Arctic Group Inc (The) -
Year end and first quarter results
Friday Sep 18 1998
Mr. Robert Nagy reports
The Arctic Group has reported a net loss of $1,016,214 or seven cents per share for the fiscal year ended April 30, 1998. This compares with net earnings of $218,729 or two cents per share in the prior year.
The loss experienced during fiscal 1998 reflects the timing of major acquisitions in Texas, Oklahoma and Kansas concluded during the winter. Given the seasonal nature of the business, the investments adversely impacted the results of operations for the year.
The businesses acquired are key elements of the company's expansion program and in fact, the true performance potential of the company has been demonstrated in the first quarter.
Net earnings for the first quarter of fiscal 1999, the period ended July 31, 1998 were $3,599,000 or 17 cents per share, compared to $553,000 or four cents per share last year.
Revenue for the first quarter increased by $17.3-million to $19.9-million.
The enhanced performance of this quarter reflects the inclusion of a number of key acquisitions which have solidified the company's presence in Canada and moved the business into target markets in the United States. The additions to the Arctic Group include companies in Ontario, Quebec, Alberta and Iowa.
In addition to the significant improvements in revenue and profitability during the quarter, the company was able to strengthen the balance sheet through the expansion of the capital base. This was accomplished with a special warrants offering and a long term debt issue.
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