Advanced Materials Group Reports Fourth Quarter Results.Business Editors RANCHO ran·cho n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. DOMINGUEZ Dominguez is a name of Spanish origin. It literally means son of Sunday. The name may refer to: Persons
ADMG ADMG Adaptive Differentiated-Service Multicast Gateway ADMG Air Defense Machine Gun Posts Quarterly Loss of $0.02 Per Share, Fiscal Year Loss of $0.07 Per Share, Compared to Quarterly Loss of $0.10 and Fiscal Year Loss of $0.14 in the Prior Year Advanced Materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, Group, Inc. (Pink Sheets:ADMG) today reported final sales and income from operations for the fourth fiscal quarter and fiscal year ended November November: see month. 30, 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter of fiscal 2003 were $2.3 million versus $6.3 million for the comparable period of fiscal 2002. The net loss for the fourth quarter of fiscal 2003 was $203,000 compared to a net loss of $835,000 for the fourth quarter of fiscal 2002. The basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share for the fourth quarter was $0.02 per share on an average of 8.7 million shares, versus basic and diluted loss of $0.10 per share on an average of 8.7 million shares in the year ago period. Net sales for the fiscal year 2003 were $14.5 million versus $26.6 million for the comparable period of 2002. The net loss for fiscal year 2003 was $631,000 compared to $1,202,000 for fiscal year 2002. The basic and diluted net loss per share for fiscal year 2003 was $0.07 per share on an average of 8.7 million shares, versus basic and diluted net loss per share of $0.14 per share on an average of 8.7 million shares in fiscal year 2002. In October October: see month. 2003, the Company sold its wholly owned subsidiary 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. , Advanced Materials Ltd. ("AML-Ireland"). The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for fiscal years 2003 and 2002 have been restated and operating results of AML-Ireland are shown separately as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for those periods. The Company recorded a gain of $378,000, or $0.04 per share, on the sale of AML-Ireland during the 4th quarter of 2003. Additionally, in July July: see month. 2003, the Company amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its manufacturing agreement in Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). to change the vendor of record for the customer supplied under the agreement, from the Company to its partner. Although this change does not affect the Company's share of the profitability under the agreement, it does cause a significant reduction in its reported revenues. In addition to the changes to the Company's previously issued consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge required by the discontinued operations, management identified an error that resulted in the understatement of cost of sales for its joint venture agreement in Singapore by $728,000, which necessitated a restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of the Company's 2002 consolidated financial statements. Chief Executive Officer Comments on Results Commenting on the results, Advanced Materials Group CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President, Bob Delk said, "In looking back, we enacted a number of changes to the business in a relatively short span of time during 2003. These changes include significant cost reductions, key management leadership changes, the sale of AML-Ireland, a re-alignment of the Singapore partnership, and the initiative to develop new products. We feel that these steps were necessary to better position AMG AMG All Music Guide (music website) AMG All Media Guide (group of media websites) AMG All Movie Guide (Movie website) AMG Arzneimittelgesetz (German Law) for what must be done in 2004; that being, the aggressive pursuit of business development that could provide both opportunity for both revenue growth and profit." Some statements contained in this press release, including statements regarding the aggressive pursuit of business development that could provide opportunity for both revenue growth and profit, returning to profitable operations, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. In addition to the factors discussed including escalating pricing pressures, the following are among other factors that could cause actual results to differ materially: general business conditions, competitive factors, concentration of sales in markets and customers, concentration of raw materials suppliers, delays or cancellations in orders, fluctuations in margins, timing of significant orders, and other risks and uncertainties outlined by management in the Company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Advanced Materials Group, Inc. is in the business of developing, manufacturing and fabricating products using flexible raw materials such as specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. foams, plastics, fabrics, foils, films and pressure-sensitive adhesive adhesive, substance capable of sticking to surfaces of other substances and bonding them to one another. The term adhesive cement is sometimes used in place of adhesive, especially when referring to a synthetic adhesive. components for a broad base of customers in the medical, technology, consumer, aerospace and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר both in the U.S. and abroad.
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Fiscal Year Ended
November 30, November 30,
----------------------- ------------------------
(Unaudited)
2003 2002 2003 2002
---------- ----------- ----------- -----------
Restated Restated
Net sales $2,300,000 $ 6,312,000 $14,475,000 $26,588,000
Cost of sales 2,161,000 6,469,000 13,142,000 25,071,000
---------- ----------- ----------- -----------
Gross profit 139,000 (157,000) 1,333,000 1,517,000
---------- ----------- ----------- -----------
Operating
expenses:
Selling, general
and
administrative 616,000 672,000 2,351,000 2,446,000
Write-down of
goodwill - 387,000 - 387,000
Restructuring
charges (352,000) - (352,000) 226,000
---------- ----------- ----------- -----------
Total operating
expenses 264,000 1,059,000 1,999,000 3,059,000
Loss from
operations (125,000) (1,216,000) (666,000) (1,542,000)
Other income
(expense):
Interest expense (43,000) (110,000) (254,000) (409,000)
(Loss) gain on
disposal of fixed
assets (159,000) 13,000 (159,000) 13,000
Other, net (35,000) (56,000) (69,000) (108,000)
---------- ----------- ----------- -----------
Total other
expenses (237,000) (153,000) (482,000) (504,000)
Loss from continuing
operations before
income taxes (362,000) (1,369,000) (1,148,000) (2,046,000)
Income tax
(expense) benefit (24,000) 297,000 (24,000) 297,000
---------- ----------- ----------- -----------
Loss from
continuing
operations (386,000) (1,072,000) (1,172,000) (1,749,000)
Discontinued
Operations:
Income (loss) from
discontinued
operations (195,000) 237,000 163,000 547,000
Gain on sale of
discontinued
operations 378,000 - 378,000 -
---------- ----------- ----------- -----------
Net loss $ (203,000) $ (835,000)$ (631,000) $(1,202,000)
========== =========== =========== ===========
Basic and diluted
loss per common
share:
Loss from
continuing
operations $ (0.04) $ (0.12)$ (0.14) $ (0.20)
Income (loss) from
discontinued
operations (0.02) 0.02 0.02 0.06
Gain on sale of
discontinued
operations 0.04 - 0.05 -
---------- ----------- ----------- -----------
Net loss per
share $ (0.02) $ (0.10)$ (0.07) $ (0.14)
========== =========== =========== ===========
Basic and diluted
weighted average
common
shares
outstanding 8,671,272 8,671,272 8,671,272 8,671,272
========== =========== =========== ===========
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
NOVEMBER 30,
2002
November 30, 2003 Restated
--------------------------------------------- ----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 21,000 $ 157,000
Restricted cash 60,000 -
Accounts receivable, net of allowance for
doubtful accounts of $54,000 and $97,000 as
of November 30, 2003 and 2002, respectively 1,319,000 4,766,000
Inventories, net of allowance for
obsolescence of $81,000 and $241,000 as of
November 30, 2003 and 2002, respectively 939,000 2,310,000
Discontinued operations, net - 1,690,000
Prepaid expenses and other 161,000 136,000
----------- -----------
Total current assets 2,500,000 9,059,000
Property and equipment, net 1,059,000 1,683,000
Other assets 48,000 58,000
----------- -----------
Total assets $ 3,607,000 $10,800,000
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 1,181,000 $ 3,810,000
Accrued liabilities 439,000 367,000
Restructuring reserve 56,000 378,000
Deferred income - 97,000
Line of credit 609,000 3,701,000
Term loan 361,000 -
Current portion of long-term obligations 360,000 599,000
Convertible debentures 405,000 -
----------- -----------
Total current liabilities 3,411,000 8,952,000
Convertible debentures - 405,000
Restructuring reserve 76,000 504,000
Retirement benefit to former employees, net
of current portion of $273,000 and $157,000
and of discount of $2,610,000 and
$2,871,000 at November 30, 2003 and 2002,
respectively 951,000 1,094,000
Capital lease obligations, net of current
portion of $87,000 and $164,000 at
November 30, 2003 and 2002, respectively 57,000 143,000
----------- -----------
Total liabilities 4,495,000 11,098,000
----------- -----------
Commitments and contingencies
Stockholders' deficit:
Preferred stock-$.001 par value; 5,000,000
shares authorized; no shares issued
and outstanding - -
Common stock-$.001 par value; 25,000,000
shares authorized; 8,671,272 shares
issued and outstanding at November 30,
2003 and 2002 9,000 9,000
Additional paid-in capital 7,124,000 7,083,000
Accumulated deficit (8,021,000 )(7,390,000 )
----------- -----------
Total stockholders' deficit (888,000 ) (298,000 )
----------- -----------
Total liabilities and stockholders' deficit $ 3,607,000 $10,800,000
=========== ===========
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