L'ISLET, QC, Sept. 26 /CNW Telbec/ - For the quarter ended August 30,
2008, Amisco Industries Ltd. recorded net sales of $6.3 million, down 13.3%
from $7.2 million in the third quarter of 2007. The Company posted a net loss
of $149,868 or $0.04 per share, compared with a net loss of $22,817 or
$0.01 per share in the third quarter of the previous year.
In Canada, the Company's sales increased slightly, from $2.9 million in
the third quarter of 2007 to $3.0 million in the third quarter of the current
fiscal year. In the United States, sales decreased by 23.3%, from $4.3 million
in the third quarter of 2007 to $3.3 million in the third quarter of the
current fiscal year. This sharp decline is attributable to the U.S. real
estate crisis and the reduction in the rate used to convert sales into
Canadian dollars. U.S. sales were recognized at an average conversion rate of
1.0277, whereas this rate stood at 1.1154 in the third quarter of 2007.
Furthermore, it should be pointed out that the January 2008 launch of new
products only started to yield benefits as of the third quarter of the current
fiscal year, whereas the related sales are normally reported in the second
quarter.
Gross profit amounted to $1.3 million, versus $1.4 million in the third
quarter of 2007. Despite the reduction in sales and an unfavourable exchange
rate, the Company's operations generated a slightly higher gross profit
margin, which rose to 20.0% from 19.6% in the third quarter of 2007.
Selling and administrative expenses decreased by 18.7%, which is more
than the reduction in sales for the same period. Consequently, selling and
administrative expenses represented only 19.7% of sales for the third quarter
of 2008, compared with 21.0% for the third quarter of 2007.
The net loss amounted to $149,868 or $0.0387 per share, compared with a
net loss of $22,817 or $0.0056 per share in the third quarter of fiscal 2007.
The Company therefore posted a negative net profit margin of 2.4%, compared
with a negative net profit margin of 0.3% for the third quarter of the
previous year.
Operating Results for the Nine-Month Period Ended August 30, 2008
Net sales totalled $18.1 million for the first three quarters of the
current fiscal year, down 19.7% from $22.6 million in the same period of 2007.
In Canada, sales decreased from $8.4 million to $7.9 million for the first
nine months of the current fiscal year. In the United States, sales fell
27.9%, from $14.2 million to $10.2 million for the first nine months of fiscal
2008. U.S. sales were recognized at an average conversion rate of 1.0667,
whereas this rate stood at 1.2044 for the first three quarters of 2007.
Gross profit amounted to $3.9 million, versus $5.3 million in the first
nine months of 2007. Despite the reduction in sales and an unfavourable
exchange rate, the Company's operations generated a gross profit margin of
21.7%, down from the 23.4% margin posted for the first nine months of 2007.
Selling and administrative expenses decreased by 19.3%, standing at 22.6%
of sales for the first nine months of 2007, compared with 22.8% for the
corresponding period of 2008.
The Company posted net investment losses of $169,642 in the first nine
months of 2008, compared with net investment income of $497,778 in the
corresponding period of the previous year. A $294,830 write-down in the fair
value of held-for-trading financial assets was recognized for the first nine
months of the current fiscal year. Conversely, Amisco realized an exchange
gain of $100,339 in the first three quarters of 2008, as opposed to an
exchange loss of $155,187 for the corresponding period of 2007.
All in all, Amisco recorded a net loss of $131,244 or $0.0337 per share
for the first nine months of 2008, compared with net earnings of $407,252 or
$0.1003 per share for the corresponding period of 2007. This marked difference
is due primarily to variations in the value of exchange contracts arising from
fluctuations in the value of the Canadian dollar in relation to the
U.S. dollar.
Amisco Industries Ltd. is a North American leader in the design and
manufacture of composite painted tubular and steel sheet residential
furniture. Founded in 1954, the Company manufactures beds, tables, chairs and
stools. Recognized for their quality, its products can be personalized -
finishes, colours, fabrics and dimensions - and shipped within less than
10 working days. Amisco employs about 150 people, serves some 700 customers
and records 60% of its business volume in the United States.
Complete financial statements and the management's report for the quarter
ended August 30, 2008 will shortly be filed on SEDAR (www.sedar.com).Financial Highlights
Quarters Ended Nine-Month Period Ended
-------------------------- --------------------------
August 30, Sept. 1, August 30, Sept. 1,
2008 2007 2008 2007
------------- ------------ ------------ -------------
Net sales (000s) $6,283 $7,249 $18,094 $22,546
Canada (000s) $2,961 $2,919 $7,888 $8,384
United States (000s) $3,322 $4,330 $10,206 $14,162
Gross profit (000s) $1,254 $1,421 $3,924 $5,272
Gross margin 20.0% 19.6% 21.7% 23.4%
Selling and
administrative
expenses (000s) $1,238 $1,522 $4,120 $5,106
Selling and
administrative
expenses over sales
ratio 19.7% 21.0% 22.8% 22.6%
Net investment
loss (income) (000s) $335 $(59) $170 $(498)
Exchange
loss (gain) (000s) $(101) $14 $(100) $155
Net earnings
(loss) (000s) $(150) $(23) $(131) $407
Net margin (2.4)% (0.3)% (0.7)% 1.8%
Net earnings (loss)
per share - basic $(0.04) $(0.01) $(0.04) $0.10
Cash flow (000s) $362 $719 $657 $1,171
Weighted average
number of shares
outstanding 3,869,458 4,038,416 3,896,824 4,062,082
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For further information: Réjean Poitras, Chairman of the Board,
President and Chief Executive Officer, 1-800-361-6360; Source: Amisco
Industries Ltd. (TSX: IAC)
