Great results but no movement in the stock! Now we're getting a dividend too!
Fantom Technologies reports 39% increase in earnings for the three months ended
March 31, 1999
WELLAND, ON, April 16 /CNW/ - Fantom Technologies Inc. (TSE Stock Symbol:
FTM; NASDAQ Stock Symbol: FTMTF) today announced its financial results for the
three-month and nine-month periods ended March 31, 1999.
For the three months ended March 31, 1999 (Q3 fiscal 1999), net income
rose 39% from the year-earlier period to $4.0 million. Earnings per share
increased to 44 cents (based on 9,008,802 shares outstanding) from 32 cents
(based on 8,927,275 shares outstanding) for the same period in the previous
year. Revenue increased 26% to $65.6 million.
For the nine months ended March 31, 1999, net income rose 51% from the
year-earlier period to $10.9 million. Earnings per share increased to $1.21
(based on 8,997,360 shares outstanding) from 83 cents (based on 8,722,830
shares outstanding) for the same period in the previous year. Revenue grew 45%
to $180.7 million.
Commenting on the Company's results, Fantom Technologies' President & CEO
Allan Millman said, ''This is the fifth successive quarter of record results,
and I am delighted to report that all products performed well and contributed
to these outstanding numbers. Additionally, in early March, we began shipping
our new FANTOM(R) CYCLONE XT(TM) upright vacuum, which has received positive
early reports from consumers.''
Fantom Technologies also announced today that its Board of Directors
declared a cash dividend of 3 cents per share payable on June 30, 1999 to the
shareholders of record at the close of business on May 31, 1999.
Fantom Technologies has changed the face of the vacuum cleaner industry
through the design, manufacture and marketing of vacuum cleaners based on
proprietary, dual-cyclonic vacuuming technology. This technology eliminates
the use of filter bags and provides constant peak cleaning power versus the
declining cleaning power often experienced with conventional vacuums using
filter bags. At present, the Company's main product line consists of the
FANTOM(R) THUNDER(R) and FANTOM(R) FURY(R) uprights, the FANTOM(R)
LIGHTNING(R) canister, and the new premium upright - the FANTOM(R) CYCLONE
XT(TM) vacuum - which is in the process of being introduced. The Company's
products are sold in the United States and Canada via direct-response
television, the Internet, and through mass merchandisers, catalog and
catalog/showroom retailers, warehouse clubs, department stores, hardware
outlets and independent vacuum dealers. The Company is focusing on expanding
its range of products and technologies, as well as the markets in which it
competes, and is targeting to introduce two new household appliances in the
first half of calendar 2000. One of these products is in the floor-care area
and the other is in the water-treatment field.
The foregoing information includes certain statements relating to the
Company which are forward-looking statements under Section 21E of the United
States Securities Exchange Act of 1934. The word ''targeting'' and similar
expressions, as they relate to the Company or its management, are intended to
identify forward-looking statements. Such statements are based on assumptions
made by and information available to the Company but there are important
factors that could cause actual results to differ materially from those in
such forward-looking statements including, among others, the contingencies
arising from the uncertainties which are inherent in the development of new
technology and the unanticipated costs and time delays which often arise in
the process of developing new products based on innovative technology. The
Company does not intend, and assumes no obligation, to update the
forward-looking statements to reflect actual results, changes in assumptions
or changes in other factors affecting such statements.
<<
Financial Highlights
(Unaudited, in Canadian Dollars)
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Consolidated Statements of Income
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Nine Months Ended Three Months Ended
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March 31 1999 1998 1999 1998
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Sales $180,748,331 $125,082,625 $65,628,821 $52,124,311
-------------------------------------------------------------------------
Cost of Goods Sold $114,828,728 $80,162,124 $41,663,033 $33,889,815
-------------------------------------------------------------------------
Gross Margin $65,919,603 $44,920,501 $23,965,788 $18,234,496
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Selling, General &
Administrative $47,371,735 $33,569,647 $17,084,328 $13,639,484
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Research and
Development $1,634,875 $0 $637,315 $0
-------------------------------------------------------------------------
Finance Charges ($40,087) $25,538 $25,244 $26,504
-------------------------------------------------------------------------
Income Before Taxes $16,953,080 $11,325,316 $6,218,901 $4,568,508
-------------------------------------------------------------------------
Tax Provisions $6,099,000 $4,128,000 $2,233,000 $1,695,000
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Net Income $10,854,080 $7,197,316 $3,985,901 $2,873,508
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Earnings per Share
(Basic) $1.21 $0.83 $0.44 $0.32
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Average No. of Shares
Outstanding 8,997,360 8,722,830 9,008,802 8,927,275
-------------------------------------------------------------------------
Earnings per Share
(Fully-Diluted) $1.16 $0.78 $0.42 $0.31
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Financial Highlights
(Unaudited, in Canadian dollars)
-------------------------------------------------------------------------
Consolidated Balance Sheets
-------------------------------------------------------------------------
March 31 1999 1998
-------------------------------------------------------------------------
Cash $1,148 $4,112,458
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Other Current Assets $71,555,062 $47,587,581
-------------------------------------------------------------------------
Deferred Development Costs, Net of Amortization $1,639,016 $1,437,000
-------------------------------------------------------------------------
Property, Plant & Equipment at Cost $34,190,818 $21,828,981
-------------------------------------------------------------------------
Less Accumulated Depreciation ($6,668,363) ($4,618,096)
-------------------------------------------------------------------------
Net Fixed Assets $27,522,425 $17,210,885
-------------------------------------------------------------------------
Total Assets $100,717,651 $70,347,924
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Bank Indebtedness $0 $0
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Other Current Liabilities $37,984,563 $25,994,301
-------------------------------------------------------------------------
Capital Lease Obligations, Less Current Portions $0 $37,414
-------------------------------------------------------------------------
Deferred Income Taxes $3,627,100 $2,473,200
-------------------------------------------------------------------------
Deferred Currency-Hedging Exchange Gains $3,136,491 $0
-------------------------------------------------------------------------
Share Capital $27,910,287 $26,947,588
-------------------------------------------------------------------------
Retained Earnings $28,059,210 $14,895,421
-------------------------------------------------------------------------
Total Liabilities & Shareholders' Equity $100,717,651 $70,347,924
-------------------------------------------------------------------------
>>
%SEDAR: 00001906E
-30-
For further information: Allan Millman, President & CEO, (416) 622-9740,
ext. 232; Steve Doorey, Vice President, CFO, (905) 734-7476, Ext. 281 |
