March 31, 1997, Earnings:
(PR NEWSWIRE) Elamex 1Q97 Sales Rise 34 Percent to $33.8 Million; EPS $0.23
Elamex 1Q97 Sales Rise 34 Percent to $33.8 Million; EPS $0.23
EL PASO, Texas--(BUSINESS WIRE)--April 29, 1997--Elamex S.A. de C.V.
(NASDAQ: ELAMF), Mexico's leading contract manufacturer today reported first
quarter 1997 sales of $33.8 million, a 33.5 percent rise over sales of $25.3
million in first quarter 1996.
First quarter net income reached $1.7 million, a 17 percent increase over
first quarter `96 net income of $1.4 million. Earnings per share were $0.23
on 7.4 million shares outstanding compared with $0.27 on 5.3 million weighted
average shares in the same quarter the prior year.
The gross margin for the first quarter increased 15.1 percent to $4.4
million from $3.9 million in the same period of 1996. Operating income grew
10.1 percent to $2.4 million from $2.2 million, and profit before taxes
increased 11.7 percent to $2.5 million from $2.2 million.
Hictor M. Raynal, Elamex's Chief Executive Officer, remarked: "The first
quarter of 1997 further demonstrated Elamex's stability and capacity to
maintain its high rate of revenue and net income growth. Revenues for the
quarter reached a new company record. The Company has continued to strengthen
its competitive position in the market it serves."
Mr. Raynal noted that in 1996 the Company successfully completed an initial
public offering, listed on NASDAQ, and strengthened its balance sheet by
increasing equity and reducing debt.
"Elamex is essentially free of any borrowings," Mr. Raynal concluded, "and
well positioned for strong growth."
Mr. Raynal, will conduct a group of conference call at 10:00 a.m. Eastern
Time on Wednesday, April 30. To participate, dial 609-683-4775. The
conference call will also be available for replay at 4:00 p.m. Eastern time by
dialing the same number.
Elamex is Mexico's largest contract manufacturing service provider, fifth
largest contract manufacturing employer worldwide, and a leading participant
in the North American market. The Company delivers high quality finished
assemblies to U.S. and Canadian Original Equipment Manufacturers (OEM's) in
the consumer, telecommunications, computer, industrial, medical and automotive
industries. Elamex participates in an accelerating growth industry, where its
unique competitive advantage results from its demonstrated capability to
leverage low cost, highly productive labor, strategic North American
locations, recognized world class quality, and proven ability to combine high
technology with labor intensive manufacturing processes.
This press release includes forward looking statements that involve risks
and uncertainties, including, but not limited to, risks associated with the
company's future growth and profitability, the ability of the Company to
continue to increase sales to existing customers and to new customers and the
effects of competitive and general economic conditions.
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Balance Sheets
(In U. S. Dollars)
March 30, December 31,
1997 1996
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $6,318,662 6,269,825
Receivables:
Trade accounts,
less allowance for
doubtful accounts 19,293,337 13,944,948
Other 1,095,625 2,047,019
Total receivables 20,388,962 15,991,967
Inventories, net 12,524,766 16,200,149
Prepaid expenses 846,179 492,933
Total current assets 40,078,569 38,954,874
Property, plant and
equipment, net 28,283,035 28,610,719
Other assets, net 271,576 410,460
$68,633,180 67,976,053
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $6,467,128 8,886,613
Accrued expenses 3,128,241 2,292,682
Current obligations of
capital leases 522,104 564,216
Taxes payable 1,255,169 1,286,132
Deferred income taxes, net 1,379,783 1,379,783
Due to related parties 96,181 86,743
Total current
liabilities 12,848,606 14,496,169
Capital lease obligations,
excluding current
obligations 821,329 923,273
Other liabilities 242,208 212,403
Deferred income taxes, net 3,169,984 2,480,399
Total liabilities 17,082,127 18,112,244
Stockholders' equity:
Preferred stock, authorized
50,000,000 shares, none
issued or outstanding -- --
Common stock; 22,400,000
authorized, 7,400,000
shares issued and
outstanding 35,010,468 35,010,468
Retained earnings 16,540,585 14,853,341
Total stockholders' equity 51,551,053 49,863,809
Commitments and contingencies -- --
$68,633,180 67,976,053
See accompanying notes to consolidated financial statements.
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In U. S. Dollars)
13 weeks ended
March 30, March 31,
1997 1996
(Unaudited) (Unaudited)
Net sales $33,815,271 25,337,202
Cost of sales 29,381,427 21,484,408
Gross Profit 4,433,844 3,852,794
Operating expenses:
General and administrative 1,878,330 1,499,361
Selling 151,776 170,938
Total operating expenses 2,030,106 1,670,299
Operating income 2,403,738 2,182,495
Other income (expense):
Interest income 39,450 58,810
Interest expense (50,238) (508,699)
Other, net 88,290 489,334
Total other income
(expense) 77,502 39,445
Income before income taxes 2,481,240 2,221,940
Income tax expense 793,996 776,790
Net income $1,687,244 1,445,150
Net income per common share $0.23 0.27
Weighted average shares
outstanding 7,400,000 5,316,484
See accompanying notes to consolidated financial statements.
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In U. S. Dollars)
13 weeks ended
March 30, March 31,
1997 1996
(Unaudited) (Unaudited)
Cash flows provided by
operating activities:
Net income $1,687,244 1,445,150
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and amortization 1,000,036 702,754
Allowance for doubtful trade
accounts receivable 1,938 (9,030)
Allowance for excess and
obsolete inventory 323,709 15,138
Deferred income taxes, net 689,585 681,705
Change in assets and liabilities:
Trade accounts receivable (5,350,327) (355,918)
Other receivables 951,370 (734,402)
Inventories 3,351,674 (1,826,627)
Prepaid expenses (353,222) 83,341
Other assets 138,884 54,243
Accounts payable (2,419,485) 446,103
Accrued expenses, taxes
payable and due to
related parties 814,034 1,005,225
Other liabilities 29,805 12,659
Net cash provided by operating
activities 865,245 1,520,341
Cash flows used by
investing activities-
Purchase of property, plant
and equipment (672,352) (627,089)
Cash flows provided (used)
by financing activities:
Net increase (decrease) in
notes payable -- --
Proceeds from issuance of
long-term debt -- --
Repayment of long-term debt -- (17,600,688)
Principal repayments of capital
lease obligations (144,056) (96,291)
Proceeds from sale of stock, net -- 18,740,009
Net cash provided (used) by
financing activities (144,056) 1,043,030
Net increase in cash and
cash equivalents 48,837 1,936,282
Cash and cash equivalents,
beginning of period 6,269,825 2,848,628
Cash and cash equivalents,
end of period $6,318,662 4,784,910
See accompanying notes to consolidated financial statements.
CONTACT: Elamex S.A. De C.V.
Jorge Torres, 915/774-8254
or
The Anne McBride Co., Inc.
Marilena Michaelidou, 212/983-1702
20:47 EDT APRIL 29, 1997
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