Mr. Reeves continued, "In Canada, sales were slightly lower than
last year primarily due to severe video and computer hardware
shortages. Margin pressure continues and, similar to many of our
competitors, we have begun making changes in our pricing and
service offerings to ensure that we are recouping the costs of
the services we provide. Warehouse throughput and asset
management were two important highlights for the quarter with
continued improvements in both areas. Also, our J.D. Edwards
core systems replacement project continues to remain on budget
and on schedule for implementation in July."
Chairman and CEO, Larry Wasser, commented, "We are pleased with
the results from our Latin American subsidiary, Unisel Holdings,
considering the economic conditions in the region. Sales growth
of 17% and improved cost management resulted in a profitable
quarter. We believe that we are continuing to grow market share
in each of the three operations."
"Our investment in Ironside continues to show promise, as their
latest quarter showed strong growth in revenue, customer
references and overall market presence. Ironside has extended
its market leadership and has the most customers on the
business-to-business sell side of any company in its space. Also,
during the quarter Ironside began to execute on its strategy of
pursuing international sales in Europe. With the opening of an
office in the U.K., Ironside has managed to quickly establish
itself as a leading B2B Internet electronic commerce software
solution, with sales to several prominent companies. Ironside
continues to examine its strategic alternatives, including an
initial public offering."
Listed on The Toronto Stock Exchange under the trading symbol
BSP, Beamscope is one of Canada's leading sales, marketing and
distribution companies of brand name home office products, home
computer software, video entertainment products and digital
entertainment products for some of the world's top manufacturers,
including IBM, Compaq, Microsoft, Hewlett-Packard, Canon, Sony,
Nintendo, Sega, 3Com, Philips, Lexmark, Disney, Kodak, Samsung
and Bell ExpressVu. Beamscope sells and markets more than 6,500
different consumer electronics products for these and other
companies to over 7,000 retail outlets across Canada. In
addition to Beamscope's core business it has interests in two
other ventures, Ironside Technologies Inc., a company that
specializes in creating business-to-business Internet electronic
commerce software solutions, and Unisel Holdings S.A., a joint
venture in Latin America, which distributes computer products in
Chile, Argentina and Brazil. Beamscope can be found at
beamscope.com.
- 30 -
For more information:
Tom Reeves Jane Todd Larry Wasser
President Chief Financial Officer Chairman and CEO
(905) 763-3104 (905) 763-3038 (416) 966-0000 |
