Solid Performance by Amisco in 2005
Wednesday February 8, 9:00 am ET
Changes on Board of Directors
L'ISLET, QC, Feb. 8 /CNW Telbec/ - Amisco Industries Ltd. achieved net earnings of $2.1 million or $0.52 per share for the fiscal year ended November 30, 2005, compared with $2.4 million or $0.62 per share in 2004.
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"In 2005, the Asian competition intensified, our currency further increased in value and the consolidation among furniture retailers continued," indicated Réjean Poitras, Amisco's Chairman of the Board, President and Chief Executive. "Due to our employees' sustained efforts and our advantageous forward exchange contracts, we nonetheless ended the year with a solid performance. In fact, we maintained our gross and net profit margins despite the 10% decline in our sales."
Net sales totalled $44.1 million for the fiscal year ended November 30, 2005, down from $49.1 million in 2004. Sales fluctuated very little in Canada, whereas those in the United States went from $33.8 million in 2004 to $29.1 million in 2005, accounting for 69% and 66% of the Company's revenues respectively.
Gross profit amounted to $11.4 million in 2005, compared with $12.5 million in fiscal 2004. The gross profit margin stood at 25.7%, versus 25.6% the previous year. Because of its foreign currency hedge, the Company's U.S. sales were converted at an average rate of 1.5060 during fiscal 2005, comparing favourably with the average market exchange rate of 1.2161 for the same period.
Selling expenses declined from $5.5 million in 2004 to $5.0 million in 2005. Despite the reduction in sales and the costs associated with the launch of the Transitions product line, selling expenses as a percentage of sales held steady at 11.3% in 2005, representing the same proportion as in 2004. Furthermore, administrative expenses remained stable at $3.7 million.
Net earnings amounted to $2.1 million or $0.52 in 2005, compared with $2.4 million or $0.62 per share in 2004. The net profit margin fluctuated very little, at 4.8% in 2005 versus 4.9% in 2004. The weighted average number of shares outstanding went from 3,906,903 shares in 2004 to 4,073,860 shares for fiscal 2005. As no shares were issued or cancelled in 2005, the number of shares issued and outstanding was 4,073,860 as at November 30, 2004 and 2005.
Fourth Quarter 2005
Net sales totalled $11.9 million for the quarter ended November 30, 2005, down from $12.7 million in the fourth quarter the previous year. Despite the decline in sales, the gross profit margin stood at 26.9%, versus 26.2% during the same period a year earlier. Net earnings amounted to $672,000 or $0.16 per share, compared with $738,000 or $0.19 per share in the fourth quarter of fiscal 2004. The weighted average number of shares outstanding was identical in the fourth quarters of 2004 and 2005 as the last share issues were made primarily during the first half of 2004.
Financial Position
The Company's balance sheet showed little change as at November 30, 2005. Total assets amounted to $23.3 million, versus $23.0 million as at November 30, 2004, and total liabilities to $7.2 million, compared with $7.3 million at the close of the previous year. The current ratio stood at 1.67:1 and the balance sheet was free of long-term debt. Finally, shareholders' equity rose from $15.6 million or $3.83 per share as at November 30, 2004 to $16.1 million or $3.96 per share at the close of fiscal 2005.
The Company paid shareholders a regular dividend of $0.40 per share during fiscal 2005. On November 24, 2005, the Company announced that it was suspending the payment of dividends in light of competitive and economic pressures.
Changes on Board of Directors
At yesterday's meeting of the Board of Directors, Mr. Martin Poitras announced that he was withdrawing from any position with the Company, while remaining its controlling shareholder. Réjean Poitras will henceforth assume the role of Chairman of the Board, which he will combine with those of the Amisco's President and Chief Executive Officer. Furthermore, Claude Poitras, Vice-President, Finance and Administration, was appointed Director of the Company. The Board of Directors therefore still consists of five members, including the following three external directors: René G. Jarry, Gérald A. Lacoste and André Normand.
"On behalf of all the Company's Board members, employees and shareholders who have crossed paths with Martin over the years, I would like to sincerely thank him for his invaluable contribution. As the Company's President or Chairman of the Board for more than 40 years, Martin truly piloted Amisco's development, enabling it to manufacture over 500,000 products annually that are shipped throughout North America today," said Réjean Poitras.
Annual General Meeting of Shareholders
You are cordially invited to attend the Company's Annual General Meeting of Shareholders to be held on Wednesday, April 5, 2006, at 11:30 a.m. at the Germain-des-Prés Hotel, Rochette Room, 1200 Germain-des-Prés Avenue, Sainte-Foy.
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 and stools. Each of its products can be personalized - finishes, colours, fabrics and dimensions. Recognized for its innovative design and excellent quality/price value, Amisco furniture is available throughout North America. Amisco records about 66% of its sales in the United States.
Forward-looking statements contained in this press release involve known and unknown risks, uncertainties or other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Financial Highlights
2005 2004
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Net sales (000s) $44,120 $49,054
Gross profit (000s) $11,353 $12,540
Gross margin 25.7% 25.6%
Cash flows (000s) $ 4,080 $ 4,466
Net earnings (000s) $ 2,137 $ 2,416
Net margin 4.8% 4.9%
Total assets (000s) $23,308 $22,959
Working capital (000s) $ 3,973 $ 4,116
Long-term debt --- ---
Shareholders' equity (000s) $16,121 $15,614
Share redemption plus dividends paid (000s) $ 1,630 $11,701
Per Share
Earnings $ 0.52 $ 0.62
Regular dividend $ 0.40 $ 0.40
Book value $ 3.96 $ 3.83
Weighted average number of shares outstanding 4,073,860 3,906,903
For further information
Réjean Poitras, Chairman of the Board, President and Chief Executive Officer, 1-800-361-6360
Source: AMISCO INDUSTRIES LTD. (TSX: IAC - News)
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Source: AMISCO INDUSTRIES LTD. |
