Pacific Insight announces year end financial results
20 September 2000
Pacific Insight announces year end financial results
NELSON, BC, Sept. 20 /PRNewswire/ -
Management Discussion
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Pacific Insight Electronics Corp. (PIH-CDNX) announces its financial
results for the year ending June 30, 2000.
Pacific Insight achieved another record year in terms of revenues and net
income for fiscal year 2000.
Total revenue amounted to $17,736,630 for the year ended June 30, 2000,
compared with $11,766,026 for the preceding year, a year-to-year increase of
51% resulting mainly from growth in the original equipment segment (O.E.).
Revenue for the quarter ended June 30, 2000 amounted to $5.68 million,
compared to $3.64 million for the preceding quarter ended June 30, 1999.
Net income reached $1,919,213 for the year ended June 30, 2000 or $.28
per share on average of 6,864,768 shares outstanding for the year. Net income
for the preceding year amounted $1,268,093 or $.20 per share on average of
6,295,581 shares outstanding for the year ended June 30, 1999. For the
respective quarters ended June 30th, net income was $709,734 or $.10 per share
compared to $347,669 or $.06 per share.
Income before taxes increased by 49% for fiscal year 2000 to $2,986,335
compared to $2,004,891 for fiscal year 1999. In fiscal 2000, the corporation's
income taxes totaled $1,067,122, against $736,798 in fiscal 1999. The
effective income tax rate for the corporation's operations for fiscal year
2000 was 35.73% compared to 36.75% for fiscal 1999. The details of the
components of the income tax expense are provided in note 8 to the financial
statements.
The inventories as of June 30, 2000 were $3,091,935, compared to
$1,300,969 at the end of the previous year, an increase of $1,790,966. This
increase arose mainly from supply requirements for our original equipment
contracts. The corporation has achieved annual compounded growth rates of 43%
in sales, 33% for net income, and 25% for earnings per share over the last
five years.
As a consequence of the substantial growth, the corporation continues to
invest in manufacturing processes. Capital expenditures increased to
$1,544,477 in fiscal 2000, against $1,128,605 in fiscal 1999. The largest
investments were related to a new manufacturing facility and new manufacturing
equipment. A new 70,000 square foot manufacturing facility, five kilometers
west of Nelson, B.C., is under construction and is scheduled for completion by
the end of the calendar year. Both existing operations will be moved and
consolidated in the new facility.
Cash flows provided by financing activities were $4,037,960 in fiscal
2000, compared with $647,664 in fiscal 1999, an increase of $3,390,296. These
additional funds resulted mainly from the cash paid for the issuance of
special warrants of $2,453,007 and the issuance of shares to employees,
directors, and consultants for $1,613,665 in fiscal 2000, compared with
$72,664 in fiscal 1999.
Management is firmly committed and continues to invest in Research and
Development. As a result, research and development expenditures increased to
$608,324 in fiscal 2000, against $451,228 in fiscal 1999, an increase of
$157,096. A number of new projects the company is currently working on will be
announced early in the new fiscal year.
During the year, Pacific Insight announced several new O.E. and after
market contracts. The first announcement was for a new O.E. Daytime Running
Light Module for one of General Motor's vehicle platforms. This contract was
the second largest business opportunity in the history of the company.
A new General Motors after market wire harness contract was announced for
vehicle trailer applications. In addition, the Pass-Tag Radio Frequency
Identification (RFID) vehicle security system was expanded to GM's accessory
program in the United States.
The corporation won its first O.E. contract with a major Japanese auto
manufacturer, Mazda Motor Corporation. The contract was for a Daytime Running
Light module for one of Mazda's sport utility vehicles.
Another new multi-year contract was announced with Ford Motor Company.
The contract was for a Dimming Control Module, which automatically controls
the vehicle's LED instrument panel lighting.
Pacific Insight announced the new Gauge and Instrumentation contract with
Western Star Trucks. Each gauge incorporates a small microcontroller with
custom software, which reads the truck's engine computer with multiplexing
technology. The gauges will be used in all of Western Star's line of Class 8
heavy trucks.
Peterson Manufacturing Company selected Pacific Insight as the sole
supplier of the electronics for a new Light Emitting Diode (LED) lamp used in
the heavy truck and trailer industry. LEDs offer lower power consumption, low
heat, and extremely long life, often outliving the vehicle itself.
For the fifth consecutive year, General Motors honored Pacific Insight
with the Supplier of the Year Award. GM recognized Pacific Insight for
exceeding their performance standards in Quality, Service, Price, and
Technology. Less than a dozen of GM's 30,000 worldwide suppliers have received
this honor for five years in a row.
During the year, Pacific Insight became a reporting issuer on the new
Canadian Venture Exchange. The company's trading symbol (PIH) remains the
same; however, the new suffix for the Exchange is CDNX. For more information
about the new Canadian Venture Exchange, please visit their website at
http://www.cdnx.ca.