TECSYN'S 3RD QUARTER RESULTS,ON THE RIGHT TRACK !!!!!!!
ÿCanadian Company Press Releaseÿ
TSNÿÿ1998-07-07 ÿÿ(provided courtesy of ISDN Wire Service)
TECSYN INTERNATIONAL INC. - THIRD QUARTER RESULTS
ST. CATHARINES, ON--
TECSYN INTERNATIONAL INC
One St. Paul St, Suite 602, St Catharines, ON
Telephone: (905) 687-8811 Facsimile: (905) 687-6917
For the third quarter ended May 31, 1998, TecSyn recorded net income of
$3,948,736 or $0.22 on revenue of $25,315,916 and for the nine month period
ended May 31, 1998, net income was $7,636,789 or $0.43 per share on revenue
of $58,719,468. Sales for the third quarter were 2% greater than the prior
year. Nine month sales for Fiscal 98 were 6% greater than the prior year. Net
Income for the third quarter was 8% greater than the prior year. Nine month
Net Income for Fiscal 98 was 39% higher than the prior year.
3 months to May 31: 1998 1997
------------------- ----------------------------
Revenue $25,315,916 $24,802,134
Net income $3,948,736 $3,660,029
Net income per share $0.22 $0.21
9 months to May 31: 1998 1997
------------------- ----------------------------
Revenue $58,719,468 $55,538,403
Net income $7,636,789 $5,511,724
Net income per share $0.43 $0.32
Average Common Shares Outstanding 17,613,018 17,533,649
The Poli-Twine business has experienced strong demand for its twine products
this year. The impact of volume increases on revenue have been partially
offset by lower average selling prices.
The Polytech business has been streamlining its manufacturing process as all
production is consolidated in its Mexico facility. This has allowed it to
largely retain traditional margins despite price pressure and platform change
issues.
TecSyn PMP continues to make deliveries to Briggs & Stratton and Prestolite,
and efforts are continuing to secure high volume orders.
For further information please contact Wayne Corbett, President & CEO or Paul
E. Riganelli, VP Administration.
TECSYN INTERNATIONAL INC
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND SURPLUS (DEFICIT)
Three Months Three Months
ended ended
May 31/98 May 31/97
NET REVENUE $25,315,916 $24,802,134
============ ============
EARNINGS FROM OPERATIONS
BEFORE PROVIDING FOR: 5,001,749 4,169,032
------------ ------------
Depreciation 544,036 541,036
Interest on long-term debt 137,133 137,748
Interest on short-term debt 16,991 103,096
------------ ------------
698,160 781,880
------------ ------------
EARNINGS BEFORE INCOME
TAXES 4,303,589 3,387,152
INCOME TAXES 354,853 (272,877)
------------ ------------
NET INCOME 3,948,736 3,660,029
SURPLUS, beginning of period 12,351,638 1,915,104
------------ ------------
Cancellation of common shares - (62,000)
SURPLUS, end of period $16,300,374 $5,513,133
============ ============
PER SHARE
Net Income:
Basic earnings per share $0.22 $0.21
Fully diluted earnings per share $0.22 $0.21
TECSYN INTERNATIONAL INC
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
Three Months Three Months
ended ended
May 31/98 May 31/97
CASH PROVIDED FROM
OPERATING ACTIVITIES:
Income from continuing operations $3,948,736 $3,660,029
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization of property, plant &
equipment 544,036 541,036
Loss (Gain) on disposal of fixed assets - -
Decrease (Increase) in operating
working capital (5,589,317) (5,741,704)
Effect of exchange rate changes 516 (103,314)
------------ ------------
(1,096,029) (1,643,953)
------------ ------------
INVESTING ACTIVITIES:
Proceeds on disposal of fixed assets - 27,400
Principal receipts on notes receivable 141,700 100,627
Purchase of property, plant & equipment (112,130) (134,988)
------------ ------------
29,570 (6,961)
FINANCING ACTIVITIES: ------------ ------------
Principal payments on long-term
debt (422,476) (931,657)
Cancellation of common shares - -
Issue of common shares - 62,000
------------ ------------
(422,476) (869,657)
------------ ------------
CASH INFLOW (OUTFLOW) FOR
THE PERIOD (1,488,935) (2,520,571)
Cash (Net Borrowings)beginning of period 212,735 (5,405,222)
------------ ------------
Cash (Net borrowings) end of period $(1,276,200) $(7,925,793)
============ ============
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND SURPLUS (DEFICIT)
Nine Months Nine Months
ended ended
May 31/98 May 31/97
NET REVENUE $58,719,468 $55,538,403
============ =============
EARNINGS FROM OPERATIONS
BEFORE PROVIDING FOR: 10,337,395 7,993,089
------------ -------------
Depreciation 1,618,473 1,605,976
Interest on long-term debt 431,079 460,789
Interest on short-term debt 53,023 283,716
------------ -------------
2,102,575 2,350,481
------------- -------------
EARNINGS BEFORE INCOME
TAXES 8,234,820 5,642,608
INCOME TAXES 598,031 130,884
------------- -------------
NET INCOME 7,636,789 5,511,724
SURPLUS, beginning of period 8,663,585 68,502
-------------- -------------
Cancellation of common shares - (67,093)
-------------- -------------
SURPLUS, end of period $16,300,374 $5,513,133
============== =============
PER SHARE
Net Income:
Basic earnings per share $0.43 $0.32
Fully diluted earnings per share $0.43 $0.32
CONSOLIDATED BALANCE SHEET
UNAUDITED
May 31 May 31
1998 1997
ASSETS
CURRENT ASSETS
Cash $ - $ -
Accounts receivable 23,633,991 $19,130,698
Inventories 11,832,263 10,946,841
Notes receivable 1,216,800 1,758,350
Prepaid expenses 1,091,563 633,110
------------ -------------
37,774,617 32,468,999
CAPITAL ASSETS 10,416,075 12,421,346
------------ -------------
$48,190,692 $44,890,345
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Bank indebtedness $1,276,200 $7,925,793
Accounts payable and accrued
charges 9,466,156 9,293,410
Income taxes payable (174,113) 71,479
Current portion of long-term debt 1,694,611 1,691,110
------------- --------------
12,262,854 18,981,792
------------- --------------
LONG-TERM DEBT 4,958,806 6,432,321
------------- --------------
SHAREHOLDERS' EQUITY
Capital stock 13,468,883 13,396,464
Accumulated unrealized gains
on foreign exchange 1,199,775 499,542
Surplus 16,300,374 5,580,226
------------- -------------
30,969,032 19,476,232
------------- -------------
$48,190,692 $44,890,345
============= =============
INTERIM CONSOLIDATED STATEMENT OF CHANGES
IN FINANCIAL POSITION
Nine Months Nine Months
ended ended
May 31/98 May 31/97
CASH PROVIDED FROM
OPERATING ACTIVITIES:
Income from continuing operations $7,636,789 $5,511,724
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization of property, plant &
equipment 1,618,473 1,605,976
Loss (Gain) on disposal of fixed assets (53,570) (88,285)
Decrease (Increase) in operating
working capital (12,618,825) (5,371,964)
Effect of exchange rate changes (21,479) 135,670
------------- ------------
(3,438,612) 1,793,121
------------- ------------
INVESTING ACTIVITIES:
Proceeds on disposal of fixed assets 258,743 182,977
Principal receipts on notes receivable 384,000 1,214,498
Purchase of property, plant & equipment (227,035) (707,727)
------------- ------------
415,708 689,748
------------- ------------
FINANCING ACTIVITIES:
Principal payments on long-term
debt (1,259,832) (1,731,630)
Cancellation of common shares - (129,093)
Issue of common shares 66,960 62,000
------------- ------------
(1,192,872) (1,798,723)
------------- ------------
CASH INFLOW (OUTFLOW) FOR
THE PERIOD (4,215,776) 684,146
Cash (Net Borrowings)beginning of period 2,939,576 (8,609,939)
------------- -------------
Cash (Net borrowings) end of period $(1,276,200) $(7,925,793)
============= =============
ÿ
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