Here's the first quarter that came out a few weeks ago.
Rondo
MTII REPORTS OPERATING PROFIT IN FIRST QUARTER OF FISCAL 2000
Barrie, Ontario (July 28, 1999) - Magnifoam Technology International Inc. (MTII) today reported financial results for the first quarter of fiscal 2000.
For the three months ended June 30, 1999, MTII reported net earnings of $1,081,661 on revenues of $4,924,142, compared with a net loss of $191,041 on revenues of $4,409,960 in the first quarter of fiscal 1999. The company also reported a sharp increase in earnings before interest, taxes and amortization (EBITA). EBITA was $497,666 in the first quarter of fiscal 2000, compared with $133,054 for the same period last year.
During the quarter MTII announced plans to relocate its silicone foam manufacturing operations from Barrie, Ontario, to existing space at the PolyFab facility in Mississauga, Ontario. At the same time, the company announced a proposed agreement with Amber Industrial Holdings plc (AIH), under which AIH was to assume 60% ownership of QSi, LLC. Both activities were completed in July 1999.
These results reflect a one-time gain of $850,000 from the redemption of QSi shares associated with the AIH agreement. Before the redemption, the company's operating profit was $231,661, an improvement over last year's first quarter loss of $191,041.
"Our financial position is very strong with working capital of $10 million, of which $5.5 million is cash," said Robert Keto, President and CEO, MTII. "We anticipate that our financial results will continue to improve as we begin to realize the benefits of our cost saving measures, most notably the consolidation of our operating and administrative facilities and the agreement with AIH, both of which will help reduce operating costs."
Summary financial information (three months ended June 30):
1999 1998
Revenues $4,924,142
$4,409,960
EBITA
497,666
133,054
Net Earnings (Loss) Before Other Items
231,661
(191,041)
Net Earnings (Loss)
1,081,661
(191,041)
Earnings (Loss) Per Share
$0.06
$(0.02)
Common Shares Outstanding
16,933,044
10,824,130
"The outlook for the second quarter is positive. Based on current orders, we anticipate revenues similar to the first quarter, despite a normal seasonal aerospace industry slowdown in July," added Mr. Keto.
The previously announced realignment of the aerospace production unit will be completed by the end of July, doubling capacity in MTII's rapidly growing aerospace business. This will include the addition of new specialty fabrication equipment, and the redesign of workflow and production space. MTII will also complete the consolidation of its administrative facilities by the end of August, moving all remaining customer service, sales and marketing, administrative and management offices to Mississauga. In addition, the company is proceeding with the sale of its Barrie facility.
Magnifoam Technology International Inc. is an integrated material science company with proprietary technology. Through its manufacturing operations, QSi, MTI, and PolyFab, the company is engaged in the research, development and production of low density silicone foam using patented chemical formulations, the production of specialty silicone resins, and the design and fabrication of energy management systems using a variety of flexible, cellular materials. The Corporation sells its products to the aerospace, mass transit, automotive, sporting goods, industrial, protective packaging and institutional markets.
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For further information, please contact:
Ronald S. Brooks
Chief Financial Officer
(905)-564-9700 Anne Lachance or Sarah Andrewes
Fleishman-Hillard Canada
(416)-214-0701
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