****NEWS RELEASE****
Simmonds Capital reports $5.3 million earnings for the fourth quarter of 1998
TORONTO, ONTARIO--Simmonds Capital Limited (SCL) reported net
profit of $5.3 million on revenue of $12.1 million for the three
month period ended December 31, 1998. This compares with a loss
of $9.7 million on revenue of $12.1 million for the for the same
period in the prior year. Earnings per share for the fourth
quarter of 1998 were $0.33 per share. The 1998 fourth quarter
results include a gain of $5.2 million related to a debt
settlement in October 1998. During the fourth quarter period
earnings before interest, taxes, depreciation and amortization
were $1.4 million or 11 percent of revenue.
For the twelve months ended December 31, 1998, the company
reported a net loss of $12.3 million on revenue of $40.8 million.
This compares with a net loss of $14.6 million before discontinued
operations and $23.4 million after discontinued operations on
revenue of $38 million for the prior year. For the twelve months
ended December 31,1998, earnings before interest, taxes,
depreciation and amortization were $1.8 million or 4 percent of
revenue. The 1998 net loss represents $0.81 per share compared
with a loss of $2.06 per share in the prior year.
Mr. John Simmonds, Chief Executive Officer of SCL, stated "I am
very pleased with our strong finish for the year. The results for
the fourth quarter include positive earnings from all three of our
operating divisions plus a gain from the corporate debt
settlement. Our efforts to restructure and streamline the company
are now evident in these results. Entering 1999, I am confident
that we have a profitable and growing base of operations for the
company. Now, the management challenge is to build on this
operating business base with additional growth and profit
opportunities."
Simmonds Capital Limited (TSE:SMM) is a diversified management
company with strategic investments in contract manufacturing,
electronics distribution, wireless communications, and internet
service markets including both equity investments and wholly owned
operations.
/T/
Selected Financial Results
For the period ended December 31, 1998
Three Months Twelve Months
1998 1997 1998 1997
$ 000's $ 000's $ 000's $ 000's
Revenue 12,091 12,071 40,791 38,041
Operating Earnings (loss) 1,368 (7,887) 1,780 (7,075)
Gain (loss) from discontinued
operations - 690 - (8,820)
Net Earnings (loss) 5,250 (9,658)(12,245) (23,438)
Basic Earnings (loss)
per share $0.33 ($0.75) ($0.81) ($2.06)
|
