CFM Majestic Announces Record Sales and Earnings Per Share for Fiscal 2000.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)--Nov. 22, 2000 CFM (Cubic Feet per Minute) The measurement of air flow. Cooling fans are rated in CFM. Majestic Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CFM.) announced today record results for both its fourth quarter and its fiscal year ended September September: see month. 30, 2000. Sales for the 2000 fiscal year rose 7% to $382 million from $356 million last year. Earnings per share rose 11% to $0.31 for the fourth quarter resulting in earnings for the year of $0.82 per share.
Financial Highlights (in millions, except EPS))
---------------------------------------------------------------
Fourth Quarter Ended Year Ended
($millions, except per Sept. 30, Oct. 2, Sept. 30, Oct. 2,
share amounts) 2000 1999 200 1999
Net Sales 120.6 113.1 381.9 355.7
Gross Margin 43.5 37.1 137.0 123.0
EBITDA 25.1 22.5 * 72.0 66.3 *
Earnings per share 0.31 0.28 * 0.82 0.78 *
* Before restructuring and other costs
"We finished the year with a record quarter and we are very pleased with the outcome," 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 record of growth and profitability continues to lead our marketplace. We have significantly diversified diversified (di·verˑ·s our base of revenues and operations and are pleased to report continued growth in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the moderate downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. experienced in the U.S. new home market over the past quarter." Sales Significant contributions to sales growth in the year included: --Strong acceptance of new product introductions in the retrofit hearth market in the United States. --Good demand for our new Vermont Castings gas barbecue line. --Electric fireplaces continue to make gains with a significantly expanded placement of our new product line in different distribution channels. --Continued sales growth in the U.K. --Growth in our indoor and outdoor space heating products in the mass merchant channel both in North America and Europe. Factors mitigating our sales growth in the year included: --A slowdown in new home starts throughout North America and our decision early in the year to cease supply to a large distributor account following a change in their ownership. --Lower than expected sales to our North American gas utility customers due to changes in their buying practices. --Record warm fall and winter temperatures affected our dealer and distribution markets in the early part of the year. Gross Margins Gross profit for the year was $137 million, up 11% from the prior year. The Company's record gross margins of 35.9% of sales continues to lead our market. The improvement in the year was a result of: (1) manufacturing cost savings achieved at our Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. operation as a result of expanded production; (2) manufacturing efficiencies at our Mississauga, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen location through continued product line expansion including gas hearth hearth symbol of home life. [Folklore: Jobes, 738] See : Domesticity products, 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. 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. ; (3) growth in gas and electric fireplaces in the mass merchant channel; and (4) growth in European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. heating sales. 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 EBITDA for the year was $72.0 million, up 9% from the prior year. EBITDA margins of 18.9% increased slightly from 18.6% achieved in 1999. Selling and administrative expenses increased in the year as the result of a full year of expenses from our Q4 1999 acquisitions. Research and development expenses of $5.3 million were up 30% in the year. Our industry leading investment in research and development will continue in 2001. Issuer Bid The Company purchased 2,959,100 shares in the fiscal year at an average price of $7.02 per share. This represents almost full utilization of the normal course issuer bid, which authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the purchase of up to 3 million shares, resulting in shares outstanding at year end of 39,532,000 compared to 42,332,000 at October October: see month. 2, 1999. Subsequent to year end, the Company has purchased an additional 604,500 shares at an average price of $6.67 per share. During the current fiscal year, up to 2,987,000 share may be purchased under the current normal course issuer bid. 2001 Outlook "CFM's commitment to product innovation and support to a broadening distribution base is expected to result in continued market share gains in 2001 in our core hearth business. We also expect continued expansion in the market for our barbecue, indoor and outdoor heating Outdoor heating creates comfort for outdoor areas during the cooler days and months of the year. Heaters designed specifically for outdoor areas will provide the optimal warmth. and garden products and many new opportunities in our English business," said Colin Adamson. "We will use our strong cash flow to continue purchases of common shares through our issuer bid. Looking ahead, we will continue to seek new products through acquisition and internal development that will exploit our strong distribution channels and add to our industry leading product lines. We expect growth in earnings per share in the range of 10% for fiscal 2001," concluded Mr. Adamson. VP of Operations CFM also announced today that it has appointed Peter Plows as Senior Vice President of Operations. Mr. Plows "Mr. Plow" is the 9th episode of The Simpsons' fourth season. It was submitted for the overall comedy program Emmy Award as opposed to the animation category in 1993 (along with "A Streetcar Named Marge") although ultimately, it wasn't nominated. most recently held the position of Vice President of Operations for Atoma International Corp., a division of Magna International Magna International Inc. TSX: MG is a Canadian company based in Aurora, Ontario. It is Canada's largest automobile parts manufacturer, and one of the country's largest companies. It also owns the successful Magna Steyr automobile production company of Austria. . He was responsible for providing direction and focus to all Atoma's manufacturing facilities to achieve world class standards World class standards refers to the level of achievement, mainly in math and science, attained by students in the four countries that make up the East Asian Tigers; South Korea, Singapore, Japan, and Taiwan, as well as in Europe. of quality, cost and delivery. Prior to joining the Magna group of companies, Mr. Plows was Managing Director for the Webasto UK group of companies. Webasto is an international group of companies employing 4000 employees worldwide. Their principal activity is the design, manufacture and supply of sunroofs and heater/air conditioners Conditioners used on leather take many shapes and forms. They are used mostly to keep leather from drying out and deteriorating. A very old and widely used conditioner is dubbin. to the global automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . "Peter is a welcome addition to our team. His operations expertise will help us to successfully manage the growth of our Company in the future", said Mr. Colin Adamson, Chairman and Chief Executive Officer. Extension of Huntington Collective Agreement CFM also announced today that it has recently entered into an extension of the collective agreement which covers the hourly employees at its Huntington, Indiana Huntington is a city in Huntington County, Indiana, United States. The population was 17,450 at the 2000 census. The city is the county seat of Huntington CountyGR6. facility. The current collective agreement will now run until May, 2004 and will give hourly employees an immediate 2.3% wage increase and additional increases of 2.9% and 1.4% in 2002 and 2003, respectively. CFM Majestic Inc, is a leading vertically integrated manufacturer of fireplaces, stoves and related products 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 products, including gas and wood-burning 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 and outdoor space heaters and a growing number of outdoor leisure products, 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied 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.
CFM MAJESTIC INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the year ended
(In thousands of dollars, audited)
September 30, October 2,
2000 1999
------------------------
Sales 381,900 355,742
Cost of sales 244,893 232,695
------------------------
Gross profit 137,007 123,047
Expenses
Selling and administrative 59,647 52,621
Research and development 5,348 4,117
Depreciation and amortization 9,051 10,019
Interest expense (net) 7,245 4,426
------------------------
81,291 71,183
Income before the undernoted items 55,716 51,864
Restructuring and other costs -- 23,005
------------------------
Income before income taxes 55,716 28,859
Income taxes 17,273 8,720
------------------------
Income before amortization of goodwill 38,443 20,139
Amortization of goodwill (1) 4,661 3,652
------------------------
Net income for the period 33,782 16,487
========================
Earnings per share before restructuring
and other costs 0.82 0.78
Earnings per share 0.82 0.39
Earnings per share before goodwill amortization 0.93 0.48
Average number of shares 41,398 41,945
(1) Net of tax of 2,016 1,355
CFM MAJESTIC INC.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(In thousands of dollars, audited)
As at As at
September 30, October 2,
2000 1999
ASSETS
Current
Cash and equivalents 16,473 7,561
Accounts and notes receivable 108,155 97,362
Income taxes recoverable 3,459 --
Inventory 73,950 61,858
Pre-paid and other assets 1,868 1,166
Future income taxes 7,272 13,186
------------------------
Total current assets 211,177 181,133
Capital assets, net 81,572 79,059
Future income taxes 879 1,281
Deferred financing costs and other assets 3,103 1,890
Goodwill 155,517 155,057
------------------------
452,248 418,420
========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness and current debt 23,058 39,621
Accounts payable and accrued liabilities 45,658 63,352
Income taxes 95 494
------------------------
Total current liabilities 68,811 103,467
Long-term debt 125,779 76,947
Future income taxes 13,968 11,934
------------------------
Total liabilities 208,558 192,348
Minority interest 237 366
Shareholders' equity
Share capital 133,549 142,833
Retained earnings 94,465 71,507
Cumulative translation adjustment 15,439 11,366
------------------------
Total shareholders' equity 243,453 225,706
452,248 418,420
========================
CFM MAJESTIC INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal year ended
(In thousands of dollars, audited)
September 30, October 2,
2000 1999
Cash flows from operating activities
Net income for the period 33,782 16,487
Add (deduct) items not involving cash
Depreciation and amortization 15,728 15,026
Future income taxes 9,147 (2,167)
(Gain) / loss on disposal of capital assets (761) 29
Restructuring and other costs -- 16,283
-----------------------
57,896 45,658
Change in non-cash working capital (26,522) (11,410)
-----------------------
Cash flows provided by operating activities 31,374 34,248
Cash flows from investing activities
Acquisitions (22,741) (35,031)
Purchase of capital assets (13,413) (16,786)
Proceeds on disposal of capital assets 4,431 322
-----------------------
Cash flows used in investing activities (31,723) (51,495)
Cash flows from financing activities
Bank indebtedness and long-term debt 30,674 20,246
Repurchase of common shares (20,812) (2,357)
Options repurchased -- (1,673)
Other (657) (82)
-----------------------
Cash flows provided by financing activities 9,205 16,134
Effect of foreign currency translation
on cash and cash equivalents 56 (221)
Net (decrease) increase in cash and
cash equivalents during the year 8,912 (1,334)
Cash and cash equivalents,
beginning of period 7,561 8,895
-----------------------
Cash and cash equivalents, end of period 16,473 7,561
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