Advanced Materials Group reports continued improvement in operating results for fiscal 1996 third quarter.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
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 :ADMG ADMG Adaptive Differentiated-Service Multicast Gateway ADMG Air Defense Machine Gun ) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant reported a strong year-to-year improvement in operating results for its fiscal 1996 third quarter ended Aug. 31, 1996. For the quarter, sales improved 19 percent to $4,593,000 from sales of $3,850,000 for the same period a year ago. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter improved to $67,000 from a loss of $327,000 in the third quarter of fiscal 1995. Net income for the third quarter of fiscal 1996 was $450,000, or 4 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. , vs. a loss of $531,000 or 6 cents per share, in the comparable period of fiscal 1995. Results for the third quarter of fiscal 1996 include $508,000 in extraordinary income from the company's settlement of a note payable to Wilshire Technologies Inc. Excluding this one-time gain, net of an alternative minimum tax provision of $18,000, Advanced Materials Group incurred a near breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations net loss of $58,000 for the current quarter. For the first nine months of fiscal 1996, sales improved 5 percent to $12,257,000 from $11,638,000 in the same period a year ago. Income for the fiscal 1996 period, including one-time gains totaling $3,715,000 from the company's sale of investments in securities, a gain of $572,000 on stock rights, and $508,000 of extraordinary income from the early retirement of debt, improved to $3,852,000 or 37 cents per share from a loss of $1,361,000 or 15 cents per share, for the same period a year ago. Excluding the one-time gains, net of the alternative minimum tax provision, Advanced Materials incurred a net loss of $791,000 or 8 cents per share for the fiscal 1996 period, an improvement of 42 percent from the comparable period of fiscal 1995. Advanced Materials attributes the improvement in sales for both the quarter and nine-month periods to a significant shift in product mix to the high-volume computer peripherals programs the company had been targeting. Gross profit for both the quarter and nine-month periods was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. influenced by the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. shift in product mix and the efficiency gains yielded by the resulting longer production runs. Results also continued to benefit from the company's ongoing debt reduction activities, which have reduced interest expense by more than 32 percent over the previous two quarters. Commenting on the company's results, Advanced Materials President and Chief Executive Officer Steve Scott said, "The strong, year-to-year improvement in our results is a very good indication of our continuing success in solidifying so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. Advanced Materials' fundamentals and attracting the kind of high-volume programs that enable us to more effectively leverage our human and capital resources. "We are particularly pleased with the continued improvement in our balance sheet, which has benefited greatly from our ongoing debt reduction program. "Early in the fourth quarter we made another positive move to grow Advanced Materials Group with the acquisition of a specialty materials fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. business in the Colorado Rockies For the National Hockey League team (1976 – 1982), now known as the New Jersey Devils, see . The Colorado Rockies are a Major League Baseball team based in Denver, Colorado. They are in the West Division of the National League. ," Scott continued. "We believe this business -- which, along with our existing operations in Portland, Dallas, and Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , considerably strengthens our position in the West -- has excellent potential in that it gives us an established local presence in a dynamic region. This business will begin contributing revenues in our fourth fiscal quarter, and in the months ahead we will be investing in the necessary capital equipment and technologies to help it reach its performance targets," he said. Separately, Advanced Materials reported that initial results from testing on the waterproof, breathable breath·a·ble adj. 1. Suitable or pleasant for breathing: breathable air. 2. Permitting air to pass through: a breathable fabric. coating system it had been developing jointly in the United Kingdom with Innovative Technologies plc have been inclusive, and that follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan tests are planned for October. BUSINESS OUTLOOK -- The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Advanced Materials has shifted its marketplace strategy to place primary marketing emphasis on the computer and related products niche. The company's operations in the three-month period ended Aug. 31, 1996 showed strong results based on this shift in emphasis in terms of sales Terms of sale Conditions under which a firm proposes to sell its goods or services for cash or credit. mix and gross margins. The company has sufficient orders from OEMs to believe that sales will continue to grow substantially in the final quarter of fiscal 1996. Based on current projected order releases from major customers, the sales growth is projected to continue in fiscal 1997. -0- The statements contained in the previous "BUSINESS OUTLOOK" 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, among the other factors that could cause actual results to differ materially are the following: 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 currently unknown to management. -0- 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 foams, foils, films and pressure sensitive adhesive Pressure sensitive adhesive (PSA, self adhesive, self stick adhesive) is adhesive that forms a bond when pressure is applied to marry the adhesive with the adherend. No solvent, water, or heat is needed to activate the adhesive. components for a broad base of industrial and medical customers 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. The company also produces specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. systems for mixing, handling and dispensing dispensing provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession. multi-component chemicals, sealants and adhesives and has an investment in two firms conducting advanced research on polymer-based materials. -0-
Advanced Materials Group Inc.
Interim Consolidated Statement of Operations
($ in thousands, except per-share data)
Three Months Ended Nine Months Ended
Aug. 31, Aug. 31,
1996 1995 1996 1995
(unaudited)
Net sales $ 4,593 $ 3,850 $12,257 $11,638 Cost of sales 3,785 3,355 10,254 10,083 Gross profit 808 495 2,003 1,555 Operating Expenses: Selling, general & administrative 667 727 2,067 2,054 Intangible asset amortization 74 95 221 269 Total operating expenses 741 822 2,288 2,323 Operating income (loss) 67 (327) (285) (768) Other Income (Expense): Interest expense (105) (204) (510) (618) Gain (loss) on sale of stock (27) -- 3,715 -- Gain on stock rights -- -- 572 -- Other, net 7 -- 9 28 Total other income (expense) (125) (204) 3,786 (590)
Earnings (loss) before
income taxes and
extraordinary item (58) (531) 3,501 (1,358)
Income tax provision -- -- 157 3
Earnings (loss) before
extraordinary item (58) (531) 3,344 (1,361)
Extraordinary income on
retirement of debt (net
of income tax of $18,000) 508 -- 508 --
Earnings (loss) after
income taxes and
extraordinary item $ 450 $ (531) $ 3,852 $(1,361)
Earnings (loss) per share
of common stock before
extraordinary item $ (0.01) $ (0.06) $ 0.32 $ (0.15)
Extraordinary item 0.05 -- 0.05 --
Earnings (Loss) per share $ 0.04 $ (0.06) $ 0.37 $ (0.15)
Average number of common
and common stock
equivalent shares 10,450 9,174 10,350 9,174
-0-
Advanced Materials Group Inc.
Consolidated Balance Sheets
($ in thousands)
Aug. 31, 1996 Nov. 30, 1995
(unaudited)
Assets
Current Assets:
Cash $ 1,764 $ 66
Available-for-sale securities -- 88
Accounts and notes receivable, net
of allowance for doubtful accounts
of $102,000 at Aug. 31, 1996 and
$127,000 at Nov. 30, 1995 2,273 1,484
Inventories 2,176 2,096
Prepaid expenses 80 108
Other 279 154
Total Current Assets 6,572 3,996
Fixed assets, net of accumulated
depreciation of $1,672,000 and
$1,270,000 at Aug. 31, 1996 and
Nov. 30, 1995, respectively 2,182 2,480
Goodwill, net 2,619 2,783
Available-for-sale securities -- 3,322
Other assets 552 485
Total Assets $11,925 $13,066
-0-
Advanced Materials Group Inc.
Consolidated Balance Sheets
($ in thousands)
Aug. 31, 1996 Nov. 30, 1995
(unaudited)
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 1,670 $ 1,524
Accrued expenses 701 955
Accrued income taxes 50 --
Notes payable -- 1,119
Current portion of long-term debt 1,389 466
Total current liabilities 3,810 4,064
Long-Term Debt: Notes payable and other long-term debt 60 3,555 Deferred compensation 1,370 1,283 Convertible debentures 535 535 Total long-term debt: 1,965 5,373 Shareholders' Equity: Preferred stock -- $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding -- -- Common stock -- $0.001 par value; 25,000,000 shares authorized; 10,450,316 and 9,173,541 shares issued and outstanding at Aug. 31, 1996 and Nov. 30, 1995, respectively 7 7 Paid-in capital 10,195 9,495 Accumulated deficit (loss) (4,052) (7,904) Unrealized holding gain (loss) on available-for-sale securities -- 2,031 Total shareholders' equity 6,150 3,629 Total liabilities and shareholders' equity $11,925 $13,066 CONTACT: Advanced Materials Group Inc., Rancho Dominguez Steve F. Scott/J. Douglas Graven grav·en v. A past participle of grave3. Adj. 1. graven - cut into a desired shape; "graven images"; "sculptured representations" sculpted, sculptured , 310/537-5444 or Silverman Heller Associates, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Lou Alkana, 310/208-2550 |
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