And again on track.
What will it take to move this stock?
TECSYN INTERNATIONAL INC. - FIRST QUARTER RESULTS
ST. CATHARINES, ON--
For the first quarter ended November 30, 1998, TecSyn recorded
net income of $2,764,043 or $0.16 per share compared to net
income of $1,586,376 or $0.09 per share a year ago. Included in
net income is $900,000 or $0.05 per share from the repayment of
a previously written down note receivable. Net Income from
ongoing operations has improved by 20% over the first quarter of
the previous year. Sales for the quarter were $14,030,218 as
compared to last year's first quarter sales of $14,438,774.
3 Months ended November 30: 1998 1997
Revenue $14,030,218 $14,438,774
Net income $ 2,764,043* $ 1,586,376
Net income per share $ 0.16 $ 0.09
Average common shares outstanding 17,623,996 17,572,211
* Includes $898,961 from repayment of previously written down
note receivable.
Cash flow from operating activities for the quarter of $1.1
million improved over prior year first quarter by $3.7 million.
Cash on hand at the end of the quarter is $12.1 million compared
to $262,000 for the prior year first quarter.
As part of our continuing efforts to achieve above average
operating income Poli-Twine will move its labour intensive rope
manufacturing from Belleville, Ontario to the Mexico facility in
Matamoros. In doing so, this business should become more cost
competitive and ensure a solid base in the rope industry by
capturing additional market share in this competitive segment.
At TecSyn PMP plans are in place for a smooth production ramp up
this month to supply small engine cylinder liners that have been
previously announced ($7.0 million Cnd.). Machining equipment is
now in place and our customer is anxious to bring PMP on as a
production supplier.
TecSyn is the largest manufacturer of baler twine in North
America, the world's largest supplier of automotive restraint and
convenience netting products, and the world's most advanced
manufacturer of powdered metal products utilizing TecSyn's
proprietary cold isostatic compaction technology.
For further information please contact Wayne Corbett, President
& CEO or Paul E. Riganelli, VP Administration at
Tel:(905) 687-8811; Fax:(905) 687-6917.
INTERIM CONSOLIDATED STATEMENT
OF OPERATIONS AND RETAINED EARNINGS
(UNAUDITED)
Three Months Three Months
ended ended
November 30/98 November 30/97
-------------- --------------
REVENUE $14,030,218 $14,438,774
============= ============
INCOME FROM CONTINUING
OPERATIONS BEFORE
PROVIDING FOR AMORTIZATION,
INTEREST, OTHER
AND INCOME TAXES 2,807,275 2,416,046
------------- ------------
Amortization 612,184 520,412
Interest on long-term debt 96,778 149,336
Interest (income) expense on
short-term debt (135,651) 35,128
---------- ----------
573,311 704,876
---------- ----------
INCOME FROM OPERATIONS BEFORE OTHER
AND INCOME TAXES 2,233,964 1,711,170
OTHER INCOME 898,961 -
---------- ----------
INCOME FROM OPERATIONS AND OTHER
BEFORE INCOME TAXES 3,132,925 1,711,170
INCOME TAXES 368,882 124,794
---------- ----------
NET INCOME FOR THE PERIOD 2,764,043 1,586,376
----------- ----------
RETAINED EARNINGS
BEGINNING OF THE PERIOD 21,203,621 8,663,585
----------- ----------
RETAINED EARNINGS
END OF PERIOD $23,967,664 $ 10,249,961
=========== ============
PER SHARE
---------
Net Income:
Basic earnings per share $0.16 $0.09
Fully diluted earnings per share $0.14 $0.08
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
November 30 November 30
1998 1997
----------- -----------
ASSETS
CURRENT
Cash $12,104,374 $262,737
Accounts receivable 9,319,464 $9,574,589
Inventories 12,997,895 14,161,209
Notes receivable - 1,487,550
Prepaid Expenses 782,767 1,338,142
----------- -----------
Total current assets 35,204,500 26,824,227
CAPITAL ASSETS 11,246,760 11,161,731
----------- -----------
$46,451,260 $37,985,958
=========== ===========
LIABILITIES
CURRENT
Accounts payable and accrued
charges 5,335,371 5,880,054
Income taxes payable 548,512 278,801
Current portion of long-term debt 143,959 1,660,996
--------- ---------
Total current liabilities 6,027,842 7,819,851
--------- ---------
LONG-TERM DEBT 1,197,333 5,689,887
--------- ---------
SHAREHOLDERS' EQUITY
Capital Stock 13,386,093 13,401,923
Accumulated unrealized gains
on foreign exchange 1,872,327 824,337
Retained Earnings 23,967,665 10,249,961
---------- ----------
Total shareholders' equity 39,226,085 24,476,221
---------- -----------
$46,451,260 $37,985,959
=========== ===========
INTERIM CONSOLIDATED STATEMENT
OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
Three Months Three Months
ended ended
November 30/98 November 30/97
-------------- --------------
OPERATING ACTIVITIES
Net income for the period $2,764,043 $1,586,376
Add (deduct) items not requiring
an outflow (inflow) of cash:
Amortization 612,184 520,412
Gain on disposal of capital assets - (53,570)
(Increase) Decrease in operating
working capital:
Accounts receivable 3,058,325 2,646,218
Inventory (3,679,491) (4,328,886)
Prepaid expenses (381,467) (419,412)
Accounts payable accrual charges(1,398,650) (2,863,402)
Income Taxes 324,820 30,239
Effect of exchange rate changes (180,876) 289,066
------------ -------------
CASH PROVIDED (CONSUMED) BY
OPERATING ACTIVITIES 1,118,888 (2,592,959)
----------- ------------
OTHER INCOME 898,961 -
------------ ------------
INVESTING ACTIVITIES
Principal receipts on notes
receivable 240,639 113,250
Proceeds from sale of capital assets - 258,743
Purchase of capital assets (282,924) (42,995)
----------- ------------
CASH (CONSUMED) PROVIDED BY
INVESTING ACTIVITIES (42,285) 328,998
---------- -----------
FINANCING ACTIVITIES
Principal payments on
long-term debt (5,317,596) (412,878)
Issuance of common shares - -
Redemption of common shares - -
--------------- -------------
CASH CONSUMED BY FINANCING
ACTIVITIES (5,317,596) (412,878)
-------------- ------------
CASH OUTFLOW FOR THE PERIOD (3,342,032) (2,676,839)
NET CASH AT BEGINNING OF
THE PERIOD 15,446,406 2,939,576
------------ -----------
NET CASH AT END OF
THE PERIOD $12,104,374 $262,737
============ =============
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