AQM Announces 1999 Sales and Profits
27 January 2000
AQM Announces 1999 Sales and Profits
WOODBRIDGE--Jan. 26, 2000--AQM Automotive Corporation (TSE:AQV.) (AQM) today announced its consolidated financial and operating results for its fourth quarter of 1999 (September 1, 1999 to November 30, 1999) and for the year ended November 30, 1999.
Sales for the year ended November 30th, 1999 were $13,719,447 up 8.8% from 1998. This annual increase was caused by an increase in the accounts serviced and an increase in unit sales of higher value products. Sales volumes for the 4th quarter decreased by 2.1%% to $3,463,775.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the year ended November 30th, was $544,855, or 5 cents per share. The reduction from 1998 was caused by a 1% decrease in gross margin and increases in non recurring indirect costs.
Annual net income was $118,031 (0.9 cents per share), down from 1998's income of 2.9 cents. Net income for the 4th quarter of 1999 was a loss of $131,757 (1.4 cents per share). The quarterly and annual net income includes a pre-tax provision of $US 50,000 for possible assessments from the U.S. Treasury Department relating to anomalies in duty processing between 1989 and 1992.
Fourth Quarter Ended Year Ended
30 Nov-99 30-Nov-98 30-Nov-99 30-Nov-98
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Sales 3,463,775 3,538,612 13,719,447 12,614,743
Gross Profit 891,038 1,058,122 3,816,147 3,609,308
Gross Profit Margin 25.7% 29.9% 27.8% 28.6%
EBITDA (64,458) 326,115 544,855 964,802
Net Income (131,757) 72,641 118,031 342,541
EDITDA per share (0.6) cents 2.9 cents 5.0 cents 8.4 cents
Net Income
Per Share (1.4) cents 0.6 cents 0.9 cents 2.9 cents
Commenting on the quarterly and annual results, Mr. Leslie Leib, Chairman of the Company, stated that although 4th quarter results did not meet profit expectations, he is optimistic about further increasing sales and profits as the Company continues to implement its strategy of increasing market share. Particularly promising is the potential of the new accounts being brought on board.
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. The Company procures, manufactures, packages and distributes automotive parts, including 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.