OFLDF $1 3/16 moving up, Internet news, Strong earnings & Ebizmart.com!
Officeland Inc. Announces Fiscal Year 1998 Year End Results
Revenues Increase 22% to $16.9 Million
(
TORONTO, March 16 /PRNewswire/ -- Officeland Inc. (Nasdaq: OFLDF, OFLUF) announced
today the results of operations for the year ended November 30, 1998.
Revenues increased 22% to $16.9 million compared to $13.8 million for the year ended November
30, 1997. Gross profit increased 62% to $4.2 million compared to $2.6 million in the comparable
prior fiscal year reflecting increased equipment sales. Net income declined to $381,000, or $0.06 per
fully diluted share, compared to $1,043,000 and $0.16 per fully diluted share the prior year.
The consolidated results for the current year reflect the acquisition of The Wholesale Group as of
May 12, 1998, a dealer, wholesaler and exporter of used copiers located in Anaheim, California, and
the acquisition of TeleCom Corporation, a leading remanufacturer and marketer of used fax
machines, small copiers and printers, as of November 16, 1998.
Marvyn Budd, President of Officeland, stated, "We were successful in executing our plan of growth
through selected acquisitions, and the commencement of our e-commerce growth strategy. During the
year, we completed the acquisitions of The Wholesale Group, and TeleCom Corporation. In recent
months, our TeleCom Corporation has entered into important e-commerce partnership agreements
with ONSALE, Inc and iMall. Our relationship with ONSALE includes a 12-month integrated
sponsorship and an advertising arrangement to promote TeleCom's full range of office equipment sold
through the ONSALE auction web site at www.onsale.com. In addition, we have entered into a
two-year agreement with iMall, one of the largest and most visited online shopping malls on the
Internet. As a result of the agreement, TeleCom will list approximately 200 different models of
copiers, printers, and facsimile machines in Imall's product level search engine.
"We were also able to complete two equity financings during the year, and increased our bank credit
facility. This will provide us with the short-term capital required to continue to build and finance our
consolidated business."
Officeland Inc. is a leading reseller of used photocopiers in North America, selling to original
equipment manufacturer (OEM) dealer networks, commercial, professional and institutional users,
and other wholesalers of photocopiers. To facilitate both buying and selling used copiers the
company maintains strategic relationships with Danka, Canon, Konica, Minolta, and other major
industry players.
Forward-looking statements and comments in this press release are made pursuant to the safe-harbor
provisions of Section 21E of the Securities Exchange Act of 1934. Such statements relating to,
among other things, the prospects for the Company to increase the level of sales and maintain
profitability, are necessarily subject to risks and uncertainties, some of which are significant in scope
and nature, including risks related to the demand for used photocopiers, competition, availability of
capital and continuation of sales levels. These risks are further discussed in the periodic reports and
registration statements filed by the Company from time to time with the Securities and Exchange
Commission.
Condensed Financial Data
(In U.S. Dollars)
Years ended
November 30,
1998 1997
Revenue
Equipment sales $16,479,770 $13,445,126
Agency and collection fees 451,326 403,870
16,931,096 13,848,996
Cost of sales
Equipment 12,265,537 10,883,429
Agency and collection 416,560 313,258
12,682,097 11,196,687
Gross profit 4,248,999 2,652,309
Expenses
General and administrative 2,247,804 945,130
Selling 1,222,869 641,476
Depreciation 111,513 49,280
3,582,186 1,635,886
Earnings before the following 666,813 1,016,423
Remeasurement loss (gain) 245,162 (249,648)
Interest on debt 30,951 --
Interest income (39,563) (57,809)
236,550 (307,457)
Net earnings before income taxes 430,263 1,323,880
Income taxes 48,832 280,102
Net earnings $381,431 $1,043,778
Net earnings per common share $.07 $.20
Fully diluted net earnings per
Common share $.06 $.16 |
