AQM Announces 2nd Quarter Earnings and First Sale to Republic of China.WOODBRIDGE, Ontario--(BUSINESS WIRE)--June 20, 1997--AQM AUTOMOTIVE CORPO(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). AQV AQV Anticoncepcion Quirurgica Voluntaria (voluntary surgical contraception) ., NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on AQM AQM Active Queue Management AQM Air Quality Management AQM Acquisition Management AQM Assistant Quartermaster (Civil War) AQM Additive Quark Model AQM Analog Quadrature Modulator AQM Acenaphthenequinone Monoxime .AF.) AQM Automotive Corporation today announced that its main operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , G.K. Industries Ltd., made its first sale to the Republic of China. The Company also announced its consolidated financial results for the second quarter ended May 31st, 1997. Sales volumes for the 2nd quarter of 1997 were $2,848,264, decreasing by $382,941 or 11.9 percent, over the 2nd quarter of 1996. Mr. Leslie Leib, Chairman of the Company, stated that although a sales decline was reported, he was encouraged with other aspects of the marketing strategy. Packaged sales to the US market, the Company's main strategic target, have increased by 25 percent over 1996 levels. Offshore sales to emerging markets are expected to increase. "We have recovered significantly from the loss of a large bulk customer, and are in the process of replacing that business. We will continue to report profits as total sales levels recover. Sales growth is expected to resume by the fourth quarter." Year to date sales were $5,163,575, decreasing by 9.7 percent from the first half of 1996. Net income after tax for the 2nd quarter of 1997 was $88,968 (.7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) down $60,466 from the income of $149,434 (1.2 cents per share) reported for the 2nd quarter of 1996. The decrease in income was due to the decrease in sales. Margins and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. during the two quarters were virtually unchanged. Year to date net income was $140,192 (1.2 cents per share), 18 percent lower than the first six months of 1996. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Second Quarter Ended Six Months Ended
31-May-97 31-May-96 31-May-97 31-May-96
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Sales 2,848,264 3,231,205 5,163,575 5,717,570
Gross Profit 858,177 972,749 1,598,336 1,692,375
Gross Profit Margin 30.1 30.1 31.0 29.6
percent percent percent percent
Operating Expenses 687,867 696,399 1,335,510 1,376,231
EBITDA 223,948 354,103 367,919 485,992
Net Income 88,968 149,434 140,192 170,922
EDITDA per share 1.9 cents 2.9 cents 3.1 cents 4.0 cents
Net Income
Per Share 0.7 cents 1.2 cents 1.2 cents 1.4 cents
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Credit Line Utilization 1,124,198 621,509
Working Capital 2,289,584 2,134,969
Total Liabilities/Equity Ratio 62 percent 65 percent
Mr. Leib further stated that he believes that the common stock price remains under-valued. Therefore, the Company is continuing with its Normal Course Issuer Bid. During the second quarter, the Company purchased 189,000 shares of its common stock at an average price of 27 cents. Since September 1996, total purchases under this plan are 305,500 shares at an average price of 32.5 cents per share. The company continues to report excellent financial health. Efficient working capital management and continuous profitability leave total liabilities at 62 percent of total equity, down from 65 percent of equity at May 31st, 1996. Finally, the Company's Internet web site will be available on July 15th for purposes of shareholder communication and information distribution. The address is www.aqmcorp.com. AQM Automotive Corporation, through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , designs, packages and distributes automotive fuel filters, breather elements and automatic transmission filter kits exclusively to the automotive aftermarket. Its clients include some of the largest automotive parts suppliers, distributors and retailers in Canada, the USA and Latin America. After July 15th, 1997, visit us at our new web site: www.aqmcorp.com -0- The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. has neither approved nor disapproved of the information contained herein. CONTACT: AQM Automotive Corporation Tim Nigh nigh adv. nigh·er, nigh·est 1. Near in time, place, or relationship: Evening draws nigh. 2. Nearly; almost: talked for nigh onto two hours. , 800/947-8621 (Toll-free) 905/ 851-9487 (FAX) |
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