William Multi-Tech Inc. Reports Financial Results For Second Quarter of 2000
- New focus on Technology and Biotechnology areas
- Acquired a 40% interest in C Sixty Inc., and a 42% interest in
LeadingEdge Payroll Group Inc. in the second quarter
- Company has strong balance sheet and is virtually debt free
Trading Symbol TSE-WIM
TORONTO, Aug. 30 /CNW/ - William Multi-Tech Inc., formerly William
Resources Inc., ("William") (TSE:WIM) announced today net income from
operations of U.S. $199,000 or $0.00 per share, for the quarter ended June 30,
2000, compared to a net loss of U.S. $788,000, or a $0.01 loss per share, for
the first quarter of 1999. For the six months period ended June 30 2000, the
Company announced net income of U.S. $346,000 or $0.00 per share, compared to
a net loss of U.S. $1.35 million or a U.S. $0.03 loss per share in 1999.
William is virtually debt free and has changed its focus from gold mining
to technology. The Balance Sheet is strong and the Company is currently
restructuring the remaining U.S. $3 million of debt and expects to announce
the final restructuring shortly.
William is focused on acting as an incubator and acquiring a significant
equity position in private companies that have unique technologies. In the
second quarter William announced the acquisition of a 40% interest in C Sixty
Inc., and a 42% interest in LeadingEdge Payroll Group Inc.
C Sixty:
C Sixty is a privately held-biopharmaceutical company whose business
strategy is focused on the discovery, development, and the advancement of a
new class of therapeutic drugs, diagnostics and medical devices based on the
fullerene molecule, considered a "Platform Technology", with potential value
for a large number of diverse applications in multibillion dollar markets. The
company has adopted a virtual model for conducting its product development
through established relationships with world-class institutions, thereby
reducing costs, limiting dilution, and therefore increasing the potential
return to shareholders. The company's technology is based on Nobel Prize award
winning research and strategies in the biotechnology sector.
LeadingEdge:
As Canada's only multi-dimensional payroll company, LeadingEdge captures
the entire payroll and Human Resources administration cycle, through a unique
total outsourcing management approach. LeadingEdge also provides recruitment
services, consulting, re-engineering, software selection and implementation
support, education/training, research and subscription services. LeadingEdge
continues to further develop its payroll/HR software system, web-based
technologies and proprietary toolbox, primarily as they relate to payroll and
HR administrative outsourcing. For more information visit the company's Web
site at www.leadingedge-payroll.com.
About William Multi-Tech Inc:
-----------------------------
William (http://www.williammultitech.com) is focused on acting as an
incubator for companies involved in the communications, biotechnology and
other high-technology/Internet areas. William provides these companies with
financing, strategic planning and management resources to aid in their
expansion programs, and to assist them with their corporate development.
William is in advanced discussions on other transactions and expects to
announce further developments in the near future.
The Toronto Stock Exchange has determined that William has changed the
nature of its business and must meet all of the original listing requirements
of the Exchange by December 31, 2000. If the Company fails to meet original
listing requirements by the stated deadline, the Exchange may suspend trading
in the Company's shares or require the Company to delist from the Exchange.
Attachments:
Consolidated Balance Sheets
Consolidated Income Statements
Consolidated Statements of Cash Flow
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William Multi-Tech Inc.
Consolidated Balance Sheets
As at June 30, 2000 and December 31, 1999
(thousands of United States Dollars)
(UNAUDITED)
2000 1999
Assets ------------- -------------
Current Assets:
Cash and short-term investments $ 1,076 $ 2
Accounts receivable 403 80
Note receivable - 250
Prepaid expenses and other deferred
costs 10 3
Assets for resale 2 210
------------- -------------
1,491 545
Capital assets, net 55 63
Investments 7,737 32
Other assets - -
------------- -------------
$ 9,283 $ 640
------------- -------------
------------- -------------
Liabilities and Shareholders' Equity (Deficit)
Current Liabilities:
Bank loans $ - $ -
Accounts payable and accrued
liabilities 358 658
Corporate income taxes payable 286 286
Current portion of long-term debt 2,971 3,738
------------- -------------
3,615 4,682
Long-term debt - -
Deferred income taxes - -
------------- -------------
3,615 4,682
Shareholders' equity (deficit)
Share Capital 223,211 213,847
Contributed Surplus 527 527
Deficit (218,070) (218,416)
Cumulative translation adjustment - -
------------- -------------
5,668 (4,042)
------------- -------------
$ 9,283 $ 640
------------- -------------
------------- -------------
William Multi-Tech Inc.
Consolidated Statements of Operations and Deficit
For the three and six months ended June 30, 2000 and 1999
(thousands of United States Dollars, except per share amounts)
(UNAUDITED)
Three months ended Six months ended
June 30 June 30
2000 1999 2000 1999
------------ ----------- ------------- -----------
Revenue $ - $ 2,418 $ - $ 6,451
Direct Expenses - 1,511 - 4,564
------------ ----------- ------------- -----------
Gross Profit - 907 - 1,887
Expenses
General and
administrative 215 931 373 2,138
Depreciation and
depletion 4 347 9 600
Interest 1 318 1 765
Foreign exchange
(gain) loss 20 43 (8) (138)
(Gain) loss on disposal
of assets (334) - (599) 121
Other (income) expense,
net (105) 56 (122) (247)
------------ ----------- ------------- -----------
Earnings (Loss) before
corporate income taxes 199 (788) 346 (1,352)
Provision for corporate
income taxes - - - -
------------ ----------- ------------- -----------
Net Earnings (Loss) 199 (788) 346 (1,352)
Accretion on equity
component of convertible
debentures - (673) - (1,475)
Deficit, beginning of
period (218,269) (218,610) (218,416) (217,244)
------------ ----------- ------------- -----------
Deficit, end of
period $ (218,070) $ (220,071) $ (218,070) $ (220,071)
------------ ----------- ------------- -----------
------------ ----------- ------------- -----------
Basic earnings (loss)
per common share $ 0.00 $ (0.01) $ 0.00 $ (0.03)
------------ ----------- ------------- -----------
------------ ----------- ------------- -----------
William Multi-Tech Inc.
Consolidated Statements of Cash Flows
For the six months ended June 30, 2000 and 1999
(thousands of United States Dollars)
(UNAUDITED)
2000 1999
------------- -------------
Cash flows provided by (used in)
operations:
Net earnings (loss) $ 346 $ (1,352)
Operating items not involving cash:
Depreciation and depletion 9 600
(Gain) loss on disposal of assets (599) 121
------------- -------------
(244) (631)
Change in non-cash working capital:
Accounts receivable (323) (927)
Notes receivable 250 -
Inventories and metals receivable - 38
Prepaid expenses and other deferred costs (7) (60)
Assets for resale - 64
Accounts payable and accrued liabilities (444) (850)
Current portion of long-term liabilities - (81)
------------- -------------
(768) (2,447)
Financing activities:
Issuance of share capital 1,550 12,986
Conversion of convertible debenture - (12,986)
Long-term debt, net - 1,407
------------- -------------
1,550 1,407
Investing activities:
Elimination of cash balance (bank loans)
of subsidiaries on change of control - 621
Capital assets - 4
Investment and advances (348) 250
Proceeds from disposal of assets 732 566
------------- -------------
384 1,441
Effect of exchange rate changes on cash (92) 201
Increase (decrease) in cash 1,074 602
Cash (deficit), beginning of period 2 (394)
------------- -------------
Cash (deficit), end of period 1,076 208
------------- -------------
------------- -------------
Cash (deficit) consists of:
Cash and short-term investments 1,076 208
Bank loans - -
------------- -------------
1,076 208
------------- -------------
------------- -------------
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