Earnings will be in the $0.85 range.
Take a close look to their 2nd quarter results:
TECSYN INTERNATIONAL INC. REPORTS SECOND QUARTER
RESULTS
ST.CATHARINES, ONTARIO--
For the second quarter ended February 28, 1999, TecSyn recorded
net income of $2,664,511 or $0.15 on revenue of $18,724,665 and
for the six month period ended February 28, 1999, net income was
$5,429,711 or $0.31 per share on revenue of $32,494,915. Net
Income for the second quarter was 27% greater than the prior
year. Six month Net Income for Fiscal 99 was 47% higher than the
prior year including other income from repayment of a Note
Receivable in the amount of $898,641 which accounts for 24% of
the increase over prior year.
3 months to Feb. 28: 1999 1998
-------------------- -----------------------
Revenue $18,724,665 $18,829,489
Net income $2,664,511 $2,101,679
Net income per share - basic $0.15 $0.12
Net income per share- fully diluted $0.14 $0.11
6 months to Feb. 28: 1999 1998
-------------------- -----------------------
Revenue $32,494,915 $33,262,193
Net income $5,429,711 $3,688,053
Net income per share - basic $0.31 $0.21
Net income per share - fully diluted $0.28 $0.19
Average Common Shares Outstanding 17,577,469 17,599,562
Poli-Twine: In our continued effort to reduce costs and increase
margins we relocated the rope business, formerly located in
Belleville, to our plant in Matamoros, Mexico. In doing so we
have freed up space in Belleville for new industrial products. To
that end TecSyn will install a new state of the art manufacturing
line to produce industrial cable filler.
Polytech continues to outgrow its existing facility. A new 26,000
sq. ft. addition will be completed to accommodate the rope
business transferred from Belleville as well as injection molding
equipment used to manufacture netting fasteners. In addition,
Polytech was awarded contracts from Mercedes Benz, Europe
($1.5 mm) for a trunk net as well as a center console bag for a
domestic sport utility vehicle ($3.6 mm). This bag represents a
new venture for Polytech into the cut and sew market, which is
ideally suited for manufacture in our Mexico facility.
TecSyn PMP: Orders announced earlier in the fiscal year are now
coming to fruition with volume production shipments for a small
engine customer now underway. Other launches are slated for mid
May and June as our second and third production orders come on
stream. Many other companies manufacturing internal combustion
engines are beginning to understand the value of the powder metal
cylinder liners as reflected in our prototype order book. TecSyn
PMP, our once weak sister company, will now become a valuable
asset to the TecSyn family of companies.
For further information please contact Wayne Corbett, President
& CEO or Paul E. Riganelli, VP Administration.
TECSYN INTERNATIONAL INC.
One St. Paul St., Suite 602, St. Catharines, ON
Telephone: (905) 687-8811
Facsimile: (905) 687-6917
TECSYN INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
(UNAUDITED)
Three Months Three Months
ended ended
Feb. 28/99 Feb. 28/98
----------- -----------
NET REVENUE $18,724,665 $18,829,489
=========== ===========
INCOME FROM CONTINUING
OPERATIONS BEFORE
PROVIDING FOR AMORTIZ-
ATION, INTEREST, OTHER
AND INCOME TAXES 3,690,240 2,919,600
----------- -----------
Amortization 619,469 554,025
Interest on long-term debt 31,896 144,609
Interest (Income) expense on
short-term debt (117,613) 904
----------- -----------
533,752 699,538
----------- -----------
INCOME FROM OPERATIONS
BEFORE OTHER AND
INCOME TAXES 3,156,488 2,220,062
INCOME TAXES 491,977 118,383
----------- -----------
NET INCOME FOR THE PERIOD 2,664,511 2,101,679
RETAINED EARNINGS
BEGINNING OF THE PERIOD 23,297,731 10,249,961
----------- -----------
RETAINED EARNINGS ----------- -----------
END OF PERIOD $25,962,242 $12,351,640
=========== ===========
PER SHARE
---------
Net Income:
Basic earnings per share $0.15 $0.12
Fully diluted earnings per share $0.14 $0.11
TECSYN INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENT OF CHANGES
IN FINANCIAL POSITION
(UNAUDITED)
Three Months Three Months
ended ended
Feb. 28/99 Feb. 28/98
------------------------
OPERATING ACTIVITIES:
Net income for the period $2,664,511 $2,101,679
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization 619,469 554,025
Loss on disposal of capital assets 3,745 -
(Increase) Decrease in operating
working capital:
Accounts receivable (5,988,233) (3,202,605)
Inventory 408,001 435,196
Prepaid expenses (400,739) (56,471)
Accounts payable and accrual charges 2,254,031 580,798
Income Taxes (67,571) (347,072)
Effect of exchange rate changes (375,870) 184,828
------------------------
CASH CONSUMED BY OPERATING
ACTIVITIES (882,656) (2,405,326)
------------------------
INVESTING ACTIVITIES:
Principal receipts on notes receivable - 129,050
Purchase of capital assets (953,216) (71,910)
------------------------
CASH (CONSUMED) PROVIDED BY
INVESTING ACTIVITIES (953,216) 57,140
------------------------
FINANCING ACTIVITIES:
Principal payments on long-term
debt (40,446) (424,478)
Redemption of common shares (1,971,487) -
Issuance of common shares - 66,960
------------------------
CASH CONSUMED BY FINANCING
ACTIVITIES (2,011,933) (357,518)
------------------------
CASH OUTFLOW FOR THE PERIOD (3,847,805) (50,002)
NET CASH AT BEGINNING OF
THE PERIOD 12,112,072 262,737
------------------------
NET CASH AT END OF THE PERIOD $8,264,267 $212,735
========================
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
(UNAUDITED)
Six Months Six Months
ended ended
Feb. 28/99 Feb. 28/98
----------- -----------
NET REVENUE $32,494,915 $33,262,193
=========== ===========
INCOME FROM CONTINUING
OPERATIONS BEFORE
PROVIDING FOR AMORTIZ-
ATION, INTEREST, OTHER
AND INCOME TAXES 6,498,672 5,335,645
----------- -----------
Amortization 1,231,652 1,074,437
Interest on long-term debt 128,674 293,945
Interest (income) expense on
short-term debt (253,264) 36,032
----------- -----------
1,107,062 1,404,414
----------- -----------
INCOME FROM OPERATIONS
BEFORE OTHER AND
INCOME TAXES 5,391,610 3,931,231
OTHER INCOME 898,961 -
----------- -----------
INCOME FROM OPERATIONS AND
OTHER BEFORE INCOME TAXES 6,290,571 3,931,231
INCOME TAXES 860,860 243,178
----------- -----------
NET INCOME FOR THE PERIOD 5,429,711 3,688,053
RETAINED EARNINGS
BEGINNING OF THE PERIOD 20,532,531 8,663,585
----------- -----------
RETAINED EARNINGS ----------- -----------
END OF PERIOD $25,962,242 $12,351,638
=========== ===========
PER SHARE
---------
Net Income:
Basic earnings per share $0.31 $0.21
Fully diluted earnings per share $0.28 $0.19
TECSYN INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
February February
1999 1998
----------- -----------
ASSETS
CURRENT
Cash $8,264,267 $212,735
Accounts receivable 15,141,974 $12,881,993
Inventories 12,427,010 13,862,786
Notes receivable - 1,358,500
Prepaid expenses 1,173,200 1,407,046
----------- -----------
Total current assets 37,006,451 29,723,060
CAPITAL ASSETS 11,414,371 10,795,803
----------- -----------
$48,420,822 $40,518,863
=========== ===========
LIABILITIES
CURRENT
Accounts payable and accrued
charges 7,257,714 6,690,731
Income taxes payable 470,359 (67,178)
Current portion of long-term debt 141,155 1,682,843
----------- -----------
Total current liabilities 7,869,228 8,306,396
----------- -----------
LONG-TERM DEBT 1,133,827 5,347,830
----------- -----------
SHAREHOLDERS' EQUITY
Capital stock 11,414,606 13,468,883
Accumulated unrealized gains
on foreign exchange 2,040,919 1,044,114
Retained Earnings 25,962,242 12,351,640
----------- -----------
Total shareholders' equity 39,417,767 26,864,637
----------- -----------
$48,420,822 $40,518,863
=========== ===========
INTERIM CONSOLIDATED STATEMENT
OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
Six Months Six Months
ended ended
Feb. 28/99 Feb. 28/98
----------- -----------
OPERATING ACTIVITIES:
Net income for the period $5,429,711 $3,688,053
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization 1,231,652 1,074,437
Loss (Gain) on disposal of
assets 3,745 (53,570)
(Increase) Decrease in operating
working capital:
Accounts receivable (2,929,909) (556,387)
Inventory (3,271,490) (3,893,690)
Prepaid expenses (782,205) (475,883)
Accounts payable accrual charges 758,010 (2,222,126)
Income Taxes 257,250 (377,311)
Effect of exchange rate changes (556,746) 473,894
----------- -----------
CASH PROVIDED (CONSUMED) BY
OPERATING ACTIVITIES 140,018 (2,342,583)
----------- -----------
OTHER INCOME 898,961 -
----------- -----------
INVESTING ACTIVITIES:
Principal receipts on notes receivable 240,600 242,300
Proceeds from sale of capital assets - 258,743
Purchase of capital assets (1,236,140) (114,905)
----------- -----------
CASH (CONSUMED) PROVIDED BY
INVESTING ACTIVITIES (995,540) 386,138
----------- -----------
FINANCING ACTIVITIES:
Principal payments on long-term debt (5,358,041) (837,356)
Issuance of common shares - 66,960
Redemption of common shares (1,971,487) -
----------- -----------
CASH CONSUMED BY FINANCING
ACTIVITIES (7,329,528) (770,396)
----------- -----------
CASH OUTFLOW FOR THE PERIOD (7,286,089) (2,726,841)
NET CASH AT BEGINNING
OF THE PERIOD 15,550,356 2,939,576
----------- -----------
NET CASH AT END OF THE PERIOD $8,264,267 $212,735
=========== ===========
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