AQM Announces 3rd Quarter Earnings.WOODBRIDGE, ONTARIO--(BUSINESS WIRE)--Sept. 19, 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: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 its consolidated financial results for the third quarter ended Aug. 31, 1997. Leslie Leib, Chairman of the Company, stated that although a sales decline was reported, he was encouraged with other aspects of the Company's business development strategy. Over the last 12 months, the Company has introduced over 50 new products. "Packaged sales to an expanded customer base in the US market, the Company's main strategic target, have increased by 25 percent over 1996 levels. Export sales to Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asian markets are increasing. I expect both of these trends to continue." Sales volumes for the 3rd quarter of 1997 were $2,590,052, decreasing by $400,284 or 13.4 percent, over the 3rd quarter of 1996. Year to date sales were $7,753,627, decreasing by 11 percent from the same period of 1996. Net income after tax for the 3rd quarter of 1997 was $107,008 (.9 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 $42,909 from the income of $149,917 (1.2 cents per share) reported for the 3rd quarter of 1996. The decrease in income was due to the decrease in sales, partially offset by reduced 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. . Margins during the quarters were virtually unchanged. Year to date net income was $247,200 (2.1 cents per share), 21.5 percent lower than the first nine 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.
Third Quarter Ended Nine Months Ended
31-Aug-97 31-Aug-96 31-Aug-97 31-Aug-96
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Sales 2,590,052 2,990,336 7,753,627 8,707,906
Gross Profit 805,919 931,756 2,404,255 2,624,131
Gross Profit Margin 31.1 31.2 31 30.1
percent percent percent percent
Operating Expenses 607,731 654,128 1,943,241 2,030,359
EBITDA 246,119 387,207 614,038 877,257
Net Income 107,008 149,917 247,200 320,839
EBITDA per share 2.1 cents 3.2 cents 5.2 cents 7.2 cents
Net Income Per Share 0.9 cents 1.2 cents 2.1 cents 2.6 cents
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Credit Line
Utilization 823,531 288,177
Working Capital 2,351,503 2,460,967
Total Liabilities /
Equity Ratio 49 percent 56 percent
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The Company believes that the common stock price remains under-valued. Therefore, the Company applied for and received permission to undertake a new Normal Course Issuer Bid, effective from Aug. 30, 1997 to Aug. 29 1998. During the third quarter of 1997 the Company purchased 92,000 shares of its common stock at an average price of 30 cents. Since September 1996, total purchases under this plan have been 397,500 shares at an average price of 32 cents per share. The company continues to report strong financial health. Efficient working capital management and continuous profitability leave total liabilities at 49 percent of total equity, an improvement of 7 percent from the 56 percent of total equity reported at Aug. 31, 1996. Finally, the Company's Internet web site was opened during July, 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 Aftermarket See: Secondary market. aftermarket See secondary market. . Its clients include some of the largest automotive parts distributors and retailers in Canada, the USA, Latin America and Asia. 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. Please visit us at our new web site: www.aqmcorp.com 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. , Toll-free 1-800-947-8621 905/851-9487 (FAX) |
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