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, Calif.--(BUSINESS WIRE)--March 1, 2001 ADMG ADMG Adaptive Differentiated-Service Multicast Gateway ADMG Air Defense Machine Gun Posts Quarterly Earnings of 5 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. ; Fiscal Year Earnings Were 14 Cents per Share, Compared With a 10-Cent Loss in the Previous 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. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ADMG) today reported final sales and income from operations for the fourth fiscal quarter and fiscal year ended Nov. 30, 2000. 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 2000 were $10.1 million, vs. $10.6 million for the comparable period of fiscal 1999. Net earnings for the fourth quarter of fiscal 2000 were $396,000, compared with $339,000 for the fourth quarter of fiscal 1999. Basic earnings per share for the fourth quarter were 5 cents per share on an average of 8.6 million shares, vs. 5 cents per share on an average of 8.5 million shares in the year-ago period. Net sales for the full 12 months of fiscal 2000 were $40.3 million, vs. $34.8 million for the comparable period of 1999. Net earnings for the 12 months of fiscal 2000 were $1,173,000, vs. a net loss of $874,000 for the 12 months of fiscal 1999. Basic earnings per share for fiscal 2000 were 14 cents per share on an average of 8.6 million shares, vs. a loss of 10 cents per share on an average of 8.6 million shares in fiscal 1999. During the year, the company changed the fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. of its Ireland subsidiary to coincide with its own. The company had previously reported the results of this subsidiary's operations for the one-month transition period in its fourth-quarter revenues and earnings. In order to report only 12 months of operating results, these results have now been reclassified directly to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . Additionally, as a result of the company's fiscal year-end audit of its financial statements, there was an unexpected 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 inventories at year-end, as noted below. Chief Executive Officer Comments on Results and Key Personnel Addition Commenting on the results, Advanced Materials Group Chief Executive Officer and President Steve Scott said: "The fourth-quarter results were mixed for Advanced Materials Group. There was an unexpected restatement of inventories, which resulted in a $223,000 unfavorable adjustment to earnings for the year and the fourth quarter. On the go-forward, the proper capture of inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound freight, which had changed with the new computer system, is in place. "On a positive note, a litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. claim against the company relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its Condor subsidiary was recently dismissed by the Court of Appeals. As a result, ADMG reversed a contingent liability Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. of $975,000 as of year-end November 2000. It is very positive for the company to have this overhanging liability removed. "While we are positive about the turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. that ADMG executed in 2000 and the market focus of the company, we recognize that we face challenges in 2001. Several business sectors in which we participate started slowing in the fourth quarter 2000 and are continuing to decelerate de·cel·er·ate v. de·cel·er·at·ed, de·cel·er·at·ing, de·cel·er·ates v.tr. 1. To decrease the velocity of. 2. in the first quarter of 2001 as key customers reduce production to bring inventories in line. "We remain confident that ADMG is positioned well for 2001 in strong market sectors such as inkjet cartridge A replaceable unit that holds ink and the print nozzles for inkjet printers. A separate cartridge for each of the four CMYK colors is the most efficient. Low-cost printers include cyan, magenta and yellow inks in one cartridge, requiring the entire unit be replaced when one color is empty. , cellular phone and medical disposables, which we expect will continue to grow in 2001. We recognize, however, that the growth will be uneven over the year, with the inventory adjustment slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the early portion. "We are pleased to announce that Gayle Arnold has joined Advanced Materials Group as chief financial officer. Ms. Arnold is an experienced CFO See Chief Financial Officer. who will be a key member of the ADMG management team in setting the stage for growth in 2001." Advanced Materials Group is a leading manufacturer and fabricator fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: of specialty foams, 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 computer, medical, automotive and aerospace industries both in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and abroad. Some statements contained in this news release 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, 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.
Consolidated Statements of Operations
Three months ended 12 months ended
Nov. 30, Nov. 30,
2000 1999 2000 1999
Net sales $10,115,000 $10,622,000 $40,329,000 $34,798,000
Cost of sales 8,618,000 8,898,000 34,152,000 30,257,000
Gross profit 1,497,000 1,724,000 6,177,000 4,541,000
Operating expenses:
Selling, general
and administrative 1,139,000 1,129,000 4,463,000 4,528,000
Depreciation and
amortization 81,000 43,000 286,000 220,000
Total operating
expenses 1,220,000 1,172,000 4,749,000 4,748,000
Income (loss) from
operations 277,000 552,000 1,428,000 (207,000)
Other income
(expense):
Interest expense (140,000) (162,000) (523,000) (504,000)
Foreign-exchange
loss (113,000) (24,000) (67,000) (5,000)
Other, net (22,000) (27,000) (59,000) (158,000)
Total other income
and expenses (275,000) (213,000) (649,000) (667,000)
Income (loss) before
income taxes 2,000 339,000 779,000 (874,000)
Income tax expense (273,000) -- (273,000) --
Income (loss) from
continuing
operations (271,000) 339,000 506,000 (874,000)
Net income from
discontinued
operations 667,000 -- 667,000 --
Net income (loss) $ 396,000 $ 339,000 $ 1,173,000 $ (874,000)
Basic earnings per
common share:
Income (loss) from
continuing
operations $ (0.03)$ 0.05 $ 0.06 $ (0.10)
Income from
discontinued
operations 0.08 -- 0.08 --
Net income (loss)
per share $ 0.05 $ 0.05 $ 0.14 $ (0.10)
Diluted earnings per
common share:
Income (loss) from
continuing
operations $ (0.03)$ 0.05 $ 0.06 $ (0.10)
Income from
discontinued
operations 0.07 -- 0.07 --
Net income (loss)
per share $ 0.04 $ 0.05 $ 0.13 $ (0.10)
Basic weighted
average common
shares outstanding 8,656,200 8,519,055 8,599,723 8,581,630
Diluted weighted
average common
shares outstanding 8,800,392 8,519,055 8,784,412 8,581,630
ADVANCED MATERIALS GROUP INC.
Consolidated Balance Sheets
Nov. 30,
2000 1999
Assets:
Current assets:
Cash and cash equivalents $ 1,101,000 $ 496,000
Accounts receivable, net 7,753,000 7,238,000
Inventories, net 4,962,000 3,857,000
Income tax receivable 32,000 261,000
Deferred income taxes 337,000 337,000
Prepaid expenses and other 364,000 172,000
Total current assets 14,549,000 12,361,000
Property and equipment, net 3,007,000 2,507,000
Goodwill, net 451,000 514,000
Deferred income taxes 206,000 473,000
Other assets 152,000 237,000
Total assets $18,365,000 $16,092,000
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 5,952,000 $ 4,448,000
Accrued liabilities 1,210,000 2,115,000
Deferred income 273,000 337,000
Line of credit 3,585,000 3,823,000
Current portion of long-term obligations 360,000 282,000
Total current liabilities 11,380,000 11,005,000
Line of credit -- --
Term loans 892,000 396,000
Convertible debentures 405,000 405,000
Deferred compensation 1,056,000 1,056,000
Other 341,000 243,000
Total liabilities 14,074,000 13,105,000
Stockholders' equity:
Preferred stock -- $.001 par value;
5 million shares authorized; no shares
issued and outstanding -- --
Common stock -- $.001 par value;
25 million shares authorized; 8,671,272
and 8,519,055 shares issued and outstanding
at Nov. 30, 2000, and Nov. 30, 1999,
respectively 9,000 9,000
Additional paid-in capital 7,083,000 6,987,000
Accumulated deficit (2,801,000) (4,009,000)
Total stockholders' equity 4,291,000 2,987,000
Total liabilities and stockholders' equity $18,365,000 $16,092,000
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