CFM Majestic Announces Record Sales and Double Digit Earnings Per Share Growth For Second Quarter of Fiscal 2001.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)--April 25, 2001 CFM (Cubic Feet per Minute) The measurement of air flow. Cooling fans are rated in CFM. Majestic Inc. (the "Company") (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CFM.) announced today record results for its second quarter ended March 31, 2001. Sales for the period rose 16% to $75 million from $65 million last year. Earnings per share increased 33% to $0.08 for the quarter compared to $0.06 for last year.
Financial Highlights
---------------------------------------------------------------
Second Quarter Ended Six Months Ended
(Millions of dollars,
except for share
amounts) Mar. 31, Apr. 1, Mar. 31, Apr. 1,
2001 2000 2001 2000
-------- ------- -------- -------
Net Sales 74.8 64.8 185.1 172.2
Gross Margin 24.5 23.2 64.2 62.0
32.8% 35.8% 34.7% 36.0%
EBITDA 8.8 7.9 32.7 30.6
11.8% 12.2% 17.7% 17.8%
Earnings per share 0.08 0.06 0.39 0.33
"We are extremely pleased by our fourth straight quarter of double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" earnings per share growth," 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. "Our market share gains are reflected in our revenue growth and profitability in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the moderate economy in most of our markets." Sales Significant contributions to sales growth in the quarter included:
- Strong share growth in most markets in which the Company
participates.
- Strong new home market share growth.
- Increase in pre-season barbecue orders.
- Expanding sales in patio heater products.
- Strong sales in wood fireplace products.
Factors mitigating sales growth in the quarter included:
- Consumer reaction to increased natural gas and liquid propane
costs.
- Moderate slow down in the economy.
- Mass merchant cautiousness with summer orders as a result of poor
spring weather conditions in many markets.
Gross Margins
Gross margin in the quarter of 32.7% compares to 35.9% in the
previous year. Factors impacting gross margins in the quarter include:
- Sales mix as a result of a higher proportion of sales in wood
versus gas fireplace products.
- Early production inefficiencies in barbecue manufacturing.
- Lower than planned activity rates in garden product manufacturing
due to early season slowness in demand because of weather.
Gross margins for the six months of 34.7% are in line with our expectations and compare to 36% for the prior year. 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, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. customer support functions to Mississauga, significant savings were realized this quarter. Issuer Bid The Company purchased 129,300 shares in the quarter (year to date 1,393,000) at an average price of $7.59. As a result of the issuer bid purchases, weighted average shares outstanding decreased by 3,538,000 shares or 8% to 38,179,188 as compared to 41,717,000 average shares outstanding for the quarter ended April 1, 2000. 2001 Outlook "We expect to see continued revenue and earnings per share growth through the remainder of 2001," said Colin Adamson. "We continue to seek acquisitions in the hearth hearth symbol of home life. [Folklore: Jobes, 738] See : Domesticity and 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. markets and continue to expect growth in earnings per share in the range of 10% for the remainder of fiscal 2001." concluded Mr. Adamson. CFM Majestic Inc. is a leading vertically integrated manufacturer of hearth and heating and barbecue 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. The Company designs, manufacturers and distributes a complete line of hearth and heating products, including gas and wood-burning Adj. 1. wood-burning - fueled by wood; "a wood-burning stove' wood-fired fueled - heated, driven, or produced by burning fuel fireplaces, 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, hearth accessories, indoor indoor strictly in a human dwelling; more widely includes an animal dwelling. indoor environment the physical, social and psychological environment within a human dwelling that can influence the health of a companion animal. and outdoor space heaters, and barbecues, 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. 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, consumer confidence and the level of housing starts, the Company's ability to develop new products, the seasonality of the demand for the Company's products, competition and foreign currency fluctuations. These factors and other risks and uncertainties are discussed in the reports and disclosure documents filed by the Company with 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. 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. FOR FURTHER INFORMATION CONTACT: COLIN M. ADAMSON JIM Jim Miss Watson’s runaway slave; Huck’s traveling companion. [Am. Lit.: Huckleberry Finn] See : Escape LUTES Chairman and Chief President and Chief Executive Officer Operating Officer (905) 670-7777 (905) 670-7777
CFM MAJESTIC INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of dollars, unaudited)
Three Months Ended Six Months Ended
Mar. 31, Apr. 1, Mar. 31, Apr. 1,
2001 2000 2001 2000
Sales 74,839 64,808 185,126 172,171
Cost of sales 50,380 41,572 120,924 110,179
--------------------------------------
Gross profit 24,459 23,236 64,202 61,992
Expenses
Selling, administrative,
research and development 15,670 15,343 31,494 31,379
Depreciation and
amortization 2,572 2,401 5,145 4,776
Interest income (199) (335) (335) (519)
Interest expense 1,718 1,776 4,015 3,722
--------------------------------------
19,761 19,185 40,319 39,358
Income before income taxes 4,698 4,051 23,883 22,634
Income taxes 573 388 6,655 6,519
--------------------------------------
Income before amortization
of goodwill 4,125 3,663 17,228 16,115
Amortization of goodwill(1) 1,181 1,179 2,340 2,375
--------------------------------------
Net income for the period 2,944 2,484 14,888 13,740
--------------------------------------
Earnings per share before
amortization of goodwill 0.11 0.09 0.45 0.38
Earnings per share 0.08 0.06 0.39 0.33
Fully diluted earnings per
share 0.08 0.06 0.39 0.33
Average number of shares
outstanding 38,179 41,717 38,313 41,935
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(1) Net of tax of 497 502 995 1,016
CFM MAJESTIC INC.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(In thousands of dollars, unaudited)
As at As at
March 31, 2001 April 1, 2000
ASSETS
Cash and cash equivalents 12,027 7,159
Accounts receivable 59,394 51,348
Income taxes recoverable 11,236 6,690
Inventory 81,991 64,613
Prepaid and other assets 3,173 2,153
Future income taxes 9,310 8,258
----------------------------------
Total current assets 177,131 140,221
Capital assets, net 83,390 78,541
Future income taxes 429 2,419
Deferred financing costs and
other assets 3,754 2,145
Goodwill 181,966 155,474
----------------------------------
Total assets 446,670 378,800
----------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Bank indebtedness 7,602 1,055
Accounts payable and accrued
liabilities 53,475 34,816
Current portion of long-term debt 15,154 46,928
Future income taxes 2,614 180
----------------------------------
Total current liabilities 78,845 82,979
Long-term debt 91,280 53,386
Future income taxes 15,227 12,926
----------------------------------
Total liabilities 185,352 149,291
Minority interest 217 318
Share capital 128,942 140,674
Retained earnings 104,866 82,648
Cumulative translation adjustment 27,293 5,869
-----------------------------------
Total shareholders' equity 261,101 229,191
Total liabilities and
shareholders' equity 446,670 378,800
-----------------------------------
Common shares issued and
outstanding 38,162 41,717
Stock options outstanding 2,688 1,642
Stock options exercisable 300 300
CFM MAJESTIC INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars, unaudited)
Three Months Ended Six Months Ended
Mar. 31, Apr. 1, Mar. 31, Apr. 1,
2001 2000 2001 2000
Cash flows from operating
activities
Net income for the period 2,944 2,484 14,888 13,740
Add items not involving cash
Depreciation and
amortization 4,054 4,082 8,283 8,166
Future income taxes 294 474 (3,295) 4,818
Gain on disposal of capital
assets (187) -- (187) --
--------------------------------------
7,105 7,040 19,689 26,724
Change in non-cash working
capital
Accounts receivable 7,850 6,521 43,128 43,338
Inventory (6,143) (11,971) (4,918) (4,439)
Prepaid and other assets (1,634) (324) (2,280) (1,270)
Accounts payable and
accrued liabilities (2,834) (2,776) (8,050) (12,371)
Income taxes payable (10,063) (2,938) (3,193) (7,050)
--------------------------------------
(12,824) (11,488) 24,687 18,208
Cash flows (used in)
provided by operating
activities (5,719) (4,448) 44,376 44,932
Cash flows from investing
activities
Acquisitions -- (3,624) -- (22,741)
Purchase of capital
assets (2,441) (1,674) (4,208) (7,825)
Proceeds on disposal of
capital assets 271 4,063 309 4,063
--------------------------------------
Cash flows used in
investing activities (2,170) (1,235) (3,899) (26,503)
Cash flows from financing
activities
Proceeds from non-revolving
term facility and new debt -- -- -- 20,748
Repayment of non-revolving
term facility (3,750) (2,875) (7,500) (5,750)
Revolving term facility,
net 11,201 (380) (20,074) (26,699)
Bank indebtedness 7,584 1,055 44 (2,330)
Repurchase of common
shares (1,008) (805) (9,393) (4,759)
Deferred financial costs 196 -- 390 --
Issuance of common shares 56 42 145 42
--------------------------------------
Cash flows provided by
(used in) financing
activities 14,279 (2,891) (36,388) (18,748)
Effect of foreign currency
translation on cash and
cash equivalents (958) 66 (995) (83)
Net increase (decrease) in
cash and cash equivalents
during the period 5,432 (8,580) 3,094 (402)
Cash and cash equivalents,
beginning of period 6,595 15,739 8,933 7,561
--------------------------------------
Cash and cash equivalents,
end of period 12,027 7,159 12,027 7,159
Supplementary cash flow information:
Cash taxes paid 9,927 2,333 12,182 7,090
Cash interest paid 1,523 1,496 3,742 3,294
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