MAAX Delivers Record Results and Improved Profit Margins
in the Second Quarter
SAINTE-MARIE, QUEBEC--OCTOBER 5, 2000 - 08:30 EDT
MAAX Inc. is pleased to announce that the
Company just recorded the best profit and cash flow quarterly
performance of its history.
During the second quarter ended August 31, 2000, MAAX increased
its net income by 10.3% to $8.1 million or $0.34 per share, up
from $7.3 million or $0.31 per share, for the same period last
year. Sales rose 9.3% to $125.2 million, compared to $114.6
million in the year-ago period. Operating cash flows reached
$13.4 million or $0.56 per share, compared to $11.2 million or
$0.47 per share, in 1999. Cash earnings reached $8.8 million or
$0.37 per share, compared to $7.9 million or $0.33 per share, in
1999.
For the six-month period, sales were up 14.9% to total $258.6
million compared to $225.0 million for the same period last year.
Net income reached $15.5 million up 9.6% over $14.1 million in
1999. The Company posted net income per share of $0.65 on a
weighted average of 23,745,401 shares outstanding, compared to
$0.60 on a weighted average of 23,669,693 shares last year.
Operating cash flows totaled $25.6 million or $1.08 per share,
compared to $22.1 million or $0.93 per share in the first half of
last year. Cash earnings reached $16.9 million or $0.71 per
share, compared to $15.3 million or $0.65, in 1999.
André Héroux, President and Chief Operating Officer of MAAX,
pointed out that the second quarter growth in operating income
(16.6% of sales compared to 14.5% in the first quarter), net
income (6.5% versus 5.6%) and return on equity (14.5% versus
13.5%) reflect the progress being made in optimizing operations.
Mr. Héroux was especially pleased that MAAX recorded improved
profit margins despite external factors, such as: increased fuel
costs leading to a significant rise in transportation expenses in
all divisions, adverse summer weather affecting sales of spas in
Canada and in the Northeast and the Midwest of the United States
and the weakness of the renovation and construction industry in
July in the North American market.
On a segmented basis, sales of bathroom and kitchen products for
the second quarter grew 9.6% to $104.3 million and sales of spas
amounted to $20.9 million, up 8.06% despite unfavourable weather
conditions.
MAAX: 30th anniversary
As part of events underlining the Company's 30th anniversary on
September 7, MAAX officially opened its new showroom and launched
the virtual version of the showroom on the Internet. At the same
time, the Company inaugurated its new training centre, the MAAX
Academy.
Six-month dividend
MAAX also announced that the Board of Directors has approved the
payment of a semi-annual dividend of $0.07 per share, payable
October 31, 2000 to all shareholders of record on October 16,
2000.
Outlook
During the second half of the fiscal year, MAAX will complete the
installation of new production equipment at its C.E. Cabinets
plant in Laval, Quebec. This will help C.E. Cabinets to increase
capacity to meet the high demand for its products in the North
American market. Furthermore, MAAX will benefit from the upcoming
introduction of its new line of bathroom furniture.
Placide Poulin, Chairman and Chief Executive Officer of MAAX, said
he was very pleased with the second-quarter results and the
positive impact of the integration plan completed last year. He
concluded by restating the Company's goal to focus all its efforts
on achieving a net income of 8% over the medium term. Management
remains optimistic regarding the potential of all product lines
over the next eighteen months and the Company's ability to
increase market share in its two business sectors in North
America.
MAAX Inc. is a leading North American manufacturer of bathroom
products and accessories, spas and kitchen cabinets. With
approximately 2,800 employees, MAAX operates 23 plants and eight
distribution centres throughout Canada, the United States and
Europe. The Company's common shares are traded on the Toronto
Stock Exchange under the MXA ticker symbol.
/T/
MAAX INC.
CONSOLIDATED STATEMENT OF INCOME (unaudited)
Period ended August 31, 2000
(in thousands of dollars except per share data)
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THREE MONTHS SIX MONTHS
2000 1999 2000 1999
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Sales $125,231 $114,573 $258,626 $224,961
Operating expenses 104,429 97,410 218,534 191,484
Amortization,
financial expenses,
and research and
development costs 7,499 5,209 14,561 10,584
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111,928 102,619 233,095 202,068
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Income before income taxes
and goodwill amortization 13,303 11,954 25,531 22,893
Income taxes 4,523 4,058 8,657 7,617
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Income before goodwill
amortization 8,780 7,896 16,874 15,276
Goodwill amortization,
net of income taxes of
$333 in 2000 and
$334 in 1999 688 564 1,373 1,131
Net income $8,092 $7,332 $15,501 $14,145
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Income per share
Before goodwill
amortization $0.37 $0.34 $0.71 $0.65
Net income per share $0.34 $0.35 $0.65 $0.60
Fully diluted income per share
Before goodwill
amortization $0.35 $0.31 $0.68 $0.61
Net income per share $0.32 $0.30 $0.62 $0.57
Weighted average number
of outstanding shares 23,801,576 23,674,555 23,745,401 23,669,693
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MAAX INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited)
August 31, 2000
(in thousands of dollars)
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2000 1999
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ASSETS
Current assets $179,343 $139,666
Fixed assets 117,019 83,631
Goodwill 125,407 109,400
Other assets 6,932 7,731
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$428,701 $340,428
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $81,053 $60,981
Long-term liabilities 116,181 61,291
Shareholders' equity 231,467 218,156
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$428,701 $340,428
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SEGMENTED INFORMATION (unaudited)
Period ended August 31, 2000
(in thousands of dollars)
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THREE MONTHS SIX MONTHS
2000 1999 2000 1999
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By bussiness segment:
Net sales
Bathroom and kitchen $104,346 $95,246 $214,157 $188,581
Spas 20,885 19,327 44,469 36,380
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$125,231 $114,573 $258,626 $224,961
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Income before income taxes
Bathroom and kitchen $10,592 $9,646 $19,755 $18,495
Spas 1,857 1,579 4,070 2,933
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$12,449 $11,225 $23,825 $21,428
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/T/ |
