Advanced Materials Group Reports Third Quarter Results; ADMG Posts Sales Down 11% for Third Quarter; Loss of $0.05 Per Share.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
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. (Nasdaq:ADMG ADMG Adaptive Differentiated-Service Multicast Gateway ADMG Air Defense Machine Gun ) today reported decreased sales of 11% with a net loss of $0.05 per share for the third fiscal quarter ended August 31, 2001. 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 third quarter of fiscal 2001 were $9.4 million versus $10.5 million for the comparable period of fiscal 2000. The net loss for the third quarter of fiscal 2001 was $426,000 compared to net income of $260,000 for the third quarter of fiscal 2000. 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 third quarter was $0.05 per share on an average of 8.7 million shares, compared to basic earnings per share of $0.03 per share on an average of 8.6 million shares, in the year ago period. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the third quarter of fiscal 2000 were $0.03 per share on an average of 8.7 million shares. Net sales for the nine months of fiscal 2001 were $29.3 million versus $30.2 million for the comparable period of fiscal 2000. The net loss for the nine months of fiscal 2001 was $2,544,000, including $1.6 million in non-recurring charges related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the domestic operations announced in the second quarter of 2001. Without these charges, the net loss for the nine months would have been $904,000 compared to net income of $777,000 for the nine months of fiscal 2000. Basic and diluted loss per share for the nine months was $0.29 per share on an average of 8.7 million shares, compared to basic earnings per share of $0.09 per share on an average of 8.6 million shares, in the year ago period. Diluted earnings per share for the nine months of fiscal 2000 were $0.09 per share on an average of 8.8 million shares. 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 Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. F. Scott said, "The third quarter 2001 was negatively impacted relative to last year's performance by a sharp decline in domestic sales revenue (-34%) and extraordinary expenses associated with the transfer of Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. manufacturing to our California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). facilities. These are expenses, which by definition could not be charged to the restructuring reserve. The quarter ended with August recovering well; however, in light of current events, we face substantial uncertainty going into the fourth quarter. "Advanced Materials is taking the proper measures in consolidating domestic production to lower costs. The transitional costs are painful but the resulting overhead reduction gives ADMG a competitive boost. A key factor is the pace of the manufacturing rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the economy. This recovery rate continues to be uncertain. However, Advanced Materials has positioned itself to be profitable at lower sales volumes and to be very competitive as the recovery occurs." Some statements contained in this press 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. and Form 10-Q Form 10-Q See 10-Q. . Advanced Materials Group, Inc. 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 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, 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 U.S. and abroad.
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
Aug. 31, Aug. 27, Aug. 31, Aug. 27,
2001 2000 2001 2000
------------ ------------ ------------ ------------
Net sales $ 9,379,000 $ 10,491,000 $ 29,283,000 $ 30,215,000
Cost of sales 8,601,000 8,877,000 26,356,000 25,535,000
------------ ------------ ------------ ------------
Gross profit 778,000 1,614,000 2,927,000 4,680,000
------------ ------------ ------------ ------------
Operating
expenses:
Selling,
general and
administrative 1,001,000 1,173,000 3,295,000 3,318,000
Depreciation
and
amortization 88,000 74,000 258,000 207,000
Restructuring
costs -- -- 1,440,000 --
------------ ------------ ------------ ------------
Total operating
expenses 1,089,000 1,247,000 4,993,000 3,525,000
------------ ------------ ------------ ------------
(Loss) income
from operations (311,000) 367,000 (2,066,000) 1,155,000
Other income
(expense):
Interest
expense (105,000) (126,000) (397,000) (376,000)
Foreign
exchange gain 11,000 45,000 25,000 46,000
Other, net (12,000) (26,000) (56,000) (48,000)
------------ ------------ ------------ ------------
Total other
income
(expense) (106,000) (107,000) (428,000) (378,000)
------------ ------------ ------------ ------------
(Loss) income
before income
taxes (417,000) 260,000 (2,494,000) 777,000
Income tax
expense (9,000) -- (50,000) --
------------ ------------ ------------ ------------
Net (loss)
income $ (426,000) $ 260,000 $ (2,544,000) $ 777,000
============ ============ ============ ============
Basic (loss)
earnings per
common share $ (0.05) $ 0.03 $ (0.29) $ 0.09
============ ============ ============ ============
Diluted (loss)
earnings per
common share $ (0.05) $ 0.03 $ (0.29) $ 0.09
============ ============ ============ ============
Basic weighted
average common
shares
outstanding 8,671,272 8,622,722 8,671,272 8,586,833
============ ============ ============ ============
Diluted weighted
average common
shares
outstanding 8,671,272 8,745,199 8,671,272 8,822,770
============ ============ ============ ============
ADVANCED MATERIALS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
August 31, 2001 and November 30, 2000
ASSETS
2001 2000
------------ ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 924,000 $ 1,101,000
Accounts receivable, net 5,941,000 7,753,000
Inventories, net 3,473,000 4,962,000
Income tax receivable 32,000 32,000
Deferred income taxes 337,000 337,000
Prepaid expenses and other 407,000 364,000
------------ ------------
Total current assets 11,114,000 14,549,000
------------ ------------
Property and equipment, net 2,804,000 3,007,000
Goodwill, net 403,000 451,000
Deferred income taxes 206,000 206,000
Other assets 317,000 152,000
------------ ------------
Total assets $ 14,844,000 $ 18,365,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,136,000 $ 5,952,000
Accrued liabilities 1,363,000 1,210,000
Restructuring reserve, current 338,000 --
Deferred income 245,000 273,000
Line of credit 2,740,000 3,585,000
Current portion of
long-term obligations 815,000 360,000
------------ ------------
Total current liabilities 10,637,000 11,380,000
Term loan -- 892,000
Convertible debentures 405,000 405,000
Deferred compensation,
net of current portion 1,056,000 1,056,000
Restructuring reserve,
net of current portion 744,000 --
Capital leases,
net of current portion 255,000 341,000
------------ ------------
Total liabilities 13,097,000 14,074,000
------------ ------------
Stockholders' equity:
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 August 31,
2001 and November 30, 2000,
respectively 9,000 9,000
Additional paid-in capital 7,083,000 7,083,000
Accumulated deficit (5,345,000) (2,801,000)
------------ ------------
Total stockholders' equity 1,747,000 4,291,000
------------ ------------
Total liabilities and
stockholders' equity $ 14,844,000 $ 18,365,000
============ ============
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