Optimal Robotics Reports Record 2000 Results (Part 1 of 2)
MONTREAL--(BUSINESS WIRE)--Feb. 21, 2001--Optimal Robotics Corp. (NASDAQ: OPMR - news), North America's leading provider of self-checkout systems to retailers, today announced record results for the fourth quarter and year ended December 31, 2000. All references are to U.S. dollars.
Revenue in 2000 increased 106% to $60,970,505, compared to $29,634,246 recorded in 1999. Net earnings for the year were $4,795,077, compared to net earnings of $120,185 in 1999 (adjusted to exclude the Company's provision for income tax recovery in 1999 of $3,531,583). Fully diluted earnings per share in 2000 were $0.35 compared to $0.01 in 1999 (adjusted to exclude the Company's provision for income tax recovery in 1999 of $0.34 per share).
In the fourth quarter of 2000, the Company realized revenues of $12,542,737, an 83% increase over the $6,835,000 recorded in the fourth quarter of 1999. Fourth quarter net earnings were $217,944, as compared to a loss of ($1,154,000) in the fourth quarter of 1999 (adjusted to exclude the Company's provision for income tax recovery in the fourth quarter of 1999 of $3,531,583). Fully diluted earnings per share in the fourth quarter of 2000 were $0.02 compared to a loss per share of ($0.10) in the fourth quarter of 1999 (adjusted to exclude the Company's provision for income tax recovery in the fourth quarter of 1999 of $0.27 per share).
Optimal Robotics delivered 2,310 U-Scan® self-checkout terminals in 2000, or 583 U-Scan systems, an increase of 101% from the 1,152 U-Scan terminals, or 288 U-Scan systems, delivered in 1999.
Optimal delivered 450 U-Scan self-checkout terminals in the fourth quarter of 2000, or 114 U-Scan systems, an increase of 76% from the 256 U-Scan terminals, or 64 U-Scan systems, delivered in 1999.
``This was a year of record annual revenue and earnings, capped by a fourth quarter in which our business momentum remained strong'', said Holden L. Ostrin, Co-Chairman. ``With our strong order flow and visibility, we are confident in our business strategy and competitive position'', he continued. ``This is highlighted by accelerating commitments from many of our existing customers and exciting new customer relationships developing. We believe we are well positioned to leverage our leadership in self-checkout and to continue to drive increasing sales of our innovative products.''
Certain additional information follows:
Accounts Receivable
The Company's accounts receivable at year-end were $10,485,017, a decrease of $11,144,028 from $21,629,045 at the end of the third quarter of 2000. Included in the $10,485,017 were $8,287,492 of trade accounts receivable; $1,309,772 of accrued interest; and $887,753 other.
During the fourth quarter of 2000, the Company sold, on a non-recourse basis, certain designated accounts receivable to a Canadian chartered bank. These receivables had an aggregate carrying value of $7,309,584 for which the Company received net proceeds of $7,222,898. The net effect of these transactions, after receiving the sale proceeds, will be a gain to the Company of approximately $12,000 from interest earned on the proceeds and a reduction in tax on capital.
The sale also resulted in a reduction in the Company's days outstanding of accounts receivable (``DSO's'') as at December 31, 2000 to 38 days from 74 days at the end of the third quarter of 2000. Under generally accepted accounting principles, DSOs are calculated by dividing revenues by the average of the beginning and ending balance of trade receivables. As at December 31, 2000, the Company's ending balance of trade receivables was $8,287,492.
The Company believes that the credit quality of its accounts receivable is high and that the balance of its accounts receivables will be collected in normal course. Accordingly, the Company has no allowance for doubtful accounts.
Inventory
The Company's inventory position at year-end was $16,725,885, up $3,561,429 from $13,164,456 at the end of the third quarter of 2000. The year-end inventory position included $3,543,262 of finished goods, up $15,262 from $3,528,000 at the end of the third quarter of 2000; $589,424 of work in process; $3,657,967 of raw materials; and $8,935,232 of replacement parts, up $1,338,929 from $7,596,303 at the end of the third quarter of 2000.
Work in process and raw materials are the direct result of the significant increase of the Company's order flow and the commencement of the Company assembling its systems in the fourth quarter of 2000. The Company believes that, considering its current installed base and its anticipated run rate for 2001, its level of replacement part inventory is appropriate for the current servicing and support of its customers.
Working Capital and Liquidity
The Company's working capital at year-end was $99,904,273, as compared to $36,032,273 at the end of 1999. The Company had cash and cash equivalents of $76,148,892 at year-end, as compared to $29,135,690 at the end of 1999.
Shareholders' Equity
The Company had shareholders' equity of $104,745,582 at year-end, as compared to $39,704,832 at the end of 1999.
Long-Term Debt
The Company has no long-term debt.
Employees
The Company had 288 employees at year-end, as compared to 168 employees at the end of 1999.
First Quarter 2001 Guidance
Given the strength of the Company's 2001 visibility and current order flow, the outlook for the year remains very positive. For the first quarter of 2001 the Company is comfortable with consensus estimates of fully diluted earnings per share of $0.17; net earnings of approximately $2.5 million; and the Company's gross margin target of at least 35%.
It is the intent of Optimal's conference call to have the question and answer session limited to institutional analysts and investors. The call can be heard beginning at 5:00pm EST as an audio webcast via Optimal's website at www.opmr.com. As well, Optimal invites retail brokers and individual investors to hear the third quarter conference call replay by dialing 1-888-716-7820--Pass Code: 690683#. The replay may be heard beginning at 9 pm (EST) on February 21, 2001 and will be available for 5 business days.
Optimal Robotics Corp. is the leading provider of self-checkout systems to retailers in North America. The Company's principal product is U-Scan, an automated self-checkout system that enables shoppers to scan, bag and pay for their purchases with limited or no assistance from store personnel. U-Scan, which processed over 150 million shopper transactions in 2000, is designed to reduce retailer checkout costs and increase shoppers' convenience.
This news release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These forward-looking statements include projecting revenue and profit growth, and statements expressing comfort with analysts' earnings estimates. These forward-looking statements are based on current expectations and assumptions and involve known and unknown risks and uncertainties that could cause Optimal's actual results to differ materially.
These risks and uncertainties include price and product competition, dependence on new product development, reliance on major customers, customer demand for our product and services, control of costs and expenses, domestic and international growth, general industry and market conditions and growth rates and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. For a further list and description of such risks and uncertainties, see the reports filed by Optimal with the Securities and Exchange Commission. Optimal disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
