TecSyn International Inc. -- Third Quarter Results
5 July 2000
TecSyn International Inc. -- Third Quarter Results
ST. CATHERINES, Ontario -3 months to May 31: (000's) 2000 1999 ------------------- ----------------------- Revenue $12,173 $8,801 Net income from continuing operations $1,548 $641 Net income from discontinued operations - $3,371 Net income per share from continuing operations - basic $0.09 $0.04 Net income per share from continuing operations - fully diluted $0.08 $0.03 9 months to May 31: (000's) 2000 1999 ------------------- ----------------------- Revenue $32,232 $23,701 Net income from continuing operations $3,141 $1,401 Net income from other and discontinued operations $23,389 $7,142 Net income per share - basic $0.18 $0.13 Net income per share - fully diluted $0.17 $0.12 Average Common Shares Outstanding 17,289,249 17,435,515
For the third quarter ended May 31, 2000, TecSyn recorded net income from continuing operations of $1,548,000 on revenue of $12,173,000 compared to net income from continuing operations of $641,000 on revenue of $8,801,000 a year ago.
For the nine months ended May 31, 2000, TecSyn recorded net income from continuing operations of $3,141,000 on revenue of $32,232,000 compared to net income from continuing operations of $1,401,000 on revenue of $23,701,000 a year ago.
The Information Circular respecting the Merger Agreement with Exco Technologies Limited previously announced on June 16, 2000 has been approved by the Board.
The Special Meeting of Shareholders to approve the merger will take place on August 10, 2000. The Information Circular and related material will be mailed next week.
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.
For further information, please contact Wayne Corbett, President & CEO or Paul E. Riganelli, Vice-President Administration, General Counsel at Tel: (905) 687-8811; Fax: (905) 687-6917.
TECSYN INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENT OF CHANGES
IN FINANCIAL POSITION
(UNAUDITED) ($000's)
Three Months Three Months
ended ended
May 31/00 May 31/99
-----------------------------
OPERATING ACTIVITIES:
Net income for the period $1,548 $641
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization 376 385
(Increase) Decrease in operating working capital:
Accounts receivable (388) (2,325)
Inventory (854) 612
Prepaid expenses 469 162
Accounts payable and accrued charges 122 679
Income Taxes (2,297) (700)
Effect of exchange rate changes (427) (332)
-----------------------------
CASH CONSUMED BY
OPERATING ACTIVITIES (1,451) (878)
-----------------------------
INVESTING ACTIVITIES:
Purchase of capital assets (1,526) (1,029)
-----------------------------
CASH CONSUMED BY
INVESTING ACTIVITIES (1,526) (1,029)
-----------------------------
FINANCING ACTIVITIES:
Principal payments on long-term
debt (40) (41)
Redemption of common shares - (1,165)
Issuance of common shares 1,944 -
-----------------------------
CASH PROVIDED (C0NSUMED) BY
FINANCING ACTIVITIES 1,904 (1,206)
-----------------------------
CASH OUTFLOW FOR THE PERIOD (1,073) (3,113)
SPECIAL DIVIDEND PAYMENT (53,914) -
CASH OUTFLOW BY
DISCONTINUED OPERATIONS - (1,237)
NET CASH AT BEGINNING OF
THE PERIOD 57,277 8,264
-----------------------------
NET CASH AT END OF THE PERIOD $2,290 $3,914
=============================
TECSYN INTERNATIONAL INC.
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
(UNAUDITED) ($000's)
Three Months Three Months
ended ended
May 31/00 May 31/99
------------ ------------
NET REVENUE $12,173 $8,801
============ ============
INCOME FROM CONTINUING
OPERATIONS BEFORE
PROVIDING FOR AMORTIZ-
ATION, INTEREST, AND
INCOME TAXES 1,590 1,453
------------ ------------
Amortization 376 385
Interest on long-term debt 13 31
Interest Income (492) (79)
------------ ------------
(103) 337
------------ ------------
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 1,693 1,116
INCOME TAXES 145 475
------------ ------------
NET INCOME FOR THE PERIOD 1,548 641
INCOME FROM DISCONTINUED
OPERATIONS - 3,371
RETAINED EARNINGS
BEGINNING OF THE PERIOD 54,012 25,962
------------ ------------
SPECIAL DIVIDEND (53,914) -
RETAINED EARNINGS ------------ ------------
END OF PERIOD $1,646 $29,974
============ ============
Net Income on continuing operations:
Basic earnings per share $0.09 $0.04
Fully diluted earnings per share $0.08 $0.03
INTERIM CONSOLIDATED STATEMENT
OF CHANGES IN FINANCIAL POSITION
(UNAUDITED) ($000's)
Nine Months Nine Months
ended ended
May 31/00 May 31/99
------------ ------------
OPERATING ACTIVITIES:
Net income for the period 3,141 1,401
Add (deduct) items not requiring
an outflow (inflow ) of cash:
Amortization 1,030 992
(Increase) Decrease in operating
working capital:
Loss on disposal of assets - 10
Accounts receivable (2,265) (1,049)
Inventory (1,373) 33
Prepaid expenses (707) (252)
Accounts payable accrual charges 2,231 2,184
Income Taxes (2,659) (442)
Effect of exchange rate changes (812) (889)
------------ ------------
CASH PROVIDED BY
OPERATING ACTIVITIES (1,414) 1,988
------------ ------------
OTHER INCOME - 899
------------ ------------
INVESTING ACTIVITIES:
Principal receipts on notes
receivable - 241
Purchase of capital assets (2,069) (2,249)
------------ ------------
CASH CONSUMED BY
INVESTING ACTIVITIES (2,069) (2,008)
------------ ------------
FINANCING ACTIVITIES:
Principal payments on
long-term debt....... (347) (5,399)
Issuance of common shares 1,914 -
Redemption of common shares (1,260) (3,137)
SALE PROCEEDS 53,000 -
SPECIAL DIVIDEND PAYMENT (53,914) -
------------ ------------
CASH CONSUMED BY FINANCING
ACTIVITIES (607) (8,536)
------------ ------------
CASH OUTFLOW FOR THE PERIOD (4,090) (7,657)
CASH OUTFLOW BY
DISCONTINUED OPERATIONS (9,472) (3,979)
NET CASH AT BEGINNING
OF THE PERIOD 15,852 15,550
------------ ------------
NET CASH AT END OF THE PERIOD $2,290 $3,914
============ ============
TECSYN INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED) ($000's)
May 31 May 31
2000 1999
------------ ------------
ASSETS
CURRENT
Cash $2,290 $3,914
Accounts receivable 8,711 5,480
Inventories 7,038 3,390
Prepaid expenses 1,155 471
------------ ------------
Total current assets 19,194 13,255
CAPITAL ASSETS 7,657 5,600
NET INVESTMENT IN
DISCONTINUED OPERATIONS....... - 28,833
------------ ------------
$26,851 $47,688
============ ============
LIABILITIES
CURRENT
Accounts payable and accrued
charges 6,496 4,748
Income taxes payable 1,125 (242)
Current portion of long-term debt 313 299
------------ ------------
Total current liabilities 7,934 4,805
------------ ------------
LONG-TERM DEBT 917 1,345
------------ ------------
SHAREHOLDERS' EQUITY
Capital stock 14,834 10,249
Accumulated unrealized gains
on foreign exchange 1,520 1,315
Retained Earnings 1,646 29,974
------------ ------------
Total shareholders' equity....... 18,000 41,538
------------ ------------
$26,851 $47,688
------------ ------------
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
AND RETAINED EARNINGS
(UNAUDITED) ($000's)
Nine Months Nine Months
ended ended
May 31/00 May 31/99
------------ ------------
NET REVENUE $32,232 $23,701
============ ============
INCOME FROM CONTINUING
OPERATIONS BEFORE
PROVIDING FOR AMORTIZ-
ATION, INTEREST, OTHER
AND INCOME TAXES 4,445 3,362
------------ ------------
Amortization 1,030 992
Interest on long-term debt 45 160
Interest income (663) (332)
------------ ------------
412 820
------------ ------------
INCOME FROM CONTINUING
OPERATIONS BEFORE OTHER
AND INCOME TAXES 4,043 2,542
INCOME TAXES 902 1,141
------------ ------------
3,141 1,401
OTHER INCOME - 899
------------ ------------
NET INCOME FOR THE PERIOD....... 3,141 2,300
INCOME FROM
DISCONTINUED OPERATIONS 23,389 7,142
RETAINED EARNINGS
BEGINNING OF THE PERIOD...... 29,030 20,532
SPECIAL DIVIDEND (53,914) -
------------ ------------
RETAINED EARNINGS
END OF PERIOD $1,646 $29,974
============ ============
PER SHARE
Net Income on continuing operations:
Basic earnings per share $0.18 $0.13
Fully diluted earnings per share $0.17 $0.12
One St. Paul St., Suite 602, St. Catharines, ON Telephone: (905) 687-8811 Facsimile: (905) 687-6917