Vince, here's Cantrex's new earnings report. Profit should improve next quarter, according to the release, when they start including the results of their competitor's business which they have recently taken over. At less than half of book value, the recent price level of this stock looks great! --Mike
CXN 1997-08-27 (provided courtesy of Canadian Corporate News)
Second Quarter 1997 - Cantrex Group Inc. - Profitability on the Rise
SAINT-LAURENT, QUEBEC--During the second quarter of the 1997
fiscal year, Cantrex Group Inc. saw its sales increase by 7.7
percent, reaching a total of $121.5 millions compared to $112.8
millions for the same period in 1996. For the first six months of
1997, sales totalled $211.3 millions compared to $ 191.8 millions
for 1996, an increase of 10.1 percent.
For the three months ending last June 30th, profitability
reflected a superior performance level, increasing by 2.6 percent
and totalling $511,000 compared to $498,000 for the same period
last year. After the first six months of the current fiscal year,
profits total $425,000 compared to $328,000 in 1996, a significant
increase of 29.6 percent.
A less substantial increase in profits for the second quarter is
attributable to a change in the allocation of certain expenses
between the first and second half. The resulting negative effect
will disappear during the second half of the fiscal year.
The president of Cantrex, Claude Lalonde, points out that on the
operational level, the opening of the fourth Corbeil
Electromenager store marks the start of the network's expansion
program. The Corbeil subsidiary has initiated its franchising
program with the corporate store located in Longueuil. Lastly,
during the quarter Corbeil set up a new distribution centre
designed to accommodate the network's future growth.
"Late in the quarter we proceeded with the acquisition of the
group activities of one of our competitors: Gest-Accor. This
transaction's effects on sales and profits will be felt starting
in the next quarter and will have an even more significant impact
in the coming years," commented Mr. Lalonde.
Cantrex Group Inc. is the largest group of independent merchants
in Canada, in the furniture, household appliances, electronics,
floor covering and photography sectors, currently including 1,400
points of sale throughout the country and some 400 Canadian and
American suppliers. In addition to its new Tendances Meubles
banner, Cantrex operates the Meubles Selection, Le Meubleur, Kit a
Tout, Furniture Plus, Expansol and United Carpet banners, as well
as Corbeil Electromenagers.
/T/
HIGHLIGHTS
CONSOLIDATED EARNINGS
(In thousands of dollars, except for earnings per share)
(Unaudited)
Quarterly Report 1997 1996
periods ended June 30 $ $
Sales 121,473 112,822
Earnings before income taxes 1,020 910
Net earnings 511 498
Cash flow 926 877
Net earnings per share 0.12 0.12
HIGHLIGHTS
CONSOLIDATED EARNINGS
(In thousands of dollars, except for earnings per share)
(Unaudited)
Semester Report 1997 1996
periods ended June 30 $ $
Sales 211,253 191,830
Earnings before income taxes 846 599
Net earnings 425 328
Cash flow 1,237 1,086
Net earnings per share 0.10 0.08
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Cantrex Group Inc.
Michel Gaudreau
Vice-President, Finance and Administration
(514) 335-0260 |
