Amisco Records a Slight Loss in the Third Quarter of 2007



    L'ISLET, QC, Sept. 28 /CNW Telbec/ - For the quarter ended September 1,
2007, net sales of Amisco Industries Ltd. totalled $7.2 million, down 20.4%
from $9.1 million in the third quarter of 2006. The Company recorded a net
loss of $22,817 or $0.0056 per share, compared with a net loss of $106,266 or
$0.0261 per share in the third quarter of the previous year.
    In Canada, sales went from $3.1 million in the third quarter of 2006 to
$2.9 million in the same period of the current fiscal year, a decrease of
5.4%. In the United States, sales fell 28.1%, from $6.0 million in the third
quarter of 2006 to $4.3 million in the quarter ended September 1, 2007. The
latter were affected by: the residential real estate sector in the United
States impacted by the rise in interest rates and the numerous bank
repossessions, thereby reducing the purchasing power of property owners and
furniture spending; the competition from Asian manufacturers; and the increase
of 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 1.1154 in the
third quarter of 2007, compared with 1.2464 in the third quarter of 2006. In
U.S. dollars, sales decreased by 19.6% in the United States.
    Gross profit totalled $1.4 million, compared with $1.6 million in the
third quarter of 2006. The gross profit margin rose slightly, from 17.5% in
the third quarter of 2006 to 19.6% in the equivalent quarter of the current
fiscal year. The slight increase in gross profit, achieved despite the
decrease in business volume, is due primarily to the reduction in
manufacturing costs.
    Selling expenses decreased by 14.2%, from $960,043 in the third quarter
of 2006 to $823,305 in the third quarter of the current fiscal year.
Administrative expenses declined from $816,017 in the third quarter of fiscal
2006 to $693,071 in the third quarter of the current fiscal year, a reduction
of 15.1%.
    The net loss stood at $22,817 or $0.0056 per share, compared with a net
loss of $106,266 or $0.0261 per share in the third quarter of the previous
year. Consequently, the Company posted a negative net margin of 0.3%, compared
with a negative net margin of 1.2% in the third quarter of 2006.

    Operating Results for the Nine-Month Period Ended September 1, 2007

    For the nine-month period ended September 1, 2007, net sales fell to
$22.6 million, down 17.1% from $27.2 million during the first nine months of
2006. In Canada, sales went from $9.2 million in 2006 to $8.4 million for the
current fiscal year, a decline of 8.5%. In the United States, sales went from
$18.0 million in 2006 to $14.2 million for the current fiscal year, a decrease
of 21.5%. U.S. sales were recognized at an average conversion rate of 1.2044,
versus 1.2613 for the first nine months of 2006. In U.S. dollars, sales
declined by 17.8% in the United States.
    Despite the decline in net sales, gross profit fluctuated very little,
standing at $5.3 million for the first nine months of the current fiscal year,
versus $5.5 million for the corresponding period of the previous year. The
gross profit margin therefore improved from 20.1% in 2006 to 23.4% for the
first nine months of the current fiscal year. The improvement in the gross
profit margin is due primarily to the reduction in manufacturing costs.
    Owing to the appreciation of the Canadian dollar to date in the current
fiscal year, Amisco recorded an exchange loss of $155,187 in the first nine
months of 2007. Conversely, the Company's forward exchange contracts have
increased by $447,873 thus far in 2007; this amount has been deducted from its
operating expenses.
    Net earnings amounted to $407,252 or $0.1003 per share, as opposed to a
net loss of $162,641 or $0.0399 per share in the first nine months of fiscal
2006. Consequently the Company posted a net margin of 1.8%, versus a negative
net margin of 0.6% last year. This turnaround is mainly attributable to the
favourable change in the fair value of financial instruments in the current
fiscal year.

    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 200 people, serves some 700 customers and
records 65% of its business volume in the United States.


    Complete financial statements and the management's report for the quarter
ended September 1, 2007 will shortly be filed on SEDAR (www.sedar.com).

    
    Financial Highlights

                             Quarters Ended             Nine Months Ended
                      --------------------------  --------------------------
                      September 1,  September 2,  September 1,  September 2,
                             2007          2006          2007          2006
                      --------------------------  --------------------------
    Net sales (000s)      $ 7,249       $ 9,106       $22,546       $27,199
      Canada (000s)       $ 2,919       $ 3,086       $ 8,384       $ 9,158
      United States
       (000s)             $ 4,330       $ 6,020       $14,162       $18,041
    Gross profit (000s)   $ 1,421       $ 1,591       $ 5,272       $ 5,466
    Gross margin             19.6%         17.5%         23.4%         20.1%
    Selling and
     administrative
     expenses (000s)      $ 1,516       $ 1,776       $ 5,082       $ 5,641
    Selling and
     administrative
     expenses over
     sales ratio             20.9%         19.5%         22.5%         20.7%
    Exchange loss
     (gain) (000s)        $    14       $   (82)      $   155       $     1
    Change in fair value
     of financial
     instruments -
     loss (gain) (000s)   $   (31)            -       $  (448)            -
    Net earnings
     (loss) (000s)        $   (23)      $  (106)      $   407       $  (163)
    Net margin               (0.3)%        (1.2)%         1.8%         (0.6)%
    Net earnings (loss)
     per share - basic    $ (0.01)      $ (0.03)      $  0.10       $ (0.04)
    Cash flow (000s)      $   719       $   336       $ 1,171       $ 1,170
    Weighted average
     number of shares
     outstanding        4,038,416     4,073,860     4,062,082     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)

Organization Profile

AMISCO INDUSTRIES LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890