L'ISLET, QC, April 4 /CNW Telbec/ - Amisco Industries Ltd. recorded net
sales of $7.5 million for the first quarter ended March 3, 2007, down 15.8%
from $8.9 million in the first quarter of 2006. The Company incurred a net
loss of $93,424, whereas it had achieved a net profit of $103,067 in the same
period a year earlier.
In Canada, sales went from $2.7 million in the first quarter of 2006 to
$2.5 million in the first quarter of the current fiscal year. In the United
States, sales fell from $6.2 million in the first quarter of 2006 to
$4.9 million for the first quarter ended March 3, 2007. This 19.7% decrease is
due primarily to the reduction in the rate used to convert them into Canadian
dollars and a decline in orders from various large-scale customers. U.S. sales
were recognized at an average conversion rate of 1.2300 in the first quarter
of 2007, compared with 1.3459 in the first quarter of 2006.
Gross profit totalled $1.7 million, compared with $2.0 million in the
first quarter of 2006. The gross profit margin stood at 23.2%, up from 22.3%
in the same period a year earlier. The Company's gross profitability hence
improved slightly, despite the reduction in business volume and the
unfavourable exchange rate.
Selling and administrative expenses amounted to $1.7 million, compared
with $1.8 million in the first quarter of fiscal 2006. However, because of the
decline in business volume, such expenses as a percentage of sales represented
22.9% and 20.7% for 2007 and 2006 respectively.
The Company incurred a net loss of $93,424 or $0.0229 per share in the
first quarter of the current fiscal year, whereas it had posted a net profit
of $103,067 or $0.0253 per share in the first quarter of the previous year.
Amisco generated cash flows from operations of $542,855 in the first quarter
of 2007, versus $503,627 in the first quarter of fiscal 2006. The weighted
average number of issued an outstanding shares remained unchanged at 4,073,860
shares for both periods.
"Like other Canadian furniture manufacturers, Amisco has been faced with
the same challenges for several years: a strong Canadian dollar, many Asian
imports and a rapid transformation of the retail market. What's more, the real
estate sector in the U.S. is showing major signs of a slowdown, which is
affecting the demand for furniture. To reduce the impact of these
macroeconomic factors, we regularly launch new products and constantly strive
to improve our plant's productivity. Also, we recently introduced wood bedroom
furniture manufactured in Asia and complementary to our metal beds; deliveries
have just started," indicated Réjean Poitras, the Company's President and
Chief Executive Officer.
The Company had a current ratio of 2.66:1 as at March 3, 2007, whereas
its balance sheet was long-term debt free.
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 March 3, 2007 will soon be filed on SEDAR (www.sedar.com).
March 3, February 25,
Net sales (000s) $ 7,477 $ 8,876
Canada (000s) $ 2,530 $ 2,718
United States (000s) $ 4,947 $ 6,158
Gross profit (000s) $ 1,737 $ 1,979
Gross margin 23.2% 22.3%
Selling and administrative expenses (000s) $ 1,710 $ 1,836
Selling and administrative expenses on
sales ratio 22.9% 20.7%
Cash flow (000s) $ 543 $ 504
Net earnings (net loss) (000s) $ (93) $ 103
Net margin -1.2% 1.2%
Earnings (loss) per share (basis) $ (0.0229) $ 0.0253
Weighted average number of shares outstanding 4,073,860 4,073,860
For further information:
For further information: Contact: Réjean Poitras, Chairman of the Board,
President and Chief Executive Officer, 1-800-361-6360; Source: Amisco
Industries Ltd. (TSX: IAC)