CFM Corporation Announces Record Growth In Both Sales And Earnings For 1st Quarter Of Fiscal 2003.Business Editors MISSISSAUGA Mississauga (mĭsĭsaw`gə), city (1991 pop. 463,388), S Ont., Canada, 12 mi (20 km) W of Toronto on Lake Ontario. A residential suburb of Toronto and a growing transportation and industrial center, it is one of Canada's fastest-growing , Ontario--(BUSINESS WIRE)--Jan. 22, 2003 CFM (Cubic Feet per Minute) The measurement of air flow. Cooling fans are rated in CFM. Corporation ("CFM")(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CFM) announced today record financial results for the first quarter ended December December: see month. 28, 2002. Sales for the first quarter increased 40% to $180 million from $128 million in the first quarter last year. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses increased to $70.0 million for the quarter from $58.6 million in the first quarter last year. Net income for the quarter increased 19% to $16.5 million from $13.9 million in the first quarter last year. Earnings per share ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") increased $0.04 over the prior year's first quarter to $0.41 for the quarter.
Financial Highlights
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Three Months Ended
($millions, except per share amounts) Dec. 28, 2002 Dec. 29, 2001
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Net Sales 179.9 128.4
Gross Profit 57.2 45.5
Net Income 16.5 13.9
Earnings per share 0.41 0.37
EBITDA (see enclosed
definition) 31.3 25.4
"We have set new benchmarks for revenue, cash flow and earnings in our first quarter. This has been achieved in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the expected seasonal dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. from barbecue barbecue [West Indian or South American], in the United States, traditionally an open-air gathering, political or social, in which meats are roasted whole over a pit of embers and food and drink are liberally enjoyed. operations in the quarter. Our product placement and positioning with our retail and distribution partners as well as the diversity of our home product portfolio positions us well to achieve our business targets this year. Momentum is building in the marketplace for us", said Colin Col´in n. 1. (Zool.) The American quail or bobwhite. The name is also applied to other related species. See Bobwhite. Adamson “Adamson” redirects here. For other uses, see Adamson (disambiguation).
The Adamson was an English car manufactured in Enfield, Middlesex, from 1912 to 1925. , Chairman and Chief Executive Officer.
Sales by Product Category
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Three Months Ended
($millions) Dec.28, 2002 Dec. 29, 2001
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Hearth and Heating Products 154.2 128.0
Barbeque and Outdoor Products 22.0 0.4
Water Products 3.7 -
179.9 128.4
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EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become Earnings before interest, taxes and amortization ("EBITDA") for the quarter were $31.3 million versus $25.4 million in the corresponding period in the prior year. EBITDA, as a percentage of sales, declined to 17.4% from 19.8% in the first quarter last year. EBITDA is defined as earnings before the taking of any deductions in respect of interest, taxes and amortization. EBITDA is presented before deductions for interest expense, tax expense and amortizations to provide financial statement users a measure of CFM's earnings available to provide for these costs. EBITDA has been determined by taking net income for the period from the Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statement of Operations See Income statement. and adding to it interest expense, amortization and income taxes which are disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). as individual line items within the Consolidated Statement of Operations as follows:
EBITDA
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For the three months ended
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Dec. 28, 2002 Dec. 29, 2001
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Net income for the period 16.5 13.9
Amortization 4.1 3.0
Interest income - (0.1)
Interest expense 2.0 1.6
Income taxes 8.7 7.0
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EBITDA 31.3 25.4
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EBITDA is not a recognized measure for financial statement presentation under 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. generally accepted account principles ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). "). Non-GAAP earnings measures (such as EBITDA) do not have any standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. meaning and are therefore unlikely to be comparable to similar measures presented by other issuers. Investors are encouraged to consider this earnings measure in the context of CFM's GAAP results, as provided in the attached summary financial statements. Cash Flows Provided by Operating Activities Cash flows provided by operating activities in the quarter were $70.0 million, an increase of $11.4 million from $58.6 million in the first quarter of 2002. Net Bank Debt Net bank debt decreased in the quarter from September September: see month. 28, 2002 by $56.9 million to $124.7 million. Net bank debt is defined as bank debt (current and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. portion) plus bank indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. less cash. This measure is widely accepted by the financial markets as a measure of credit availability. Net bank debt is not a recognized measure for financial statement presentation under Canadian generally accepted account principles ("GAAP"). Non-GAAP financial measures (such as net bank debt) do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other issuers. Investors are encouraged to consider this financial measure in the context of CFM's GAAP results, as provided in the attached summary financial statements. Weighted Average Shares Outstanding The weighted average number of shares outstanding increased by 2,452,000 shares to 40,390,000 compared to 37,938,000 shares outstanding in the quarter ended December 29, 2001. The increase is primarily due to the issuance of 2,722,000 shares in connection with the acquisitions of Keanall Holding Limited and The Great Outdoors Grill Grill may refer to: In food:
v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. 463,700 shares during the quarter at an average price of $11.66 under its Normal Course Issuer Bid. Subsequent to the quarter end, CFM purchased and cancelled 221,900 shares at an average price of $12.02 under the Normal Course Issuer Bid. 2003 Outlook CFM confirms its annual business guidance previously given and continues to expect revenues in the range of $675 to $725 million and earnings per share in the range of $1.25 to $1.35 for the fiscal year ended September 27, 2003. This press release contains forward looking statements that involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward looking statements. Important factors that could affect these statements include, without limitation, general economic conditions, demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. , consumer confidence and the level of housing starts, CFM's ability to develop new products, patent protection, weather, the seasonality of the demand for CFM's products, the seasonal buying patterns of major customers, the availability of CFM's manufacturing capacity to respond to seasonal demand, industry capacity, product liability, relationships with certain significant customers, suppliers and employees, availability of gas and gas prices mass merchant consolidation, credit and collections, supply and cost of raw materials, purchased parts and labour, costs of certain employee benefits, the inability to increase selling prices as costs increase, competition, foreign currency fluctuations and government regulation. These factors and other risks and uncertainties are discussed in the reports and disclosure documents filed by CFM with Canadian and U.S. securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities and commissions. Statements made in this press release are made as of January January: see month. 22, 2003 and CFM disclaims any intention or obligation to update or reverse any statements made herein, whether as a result of new information, future events or otherwise. CFM is a leading vertically integrated manufacturer of home products and related accessories in 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. and the United Kingdom. CFM designs, develops, manufactures and distributes a complete line of hearth hearth symbol of home life. [Folklore: Jobes, 738] See : Domesticity products, including gas, wood-burning Adj. 1. wood-burning - fueled by wood; "a wood-burning stove' wood-fired fueled - heated, driven, or produced by burning fuel and electric fireplaces An electric fireplace is a fireplace powered by electricity rather than traditional fuel sources such as coal, wood, peat, or natural gas. Many enjoy electric fireplaces for budget, safety, and convenience concerns. , free-standing free-standing Managed care adjective Referring to a physically and, often, financially discrete entity–eg, a surgical center, that is separate from, but may be affiliated with, a hospital; FS facilities may provide ambulatory surgery, emergency or stoves, gas logs, and hearth accessories, and maintains an ongoing program of research and development aimed at continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improving the quality, design, features and efficiency of its products. CFM also manufactures barbecues, barbecue parts and accessories, water 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. and purification purification, in religion, the ceremonial removal of what the religion deems unclean. The usual agents of purification are water (as in baptism), bodily alteration (as in circumcision), and fire. products, outdoor garden accessories and imports indoor and outdoor space heating Space heating is the heating of a space, usually enclosed, such as a house or room. A space heater keeps the air and surroundings at a comfortable temperature for people or animals, or even plants in a greenhouse. products from South Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. .
CFM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of dollars, unaudited)
Three Months Ended
Dec. 28, Dec. 29,
2002 2001
Sales 179,911 128,418
Cost of sales 122,682 82,870
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Gross profit 57,229 45,548
Expenses
Selling, administrative, research
and development 25,989 20,111
Amortization 4,085 3,002
Interest income (40) (119)
Interest expense 1,988 1,651
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32,022 24,645
Income before income taxes 25,207 20,903
Income taxes 8,739 7,027
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Net income for the period 16,468 13,876
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Earnings per share 0.41 0.37
Fully diluted earnings per share 0.39 0.36
Weighted average number of shares outstanding 40,390 37,938
CFM CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In thousands of dollars, unaudited)
As at As at
Dec. 28, Dec. 29,
2002 2001
ASSETS
Cash and cash equivalents 19,811 19,000
Accounts receivable 110,336 69,464
Income taxes recoverable - 4,068
Inventory 131,378 89,716
Prepaid and other expenses 5,496 2,128
Future income taxes 9,831 5,205
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Total current assets 276,852 189,581
Capital assets, net 115,720 97,354
Other assets 6,474 7,517
Goodwill, net 231,994 173,564
Intangible assets 8,077 6,297
Future income taxes 784 937
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Total assets 639,901 475,250
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LIABILITIES AND SHAREHOLDERS' EQUITY
Bank indebtedness 24,311 8,758
Accounts payable and accrued liabilities 98,088 43,632
Current portion of long-term debt 15,092 16,113
Current portion of note payable 14,802 -
Income taxes payable 346 -
Future income taxes 112 1,148
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Total current liabilities 152,751 69,651
Long-term debt 105,101 92,573
Note payable 1,246 -
Future income taxes 27,622 19,362
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Total liabilities 286,720 181,586
Minority interest 36 164
Shareholders' equity
Share capital 159,760 128,105
Retained earnings 169,390 133,147
Cumulative translation adjustment 23,995 32,248
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Total shareholders' equity 353,145 293,500
Total liabilities and shareholders' equity 639,901 475,250
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CFM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars, unaudited)
Three Months Ended
Dec. 28, Dec. 29,
2002 2001
Cash flows from operating activities
Net income for the period 16,468 13,876
Add items not involving cash
Amortization 4,085 3,002
Future income taxes (28) 2,509
Minority interest 27 20
Loss on disposal of capital assets 15 -
Non-cash interest on Keanall note payable 99 -
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20,666 19,407
Change in non-cash working capital 49,312 39,241
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Cash flows provided by operating activities 69,978 58,648
Cash flows from investing activities
Acquisitions 7 -
Purchase of capital assets (3,691) (4,893)
Development costs (293) -
Proceeds on disposal of capital assets 18 -
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Cash flows used in investing activities (3,959) (4,893)
Cash flows from financing activities
Repayment of non-revolving term facility (9,555) (3,780)
Revolving term facility, net (44,401) (31,751)
Bank indebtedness 5,062 (2,272)
Repayment of note payable (3,750) -
Repurchase of common shares (5,423) (1,119)
Options repurchased - (24)
Issuance of common shares 107 31
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Cash flows used in financing activities (57,960) (38,915)
Effect of foreign currency translation
on cash and cash equivalents 32 (106)
Net increase in cash and cash equivalents
during the period 8,091 14,734
Cash and cash equivalents, beginning of period 11,720 4,266
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Cash and cash equivalents, end of period 19,811 19,000
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