Still like it, now at $18, latest results pretty good...
Canadian Corporate News - Pointcast Network Canada Wajax Announces Record Revenue and Earnings 16:39 EST Thursday, February 20, 1997
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> Canadian Corporate News
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> VANCOUVER, BRITISH COLUMBIA--Wajax today announced that revenue for the year ended December 31, 1996 was a record $675 million, up 30 percent from $521 million in 1995. Net earnings, at $17 million, were 41 percent higher than 1995 and were also a record. Earnings per share were $1.22, up 20 percent from $1.02 ($0.98 per share for continuing operations) in 1995. Earnings per share are based on an average of 14 million common shares outstanding in 1996 versus an average of 11.7 million common shares outstanding in 1995.
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> Net earnings for the fourth quarter of 1996 were $4.8 million ($0.34 per share), on revenue of $183 million, up from $143 million in the fourth quarter of 1995. Net earnings were $3.3 million or $0.28 per share for the fourth quarter of 1995 ($0.26 per share for continuing operations). The higher earnings for the fourth quarter were attributable to stronger results across all three of the Company's core businesses.
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> In December, 1996, the Company announced that it had completed the acquisitions of Ray-Gordon Equipment, a construction equipment rental company with 3 branches in Ontario, and of Spencer Industries, an industrial components company with 11 branches in the Western U.S. and 3 branches in Western Canada. These acquisitions were financed out of the Company's internally- generated cash flow and by drawing down a portion of the Company's unused bank facilities.
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> Subsequent to the year-end, the Company announced that it had signed an agreement to acquire Pacific North Equipment, a mobile equipment distributor with 8 branches in Washington, Oregon and Alaska, as well as a branch in Eastern Russia. This transaction is subject to certain remaining pre-closing conditions.
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> The acquisitions of Spencer and Pacific North provide Wajax with good strategic positions from which to pursue its ongoing growth strategy in the U.S., as well as in Canada. The Company intends to continue to seek complementary acquisition opportunities in all three of its core distribution businesses, which are engaged in the sales and after-sale parts and service support of mobile equipment, diesel engines and industrial components.
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> CONSOLIDATED STATEMENTS OF EARNINGS
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> (Unaudited)
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> (in thousands of dollars, except per share data)
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> Three months ended Year ended
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> December 31 December 31
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> 1996 1995 1996 1995
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> -------------------------------------- --------------------------------
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> Revenue $182,939 $143,298 $675,065 $520,942
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> ---------------- ---------------- ---------------- ----------------
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> ---------------- ---------------- ---------------- ----------------
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> Earnings before
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> interest and income
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> taxes 11,314 8,148 41,114 28,375
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> Interest expense 2,499 2,044 9,675 7,702
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> ---------------- -------------- ------------------ --------------
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> Earnings before income
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> taxes 8,815 6,104 31,439 20,673
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> Income taxes 4,055 2,563 14,462 9,208
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> ---------------- -------------- ------------------ --------------
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> Earnings from continuing
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> operations 4,760 3,541 16,977 11,465
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> Discontinued operations - (209) - 534
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> ---------------- -------------- ------------------ --------------
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> Net Earnings $4,760 $3,332 $16,977 $11,999
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> ---------------- -------------- ------------------ --------------
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> ---------------- -------------- ------------------ --------------
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> Earnings per common share
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> Earnings from continuing
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> operations $0.34 $0.28 $1.22 $0.98
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> Net earnings $0.34 $0.26 $1.22 $1.02
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> ---------------- -------------- ------------------ ------------
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> Weighted average number
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> of common shares outstanding 13,972,083 11,707,744
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> -------------------- --------------------
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> CONDENSED CONSOLIDATED BALANCE SHEETS
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> (unaudited)
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> As at December 31
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> (in thousands of dollars)
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> 1996 1995
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> ------------------ ------------------
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> Current assets
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> Cash $1,715 $ -
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> Accounts receivable 113,704 87,488
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> Inventories 179,211 147,981
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> Other 9,241 8,829
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> ------------------ ------------------
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> 303,871 244,298
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> ------------------ ------------------
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> Non-current assets
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> Rental equipment 19,292 14,110
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> Capital assets 31,588 27,754
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> Goodwill and other assets 49,723 17,060
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> ------------------ ------------------
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> 100,603 58,924
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> $404,474 $303,222
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> ------------------ ------------------
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> Current liabilities
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> Bank indebtedness $ - $5,032
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> Accounts payable and accrued
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> liabilities 110,720 104,303
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> Current portion of
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> long-term debt 4,189 977
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> ------------------ ------------------
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> 114,909 110,312
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> Long-term debt 114,472 68,618
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> 259,381 178,930
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> Equity
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> Capital stock 75,454 71,630
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> Retained esrnings 69,639 52,662
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> ------------------ ------------------
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> 145,093 124,292
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> $404,474 $303,222
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> CONSOLIDATED STATEMENTS OF CHANGES
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> IN CASH POSITION
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> (unaudited)
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> For the year ended December 31
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> (in thousands of dollars,
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> except per share data) 1996 1995
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> ---------------- ----------------
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> Operating activities
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> Earnings $16,977 $11,465
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> Items not affecting cash flow
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> Amortization 10,973 9,100
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> Deferred income tax 706 1,148
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> -------------- ------------
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> Cash flow before changes
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> in non-cash working capital 28,656 21,713
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> Changes in non-cash working capital
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> Accounts receivable (8,757) (12,028)
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> Inventories 2,200 (16,190)
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> Prepaid expenses (977) (665)
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> Accounts payable and accrued
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> liabilities (6,522) 8,886
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> Income taxes payable (5,176) 4,476
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> ---------------- ----------------
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> (19,232) (15,521)
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> Cash provided by continuing operating
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> activities 9,424 6,192
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> Cash used in discontinued operations - (3,087)
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> Investing activities
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> Net rental equipment additions (6,609) (7,906)
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> Net capital asset additions (4,422) (2,651)
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> Acquisition of businesses
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> Working capital (33,223) (19,539)
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> Rental equipment (2,991) -
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> Capital assets (3,849) (6,207)
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> Goodwill (34,220) (7,462)
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> Sale of businesses - 14,794
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> ---------------- ----------------
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> (85,314) (28,971)
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> Cash flow before financing activities(75,890) (25,866)
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> Financing activities
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> Increase in long-term bank loan 56,403 8,500
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> Issue of debentures 20,000 -
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> Repayment of debentures (727) (655)
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> Notes payable on acquisition 3,639 (700)
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> Issue of capital stock 3,824 20,900
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> Other (502) (598)
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> ------------------ ----------------
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> 82,637 27,447
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> Decrease in current bank
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> indebtedness 6,747 1,581
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> Current bank indebtedness - beginning of
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> year (5,032) (6,613)
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> ------------------ ----------------
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> Cash (current bank indebtedness)
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> - end of year $1,715 $(5,032)
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> ------------------ ----------------
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> ------------------ ----------------
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> Cash flow per common share from continuing
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> operations before changes in non-cash
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> working capital $2.05 $1.85
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> ------------------ ------------------
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> /T/
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>c Canadian Corporate News - 1997 |
