Cygnal posts record 1999 year-end results
Cygnal Technologies Corp CYN
Shares issued 10,128,718 Apr 3 close $6.25
Tue 4 Apr 2000 News Release
Mr. Doug Young reports
Cygnal Technologies reported record revenues and earnings before interest,
taxes, depreciation and amortization (EBITDA) for the fiscal year ended
Dec. 31, 1999.
Revenues for fiscal 1999 rose 144 per cent to $59.9-million, compared with
$24.6-million for the same period in 1998. EBITDA for the year increased
142 per cent to $2.2-million from $926,000 in 1998. These increases are
largely attributable to the acquisitions in 1998 of Comlink Systems Inc.
and White Radio Limited.
Net earnings for the year were $541,000, or seven cents per share, compared
with a loss of $824,000, or (23 cents) per share for 1998.
Total revenue for the fourth quarter ended Dec. 31, 1999, increased 56 per
cent to $16.2-million, from $10.4-million in the same period last year.
EBITDA in the fourth quarter of 1999 increased 115 per cent to $720,000
from $335,000 for the same period in 1998. Earnings in the fourth quarter
of 1999 were $268,000 (three cents per share) versus a loss of $1.0-million
(23 cents per share) in the comparable period last year.
"At the end of 1998, we stated that Cygnal's strategy was to grow our
business internally while taking advantage of select acquisition
opportunities. We delivered on that strategy by continuing to grow and
integrate our existing divisions, and by acquiring Polycables National in
December," commented Doug Young, president and chief executive officer of
Cygnal Technologies. "These initiatives have all strengthened our ability
to build advanced wired and wireless high-speed networks for our customers,
and to do so more efficiently, economically and with the highest level of
service."
SUMMARY FINANCIAL INFORMATION
Year ended Dec. 31
1999 1998
Revenues $59,900,000 $24,600,000
EBITDA 2,242,000 926,000
Net earnings
(loss) 541,000 (824,000)
Earnings (loss)
per share 0.07 (0.23)
Nineteen ninety-nine highlights
awarded $4-million satellite earth station contract from Bell ExpressVu to
help migrate its more than 230,000 Direct-to-Home subscribers to a new,
more powerful satellite;
installed Canada's first satellite-based utility automated meter reading
(AMR) device allowing utilities to retrieve data over the Internet;
achieved listing of common shares on Toronto Stock Exchange;
completed the acquisition of structured cabling provider Polycables
National Inc.;
installed a high-speed, wireless network connecting 30 locations for the
Energy School Board in Mauricie, Que.; and
installed a complete communications infrastructure, including a wireless
network and structured cabling, at Noranda's Magnola magnesium extraction
smelter in Asbestos, Que.
Subsequent to year-end, Cygnal renewed a national VSAT installation
agreement with Telesat Canada valued at approximately $2-million annually.
Cygnal also received a contract to supply and install cable headend
equipment for AT&T Broadband, the cable television arm of
telecommunications giant AT&T Corp. This contract provides Cygnal with an
important opportunity to demonstrate its capabilities in the larger U.S.
market, while bringing the company in contact with industry leaders like
AT&T Broadband.
"In 1999, Cygnal strengthened both its business and its visibility in the
marketplace," added Mr. Young. Management is committed to continuing this
trend in 2000 and enhancing shareholder value by building on Cygnal's
momentum and leadership position in the broadband industry, and continuing
to identify, acquire and integrate complementary businesses into the Cygnal
group of companies." |
