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V.CCZ - Commercial Consolidators Corp.
Price: $4.25 52-Week Range: $2.03 - $6.00
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Commercial Consolidators Corp.
CDNX: CCZ
Frankfurt: CJ9
Toronto, October 23, 2000 - Commercial Consolidators Corp., technology
assembler and distributor for businesses and consumers throughout the
Americas, today reported record EBITDA, and net income for the quarter and
the six months.
The company posted record results in the quarter. For the three months
ended August 31, 2000, sales revenue increased 86% to $20.3 million from
$10.9 million for the comparable quarter in 1999. Net after-tax earnings
for the quarter increased 233% to $2.0 million, or $0.12 per share, from
$0.6 million for the same quarter last year.
For the six-month period ended August 31, 2000, sales revenue increased
118% to $44.1 million from $20.2 million for the comparable 1999 period.
Net after-tax earnings for the period increased 180% to $3.4 million, or
$0.20 per share, from $1.2 million for the same period last year.
Al Budai Expects Exponential Growth
"The spectacular second quarter financial results simply confirm in my mind
that the company is performing above expectations and is on track to enjoy
exponential growth and interest among investors worldwide. As more
investors become disillusioned with the poor performance of "dot-coms",
they will most certainly turn their attention to companies like Commercial
Consolidators that consistently post substantial revenue and earnings
growth rates.
As I indicated to investors across Canada, just a few short weeks ago,
Commercial Consolidators continues to be at the top of my list of prime
takeover candidates with a two-year time horizon. Just as Janna Systems,
recently trading as high as $85 per share, was a relatively unknown company
two years ago (featured first by the The Buy Low, Sell High! newsletter on
stockreviews.com at $1.55 share) continued to gain widespread
interest among investors over time due to its corporate achievements,
Commercial Consolidators will begin attract serious investor interest due
to its continued posting of record revenue and earnings growth, quarter
after quarter." Al Budai
Commercial Consolidators' financial results for the six months are
summarized as follows:
Six months ended; Six months ended
August 31, 2000; August 31, 1999
(In thousands except per share amounts)
Sales; $44,073; $20,231
Cost of sales; 34,533; 16,449
Operating expenses; 3,475; 1,669
EBITA; $6,065; $2,113
Net Income; $3,354; $1,196
Net earnings per share; $0.20; $0.10
The robust increases in sales and earnings for the quarter and year-to-date
were driven by strong growth in the consumer electronics division,
specifically the audiovisual and wireless product lines. Outstanding sales
and earnings were also generated by the company’s hotel property management
software subsidiary, with the successful launch of "hotelpms.com", one of
the first web-based hotel property management software solutions available
in the market place.
Profit margins have continued to increase strongly with the strategic
diversification of the company's product lines, and operating and financing
expenses as a percentage of sales have decreased against the comparable
period last year. This has resulted in net income as a percentage of sales
increasing from 5.9% to 7.6% for the six-month period.
"The company's strong financial performance reflects the successful
integration of its recent strategic acquisitions as well as the continued
growth of its core operations in Latin America," said Guy Jarvis, CEO.
"The company has again exceeded its forecasts for top-line and bottom-line
growth while diversifying its product lines and its customer base
throughout the Americas. We expect this combination of growth and
diversification to translate into enhanced value for our shareholders."
The company is also pleased to announce that it has retained Ciris
International Inc. of Toronto, Ontario to provide public relations and
media-relations services for the company. Ciris has been retained on a
month-to-month basis with a budget of up to $7,000 per month. Ciris is a
full-service investor-relations and corporate-communications firm that
specializes in working with clients to position them effectively with their
target audiences. With a broad range of clients -- small-cap to
multinational, resource-based to high-tech, Ciris' goal is to help clients
build positive and enduring relationships with stakeholders.
About Commercial Consolidators Corp.
Commercial Consolidators is a leading assembler and distributor of consumer
electronics and business technologies to the Americans. The company
represents such international recognized brand names as Sanyo, Samsung,
Philips, Canon, Epson, Mita, Acer, Fujitsu, and Panasonic. Through the
successful implementation of its core business strategies, Commercial
Consolidators has enjoyed a minimum growth rate in revenues of 50 percent
per year for the last four years.
For more information, please contact Investor Relations at 1-800-968-1727
or visit the company's website at: commercialconsolidators.com
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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