Footmaxx Holdings Inc. Announces First Nine Months Results
ca.biz.yahoo.com
Thursday October 12, 6:03 pm Eastern Time
Press Release
Footmaxx Holdings Inc. Announces First Nine Months Results
TORONTO, ONTARIO--Footmaxx Holdings Inc., (``Footmaxx''), a Canadian owned company and North America's leading supplier of corrective foot orthotics, today announced its financial results for the first nine months ending September 30, 2000.
Revenue for the first nine months of 2000 was $10.9 million compared to $10.8 million for the same period in 1999. Gross profit for the period was $5.8 million, 53.4% of sales, compared to $5.8 million, 53.7% of sales, for the same period in 1999.
The operating improvements for the first nine months are the result of the completion in 1999 of the J.E. Edwards Administrative System installation and related expenses. In the same period there has been a significant reduction in sales costs which were incurred to establish the U.S. business prior to 2000.
Footmaxx completed the first nine months on a positive cash flow basis. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the nine months were $115.5 thousand as compared to a $1.803 million loss in 1999.
There is much more in this release, including the Consolidated Balance Sheet.
Also of note within this release, the following-
Legal Action
Footmaxx has commenced an action against its founder, former CEO, director and Chairman of the Board, Dr. Glenn Copeland and his company Performance Orthotics Inc. for an injunction as well as substantial damages resulting from alleged breaches of fiduciary duty. Shortly after Dr. Copeland's resignation from Footmaxx he entered into a competing orthotic assessment and manufacturing business under the name of Performance Orthotics. Performance is a chain of clinics that had been using the Footmaxx system.
In May 2000, Dr. Copeland introduced through his Performance Orthotics Clinics a competing computerized system for orthotic assessment and opened a manufacturing plant for the manufacture of orthotics in Pickering, Ontario.
On September 11, 2000 Footmaxx was successful in obtaining an interim injunction from the Superior Court of Justice, of Ontario. The terms of this order prohibits Dr. Copeland, Performance Orthotics Clinics and individual employees of Performance Orthotics from communicating or soliciting customers of Footmaxx. It further prohibits Performance Orthotics from increasing its volume of orthotics manufactured until the hearing of the interlocutory injunction that is set for November 1, 2000. |
