Glas Aire Reports Record Third Quarter & Nine Month Results
17 December 1999
Glas Aire Reports Record Third Quarter & Nine Month Results; Sales Up 47%; Earnings Up 74% & 58%, Respectively; Expect Continued Strength for Year End and New Year
VANCOUVER, British Columbia--December 16, 1999-- Glas Aire Industries Group, Ltd. ("Glas Aire") , a leading designer and maker of sunroof wind deflectors, hood deflectors, rear-air deflectors and door visors for cars, light trucks and vans, today announced record results for the third quarter and nine months ended October 31, 1999.Total revenues for the third quarter of FY 2000 rose 46.9% to $2.8 million from $1.9 million reported in the third quarter of FY 1999. Gross profit for the third quarter of FY 2000 increased 24.7% to $832,800, compared with $667,900 in the third quarter of FY1999. Operating income for the quarter was $308,200, a 14.9% increase compared with $268,300 reported in year prior period. The Company reported a 74.4% increase in net income for the quarter to $288,500, or $0.18 per share, versus $165,400, or $0.11 per share. The weighted average of common shares outstanding was 1,567,272 in the third quarter of FY 2000 and 1,458,301 in the prior year same period.
For the nine months ended October 31, 1999, revenues rose 47.3% to $7.0 million, from $4.8 million in the first nine months of FY1999. Gross profit for the FY 2000 nine month period rose 36.9% to $2.2 million, from $1.6 million, in the corresponding FY '99 period.
Operating income for the FY 2000 first nine months was $749,300, up 36% compared with $ 551,000 in the FY 1999. Net income for the nine months rose 57.7% to $572,700, from $363,200 in the FY 99 corresponding period. The Company reported per share income of $0.37 for the FY 2000 nine months based on 1,567,272 weighted average shares outstanding, versus $0.25 per share based on 1,458,301 weighted average shares outstanding in the first nine months of 1998.
Commenting on the Company's third quarter and nine month results, William Ponsoldt, Chairman and Chief Executive Officer, said, "We are extremely pleased with the Company's performance, both for the quarter as well the FY 2000 nine month mark. We have now experienced year over year revenue growth for the past several years. The recent quarters have trended similarly. We are happy to report that this growth is fuelled by sales to new customers; sales of new products and volume increases in existing customer sales; and continued strong growth in auto sales."
He continued, "Glas Aire has recently completed its plant expansion of approximately 7,000 square feet, and more than doubled its professional labor force. It is now well positioned for continued strong top and bottom line growth, both organically and via strategic acquisitions. We are actively pursuing such opportunities. We expect continued strong growth for both the fourth quarter and in the coming year."
Glas Aire, with annual revenues of approximately $10 million, designs and makes sunroof wind deflectors, hood deflectors, rear-air deflectors and door visors for cars, light trucks and vans. The Company is based in Vancouver, British Columbia and also has a distribution center in Bellingham, Washington.
Founded in the early 1980's as a family business engaged in acrylic-based product development and manufacture, Glas Aire has been associated with Regency Affiliates Inc. (OTC BB: RAFF) since August 1999. In addition to the auto accessories market, Stuart, Florida based Regency, has holdings in the residential and commercial furnishings market, commercial real estate and natural resources.
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This press release includes forward-looking statements as defined in the private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties which may cause actual results to vary significantly. These risks include (but are not limited to) those related to: dependence on component suppliers to keep up with rising industry demand and the Company's growing supply requirements on a timely basis; timely product upgrades and the ability to manage growth and ramp-up production effectively as needed; continuing product demand; the impact of competitive products and pricing on the Company's and its customers' products and markets; development and growth of anticipated markets for the Company's and its customers' products; changing economic and other risk factors detailed in the Company's most recent annual report, its prospectuses and other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the Information in this release.
This release and prior releases, are available on the KCSA Public Relations Website at www.kcsa.com.
Glas Aire Industries Group Ltd.
Consolidated Condensed Statement of Operations (a)
(Unaudited)
Three Months Ended Nine Months Ended
October 31, October 31, October 31, October 31,
1999 1998 1999 1998
--------- --------- ------- --------
Sales $2,804,751 $1,909,250 $7,018,027 $4,763,578
Cost of sales 1,971,964 1,241,307 4,813,208 3,153,330
--------- ---------- --------- ---------
Gross profit 832,787 667,943 2,204,819 1,610,248
------- -------- --------- ---------
Expenses
Depreciation 60,571 47,464 170,544 138,440
Research and
development 78,779 117,516 305,838 303,488
Selling and
distribution 219,530 104,634 539,959 279,033
General and
administrative 136,460 123,243 419,067 327,325
Provision for profit
sharing 37,652 29,101 87,917 60,651
Interest (8,417) (22,362) (67,846) (49,701)
------- ----------- -------- -----------
524,575 399,596 1,455,479 1,059,236
------- --------- --------- ---------
Income from
operations 308,212 268,347 749,340 551,012
Equity earnings 92,524 92,524
Income taxes -
current 112,270 102,967 269,121 187,806
------- ------- ------- -------
Net Income for the
period $288,466 $165,380 $572,743 $363,206
-------- -------- -------- --------
Net income per share of common
stock $0.18 $0.11 $0.37 $0.25
Weighted average common shares
outstanding (b) 1,567,272 1,458,301 1,567,272 1,458,301
--------- --------- --------- ---------
(a) All figures are in U.S. dollars. (b) After deducting 158,872 shares of treasury stock held by the
Company