Advanced Materials Group Reports Third Quarter Results
20 September 2000
Advanced Materials Group Reports Third Quarter Results; ADMG Posts Earnings of $0.03 Per Share; Sales Up 35.6% For Third Quarter
RANCHO DOMINGUEZ, Calif.--Sept. 20, 2000-- Advanced Materials Group, Inc. today reported sales and earnings from operations for the third fiscal quarter ended Aug. 27, 2000.Net sales for the third quarter of fiscal 2000 were $10.5 million versus $7.7 million for the comparable period of fiscal 1999. Net earnings for the third quarter of fiscal 2000 were $260,000, compared to net loss of $1,099,000 for the third quarter of fiscal 1999.
Basic earnings per share for the third quarter of fiscal 2000 were three cents per share on an average of 8.6 million shares compared to a basic loss per share of thirteen cents on an average of 8.6 million shares in the year ago period. Diluted earnings per share for the third quarter were three cents per share on an average of 8.8 million shares compared to a diluted loss per share of thirteen cents on an average of 8.6 million shares in the year ago period.
Net sales for the nine months of fiscal 2000 were $30.2 million versus $24.2 million for the comparable period of fiscal 1999. Net earnings for the nine months of fiscal 2000 were $777,000 compared to a net loss of $1,213,000 for the nine months of fiscal 1999.
Basic earnings per share for the nine months of fiscal 2000 were nine cents per share on an average of 8.6 million shares compared to a basic loss per share of fourteen cents on an average of 8.6 million shares in the year ago period. Diluted earnings per share for the nine months of fiscal 2000 were nine cents per share on an average of 8.8 million shares compared to diluted loss per share of fourteen cents on an average of 8.6 million shares in the year ago period.
Chief Executive Officer Comments on Results
Commenting on the results, Advanced Materials Group CEO and President, Steve Scott, said, "We have been profitable for four consecutive quarters earning $0.13 per share over that period. This is the direct result of our vigorous cost cutting measures and stable sales volume.
"We have previously noted that the key challenge for 2000 is to grow sales volume in the U.S. while supporting the strong sales and profit growth in Singapore and Ireland. We are very encouraged by our progress. We have received our first $500,000 order to service the dynamic cellular phone industry to be shipped in the fourth quarter. This is a target market for ADMG in which we are very excited to be participating. We continue to be a dominant supplier to the global inkjet cartridge market as well.
"We are also expecting strong growth from our Ireland operation in the fourth quarter. Advanced Materials, Ltd. is forecast to have revenue growth of 40% in the fourth quarter relative to the average quarter year-to-date of $1,565,000.
"All in all, we are very pleased that we are staged to profitably grow in 2001 and beyond."
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
Aug. 27, Aug. 29, Aug.27, Aug. 29,
2000 1999 2000 1999
Net sales $10,491,000 $7,737,000 $30,214,000 $24,176,000
Cost of sales 8,877,000 7,291,000 25,534,000 21,359,000
Gross profit 1,614,000 446,000 4,680,000 2,817,000
Operating expenses:
Selling, general and
administrative 1,173,000 1,301,000 3,319,000 3,483,000
Depreciation and
amortization 74,000 57,000 204,000 160,000
Total operating
expenses 1,247,000 1,358,000 3,523,000 3,643,000
Income (loss) from
operations 367,000 (912,000) 1,157,000 (826,000)
Other income (expense):
Interest expense (126,000) (175,000) (370,000) (343,000)
Foreign exchange gain 45,000 8,000 46,000 19,000
Other, net (26,000) (20,000) (56,000) (63,000)
Total other income
and expenses (107,000) (187,000) (380,000) (387,000)
Income (loss) before income
taxes 260,000 (1,099,000) 777,000 (1,213,000)
Income tax expense -- -- -- --
Net income (loss) $260,000 $(1,099,000) $777,000 $(1,213,000)
Basic earnings per
common share $0.03 $(0.13) $0.09 $(0.14)
Diluted earnings per
common share $0.03 $(0.13) $0.09 $(0.14)
Basic weighted average common
shares outstanding 8,622,722 8,557,888 8,586,833 8,594,591
Diluted weighted average
common shares
outstanding 8,822,659 8,557,888 8,848,589 8,594,591
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
Aug. 27, 2000 and Nov. 30, 1999
ASSETS
2000 1999
(Unaudited)
Current assets:
Cash and cash equivalents $ 312,000 $ 496,000
Accounts receivable, net 7,435,000 7,238,000
Inventories, net 5,105,000 3,857,000
Income tax receivable 32,000 261,000
Deferred income taxes 337,000 337,000
Prepaid expenses and other 138,000 172,000
Total current assets 13,359,000 12,361,000
Property and equipment, net 2,708,000 2,507,000
Goodwill, net 467,000 514,000
Deferred income taxes 473,000 473,000
Other assets 291,000 237,000
Total assets $ 17,298,000 $ 16,092,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,823,000 $ 4,448,000
Income taxes payable 301,000 308,000
Accrued liabilities 900,000 1,130,000
Discontinued operations 667,000 677,000
Deferred income 267,000 337,000
Line of credit 130,000 --
Current portion of long-term
obligations 313,000 282,000
Total current liabilities 8,401,000 7,182,000
Line of credit 3,104,000 3,823,000
Term loan 286,000 396,000
Convertible debentures 405,000 405,000
Deferred compensation 1,056,000 1,056,000
Other 195,000 243,000
Total liabilities 13,447,000 13,105,000
Stockholders' equity:
Preferred stock-$.001 par value;
5,000,000 shares authorized;
no shares issued and outstanding -- --
Common stock-$.001 par value;
25,000,000 shares authorized;
8,626,055 and 8,519,055 shares
issued and outstanding at
Aug. 27, 2000 and Nov. 30, 1999,
respectively 9,000 9,000
Additional paid-in capital 7,074,000 6,987,000
Accumulated deficit (3,232,000) (4,009,000)
Total stockholders' equity 3,851,000 2,987,000
Total liabilities and stockholders'
equity $ 17,298,000 $ 16,092,000