Amisco doubles its profitability in the third quarter, bringing its net earnings to $2.3 M for the first nine months of 2003
**LOW PE/GREAT EARNINGS GROWTH
L'ISLET, Oct. 8 /CNW Telbec/ - During the nine-month period ended August
30, 2003, Amisco Industries Ltd. achieved net earnings of $2.3 million or
$0.60 per share, up from the net earnings of $2.0 million or $0.50 per share
posted for the same period in 2002. The Company's profitability doubled in the
third quarter of 2003, while its net earnings rose to $1.2 million or $0.33
per share from $652,000 or $0.16 per share in the corresponding quarter of the
previous fiscal year.
For the first nine months of the current fiscal year, net sales totalled
$34.3 million, compared with $35.8 million for the same period in 2002. The
profit margin remained virtually unchanged, standing at 29.5% in 2003 versus
29.8% in 2002. Due to major sales and marketing investments in 2002, such as
refitting the High Point showroom and printing a product catalogue, selling
and administrative expenses represented 21.9% of sales in the first nine
months of 2002, compared with 20.9% in 2003. Net earnings therefore rose
slightly this year, from $2.0 million a year ago to $2.3 million. It should be
pointed out that following the Company's share redemption and cancellation,
the weighted average number of outstanding shares went from 4,048,856 in the
first nine months of fiscal 2002 to 3,787,613 in the same period this year.
Consequently, earnings per share grew by 20%, rising from $0.50 for the first
nine months of 2002 to $0.60 for the first nine months of 2003.
The three-month period ended August 30, 2003 was Amisco's most profitable
third quarter ever. Whereas sales held almost steady, the Company's gross
profit margin rose to 32.4%, bringing its gross profit to $4.2 million from
$3.6 million in the third quarter of 2002. Conversely, the ratio of selling
and administrative expenses to sales fell to 20.0%, down from 21.1% in the
third quarter of 2002. The combination of these two factors raised the net
profit margin to 9.7%, up from 5.0% in the same quarter of the previous fiscal
year. For the third quarter of the current fiscal year, the Company thus
posted net earnings of $1.2 million or $0.33 per share, compared with $652,000
or $0.16 per share in the third quarter of 2002
"Several factors worked in our favour during the third quarter of 2003,"
said Réjean Poitras, President and Chief Executive Officer at Amisco.
"Slightly lower steel prices, a slight decline in our marketing expenses and a
lack of extraordinary expenses contributed to growing the Company's
profitability during the quarter."
Dividend
Amisco's Board of Directors has declared an annual dividend of $0.20 per
common share, which is equal to last year's. This dividend will be paid on
November 10, 2003, to shareholders of record of the Company as at October 24,
2003. This dividend is the seventeenth consecutive annual dividend paid to
shareholders and attests to Amisco's solid financial position, as the Company
remains long-term debt free.
Outlook
"Sustained home construction and renovation activity in North America is
definitely driving the demand for our products. However, we are involved in an
industry where certain unpredictable factors, such as consumer confidence and
steel prices, can change rapidly," pointed out Martin Poitras, Amisco's
Chairman of the Board. "We are highly confident that fiscal 2003 will come to
a strong close, and that we can make the most of our modern facilities,
extensive distribution network and solid balance sheet to optimize shareholder
value."
Amisco Industries Ltd. is a North American leader in the design and
manufacture of composite painted tubular and steel sheet residential
furniture. Founded in 1954, the Company manufactures beds, tables, chairs and
stools which are sold through a total of 4,000 outlets in Canada and the
United States. Thanks to its innovative product design, broad product
selection, excellent price/quality value and high-quality service, Amisco
records about 70% of its sales in the United States.
Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed
or implied by such forward-looking statements.
<<
Financial Highlights
Quarters ended Six months ended
August 30, August 31, August 30, August 31,
2003 2002 2003 2002
_________ _________ _________ _________
Net sales (000) $12,865 $12,959 $34,263 $35,782
Gross profit (000) $4,174 $3,634 $10,115 $10,660
Gross margin 32.4% 28.0% 29.5% 29.8%
Selling and
administrative
expenses (000) $2,571 $2,732 $7,148 $7,819
Selling and
administrative
expenses as a
percentage of sales 20.0% 21.1% 20.9% 21.9%
Net earnings (000) $1,246 $652 $2,279 $2,025
Net margin 9.7% 5.0% 6.7% 5.7%
Earnings per share $0.33 $0.16 $0.60 $0.50
Earnings per
share (diluted) $0.33 $0.16 $0.60 $0.50
Weighted average
number of shares
outstanding 3,763,560 4,048,856 3,787,613 4,048,856
>>
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For further information: Martin Poitras, Chairman of the Board, (418)
247-5025; Réjean Poitras, President and Chief Executive Officer; Source:
AMISCO INDUSTRIES LTD.(TSX: IAC) |
