Amisco Announces Fiscal 2007 Financial Results



    L'ISLET, QC, Feb. 6 /CNW Telbec/ - Amisco Industries Ltd. recorded net
sales of $29.6 million during the fiscal year ended November 30, 2007, down
16.1% from the previous year. The Company achieved net earnings of $522,692 or
$0.1293 per share for fiscal 2007, compared with $19,214 or $0.0047 per share
for fiscal 2006. This growth is due to the change in the fair value of
financial assets held for trading (forward exchange contracts) recognized in
2007.
    In Canada, sales went from $12.3 million in 2006 to $11.3 million in
2007, a decrease of 8.1%. U.S. sales fell from $23.0 million in 2006 to
$18.3 million in 2007, a decline of 20.4%. The latter were affected primarily
by: conditions in the residential real estate sector in the United States
resulting from the increase in interest rates and numerous bank repossessions,
thereby reducing the purchasing power of property owners and furniture
spending; the competition from Asian furniture manufacturers; and the increase
in the value of the Canadian dollar in relation to the U.S. dollar. In fact,
U.S. sales were recognized at an average conversion rate of 1.1848 in 2007,
versus 1.2470 in 2006. In U.S. dollars, sales declined by 16.2% in the United
States.
    Despite the decline in net sales, gross profit fluctuated very little,
standing at $6.7 million in 2007, versus $7.3 million for the previous year.
The gross profit margin therefore improved from 20.6% in 2006 to 22.7% in
2007. The improvement in the gross profit margin is due primarily to the
reduction in manufacturing costs.
    The Company recorded net investment income of $775,314 in 2007
($20,629 in 2006). Of this amount, $698,822 is attributable to the change in
the fair value of financial assets held for trading (forward exchange
contracts). This change is due to the appreciation in the value of the
Canadian dollar in relation to the U.S. dollar in 2007.
    Earnings before income taxes totalled $745,692 in 2007, up from just
$28,214 in 2006. Net earnings therefore amounted to $522,692 or $0.1293 per
share, compared with $19,214 or $0.0047 per share last year. The weighted
average number of shares outstanding stood at 4,040,916 in 2007, versus
4,073,860 in 2006.

    Fourth Quarter of Fiscal 2007

    Net sales totalled $7.1 million during the quarter ended November 30,
2007, down from $8.1 million in the fourth quarter a year earlier. Canadian
sales amounted to $2.9 million, compared with $3.1 million in the fourth
quarter of fiscal 2006, a decrease of 7.0%. U.S. sales fell 16.4% to
$4.9 million in the fourth quarter last year 2006 to $4.1 million. They were
recognized at an average conversion rate of 1.1230, compared with 1.1964 in
the fourth quarter of fiscal 2006. In U.S. dollars, sales declined by 10.9% in
the United States.
    Despite the lower sales and exchange rate on U.S. sales, the gross profit
margin stood at 20.7%, versus 22.4% in the fourth quarter of last year. Amisco
posted net earnings of $115,440 or $0.0290 per share for the fourth quarter of
fiscal 2007, compared with $181,855 or $0.0446 per share for the same period
of fiscal 2006. Owing to the redemption and cancellation of shares under the
Company's stock purchase program, the weighted average number of shares
outstanding decreased from 4,073,860 in the fourth quarter of last year to
3,976,244 in the fourth quarter of fiscal 2007.

    Annual General Meeting of Shareholders

    The Company's Annual General Meeting of Shareholders will be held on
Wednesday, April 2, 2008, at 11:00 a.m. at L'Oiselière Hotel, Bernache Room,
located at 105 chemin des Poirier, Montmagny, Quebec.

    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 fiscal
year ended November 30, 2007 will be filed on SEDAR (www.sedar.com) at the end
of February.

    
    Financial Highlights
                                                            2007        2006
                                                            ----        ----
    Operations
    Net sales (000s)                                    $ 29,599    $ 35,283
      Canada (000s)                                     $ 11,304    $ 12,301
      United States (000s)                              $ 18,295    $ 22,982
    Gross profit (000s)                                 $  6,730    $  7,278
    Gross margin                                            22.7%       20.6%
    Exchange loss (000s)                                $    240           -
    Change in fair value of financial instruments
     - loss (gain) (000s)                               $   (699)          -
    Cash flows from operations (000s)                   $  1,641    $  1,673
    Net earnings (000s)                                 $    523    $     19
    Net margin                                               1.8%        0.1%

    Financial Position
    Total assets (000s)                                 $ 21,189    $ 21,058
    Working capital (000s)                              $  6,738    $  4,728
    Long-term debt                                             -           -
    Shareholders' equity (000s)                         $ 16,851    $ 16,176

    Per Share
    Earnings                                            $ 0.1293    $ 0.0047
    Book value                                          $   4.28    $   3.97

    Weighted average number of shares outstanding      4,040,916   4,073,860
    




For further information:

For further information: Réjean Poitras, Chairman of the Board,
President and Chief Executive Officer, 1-800-361-6360; Source: Amisco
Industries LTD. (TSX: IAC)

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AMISCO INDUSTRIES LTD.

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