Hi everyone, here's the great year end report we all were waiting for;
Revenues up , profits up (what's better profit margin is up as well),
no write downs as some were fearfully expecting, great news on the PMP division which started getting orders for the first time. They have reduced their debt from 18.3 million to 4.7 million. This alone would mean about 1 million savings in interest payments. Now let's see how much the stock will move up tomorrow (the news was released after the close of the markets) . With very conservative P/E ratio of 15 and without giving any consideration to the amazing growth and turnaround they have achieved in just one year, and without any consideration to the revenues from PMP ( which is a high margin product), 0.16c/share times 15 = 2.40. Am I wrong ? If this stock trades any less than that tomorrow morning , it means that there is something that we don't know, and that the management is hiding...
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TecSyn International Inc -
Annual income $0.16 per share
TecSyn International Inc TSN
Shares issued 57712129 1997-11-10 close $1.7
Tuesday Nov 11 1997
Mr Wayne Corbett reports
For the fiscal year ended August 31 1997 TecSyn posted net income of $8.7 million or $0.16 per share on revenue of $77.7 million. This compares to a net loss of $28.2 million or $0.54 per share (including write-offs of goodwill on Polytech and certain fixed assets and deferred costs of the powdered metal business in the amount of $28.2 million or $0.54 per share) on revenue of $68.3 million for the prior fiscal year. Net loss before these items in the prior fiscal year was $143,123 or $0.00 per share. Cash inflow for the year was $11.5 million ($0.22 per share) compared to cash outflow of $1.6 million for 1996. Total debt was reduced by $13.6 million from $18.3 million last year to $4.7 million this year.
Fourth quarter net profit was $3.2 million on revenue of $22.2 million or $0.06 per share compared to fourth quarter net loss for the prior comparative quarter of $29.6 million on revenue of $17.9 million or $0.56 per share.
TecSyn PMP has obtained a commercial order from Briggs & Stratton for small engine cylinder liners for shipment commencing November 1997. This order represents ramp up volumes. TecSyn PMP anticipates securing additional volumes as the year progresses both from Briggs & Stratton and other small engine manufacturers. Testing with air bag manufacturers is continuing to yield positive results and TecSyn remains optimistic with respect to this aspect of the market Polytech continues to add significant volume to its business while consolidating its operation in its efficient production facility in Matamoros, Mexico. The plant is being doubled in size and vertical integration of key production processes continues to take place.
The Poli-Twine business reaped the benefit of its 1996 inventory reduction program, which positioned it to better respond to customer needs while reducing working capital significantly. The return to relatively full production in fiscal 97 allowed for significantly greater operating efficiencies and an improved ability to compete in a tight market.
TecSyn intends to continue the normal course issuer bid initiated October 16 1995 to acquire up to 5% of the outstanding common shares of the company during the next year (2,652,397 shares). TecSyn has purchased and cancelled 251,254 shares in the first 12 months of the bid and additional 537,000 shares in the second 12 months.
TecSyn's board has approved a resolution consolidating its common shares at the rate of one share for each three held. This resolution will be submitted for ratification by shareholders at TecSyn's AGM in late January.
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