AQM Announces Earnings for Second Quarter 1998 Sales Growth Continues

18 June 1998

AQM Announces Earnings for Second Quarter 1998 Sales Growth Continues

    WOODBRIDGE, Ontario--June 18, 1998--AQM Automotive Corporation (AQM) (TSE: AQV) today announced its consolidated financial and operating results for its second fiscal quarter in 1998 (March 1, 1998 to May 31, 1998.) and for the 12-month period ended May 31, 1998.
    Sales volumes for the 2nd quarter of 1998 increased by 10.1 percent or $286,577 over the 2nd quarter of 1997, to $3,134,841. This increase, assisted by the record 1st quarter sales levels, marks the return to sales growth on an annualized rolling twelve month basis. Sales for the 12 months ended May 31, 1998 were $10,968,289 up slightly from the 12 months ended May 31st, 1997. During the second quarter, shipments began to major new customers.
    Earnings before interest, taxes, depreciation and amortization (EBITDA), for the 2nd quarter of 1998 was $124,645 (1.1 cents per share), down 41.2 percent from that reported for the second quarter of 1997. Rolling 12 month EBITDA, at $544,637 for the period ended May 31, 1998 is 40 percent lower than the $925,659 reported for the 12 months ended March 31, 1997. Decreased gross profit margin, caused by aggressive pricing, was the cause of the margin deterioration. Margins are expected to increase in the 3rd quarter. Net income for the 2nd quarter of 1998 was $41,449 (0.4 cents per share) down $47,519, or 53.4 percent from the net income of $88,968 (0.8 cents per share) reported for the 2nd quarter of 1997. Rolling 12 month net income was $57,324 (0.5 cents per share), $319,273 lower than the income of $376,597 reported for the 12 months ended March 31, 1997.