TecSyn International Inc. - Results For The First Quarter
19 January 2000
TecSyn International Inc. - Results For The First Quarter
3 months ended November 30: 1999 1998
(000's) (000's)
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Revenue $17,652 $14,030
Net income $1,470 $2,764 *
Net income per share - basic $0.09 $0.16 *
Average Common Shares Outstanding 17,057,217 17,623,996
*includes other income of $899
Prior year net income included other income from collection of a previously written off Note Receivable in the amount of $899,000 or $0.05. Revenue growth reflects strong demand for Polytech's automotive trim products and higher than usual sales volumes at Poli-Twine.
Working capital has increased primarily for three reasons; (a) higher twine sales in the quarter are not due until future quarters, (b) growth at Polytech has incrementally increased working capital, and (c) disruption of timely account receivable collection from our automotive customers owing to statutory holiday's at quarter end.
TecSyn continues to negotiate the terms of a definitive agreement of purchase and sale with the buyer of the Poli-Twine Business.
TecSyn is the world's largest supplier of automotive restraint and convenience netting products, and the world's most advanced manufacturer of powdered metal products utilizing TecSyn's proprietary cold isostatic compaction technology.
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
(UNAUDITED) ($ 000'S)
Three Months Three Months
ended ended
November 30/99 November 30/98
--------------- -------------
NET REVENUE $ 17,652 $ 14,030
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INCOME FROM OPERATIONS
BEFORE PROVIDING FOR
AMORTIZATION, INTEREST
OTHER AND INCOME TAXES 2,537 2,807
---------- ----------
Amortization 645 612
Interest on long-term debt 20 97
Interest (income) expense on
short-term debt (94) (136)
---------- ----------
571 573
INCOME FROM OPERATIONS
BEFORE OTHER AND
INCOME TAXES 1,966 2,234
OTHER INCOME - 899
---------- ----------
INCOME FROM OPERATIONS AND 1,966 3,133
OTHER BEFORE INCOME TAXES
INCOME TAXES (496) (369)
---------- ----------
NET INCOME FOR THE PERIOD 1,470 2,764
RETAINED EARNINGS
BEGINNING OF THE PERIOD 29,030 20,533
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RETAINED EARNINGS
END OF PERIOD $ 30,500 $ 23,297
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PER SHARE
---------
Net Income:
Basic earnings per share $0.09 $0.16
Fully diluted earnings per share $0.08 $0.14
TECSYN INTERNATIONAL INC
CONSOLIDATED BALANCE SHEET
(UNAUDITED) ($ 000'S)
November November
1999 1998
--------- ----------
ASSETS
CURRENT
Cash $ 8,067 $ 12,112
Accounts receivable 14,733 9,319
Inventories 15,488 12,998
Prepaid expenses 1,144 783
---------- ----------
Total current assets 39,432 35,212
CAPITAL ASSETS 12,868 11,247
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$ 52,300 $ 46,459
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LIABILITIES
CURRENT
Accounts payable and accrued
charges $ 6,106 $ 5,341
Income taxes payable (61) 549
Current portion of long-term debt 299 144
---------- ----------
Total current liabilities 6,344 6,034
---------- ----------
LONG-TERM DEBT 1,173 1,197
---------- ----------
SHAREHOLDERS' EQUITY
Capital stock 12,947 13,386
Accumulated unrealized gains
on foreign exchange 1,336 2,545
Retained Earnings 30,500 23,297
---------- ----------
Total shareholders' equity 44,783 39,228
---------- ----------
$ 52,300 $ 46,459
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INTERIM CONSOLIDATED STATEMENT
OF CHANGES IN FINANCIAL POSITION
(UNAUDITED) ($ 000'S)
Three Months Three Months
ended ended
November 30/99 November 30/98
-------------- ---------------
OPERATING ACTIVITIES:
Net income for the period $ 1,470 $ 2,764
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization 645 612
(Increase) Decrease in operating
working capital:
Loss on disposal of fixed assets 9 -
Accounts receivable (720) 3,058
Inventory (4,381) (3,679)
Prepaid expenses (628) (381)
Accounts payable accrual charges (1,943) (1,391)
Income Taxes 327 325
Effect of exchange rate changes (191) (181)
---------- ----------
CASH (CONSUMED) PROVIDED BY
OPERATING ACTIVITIES (5,412) 1,127
---------- ----------
OTHER INCOME - 899
---------- ----------
INVESTING ACTIVITIES:
Principal receipts on notes receivable - 241
Purchase of capital assets (757) (283)
---------- ----------
CASH CONSUMED BY
INVESTING ACTIVITIES (757) (42)
---------- ----------
FINANCING ACTIVITIES:
Principal payments on long-term debt (80) (5,318)
Issuance of common shares 26 -
Redemption of common shares (1,260) -
---------- ----------
CASH CONSUMED BY FINANCING
ACTIVITIES (1,314) (5,318)
---------- ----------
CASH OUTFLOW FOR THE PERIOD (7,483) (3,334)
NET CASH AT BEGINNING
OF THE PERIOD 15,550 15,446
---------- ----------
NET CASH AT END OF THE PERIOD $ 8,067 $ 12,112
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