Algo Turns the Corner With Year End Profit - $8.5 Million Turnaround Sets Stage for Further Improvements.MONTREAL--(BUSINESS WIRE)--April 23, 1997-- ALGO ALGO Algorithm (ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). AO.) Algo Group Inc. today posted its first annual profit in three years. Algo President, Jack Wiltzer said the achievement follows an intense period of restructuring and predicted an even stronger performance in 1997. Net profit for the year ended December 31, 1996 was $2.2 million or $0.11 per share compared with a net loss of $6.3 million or $0.31 per share for the corresponding period last year. Fully diluted, earnings per share were $0.07 compared to a loss of $0.31 per share last year. Sales for the year totalled $202.1 million, compared to $233.2 million a year ago, reflecting the reduced number of divisions within the Algo Group. Net loss for the fourth quarter was $0.9 million or $0.04 per share. This compares with a loss of $8 million or $0.40 per share for the same period last year. Fourth quarter sales were $47.8 million, compared to $44.6 million during the fourth quarter a year ago. The average number of shares outstanding increased to 20,310,738 from 20,264,012 for the corresponding period last year. "Our restructuring program is now complete. Algo is now focused on improving its core businesses," stated Mr. Wiltzer. He underlined that the company posted a profit even after accounting for a U.S.$1.1 million loss incurred as a result of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and the disposal of assets of U.S. based Algo Apparel which ceased operations during fiscal 1996. Looking ahead to 1997, Mr. Wiltzer stated that the first quarter of the year, while on plan, will be less profitable than last year's first quarter. "We have budgeted less for this period because of Algo Apparel's contribution of U.S.$450 thousand to the bottom line in the first quarter of 1996. While Algo Apparel U.S. was profitable in the first quarter of 1996, it lost U.S.$1.6 million during the balance of 1996." Mr. Wiltzer said 1997 will be a stronger year. "We are encouraged by the progress we have achieved to-date and feel confident that all is in place to produce solid earnings growth through the balance of the year." Algo Group is the leading Canadian manufacturer and importer of ladies', men's and children's fashion apparel which is marketed throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The company also markets dresses in Europe. As well, Algo designs and imports fashion fabric marketed through North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. apparel manufacturers and retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → . Company shares trade publicly on both the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and the Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg , under the stock symbol AO.A. CONTACT: Algo Group Inc. Jack Wiltzer, 514/ 382-1240 or Maison Brison Rick Leckner, 514/ 731-0000 |
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