Comptec Industries Ltd. Announces Third Quarter 1999 Results
17 May 1999
Comptec Industries Ltd. Announces Third Quarter 1999 Results
VANCOUVER, British Columbia--May 17, 1999-- Comptec Industries Ltd. (VSE:CIL) (the "Company" or "Comptec") today announced its financial results for the quarter ended March 31, 1999.Revenue for the third quarter ended March 31, 1999 was Cdn. $14,052,110. The operating profit before income taxes for the quarter was $1,046,066 compared to a loss of $333,115 in the second quarter and a loss of $1,555,933 in the first quarter. The losses realized at the beginning of the year have now turned to show improved profitability and a stronger financial position.
Comptec is also pleased to report total revenue for the nine months ended March 31, 1999 was $50,271,793, up from $39,158,969 for the corresponding period in the previous year, an increase of 28 percent. Earnings before interest, taxes and depreciation ("EBITDA") for the nine months ended March 31, 1999 was $2,275,850.
The financial statements include nine months of the results of operations of Technoplast and Actual of America along with the results of Comptec's injection molding and profile extrusion operations. Now that the restructuring and reorganizing of the Austrian manufacturing operations is almost complete, the expected losses that incurred in the first two quarters of the year have reversed.
Robert Gardner, President and Chief Executive Officer of Comptec, states, "The turnaround of Technoplast has occurred as predicted and providing we are as successful, as we anticipate, in the reorganization of our North American operations which is currently underway, then the overall picture is positive."
Comptec is involved in both the plastic injection molding and PVC extrusion industries. The injection molding locations specialize in the design and manufacture of decorative plastic components for the telecommunications, automotive and consumer electronics industry. Technoplast and Actual of America are machinery and tool manufacturers with factories located in the United States, Austria and Slovakia with additional sales outlets in the United States, the United Kingdom and Russia. These companies specialize in the assembly and sale of turn-key factories for the manufacture of PVC window products for the building and renovation markets worldwide.
COMPTEC INDUSTRIES LTD.
CONSOLIDATED BALANCE SHEET
Canadian dollars
March 31 March 31
1999 1998
ASSETS
CURRENT
Cash and term deposits $ 2,801,141 $ 5,366,508
Accounts receivable 27,695,246 25,566,530
Inventories 14,566,209 9,959,208
Accounts receivable affiliates 355,800 -
Prepaid expenses and deposits 359,537 1,078,980
Current portion of note receivable - 101,658
--------------------------
$ 45,777,933 $ 42,072,884
Property, plant and equipment,
net of amortization 18,025,094 16,157,099
Goodwill, net of amortization 15,200,534 7,246,210
Intangible assets 786,434 1,653,588
Investments, note receivable
and other 464,400 1,264,169
Deferred foreign exchange 577,510 -
--------------------------
$ 80,831,905 $ 68,393,950
LIABILITIES
CURRENT
Bank indebtedness $ 11,969,499 $ 10,093,700
Accounts payable and
accrued liabilities 12,227,762 19,262,785
Customer deposits 3,984,818 3,034,363
Current portion of long term debt 913,255 2,375,429
Current portion of capitalized
lease obligations 723,440 512,385
Current portion of liability for
leased premises 31,213 111,128
Current liabilities of
discontinued operations 415,747 422,647
Notes payable and demand loans 7,744,784 42,259
--------------------------
$ 38,010,518 $ 35,854,696
LONG TERM DEBT
Liability for leased premises - 29,374
Long term debt 19,138,359 7,988,948
Capitalized lease obligations 2,541,868 2,375,357
Accrued pension and severance
liability 1,047,829 1,023,096
Deferred income taxes 199,364 160,307
--------------------------
$ 60,937,938 $ 47,431,778
SHAREHOLDERS' EQUITY
Share capital $ 33,990,057 $ 31,525,673
Liability to issue shares - 1,072,500
Contributed surplus 85,000 85,000
Foreign currency translation
adjustment (237,162) (102,412)
Deficit (13,943,928) (11,618,589)
--------------------------
$ 19,893,967 $ 20,962,172
--------------------------
$ 80,831,905 $ 68,393,950
--------------------------
COMPTEC INDUSTRIES LTD.
CONSOLIDATED STATEMENT OF NET INCOME (LOSS)
FOR THE NINE MONTHS ENDED MARCH 31, 1999
Canadian dollars
Q 3 Q 3 9 months to 9 months to
1999 1998 March 31 March 31
1999 1998
-----------------------------------------------------------
Sales
$ 14,052,110 $ 19,691,162 $ 50,271,793 $ 39,158,969
Cost of goods sold
10,032,001 11,581,280 35,920,203 24,776,685
-----------------------------------------------------------
Gross profit
$ 4,020,109 $ 8,109,882 $ 14,351,590 $ 14,382,284
-----------------------------------------------------------
Operating expenses:
Administrative and selling
1,744,259 5,526,793 10,514,240 10,175,066
Interest expense
740,305 142,517 1,765,125 649,862
Depreciation and amortization
489,479 1,243,057 2,899,896 2,714,233
-----------------------------------------------------------
$ 2,974,043 $ 6,912,367 $ 15,179,261 $ 13,539,161
-----------------------------------------------------------
Operating Income (loss)
1,046,066 1,197,515 (827,671) 843,123
Income tax provision
147,425 24,805 309,841 196,608
-----------------------------------------------------------
Net Income (Loss) from operations
$ 898,641 $ 1,172,710 $ (1,137,512) $ 646,515
(Loss) recovery from discontinued operations
- - $ (1) $ 356,000
-----------------------------------------------------------
Net Income (loss) for the period
$ 898,641 $ 1,172,710 $ (1,137,513) $ 1,002,515
DEFICIT beginning
$(14,842,569) $(14,068,047) $(12,806,415) $(13,897,852)
-----------------------------------------------------------
DEFICIT ending
$(13,943,928) $(12,895,337) $(13,943,928) $(12,895,337)
-----------------------------------------------------------
The Vancouver Stock Exchange has neither approved nor disapproved the content herein.