TecSyn International Inc. Announces Second Quarter Results
7 April 2000
TecSyn International Inc. Announces Second Quarter Results
ST. CATHARINES, Ontario--April 6, 2000--TecSyn International Inc. (TSE:TSN)3 months to Feb. 29: 2000 1999 -------------------- ---------------------
Revenue $10,149 $7,606 Net income from continuing operations $791 $167 Net income from discontinued operations $22,726 $2,498 Net income per share - basic $1.38 $0.15 Net income per share - fully diluted $1.32 $0.14
6 months to Feb. 29: 2000 1999 -------------------- ---------------------
Revenue $20,059 $14,790 Net income from continuing operations $1,593 $760 Net income from other and discontinued operations $23,389 $4,669 Net income per share - basic $1.47 $0.31 Net income per share - fully diluted $1.40 $0.28 Average Common Shares Outstanding 17,030,085 17,577,469
For the second quarter ended February 29, 2000, TecSyn recorded net income from continuing operations of $791 on revenue of $10,149 compared to net income from continuing operations of $167 on revenue of $7,606 a year ago.
Net income from discontinued operations for the second quarter is $22,726 which includes the gain on the sale of the Poli-Twine business of $22,482.
For the six months ended February 29, 2000, TecSyn recorded net income from continuing operations of $1,593 on revenue of $20,059 compared to net income from continuing operations of $760 on revenue of $14,790 a year ago.
TecSyn has declared a special dividend of $3.00 per share to registered holders of its common stock on the record date of April 14, 2000. The payment will be made May 1, 2000. The special dividend disperses to shareholders the proceeds from the recent sale of TecSyn's Poli-Twine business.
TecSyn is the leading global supplier of automotive restraint and convenience netting products, and is a manufacturer of advanced powdered metal cylinder liners utilizing TecSyn's proprietary cold isostatic compaction technology.
TECSYN INTERNATIONAL INC
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
(UNAUDITED) ($000's)
Three Months Three Months
ended ended
Feb. 29/00 Feb. 28/99
------------ ------------
NET REVENUE $10,149 $7,606
============ ============
INCOME FROM CONTINUING
OPERATIONS BEFORE
PROVIDING FOR AMORTIZ-
ATION, INTEREST, AND
INCOME TAXES 1,293 792
------------ ------------
Amortization 345 309
Interest on long-term debt 12 32
Interest (Income) expense on
short-term debt (76) (117)
------------ ------------
281 224
------------ ------------
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 1,012 568
INCOME TAXES 221 401
------------ ------------
NET INCOME FOR THE PERIOD 791 167
INCOME FROM DISCONTINUED
OPERATIONS 22,726(a) 2,498
RETAINED EARNINGS
BEGINNING OF THE PERIOD 30,500 23,297
------------ ------------
RETAINED EARNINGS ------------ ------------
END OF PERIOD $54,017 $25,962
============ ============
(a) includes gain on sale of Poli-Twine business of $22,482
PER SHARE
---------
Net Income:
Basic earnings per share $1.38 $0.15
Fully diluted earnings per share $1.32 $0.14
TECSYN INTERNATIONAL INC
INTERIM CONSOLIDATED STATEMENT OF CHANGES
IN FINANCIAL POSITION
(UNAUDITED) ($000's)
Three Months Three Months
ended ended
Feb. 29/00 Feb. 28/99
-------------------------
OPERATING ACTIVITIES:
Net income for the period $791 $167
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization 345 306
(Increase) Decrease in operating working
capital:
Accounts receivable (789) (860)
Inventory 160 28
Prepaid expenses (2,041) 202
Accounts payable and accrued charges 1,124 101
Income Taxes 261 (67)
Effect of exchange rate changes (194) (376)
------------------------
CASH (CONSUMED) PROVIDED BY
OPERATING ACTIVITIES (343) (499)
------------------------
INVESTING ACTIVITIES:
Purchase of capital assets (174) (983)
------------------------
CASH CONSUMED BY
INVESTING ACTIVITIES (174) (983)
------------------------
FINANCING ACTIVITIES:
Principal payments on long-term
debt 81 (40)
Redemption of common shares - (1,971)
Issuance of common shares 56 -
------------------------
CASH PROVIDED (C0NSUMED) BY
FINANCING ACTIVITIES 137 (2,011)
------------------------
CASH OUTFLOW FOR THE PERIOD (380) (3,493)
SALE PROCEEDS 53,000 -
CASH OUTFLOW BY
DISCONTINUED OPERATIONS (3,410) (355)
NET CASH AT BEGINNING OF
THE PERIOD 8,067 12,112
------------------------
NET CASH AT END OF THE PERIOD $57,277 $8,264
========================
CONSOLIDATED BALANCE SHEET
(UNAUDITED) ($000's)
February February
2000 1999
-------- --------
ASSETS
CURRENT
Cash $57,277 $8,395
Accounts receivable 8,066 $4,999
Inventories 5,973 4,165
Prepaid expenses 1,592 597
-------- --------
Total current assets 72,908 18,156
CAPITAL ASSETS 6,268 5,053
NET INVESTMENT IN
DISCONTINUED OPERATIONS - 22,092
-------- --------
$79,176 $45,301
======== ========
LIABILITIES
CURRENT
Accounts payable and accrued
charges 6,581 4,138
Income taxes payable 3,325 470
Current portion of long-term debt 300 141
-------- --------
Total current liabilities 10,206 4,749
-------- --------
LONG-TERM DEBT 928 1,134
-------- --------
SHAREHOLDERS' EQUITY
Capital stock 12,890 11,415
Accumulated unrealized gains
on foreign exchange 1,140 2,041
Retained Earnings 54,012 25,962
-------- --------
Total shareholders' equity 68,042 39,418
-------- --------
$79,176 $45,301
======== ========
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
(UNAUDITED) ($000's)
Six Months Six Months
ended ended
Feb. 29/00 Feb. 28/99
---------- ----------
NET REVENUE $20,059 $14,790
========== ==========
INCOME FROM CONTINUING
OPERATIONS BEFORE
PROVIDING FOR AMORTIZ-
ATION, INTEREST, OTHER
AND INCOME TAXES 2,865 1,909
---------- ----------
Amortization 654 607
Interest on long-term debt 32 129
Interest (income) expense on
short-term debt (171) (253)
---------- ----------
515 483
---------- ----------
INCOME FROM CONTINUING
OPERATIONS BEFORE OTHER
AND INCOME TAXES 2,350 1,426
INCOME TAXES 757 666
---------- ----------
NET INCOME FOR THE PERIOD 1,593 760
OTHER INCOME - 899
---------- ----------
INCOME FROM
DISCONTINUED OPERATIONS 23,389(a) 3,771
RETAINED EARNINGS
BEGINNING OF THE PERIOD 29,030 20,532
---------- ----------
RETAINED EARNINGS
END OF PERIOD $54,012 $25,962
========== ==========
(a) Includes gain on sale of Poli-Twine business of $22,482
PER SHARE Net Income:
Basic earnings per share $1.47 $0.31
Fully diluted earnings per share $1.40 $0.28
INTERIM CONSOLIDATED STATEMENT
OF CHANGES IN FINANCIAL POSITION
(UNAUDITED) ($000's)
Six Months Six Months
ended ended
Feb. 29/00 Feb. 29/99
---------- ----------
OPERATING ACTIVITIES:
Net income for the period 1,593 760
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization 655 607
(Increase) Decrease in operating
working capital:
Accounts receivable (1,877) (862)
Inventory (519) 482
Prepaid expenses (1,176) (268)
Accounts payable accrual charges 2,109 1,030
Income Taxes (362) 257
Effect of exchange rate changes (385) (557)
---------- ----------
CASH PROVIDED BY
OPERATING ACTIVITIES 38 1,449
---------- ----------
OTHER INCOME - 899
---------- ----------
INVESTING ACTIVITIES:
Principal receipts on notes receivable - 241
Purchase of capital assets (543) (1,233)
---------- ----------
CASH CONSUMED BY
INVESTING ACTIVITIES (543) (992)
---------- ----------
FINANCING ACTIVITIES:
Principal payments on long-term debt (307) (5,358)
Issuance of common shares (31) -
Redemption of common shares (1,260) (1,972)
---------- ----------
CASH CONSUMED BY FINANCING
ACTIVITIES (1,598) (7,330)
---------- ----------
CASH OUTFLOW FOR THE PERIOD (2,103) (5,973)
SALE PROCEEDS 53,000 -
CASH OUTFLOW BY
DISCONTINUED OPERATIONS (9,472) (1,313)
NET CASH AT BEGINNING
OF THE PERIOD 15,852 15,550
---------- ----------
NET CASH AT END OF THE PERIOD $57,277 $8,264
---------- ----------