Ok...my turn for news:
Actrade Announces Record Second Quarter Financial Results; Near Doubling of Sales Powered by New Customers and Volume of Transactions
NEW YORK, Feb. 1 /PRNewswire/ -- Actrade International, Ltd.
(Nasdaq: ACRT) today announced record financial results for the second quarter
of fiscal 1999.
The company reported sales from operations of over $46 million, nearly
double (an increase of over 99%) the $23.1 million recorded in the second
quarter of 1998. For the six months ended December 31, 1998, Actrade had
sales of $84.2 million, as compared to $43.1 million from the same period last
year.
Net income for the three months ended December 31, 1998 was more than
$1.6 million, as compared to nearly $1.1 million for the same quarter last
year. The company recorded net income of $3 million for the first six months
of fiscal 1999, an increase over the $2 million reported for the same period
last year.
Actrade announced that second quarter earnings per share totaled
approximately $0.19, rising 46% over the $0.13 per share reported for the same
fiscal period in 1998. For the six months ended December 31, Actrade had
earnings per share of $0.35, compared to the $0.24 per share for the first two
quarters of fiscal 1998.
The second quarter fiscal 1999 financial results represent the 11th
straight quarter that Actrade has recorded an increase in sales, net income
and earnings per share compared to the prior three-month period.
As in the past, the company's substantial increase in sales was
spearheaded by its flagship Trade Acceptance Draft (TAD) Program, marketed
through Actrade Capital, Inc., a subsidiary. The TAD Program was responsible
for $28.2 million in sales in the second quarter, a dramatic increase of 112%
over the $13.3 million generated during the quarter ended December 31, 1997.
Explaining the TAD Program, Alexander C. Stonkus, Actrade International
chief financial officer and chief operating officer, said: "On a business to
business level, there are two traditional payment options, C.O.D. and open
account. The TAD represents a third option. The TAD Program allows a
supplier of goods or services to receive immediate payment, without recourse,
providing the buyer flexible, unsecured payment terms of up to 12 months.
Like a credit card that serves as a payment tool in merchant-consumer
transactions, the TAD serves as a payment tool in the business-to-business
market."
Mr. Stonkus continued, "The sales and profits generated this quarter by
Actrade are testimony to the viability and powerful appeal of our TAD Program.
Our sales confirm the broadening acceptance of TADs in the commercial
marketplace as a true third option to the open account and C.O.D. when
conducting business."
Records Achieved in New Customers and TAD Transactions
Mr. Stonkus pointed out that Actrade has signed up more new customers for
its TAD Program in the last three months than in any quarter since its
inception, with a 40% increase over the previous quarter's record new
customers.
In addition, Actrade completed a record number of individual TAD
transactions in the second quarter; an increase of 43% over the record
established in the first quarter fiscal 1999.
Another milestone achieved in the second quarter, according to
Mr. Stonkus, was a $10 million bridge facility that Actrade secured from ING
Barings, the global corporate and investment banking organization, in
mid-December. The bridge facility is part of a larger $25 million five year
commitment expected to be finalized shortly.
Based in New York City, Actrade International Ltd., through its wholly
owned subsidiaries, provides innovative domestic and international trade
finance services. The Company's TAD Program and other services are marketed
to businesses in the United States and abroad through offices in Atlanta,
Chicago, Fort Lauderdale, Los Angeles and New York. A newly established
international division, Actrade Resources, Inc., based in the Bahamas, will
develop and provide financing tools for companies trading outside the United
States and for American exporters. Actrade Capital Canada, Inc., based in
Toronto, focuses on the financing and trading needs of Canadian-based
companies.
Except for historical information contained herein, the matters discussed
in this press release contain forward-looking statements that involve risks
and uncertainties which are described in the Company's SEC reports, including
the annual report on Form 10-K for the period ended June 30, 1998 and the
quarterly reports on Form 10-Q for the periods ending September 30, 1998 and
December 31, 1998.Actrade Announces Record Second Quarter Financial Results; Near Doubling of Sales Powered by New Customers and Volume of Transactions |
