Bionaire Inc. - third quarter results.MONTREAL--(BUSINESS WIRE)--Nov. 6, 1995--Bionaire Inc. Monday Monday: see week. announced that sales for the three months ended September September: see month. 30, 1995 were $20.8 million, compared to $26.3 million for the three months ended September 30, 1994 and to $18.3 million for the three months ended August 31, 1994. The quarter resulted in a net loss of $1.2 million, or $0.09 per share, compared to a net income of $1.8 million, or $0.12 per share for the three months ended September 30, 1994 and of $0.1 million, or $0.01 per share, for the three months ended August 31, 1994. The following letter from the President and C.E.O. will appear in the Company's third quarter report. "To our shareholders: The Company having changed its year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. to December December: see month. 31, the Securities Commissions require that the Company compare its new quarterly results to the quarter ended August 31, 1994. Information has also been included for the three months and nine months ended September 30, 1994 to provide a better understanding of current trends and to which we will address our comments. Sales for the three months ended September 30, 1995 were $20.8 million, compared to sales of $26.3 million in 1994. For the nine-month period ended September 30, 1995, sales were $46.1 million, compared to $48.1 million for the same period in 1994. The net loss for the three months ended September 30, 1995 was $1.2 million or $0.09 per share, compared to a net income of $1.8 million or $0.12 in 1994. For the nine-month period ended September 30, 1995, the net loss was $7.5 million or $0.52 per share, compared to a net loss of $1.8 million or $0.13 per share for the same period last year. Gross margins continued to be negatively impacted by a significant reduction in manufacturing overhead absorption due to considerably reduced purchasing activity from China for our humidity humidity, moisture content of the atmosphere, a primary element of climate. Humidity measurements include absolute humidity, the mass of water vapor per unit volume of natural air; relative humidity (usually meant when the term humidity products and to manufacturing levels running well below last year's volume, brought about by excess inventories. Manufacturing overhead costs overhead costs see fixed costs. were higher than last year due to higher labour costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc four new product start-ups and higher than expected outside warehousing costs. Customer mix issues and special discounts combined with material cost increases which could not be completely offset by higher pricing also contributed to lower margins. Interest expenses as a result of higher levels of borrowing and the strengthening of the Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents during the period account for approximately $2 million of year-over-year differences. The increased expenses in research and development are mainly related to the timing of the recording of investment tax credits. The cost-saving measures implemented earlier in the year are beginning to reflect positively on our results and steps have been taken to further reduce our overall cost structure in a significant way. Sales for the month of September 1995 were 23 percent ahead of last year for the same month, which augurs augurs Roman officials who interpreted omens. [Rom. Hist.: Parrinder, 34] See : Prophecy well for the last three months of the year. Unfortunately, it will be impossible to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. the loss incurred in the first nine months. Management therefore expects the loss for the year to be in the range of $4 to $5 million prior to year-end adjustments which are not quantifiable Quantifiable Can be expressed as a number. The results of quantifiable psychological tests can be translated into numerical values, or scores. Mentioned in: Psychological Tests at this point. The first eight months of 1995 have proven to be very difficult but Bionaire is already looking at 1996 with prudent optimism, taking into account significantly reduced inventory levels, a more stable Canadian dollar, renewed intense activity and improved efficiencies at its manufacturing facility and a substantially streamlined cost structure. Jean-Guy Gauthier President and Chief Executive Officer". Bionaire is a publicly listed Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. corporation engaged in the design, manufacturing and worldwide distribution of high quality portable air purifiers An air purifier is a device which removes contaminants from air. Whilst marketed as being of particularly beneficit to allergy sufferers and asthmatics and to reduce second-hand tobacco smoke. and humidifiers. -0-
Bionaire Inc.
($000 except for E.P.S. data)
Three months ended Nine months ended
---------------------- ----------------------
Sept.30 Sept.30 Aug.31 Sept.30 Sept.30 Aug.31
1995 1994 1994 1995 1994 1994
------- ------- ------- ------- ------- -------
Sales 20,807 26,274 18,336 46,069 48,072 43,595 (Loss) income before income taxes (1,245) 1,758 65 (7,458) (1,236) (2,066) Net (loss) income (1,245) 1,758 65 (7,458) (1,816) (2,646) (Loss) income per share ($0.09) $0.12 $0.01 ($0.52) ($0.13) ($0.19) Weighted average shares outstanding 14,466 14,081 13,974 14,436 13,962 13,913 CONTACT: Gregg Thomassin Vice-President, Finance (514) 636-0790 (514) 631-6069 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion