Results of its First Quarter 2001
4/3/01
AMISCO INDUSTRIES LTD ("IAC-T") - Results of its First Quarter 2001
During the first quarter of fiscal 2001, the performance of AMISCO INDUSTRIES was mainly affected by the generalized economic slowdown in North America. In light of a well-filled order book at the end of March, management sees an improvement as of the beginning of the second quarter.
For the quarter ended March 3, 2001, Amisco recorded net sales of $9.8 million, compared with $11.8 million for the first quarter of fiscal 2000, a decrease of 16.9%. The beginning of the year was marked by the drop in, or postponement of, purchases by various large-scale customers, particularly in the United States. Moreover, the implementation of a new comprehensive management information system necessitated a two-day production shutdown to transfer data from the former system to the new one.
"Implementing a comprehensive management information system is a key aspect of modernizing our plant. The implementation process has gone smoothly: five weeks later, we had already recovered our previous production rate, allowing us to gradually reduce our order backlog and delivery times. This tool, which now manages our accounting, customer service, and product manufacturing and distribution, will enable us to achieve new heights in productivity and further reduce our delivery times. These benefits will materialize progressively within the next few quarters," explained Rejean Poitras, Amisco's President and Chief Executive Officer.
Due to the reduction in business volume, the Company's gross profit fell from $3.6 million (30.6% of sales) in the first quarter of fiscal 2000 to $2.6 million (26.7% of sales) in 2001. Fixed costs, consisting mainly of selling, administrative, depreciation and amortization expenses, held steady at $3.1 million. Consequently, net earnings went from $734,000 ($0.17 per share) in the first quarter of fiscal 2000 to $142,000 ($0.03 per share) in 2001.
Orders on the rise
"The delays in orders that we experienced early in the year have been completely reabsorbed. Within the past six weeks, we have seen an increase in demand, with the result that orders since the beginning of the fiscal year are up 3% over the same period last year. Considering this renewed activity, combined with the excellent quality/price value that we offer, we can look forward to respectable growth in 2001, especially in Canada, where orders in late March were up 10% over last year," concluded Rejean Poitras.
Amisco Industries Ltd. is a North American leader in the design and manufacture of composite painted tubular and steel sheet residential furniture. Founded in 1954, the Company manufactures beds, tables, chairs, stools and home office furnishings which are sold through a total of 4,000 outlets in Canada and the United States. Thanks to its innovative product design, broad product selection, unequalled price/quality value and high-quality service, Amisco is enjoying growing success in the United States, where it records nearly 70% of its sales.
Financial Highlights Quarters ended
March 3, 2001 March 4, 2000
Net sales (000) $9,819 $11,815
Gross profit (000) $2,625 $3,621
Gross margin 26.7% 30.6%
Selling and administrative expenses (000) $2,469 $2,663
Selling and administrative expenses as a
percentage of sales 25.2% 22.5%
Depreciation and amortization (000) $612 $465
Net earnings (000) $142 $734
Net margin 1.4% 6.2%
Earnings per share $0.03 $0.17
Fully diluted earnings per share $0.03 $0.16
Weighted average number of
shares outstanding 4,194,282 4,271,560
TEL: (418) 247-5025 Martin Poitras, Chairman of the Board
AMISCO INDUSTRIES LTD. TEL: (418) 247-5025 Rejean Poitras, President and CEO
AMISCO INDUSTRIES LTD. |
