Champion Road Machinery announces fourth quarter and full year audited results.WATERLOO Waterloo, town, Belgium Waterloo (vä`tərlō), commune (1991 pop. 27,860), Walloon Brabant prov., central Belgium, near Brussels. The battle of Waterloo (see Waterloo campaign) was fought just south of there on June 18, 1815. , Ontario--(BUSINESS WIRE)--Feb. 12, 1997--Champion Road Machinery Limited today announced a net loss for the fourth quarter ended December December: see month. 31, 1996 of $2,753,000, versus fourth quarter 1995 net income of $3,563,000. The loss, on a per share basis, was $0.25, $0.22 of which was the restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. announced in December, on an average of 11,171,200 shares outstanding for the fourth quarter of 1996, compared with earnings per share of $0.32 on 11,171,200 shares outstanding a year earlier. Fourth quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $52,125,000, down 11% from $58,443,000 in the fourth quarter of 1995. Financial results are reported in Canadian Dollars 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 . For the twelve months ended December 31, 1996, net income was $1,679,000 compared to net income of $9,502,000 for fiscal 1995. Earnings per share were $0.15, versus $0.85 for the same period in 1995. Net sales decreased 11% year over year from $225,741,000 in 1995 to $200,003,000 in 1996. "Our results for 1996 were disappointing" said Arthur Arthur, king of Britain: see Arthurian legend. Arthur king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28] See : Heroism Church, President and Chief Executive Officer. "Our motor grader A grader, also commonly referred to as a blade or a motor grader, is an engineering vehicle with a large blade used to create a flat surface. Typical models have three axles, with the engine and cab situated above the rear axles at one end of the vehicle and a third business got off to a slow start losing a number of bids in the government sector in the first half of the year, and in December we announced a $2.5 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. restructuring charge to downsize Downsize Reducing the size of a company by eliminating workers and/or divisions within the company. Notes: When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability. It is sometimes referred to as trimming the fat. our snow and ice control product line. All of this resulted in a loss for the fourth quarter and full year earnings well below expectations, but as predicted." "Although challenging the year also had a number of successes. Our compaction business grew in excess of 70% during 1996 and we opened our new Pro-Pay facility in Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . Our Motor Grader Division improved significantly during the second half of the year, and our 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. levels continue: to increase, putting upward pressure on our build rate. Looking forward we have strong management in each of our divisions, and with our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). well underway, we will re-establish re-establish Verb to create or set up (an organization, link, etc.) again re-establishment n our profitable growth during 1997," said Church. In addition, the Board of Directors has approved a quarterly dividend on the Company's common shares of $0.05 per share, payable on April 2, 1997 to shareholders of record as of March 12, 1997. Champion Road Machinery Limited designs, manufactures and markets graders, compactors, asphalt asphalt (ăs`fôlt, –fălt), brownish-black substance used commonly in road making, roofing, and waterproofing. Chemically, it is a natural mixture of hydrocarbons. pavers, snow removal, and other related equipment used in the construction and maintenance of roads by government authorities and private contractors in more than 95 countries. -0-
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Champion Road Machinery Limited
Consolidated Balance Sheet (audited)
Full year 1996 results
Thousands of Canadian dollars As at
Dec 31, 1996 Dec 31, 1995
Assets
Current assets
Cash $ 483 $ -
Accounts receivable 16,981 30,775
Notes receivable 178 1,688
Income taxes recoverable 1,682 -
Inventory 41,422 38,009
Prepaid expenses 1,685 1,181
Deferred income taxes recoverable 990 -
---------- ---------
63,421 71,653
Property, plant & equipment 25,132 15,791
Deferred income taxes recoverable 551 -
Other assets 1,399 1,203
---------- ---------
Total Assets $ 90,503 $ 88,647
=========== ===========
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness $ - $ 2,213
Accounts payable & accrued
liabilities 29,222 29,715
Income taxes payable - 503
Current portion of long-term debt 275 -
---------- ----------
29,497 32,431
Long-term debt 5,416 -
Deferred income taxes - 73
--------- ---------
34,913 32,504
Shareholders' equity
Share capital 30,694 30,694
Retained earnings 24,896 25,449
---------- ---------
55,590 56,143
---------- ----------
Total Liabilities and
Shareholders' Equity $ 90,503 $ 88,647
=========== ===========
Champion Road Machinery Limited
Consolidated Statement of Income
Fourth quarter 1996 results
Thousands of Canadian dollars, except earnings per share data
Three months ended (unaudited)
Dec. 31, 1996 Dec 31, 1995 % change
------------- ------------ --------
Net sales $52,125 $58,443 (11%)
Cost of sales 47,220 46,508 2%
---------------------------------------
Gross profit 4,905 11,935 (59%)
Selling, general and
administrative expenses 7,732 6,552 18%
Restructuring 1,300 - 100%
---------------------------------------
Operating income (4,127) 5,383 (177%)
Interest expenses/(income) 231 (369) (163%)
---------------------------------------
Income before income taxes (4,358) 5,752 (176%)
Income tax expenses (1,605) 2,189 (173%)
---------------------------------------
Net income ($2,753) $3,563 (177%)
=======================================
Basic earnings per share ($0.25) $0.32 (178%)
=======================================
Average number of
common shares outstanding 11,171,200 11,171,200
=======================================
Champion Road Machinery Limited
Consolidated Statement of Income
Full year 1996 results
Thousands of Canadian dollars, except earnings per share data
Twelve months ended (audited)
Dec. 31, 1996 Dec. 31, 1995 % change
------------- ------------- ---------
Net sales $200,003 $225,741 (11%)
Cost of sales 167,353 185,637 (10%)
------------------------------------
Gross profit 32,650 40,104 (19%)
Selling, general and
administrative expenses 28,048 24,920 13%
Restructuring 1,300 - 100%
-----------------------------------
Operating income 3,302 15,184 (78%)
Interest expenses/(income) 399 (168) (338%)
-----------------------------------
Income before income taxes 2,903 15,352 (81%)
Income tax expenses 1,224 5,850 (79%)
-----------------------------------
Net income $1,679 $9,502 (82%)
===================================
Basic earnings per share $0.15 $0.85 (82%)
===================================
Average number of
common shares outstanding 11,171,200 11,170,700 -
===================================
Champion Road Machinery Limited
Consolidated Statement of Cash Flow (audited)
Full year 1996 results
Twelve months ended
Thousands of Canadian dollars Dec 31, 1996 Dec 31, 1995
Cash provided by / (used in)
Operations:
Net Income 1,679 $ 9,502
Add / (deduct): Charges / (credits)
not involving cash
Depreciation and amortization 3,375 3,240
Loss/(Gain) on sale of property,
plant & equipment (22) (76)
Deferred income taxes (1,614) 21
-------------------------
3,418 12,687
Net change in non-cash working
capital items 8,984 (1,469)
-------------------------
Total from operations 12,402 11,218
Investments:
Business acquisitions - (5,020)
Additions to property,
plant & equipment (12,922) (5,398)
Proceeds from sale of property,
plant & equipment 32 95
Decrease / (increase) in other assets - -
-------------------------
(12,890) (10,323)
Financing:
Dividends (2,232) (2,122)
Issue of common shares - 14
Net increase / (repayment) of
long-term debt 5,416 -
------------------------
3,184 (2,108)
------------------------
Net increase / (decrease) in cash
during the period $ 2,696 $ (1,213)
Cash / (bank indebtedness),
beginning of period $ (2,213) $ (1,000)
-------------------------
Cash / (bank indebtedness), end
of period $ 483 $ (2,213)
=========================
CONTACT: Champion Road Machinery, Waterloo Scott E. Hall, 519/884-6000 |
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