OT: IF a company doing aalmost $300 Million a year in sales can turn it around to control the cost side one might think that the price of 1.70 on 22 Million shares or a market cap under $40 Million is really cheap. I own it and am buying more. #1 holding now by a mile. BUT my Long term trak record brutal so beware
Minacs Worldwide Inc (2) (C-MXW) - News Release
Minacs's net loss widens to $1.49-million in Q1 2004
Minacs Worldwide Inc (2) MXW
Shares issued 21,776,876 May 7 2004 close $ 1.41
Monday May 10 2004 News Release
Ms. Elaine Minacs reports
MINACS WORLDWIDE REPORTS FIRST QUARTER RESULTS MARGIN GROWTH LEADS TO IMPROVED EBITDA AND NARROWED LOSS
Minacs Worldwide has released its financial results for the first quarter ended March 31, 2004. Revenues declined to $66.8-million, from $68-million in the fourth quarter of 2003, primarily as a result of reduced postholiday demand from Minacs's automotive and technology clients, together with lower revenues from maturing foreign exchange contracts.
Gross profit increased to $22.7-million (34.1 per cent of revenue), from $21.9-million (32.3 per cent of revenue), in the prior quarter. Selling, general and administrative (SG&A) expenses were $17.5-million in the quarter, up $300,000 from the prior quarter. Earnings before interest expenses, taxes, depreciation and amortization (EBITDA) increased to $5.3-million in the first quarter 2004, from $4.8-million in the fourth quarter of 2003. The company's net loss was $1.5-million (seven cents per common share) compared with a loss, prior to one-time tax provisions, of $1.8-million in the prior quarter. Minacs reported a fourth quarter loss of $7.2-million (33 cents per common share) in 2003, after a one-time $5.4-million tax charge.
Cash flow from operations increased by $700,000 to $4-million. For the first quarter, the company had a working capital surplus of $5.7-million, including cash on hand of $5.5-million, compared with $27.2-million as at Dec. 31, 2003. The decrease in working capital was due to the classification, during 2004, of the revolving facility as a current liability. The revolving facility is part of a three-year senior bank facility that is due in February, 2005, which Minacs intends to replace with a new, lower cost senior facility later this year.
"Our operating results are showing improvement from those of last year as our margin enhancement programs, focused on better work force and facilities management, take hold. The largest component of the increase in SG&A comes from investments in the TIQ TOQ product rollout. And while we are encouraged at the early signs of improvement, we intend to remain focused on profitability," said Elaine Minacs, chief executive officer.
"In April, we were very pleased to be able to report that Minacs had renewed a significant four-year contract to provide contact centre services to General Motors and OnStar," continued Ms. Minacs. Under the terms of the agreement, Minacs provides contact centre services to General Motors, including parts assistance and dealer technical assistance. On behalf of OnStar, Minacs will continue to operate sales, enrolment, subscriber and customer care services. The Minacs teams are responsible for handling over one million customer communications on a monthly basis.
Outlook
Minacs continues to focus on a return to profitability, generating positive cash flow from operations and reducing leverage. The company is also continuing to roll out TIQ TOQ, which is a unique suite of tools that dramatically improve the way dealerships, brokers and wholesalers buy, sell, and appraise vehicle trade-ins. TIQ TOQ is currently in the initial stages of commercial application.
CONSOLIDATED STATEMENT OF
OPERATIONS AND (DEFICIT)
Three months ending March 31
(thousands of dollars except
per share amounts)
2004 2003
Revenues $ 66,788 $ 63,924
Direct expenses 44,045 41,640
-------- --------
Gross profit 22,743 22,284
Selling, general
and administrative
expenses 17,473 16,893
-------- --------
Earnings before
interest expense,
income taxes,
depreciation
and amortization 5,270 5,391
-------- --------
Depreciation
and amortization 4,528 4,252
Interest expense 1,910 1,797
-------- --------
(Loss) before
income taxes (1,168) (658)
Provision for
income taxes
Current 326 365
Future - 52
-------- --------
326 417
Net (loss) for
the period $ (1,494) $ (1,075)
======== ========
(Deficit), beginning
of period (15,894) (5,960)
(Deficit),
end of period $(17,388) $ (7,035)
======== ========
Basic and diluted
(loss) per share $ (0.07) $ (0.05) |
