Joe, here is the reason for the sell off friday, 4Q announced same day as the 1Q, 4Q not very good, also I don't like this type of release, seems like company playing with the numbers before releasing.
PS: 100M rev x 1%= 1 mill$ on 25 mill shares = 4 cents..
Canadian Company Press Release
MII 1998-05-01 (provided courtesy of ISDN Wire Service)
MOND INDUSTRIES INC. REPORTS YEAR-END RESULTS
TORONTO, ON--
Mond Industries Inc. today reported results for the twelve months and the
fourth quarter ended December 31, 1997, its fiscal year-end.
Fourth-Quarter Results (three months ended December 31, 1997 compared with
three months ended December 31, 1996)
* Revenues were $29.4 million compared with $20.4 million.
* Net loss was $6.1 million compared with a net loss of $2 million.
* Net loss per share was $0.18 compared with a net loss per share of
$0.07.
Year-End Results (12 months ended December 31, 1997 compared with the
12 months ended December 31, 1996)
* Revenues were $90.0 million compared with $77.7 million.
* Net loss was $9.9 million compared with a net loss $1.7 million.
* Net loss per share was $0.30 compared with a net loss per share of
$0.06.
During 1997, revenues increased 16% from the previous year's, reaching a
record high of $90.0 million. Revenues rose steadily throughout the 1997
fiscal year, reaching a record quarterly high of $29.4 million in the fourth
quarter. This significant climb in sales is encouraging and demonstrates the
potential of the new 122,000-square-foot Mississauga facility.
Along with an increase in Mond's market share, the Company's unit trailer
sales increased 18% from 1996 figures and 33% from 1995 figures. In 1997,
about 95% of sales came from dry freight vans and intermodal containers, and
5% from refrigerated units.
The Company suffered a loss of $9.9 million in fiscal 1997. The loss can be
attributed partly to an inventory adjustment taken in the fourth quarter and
partly to the costs associated with hiring and training of a significant
portion of Mond employees as a result of the relocation to the Mississauga
facility. Mond lost more than half of its employees during the relocation
because of the lengthy commute to the new Mississauga plant. The inventory
adjustment totalled $3.5 million, the result primarily of costing errors and
to some extent inventory that was damaged, lost, or unusable following the
relocation process. In response, the Company is implementing a rigorous
inventory tracking system.
In addition, the Company, encouraged by a very strong market for trailers,
initially focussed on unit sales, creating a heavy load on a new plant with
a large percentage of workers undergoing training. The focus was shifted to
an emphasis on sales margins and profitability midway through the year to
allow for a less-pressured integration of operations in the new facility.
"We learned valuable lessons in this relocation that will stand us in good
stead in our next phase of growth," Mr. DiLillo said. "We made some missteps
in the relocation, but fortunately, the problems we experienced in 1997 are
definitely behind us."
In 1997, Mond's service sector expanded capacity as a result of the move to
the new site. By year-end, 14 of the 18 new bays at the Mississauga plant
were operating five days per week on a round-the-clock rotation aimed
exclusively at customer service and repair. The mobile fleet unit, consisting
of six cube vans, was on the road servicing customers in the Toronto area.
Although it cannot compare to the revenue potential of the manufacturing
side, the service sector is a higher margin business, and thus a lucrative
and growing sector for Mond.
The outlook for fiscal 1998, based on a very strong market for Mond products
in the first quarter of 1998, is for an increase in sales and a return to
profitability as the Company commences the process of fine-tuning overall
operations at the new facility.
Mond is Canada's largest manufacturer of domestic intermodal containers for
the truck/rail transportation sector and designs, manufactures, services and
repairs an extensive line of standard and customized trailers, trailer
chassis, dry freight vans, refrigerated and heated vans. Mond sells its
products in Canada using its own sales force and through a nationwide dealer
network.
The Company's shares trade on the Toronto Stock Exchange under the symbol
MII.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Jon W. Kieran or Olav Svela, Investor Relations (416) 868-1079
Hume, Kieran Inc.
Denis Arsenault, Chief Financial Officer (905) 565-9500
Mond Industries Inc.
|
