Andaurex reports 1996 results -- record revenues and earnings expected in 1997.TORONTO--(BUSINESS WIRE)--May 9, 1997--ANDAUREX INDUSTRIES (VSE See DOS/VSE. VSE - Virtual Storage Extended :AWX AWX All Weather Fighter .) Andaurex Industries Inc. today announced results for 1996. Following is a summary of results for the year ended December 31, 1996 compared with December 31, 1995. -- Revenues increased to $10.4 million compared with $8.6 million. -- Net loss, including writedowns of investments and goodwill totalling $701,000, was $2.0 million compared with net earnings of $456,000. -- Net loss per share was $0.32 compared with net earnings per share of $0.08. Gregory B. Bowes, President of Andaurex, said 1996, although disappointing from an earnings perspective, was a positive year for the Company because its new subsidiary, Provincial International Cranes, performed well, the Company achieved revenue growth of more than 20 percent, and a strong foundation was built for record revenues and earnings in 1997. Provincial, acquired at the end of 1995, exceeded revenue expectations in 1996 and operated at a profit. This unit, which engineers and manages the construction of custom cranes, in addition to operating a highly profitable spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. business, is expected to perform solidly again in 1997. The Company's other 100 percent-owned subsidiary, Markham Electric, fell below expectations in 1996 partly due to the deferral deferral - Waiting for quiet on the Ethernet. of two contracts into 1997. However, Markham is poised for an outstanding year in 1997 because of aggressive bidding on international infrastructure contracts during 1996. A recent highlight for Markham was being officially awarded a $13 million contract in the Bahamas that has increased anticipated 1997 revenues to more than $20 million and will contribute significantly to 1998 revenues as well. Mr. Bowes said that Markham's 1996 revenue shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. , together with higher expenses for Andaurex and unanticipated project costs, resulted in the loss for the year. Included in the higher expenses were two one-time costs: a $350,000 writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of investments and a writedown of goodwill of $351,000. The outlook for 1997 is for strong growth in both revenues and earnings. The order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. for 1997 already exceeds $20 million, while the 1998 backlog is approximately $15 million. Andaurex is a rapidly growing knowledge based company that is successfully exporting Canadian engineering, design and project management expertise to developing countries and emerging markets. The Company's shares trade on the Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). under the symbol AWX. CONTACT: Andaurex Industries Inc. Gregory B. Bowes, 905/470-0104 or Hume, Kieran Inc. Marla Gale, 416/868-1079 or Hume, Kieran Inc. Cathy Hume, 416/868-1079 |
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