Earnings out look real good
Year end results
Peerless Carpet PRG
Shares issued 12,606,009 Apr 1 close $2.80
Thu 2 Apr 98 News Release
Mr Jeff Casselman reports
Net earnings for the year ended December 31 1997 were $3.0 million or $0.23
per share compared with a loss of $12.3 million or $0.97 per share last
year. Sales were $196.8 million including $12.3 from discontinued and sold
operations, compared with $226.3 million including $36.6 million related to
discontinued and sold operations a year ago.
Term and bank indebtedness net of cash deposits was reduced to $55.4
million, a decrease of $26 million from last year's figure of $81.6
million. The company's debt to equity ratio significantly improved, going
from 4:1 to 2:1. This was made possible by the company's non-strategic
overseas businesses, liquidation of aged inventories and the adoption of
improved management procedures including just-in-time order processing.
Overall gross margins as a percentage of sales improved by 1.8% in 1997.
The increase resulted from a combination of stronger gross margins in the
Canadian broadloom business in Canada, elimination of the lower margin
business derived from Brumlow Mills in the US and the company's cost
reduction plan.
Also as a direct result of the cost reduction plan, selling, general and
administrative expenses were 14.3% on lower overall sales, compared with
16.0% last year.
STATEMENT OF EARNINGS
Three months ended December 31
($ 000s)
1997 1996
Sales
Operating
divisions $ 44,196 $ 49,317
Discontinued
divisions
Brumlow - 2,548
Allied - 86
Bath and floor
Australia (44) 1,491
Europe - 4,374
--------- ---------
(44) 8,499
--------- ---------
Total company sales 44,152 57,816
--------- ---------
Operating earnings
(loss) 3,024 (10,678)
--------- ---------
Net earnings
(loss) $ 1,926 $ (10,650)
========= =========
Earnings (loss)
per share $0.15 $(0.84)
STATEMENT OF EARNINGS
Year ended December 31
($ 000s)
1997 1996
Sales
Operating
divisions $ 184,593 $ 189,689
Discontinued
divisions
Brumlow - 8,497
Allied - 8,690
Bath and floor
Australia 2,237 5,407
Europe 10,017 13,995
--------- ---------
12,254 36,589
--------- ---------
Total company sales 196,847 226,278
--------- ---------
Operating earnings
(loss) 7,831 (7,789)
--------- ---------
Net earnings
(loss) $ 3,012 $ (12,283)
========= =========
Earnings (loss)
per share $0.23 $(0.97)
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