I figured maintenance would've have posted this already. Anyhow, the numbers look good to me. TSE, here we come!
Attention Financial/Business Editors:
Electronics Manufacturing Group Announces Record Third Quarter Results
CALGARY, Nov. 14 /CNW/ - Continuing a year of outstanding growth,
Electronics Manufacturing Group Inc. (EMG) announces record financial results
for the third quarter period, ending September 30th, 2000.
Mr. David L. Snell, Vice Chairman and CEO for EMG, is pleased to report a
record quarter in revenue. "EMG's business performance continues to reflect
our solid position as a world-class manufacturer," he said. "Significant
revenue growth was achieved through increased demand from existing customers
as well as new program wins. We see a continuing trend for contract
manufacturing and remain confident and excited about our company's growth
prospects."
Financial highlights include:
- EMG continued its strong growth rate with revenue up 173% over the same
quarter last year, up from $2,712,060 to a record $7,408,801.
- Strong 22.3% Gross Margin performance, compared to 10.6% last year.
- EBITDA growth of 4,748% over the same quarter last year, up from
$18,736 to $908,375.
- Net loss of $0.02 per share, improving from a net loss of $0.03 per
share in third quarter 1999.
- Adjusted earnings (excludes goodwill amortization) of $46,416 this
quarter, up from an adjusted loss of $230,605 in 1999.
Exiting September with the revenue run rate of $4,500,000 per month, EMG
is on target to achieve its aggressive business plan for fiscal year 2000. It
is expected that fourth quarter revenues will maintain momentum based upon a
number of new customer programs soon to be announced. Gross margin in
absolute dollars is projected to increase considerably while gross margin as a
percentage of sales are expected to decline slightly as the mix of work moves
toward a broader array of supply chain management services. EBITDA will
continue to grow over prior periods.
Operationally, EMG has grown to include three facilities in Canada with
leading manufacturing, test and engineering services. The company now employs
355 Canadians focused to driving business results for EMG's customers.
Furthermore, EMG's Information Technology platform was integrated into the JFB
Technologies Inc. operations in Markham, Ontario in less than 90 days after
the acquisition on June 30, 2000.
"This outlook combined with powerful additions to the management team,
significant increases to manufacturing capacity, and a broader customer base,
position EMG to achieve its aggressive business objectives for the fourth
quarter and on to the next calendar year," explained David King, President of
EMG.
About EMG:
Electronics Manufacturing Group Inc. is an ISO 9002 registered
Electronics Manufacturing Services (EMS) company, providing a complete range
of product development and delivery services to the global technology and
electronics industry, including design, prototyping, assembly, testing,
product assurance, supply chain management, worldwide distribution and
after-sales service. With three manufacturing facilities located in Calgary,
Alberta and Markham, Ontario, EMG is continually expanding its electronics
manufacturing services in order to set the standard for bringing quality
electronics products to market. With its corporate headquarters in Calgary,
EMG employs 355 Canadians and was recently recognized by Profit Magazine as
the sixth fastest growing start-up in Canada. EMG is listed on the Canadian
Venture Exchange under the symbol "EMY" and more information can be found at
www.emgplace.com.
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release. This news
release may contain forward-looking information. Actual future results may
differ materially from those contemplated. The risks, uncertainties and other
factors that could influence actual results are described in documents filed
with regulatory authorities.
<<
CONSOLIDATED BALANCE SHEETS
September 30 December 31
2000 1999
(Unaudited) (Audited)
Assets
Current Assets
Cash and short term deposits $ 2,653,713 $ 996,852
Accounts receivable 6,767,560 2,696,458
Inventory 2,910,865 2,282,437
Work-in-progress 513,873 360,808
Prepaid expenses and deposits 321,581 210,939
-------------------------------------------------------------------------
13,167,592 6,547,494
Capital assets 12,494,993 5,122,814
Deposit 100,000 100,000
Development costs 123,663 97,683
Goodwill 8,761,504 2,852,344
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$34,647,752 $14,720,335
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current Liabilities
Accounts payable / accrued liabilities $ 5,275,431 $ 2,556,178
Current portion of long term debt 363,606 90,691
Current portion of capital leases 2,098,175 603,978
Amounts payable on acquisition - 1,125,000
-------------------------------------------------------------------------
7,737,212 4,375,847
Obligations under capital leases 2,488,255 860,594
Long-term debt 659,386 1,327,358
Shareholders' Equity
Share capital 19,109,959 5,234,209
Share warrants 8,240,992 5,371,024
Deficit (3,588,052) (2,448,697)
-------------------------------------------------------------------------
23,762,899 8,156,536
-------------------------------------------------------------------------
$34,647,752 $14,720,335
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS & DEFICIT
(Unaudited)
Nine Months Ended Quarter Ended
September 30 September 30
2000 1999 2000 1999
Sales $17,697,785 $ 7,980,204 $ 7,408,801 $ 2,712,060
Cost of sales 14,786,324 7,484,267 5,758,691 2,425,745
-------------------------------------------------------------------------
Gross margin 2,911,461 495,937 1,650,110 286,315
SG&A expense 1,786,214 802,201 741,735 267,579
-------------------------------------------------------------------------
EBITDA 1,125,247 (306,264) 908,375 18,736
LT debt interest 90,083 80,108 35,741 44,365
Other interest 139,781 69,061 79,543 19,030
Depreciation 1,436,961 589,176 746,675 185,946
Amortization of
goodwill 597,777 - 307,707 -
-------------------------------------------------------------------------
Net Loss (1,139,355) (1,044,609) (261,291) (230,605)
Deficit,
beginning of
period (2,448,697) (745,995) (3,326,761) (1,559,999)
-------------------------------------------------------------------------
Deficit,
end of period $(3,588,052) $(1,790,604) $(3,588,052) (1,790,604)
-------------------------------------------------------------------------
Net loss per share,
basic (3) $ (0.07) $ (0.15) $ (0.02) $ (0.03)
-------------------------------------------------------------------------
Adjusted earnings
(loss) per
share (3) $ (0.04) $ (0.15) $ 0.00 $ (0.03)
-------------------------------------------------------------------------
>>
NOTES
1. The Company has adopted industry practice of presenting a Cost of
Sales amount that includes Operating expenses in arriving at a gross
margin. Comparative amounts have been reclassified to conform to the
current presentation.
2. The consolidated financial statements have been prepared in accordance
with generally accepted accounting principles and the accounting
policies applied are consistent with prior periods.
3. Weighted average basic shares outstanding for the 9-month period and
the 3-month period ended September 30, 2000 were 15,251,181 and
17,344,670 respectively. The fully diluted loss per share was anti-
dilutive and is therefore not presented. Adjusted earnings (loss) per
share excludes goodwill amortization.
4. At September 30, the Company had 17,417,950 common shares, 1,542,750
employee options to acquire common shares and 6,227,300 warrants and
special warrants to purchase common shares outstanding. In addition,
the Company currently holds an option to repurchase 1,100,000 common
shares at $1.00 per share from a shareholder.
<<
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
Nine Months Ended Quarter Ended
September 30 September 30
2000 1999 2000 1999
-------------------------------------------------------------------------
Operations:
Loss for the
period $(1,139,355) $(1,044,609) $ (261,291) $ (230,605)
Items not involving cash:
Depreciation and
amortization 2,034,738 589,176 1,054,382 185,946
Issue of common
shares for
expenses - 5,520 - -
Change in non-
cash working
capital (1,465,217) (947,184) (725,064) (273,689)
-------------------------------------------------------------------------
(569,834) (1,397,097) 68,027 (318,348)
Financing:
Repayment of
capital leases (765,931) (288,429) (474,450) (61,415)
Long-term debt, net
of repayments (395,057) 899,108 229,458 933,551
Issue of common
shares and warrants,
net of costs 12,745,718 2,524,361 8,325,526 104,118
Notes receivable/
payable (1,122,008) (93,972) - 2,226
Shareholder loans - (576,105) - (50,000)
-------------------------------------------------------------------------
10,462,722 2,464,963 8,080,534 928,480
Investments:
Acquisition of JFB
Technologies (5,830,910) - (6,000,000) -
Cancellation of
warrants - (50,000) - -
Development costs (66,767) (17,439) (1,694) -
Acquisition of
capital
assets (2,338,350) (504,144) (958,200) (185,442)
-------------------------------------------------------------------------
(8,236,027) (571,783) (6,959,894) (185,442)
Increase in
cash 1,656,861 496,283 1,188,667 424,690
Cash, beginning
of period 996,852 (489,188) 1,465,046 (417,595)
-------------------------------------------------------------------------
Cash, end of
period $ 2,653,713 $ 7,095 $ 2,653,713 $ 7,095
-------------------------------------------------------------------------
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