Amisco Announces Second Quarter 2008 Financial Results



    L'ISLET, QC, July 4 /CNW Telbec/ - For the quarter ended May 31, 2008,
Amisco Industries Ltd. recorded net sales of $6.1 million, down 22.3% from
$7.8 million in the same period of 2007. The Company recorded net earnings of
$91,068 or $0.0234 per share, versus $523,493 or $0.1285 per share in the
second quarter of fiscal 2007.
    In Canada, sales decreased slightly, from $2.9 million in the second
quarter of 2007 to $2.7 million in the second quarter of the current fiscal
year. U.S. sales fell 31.0%, from $4.9 million in the second quarter of 2007
to $3.4 million in the second quarter of the current fiscal year. This sharp
decline is due mainly to the real estate crisis in the United States and the
reduction in the rate used to convert sales into Canadian dollars. Due to the
exchange contracts the Company benefited from, U.S. sales were recognized at
an average conversion rate of 1.0898 (spot rate of 1.0053), whereas this rate
stood at 1.2614 (spot rate of 1.1328) in the second quarter of 2007. In
U.S. dollars, sales declined by 26.4% in the United States.
    Gross profit amounted to $1.4 million, versus $2.1 million in the
second quarter of 2007. Despite its lower sales and the unfavourable exchange
rate, the Company posted a fairly high gross profit margin of 23.5%, although
down from 27.0% in the second quarter of 2007.
    Selling and administrative expenses decreased by 26.6% and 21.3%
respectively. Their total weighted reduction (24.4%) was slightly greater to
the decline in sales (22.3%) for the same periods.
    Moreover, the Company recorded net investment income of $30,610 in the
second quarter of 2008, versus net investment income of $745,063 in the
second quarter of the previous year. It should be noted that, due to the
increase in the value of the Canadian dollar in relation to the U.S. dollar,
the increase in the fair value of held-for-trading financial assets amounted
to $732,898 in the second quarter of the previous year.
    Consequently, net earnings amounted to $91,068 or $0.0234 per share in
the second quarter of 2007, versus $523,493 or $0.1285 per share in the second
 quarter of fiscal 2007.

    Operating Results for the First Half of 2008

    Net sales totalled $11.8 million during the six-month period ended
May 31, 2008, down 22.8% from $15.3 million in the same period of 2007. In
Canada, they decreased from $5.5 million in the first six months of 2007 to
$4.9 million in the first half of the current fiscal year. U.S. sales fell
30.0%, from $9.8 million in the first six months of 2007 to $6.9 million in
the first half of the current fiscal year.
    Net earnings amounted to $18,624 or $0.0048 per share, versus $430,069 or
$0.1056 per share in the first six months of fiscal 2007. The significant
profitability recorded in the second quarter of 2007 arose from higher net
sales and profit margin, combined with the $416,458 increase in the fair value
of held-for-trading financial assets.

    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 May 31, 2008 will shortly be filed on SEDAR (www.sedar.com).

    
    Financial Highlights

                                  Quarters Ended    Six-Month Periods Ended
                                May 31,     June 2,     May 31,     June 2,
                                  2008        2007        2008        2007
    -------------------------------------------------------------------------
    Net sales (000s)           $ 6,077     $ 7,820     $11,810     $15,297
    -------------------------------------------------------------------------
       Canada (000s)           $ 2,706     $ 2,935     $ 4,925     $ 5,465
    -------------------------------------------------------------------------
       United States (000s)    $ 3,371     $ 4,885     $ 6,885     $ 9,832
    -------------------------------------------------------------------------
    Gross profit (000s)        $ 1,428     $ 2,113     $ 2,669     $ 3,851
    -------------------------------------------------------------------------
    Gross margin                  23.5%       27.0%       22.6%       25.2%
    -------------------------------------------------------------------------
    Selling and
     administrative
     expenses (000s)           $ 1,413     $ 1,869     $ 2,883     $ 3,584
    -------------------------------------------------------------------------
    Selling and
     administrative
     expenses over sales
     ratio                        23.3%       23.9%       24.4%       23.4%
    -------------------------------------------------------------------------
    Net investment loss
     (income) (000s)           $   (31)    $  (745)    $  (165)    $  (438)
    -------------------------------------------------------------------------
    Exchange loss (gain)
     (000s)                    $   (22)    $   234          $1     $   141
    -------------------------------------------------------------------------
    Cash flow (000s)           $   433     $   (92)    $   862     $   451
    -------------------------------------------------------------------------
    Net earnings (loss)
     (000s)                    $    91     $   523     $    19     $   430
    -------------------------------------------------------------------------
    Net margin                     1.5%        6.7%        0.2%        2.8%
    -------------------------------------------------------------------------
    Earnings (loss) per
     share - basic             $0.0234     $0.1285     $0.0048     $0.1056
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     outstanding             3,891,626   4,073,711   3,910,432   4,073,786
    -------------------------------------------------------------------------
    




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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