Algo Group announces fourth quarter and full year results



    MONTREAL, June 1 /CNW Telbec/ - Algo Group Inc. (TSX: AO) today announced
results for its full year and fourth quarter ended December 31, 2006.
    Sales for the twelve-month period ended December 31, 2006 were
$24.8 million, compared with $26.0 million for the same period in 2005, a
decrease of $1.2 million. The net loss for the period was $10.8 million, or
$0.07 per share, compared with a net loss of $6.9 million, or $0.06 per share,
for the previous year. The loss from continuing operations was $9.4 million in
2006 as compared to $6.3 million in the prior year.
    The fourth quarter results reflect sales of $2.2 million compared with
$4.3 million for the same period in 2005. The Company recorded a quarterly net
loss from continuing operations of $5.1 million, or $0.03 per share, compared
to $3.8 million, or $0.03 per share, for the same quarter last year. The net
loss was $5.9 million or $0.04 per share compared to $4.6 million or $0.04 per
share.

    
    SELECTED ANNUAL AND QUARTERLY CONSOLIDATED FINANCIAL INFORMATION
    (in thousands of dollars except per share amounts)

    -------------------------------------------------------------------------
                         For the 12 months ended      For the 3 months ended
                                          Dec 31                      Dec 31
    -------------------------------------------------------------------------
                              2006          2005          2006          2005
    -------------------------------------------------------------------------
    Sales                 $ 24,837      $ 26,008      $  2,236      $  4,288
    -------------------------------------------------------------------------
    Loss from
     continuing
     operations             (9,418)       (6,279)       (5,087)       (3,788)
    -------------------------------------------------------------------------
    Loss from
     discontinued
     operations             (1,398)         (588)         (791)         (780)
    -------------------------------------------------------------------------
    Net loss               (10,816)       (6,867)       (5,878)       (4,568)
    -------------------------------------------------------------------------
    Net loss per share
     basic and diluted
     from continuing
     operations           $  (0.06)     $  (0.05)     $  (0.03)     $  (0.03)
    -------------------------------------------------------------------------
    Net loss per
     share basic and
     diluted              $  (0.07)     $  (0.06)     $  (0.04)     $  (0.04)
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     outstanding       159,108,310   122,064,234   168,411,169   125,867,691
    -------------------------------------------------------------------------
    

    Cost of sales and expenses were $5.8 million for the fourth quarter of
2006, down $1.8 million from $7.6 million for the same period last year. For
the full year, they were $30.9 million compared with $30.4 million for 2005.

    Sector Review

    Sportswear sales decreased by $0.5 million to $15.2 million in 2006 from
$15.7 million in 2005. Notwithstanding the decrease in sales, the sportswear
division continued to contribute to the overall performance of the Company.
    Licensed Brands contributed sales of $1.3 million during the current year
representing an increase of $0.4 million. This division markets ladies' and
children's apparel in Canada under the Seven 7 trademark.
    Ladies' Fashion Apparel sales decreased by $2.2 million to $7.2 in 2006
from $9.4 million in 2005. Sales in Canada decreased by $0.9 million while
sales in the U.S. decreased by $1.3 million. During the year, the division
converted from a domestic contract manufacturer to an importer of finished
goods to compete more effectively with Asian imports.
    Home Fashions was started during 2006 and generated sales of $1.1 million
during the first year of operations. The business unit entered into a
licensing agreement during the year with Levi Strauss & Co. for the marketing
and distribution of bedding products under this label. The first sales using
the Levi's label are planned for 2007.

    ALGO GROUP PROFILE
    ------------------

    Algo Group is a Canadian importer of ladies' fashion apparel, as well as
men's, boy's and children's sportswear that is marketed throughout North
America. The Company also imports home furnishings products that it markets to
retailers in North America, and holds licenses to sell various brand products
such as Rodier, Votre Nom and Levi's Home in Canada and the United States.

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.




For further information:

For further information: ALGO GROUP INC.: Ken Labelle, C.A., Chief
Financial Officer, (514) 908-7804; INVESTOR RELATIONS: Maison Brison: Rick
Leckner, (514) 731-0000

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ALGO GROUP INC.

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