Ron:
Here's the full release.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: MAGNIFOAM TECHNOLOGY INC.
TSE SYMBOL: MTG
NOVEMBER 19, 1998
Magnifoam Reports Second Quarter Results
BARRIE, ONTARIO--Magnifoam Technology International Inc. (MTII)
today announced its second quarter results for the period ended
September 30, 1998.
Revenues for the period were $4,330,126 compared with $1,320,489
for the same period last year. MTII reported a net loss of
$256,047 or $0.02 per share compared with a loss of $176,900 or
$0.02 for the same period last year. Earnings before interest,
taxes and amortization (EBITA) was positive at $71,072.
Summary financial information (three months and six months ended
September 30):
/T/
3 months 6 months 3 months 6 months
1998 1998 1997 1997
Revenues $ 4,330,126 $ 8,740,086 $ 1,320,489 1,471,413
EBITA 71,072 204,126 (13,353) (705,999)
Net Earnings
(Loss) (256,047) (447,088) (176,900)(1,023,295)
Earnings
(Loss) Per
Share $ (0.02) (0.03) $ (0.02) (0.11)
Common shares
outstanding 15,624,130 15,624,130 9,365,660 9,365,660
/T/
"The results for the second quarter are in line with our
expectations and reflect a normal seasonal slowdown at PolyFab in
July. Our EBITA was positive for the second consecutive quarter
and we have improved our overall financial condition in the first
half of fiscal 1999. We remain committed to lowering operating
costs while continuing to improve operational quality standards,"
said Thomas R. Ambeau, President and Chief Executive Officer,
MTII.
The outlook for the third quarter is for substantial sequential
revenue growth. Magnifoam continues to expect that it will be
profitable for the year ending March 31, 1999.
Magnifoam Technology International Inc. is an integrated material
science company with proprietary technology. Through its wholly
owned subsidiaries, 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. MTII products have a wide range of applications for
the aerospace, mass transit, automotive, sporting goods,
industrial, electronics, medical, marine, construction and
institutional markets.
/T/
Magnifoam Technology International Inc.
Consolidated Balance Sheet as at Sept. 30, 1998
(Interim Unaudited)
1998 1997
---------------------------------------------------------------
ASSETS
Current
Cash $1,016,733 $692,018
Accounts Receivable 4,205,283 1,346,170
Inventory 2,606,058 313,062
Other 969,529 176,109
---------------------------------------------------------------
8,797,603 2,527,359
---------------------------------------------------------------
Capital 6,779,671 4,069,161
Accumulated Amortization (721,921) (157,160)
---------------------------------------------------------------
6,057,750 3,912,001
---------------------------------------------------------------
Other
Patents 336,620 336,620
Development Costs 940,649 664,780
Goodwill 9,686,053 3,230,618
---------------------------------------------------------------
10,963,322 4,232,018
Accumulated Amortization (1,467,224) (690,875)
---------------------------------------------------------------
9,496,098 3,541,143
---------------------------------------------------------------
$24,351,451 $9,980,503
---------------------------------------------------------------
---------------------------------------------------------------
LIABILITIES and EQUITY
Current
Bank Loan $557,000 $-
Accounts Payable 2,414,068 902,518
Current portion of LTD 73,684 29,819
---------------------------------------------------------------
3,044,752 932,337
---------------------------------------------------------------
Long-Term Debt 1,024,605 906,576
Deferred Taxes 65,256 -
---------------------------------------------------------------
1,089,861 906,576
---------------------------------------------------------------
---------------------------------------------------------------
Shareholders' Equity
Preferred Shares 23,937 25,745
Common Shares 29,752,602 13,962,611
Deficit (9,559,701) (5,846,766)
---------------------------------------------------------------
20,216,838 8,141,590
---------------------------------------------------------------
$24,351,451 $9,980,503
---------------------------------------------------------------
---------------------------------------------------------------
Magnifoam Technology International Inc.
Consolidated Income Statement
Six Months Ended Sept. 30, 1998
(Interim Unaudited)
1998 1997
---------------------------------------------------------------
2nd Quarter Year to Date 2nd Quarter Year to Date
---------------------------------------------------------------
Sales $4,330,126 $8,740,086 $1,320,489 $1,471,413
Cost of Sales 1,856,390 4,132,087 586,735 686,169
---------------------------------------------------------------
Gross Margin 2,473,736 4,607,999 733,754 785,244
---------------------------------------------------------------
Operating Expenses
Plant and Lab 953,750 1,801,931 207,114 492,582
Administration 995,166 1,660,573 368,040 689,067
Marketing 453,748 941,369 171,953 309,586
---------------------------------------------------------------
2,402,664 4,403,873 747,107 1,491,235
---------------------------------------------------------------
EBITA(1) 71,072 204,126 (13,353) (705,999)
Other Expenses
Interest (net) 20,994 29,498 1,881 9,668
Amortization 191,648 392,762 80,427 145,158
Amortization of
goodwill 114,477 228,954 81,239 162,478
---------------------------------------------------------------
327,119 651,214 163,547 317,304
---------------------------------------------------------------
Net Income (Loss)
for the period (256,047) (447,088) 176,900 1,023,295
Deficit,
beginning of
period (9,303,654) (9,112,613) (5,669,866) (4,823,471)
---------------------------------------------------------------
Deficit, end
of period $(9,559,701) $(9,559,701) $(5,846,766)$(5,846,766)
---------------------------------------------------------------
Basic Earnings
(Loss) per
share $(0.02) $(0.03) $(0.02) $(0.11)
---------------------------------------------------------------
(1) Earnings before interest, taxes and amortization
Magnifoam Technology International Inc.
Consolidated Statement of Changes in Financial Position
Six Months Ended Sept. 30, 1998
(Interim Unaudited)
1998 1997
---------------------------------------------------------------
Cash provided by (used in)
Operating Activities
Net Loss for the period $(447,088) $(1,023,295)
Charges to income not
involving cash:
Amortization 605,522 307,636
Net change in non-cash working
capital balances (716,956) (1,231,876)
---------------------------------------------------------------
(558,522) (1,947,535)
---------------------------------------------------------------
Investing Activities
Capital assets acquired (626,830) (459,272)
Developments costs (325,000) (276,253)
---------------------------------------------------------------
(951,830) (735,525)
---------------------------------------------------------------
Financing Activities
Net proceeds from shares issued 2,065,233 904,701
Repayment of long-term debt (34,006) (8,153)
Repayment of bank loan (1,097,000) -
---------------------------------------------------------------
934,227 896,548
---------------------------------------------------------------
Net use of cash for the period (576,125) (1,786,512)
Cash, beginning of period 1,592,858 1,915,331
---------------------------------------------------------------
Cash, end of period $1,016,733 $128,819
---------------------------------------------------------------
---------------------------------------------------------------
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Magnifoam Technology Inc.
Ronald S. Brooks
Chief Financial Officer
(705) 725-0900
or
Fleishman-Hillard Canada
Anne Lachance or Sarah Andrewes
(416) 214-0701 |
