To all: Q2 results
MCC Announces 20 Percent Increase In Sales For Q2, Fiscal 1999
TORONTO, ONTARIO--Sales for the second quarter ended October 31,
1998 increased 20 percent to $9.4 million compared to sales of
$7.8 Million in the corresponding period, prior year. Net earnings
in the second quarter of fiscal 1999 were $699,000 or $0.02 per
share compared to $717,000 or $0.02 in the second quarter of
fiscal 1998.
For the six months ended October 31, 1998, the weighted average
number of shares outstanding was 30.3 million (33.2 million fully
diluted) versus 28.0 million (29.5 million fully diluted) in the
corresponding period.
The $1.6 million increase in second quarter revenue was a result
of increased sales from the Canadian operation ($0.7 million) and
an increase in revenues attributed to the August 1997 acquisition
of the European operation, Klimatsystem ($0.9 million).
For the six months ended Oct 31, 1998, consolidated gross margins
decreased by 1.4 percent to 37.1 percent, compared to 38.5 percent
generated during fiscal 1998. The decrease was primarily the
result of (i) increased expenditures in R & D, which for financial
accounting purposes, are grouped with Cost of Goods Sold, and (ii)
increased expenses associated with the opening of the second
manufacturing facility in Toronto.
Cash flow generated by operations during Q2 increased strongly by
$1.0 million to $2.5 million year to date, compared to a nominal
amount generated by operations during the first six months of
fiscal 1998.
MCC president and CEO, Marianne Mannerheim reported that the
organization continues its strategic investment in research and
development. "Our group of engineers have completed new generation
Heating, Ventilation and Air Conditioning (HVAC) products for the
mass-transit market which began to ship in only limited quantity
during Q2," said Mannerheim. Further sales increases in
large-scale HVAC systems for the mass-transit market segment will
be announced in Q3.
Mobile Climate Control Industries Inc., is a multinational, ISO
9001 certified, designer and manufacturer of fully integrated,
custom heating, ventilation and air conditioning systems for the
transportation, off road, marine and defense industries. In
addition to its Canadian manufacturing facilities, MCC also has
operations in the United States and Europe.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Mobile Climate Control Industries Inc.
Ms. Marianne Mannerheim
President and CEO
(416)242-5858
(416)242-5091 (FAX)
E-mail address: Marianne_Mannerheim@MCCii.com
Worldwide Website: www.MCCii.com |
