AQM Announces Q2 Sales and Profits
18 June 1999
AQM Announces Q2 Sales and Profits
WOODBRIDGE, Ontario--June 17, 1999--AQM Automotive Corporation (AQM)(OTC BB:AQM.AF) (TSE:AQV) today announced its consolidated financial and operating results for the second quarter of 1999 (March 1, 1999 to May 31, 1999) and for the six months ended May 31, 1999.Sales volumes for the 2nd quarter increased by 16% or $513,887 over the 2nd quarter of 1998, to $3,684,729. This increase was caused by continuing success of the Company's marketing efforts. Sales for the six months ended May 31, 1999 were $6,787,198 up 18% from the previous year.
Earnings before interest, taxes, depreciation and amortization (EBITDA), for the 2nd quarter of 1999 were $217,986 (2.0 cents per share), up 75% from the $124,645 reported for the 2nd quarter of 1998. For the six months ended May 31, 1999, EBITDA was up 57% to 436,169, or 4.0 cents per share.
Net income for the 2nd quarter of 1999 was $89,759 (0.8 cents per share), up 117%. For the six months ended May 31, 1999, net income was $173,957 (1.6 cents per share), up 87% from the same period in 1998. For both the 2nd quarter and the six month periods, the percentage growth in income significantly exceeded the growth in sales, primarily due to stronger margins and operating leverage.
2nd Quarter Ended 6 Months Ended
May 31st May 31st May 31st May 31st
'99 '98 '99 '98
---------------------------------------------------------------
Sales 3,648,729 3,134,841 6,787,198 5,732,881
Gross Profit 1,089,896 807,531 2,007,458 1,567,207
Gross Profit Margin 29.9% 25.8% 29.6% 27.3%
EBITDA 217,986 124,645 436,169 277,994
Net Income 89,759 41,449 173,957 98,794
EBITDA per share 2.0 cents 1.1 cents 4.0 cents 2.4 cents
Net Income Per
Share 0.8 cents 0.4 cents 1.6 cents 0.9 cents
Commenting on the quarterly results, Mr. Leslie Leib, Chairman of the Company, stated he was looking forward to further increases in sales and profits, as the Company continued to implement its strategy of increasing market share. He also made note of the recent improvement in working capital ratios which resulted from lower inventory levels.
AQM Automotive Corporation is a publicly traded, Canadian based holding company whose shares are listed on the Toronto Stock Exchange and the Nasdaq OTC Bulletin Boards. G.K. Industries Ltd. (G.K.I.) is the operating component of the AQM group of companies, and one of the leading companies of its kind in North America. It is involved in the procurement, packaging and distribution of automotive fuel filters, automatic transmission filter kits, breather elements and cabin air filters. Approximately 70% of annual sales are exported, primarily to the United States. Sales are across the spectrum of the automotive aftermarket industry, including national brand name filter companies, retailers, program distribution buying groups, traditional warehouse distributors and undercar specialty networks. As the total automotive market continues to consolidate, we are increasing our sales efforts to retail chains and large traditional distribution networks. Growing our market share of these segments is our goal.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.