Looks like some folks sold on the news:
Monday October 23, 12:31 pm Eastern Time
Press Release
SOURCE: IMPERIAL PLASTECH INC.
via BCE Emergis e-News Services
Imperial Plastech Announces Continued Growth In Sales & Profits In Third Quarter
Toronto, Ontario
- Revenues Increase as Company Capitalizes on Increased
Demand in Fiber Optic and Oil and Gas Industry -
Imperial PlasTech Inc. (TSE: Symbol IPQ) announced today the results for the three and nine months ended August 31, 2000. Sales for the quarter rose to $16.8 million from $7.2 million the prior year, producing net income of $1.5 million or $0.06 per common share compared to $478,000 or $0.02 last year. For the nine-month period, sales increased to $44.6 million from $14.2 million in fiscal 1999 resulting in net earnings of $4.3 million or $0.16 per common share compared to $710,000 or $0.03 per common share for the same nine-month period last year.
The increase in sales during the period is primarily due to strong North American demand for the Company's fiber optic conduit and increased demand for its oil and gas product lines. Gross profit as a percentage of sales for the nine-months improved to 23.4% this year from 22% as capacity was better utilized, while selling general and administrative expenses fell to 5.9% of sales from 9.4% last year.
Gross margins also improved compared to the second quarter of the current year as higher costs resulting from facilities expansion projects concluded in the quarter. Through the first nine months of the year approximately $4 million has been invested in production capacity expansion. The Company intends to invest a further $750,000 this year to establish production capabilities for the Company's new wood-fiber plastic product line.
As at August 31, 2000, working capital stood at $3.1 million compared to $2.3 million at the same time last year. The ratio of long-term debt to equity stood at a conservative 36% compared to 110% last year excluding the net proceeds from the recently completed equity financing which will increase the Company's cash reserves by approximately $8.7 million.
``The market for our fiber optic conduit continue to grow in Canada and, more importantly, in the United States,'' stated Victor D'Souza, President and CEO. ``We are also experiencing growing demand for our products in the strong Western Canadian oil and gas markets.''
Mr. D'Souza concluded: ``Looking ahead, we will continue to build on our strong presence in the growing fiber optic, oil and gas and residential plumbing markets. We are also investing to broaden our product line and customer base in a number of different industries. Our efforts remain focused on improving our production efficiency and the development of new products. In particular, we are very excited about the potential for our new wood-fiber plastic compound.''
Financial Highlights
--------------------------------------------------------------
Period Ended Aug. 31, Three Months Nine Months
---------------------------------------------------------------
(in $,000 except per 2000 1999 2000 1999
share amounts)
---------------------------------------------------------------
Sales 16,799 7,236 44,550 14,219
Net Earnings 1,527 478 4,253 710
Net Earnings per Share $0.06 $0.02 $0.16 $0.03
Cash from Operations 3,909 (971)
Shareholders' Equity 10,302 4,128
---------------------------------------------------------------
Established in 1989, Imperial PlasTech Inc. is a rapidly expanding specialty plastics manufacturer supplying high tensile conduit used in the installation of fiber-optic cable networks and plastic pipe for the residential and industrial construction industries. Operating out of three modern facilities in Peterborough, Ontario and one in Edmonton, Alberta, the Company's strategy is to continue to grow both internally and through the acquisition of additional plastics manufacturing businesses. For the year ended November 30, 1999 sales rose 118% to $26.8 million producing a 197% increase in net income to $1.4 million or $0.06 per common share.
Imperial PlasTech Inc. cannot guarantee that any forward-looking statements contained in this news release will materialize. Nor is it possible for the Company to commit itself to updating information about risks and other factors pertaining to its business that might appear in this or any other public disclosure documents.
For more information, please contact: Victor D'Souza, President and Chief Executive Officer Imperial PlasTech Inc. Tel: (416) 932-8674 email: victor@implas.com
SOURCE: IMPERIAL PLASTECH INC. |
