Champion Road Machinery announces second quarter 1996 net income of $2,132,000.GODERICH, Ontario--(BUSINESS WIRE)--July 16, 1996--Champion Road Machinery Limited Tuesday Tuesday: see week. announced net income for the second quarter ended June June: see month. 29, 1996 of $2,132,000, versus second quarter 1995 net income of $2,931,000. Earnings per share were 19 cents on an average of 11,171,200 shares outstanding for the second quarter of 1996, compared with earnings per share of 26 cents on an average of 11,170,300 shares outstanding for the same period a year earlier. Second quarter 1996 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 $56,362,000, versus $60,990,000 in the second 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 . "During the second quarter we continued to see a decline in the worldwide large 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 market, particularly outside of 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. ," said Art Church, president and chief executive officer. "Despite the reduced volume and increased competitive pressure, we were pleased that our gross margins continued to improve, reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of our ongoing cost reduction programs and capital investment. Looking forward, our third quarter, during which our annual plant shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down occurs, is forecast to be break-even and our fourth quarter, will be profitable but down from 1995 levels. "We expect the grader market to remain soft, and we are forecasting our overall full year company sales to be down approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% versus 1995." "In the past three years Champion has entered three new market segments and quadrupled our product offering with the addition of 21 new models. To support this expansion we will continue to invest in both capital and SG&A expenses. "We have committed $ 15 million in capital in 1996 to improve our operations. Engineering investment will be up by 35 % and we are in the process of adding new management to support our future growth. "In the Motor Grader Division in Goderich our focus is on quality improvement and cost reduction where we have already made significant improvements. In the second half of the year we will begin installing new paint facilities and revamping our sheet metal operations. "Our SuperPac Compaction Division sales continue to grow ahead of expectations, and we recently began selling units to markets outside of North America. In addition to growth, our focus continues to be on margin improvement. A new CNC (Computerized Numerical Control) See numerical control. CNC - Collaborative Networked Communication plasma burning machine is now operational and will provide cost reduced components both for the Cambridge Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. facility and Pro-Pav operation," stated Church. "Our new Chambersburg Chambersburg, borough (1990 pop. 16,647), seat of Franklin co., S Pa.; settled 1730, inc. 1803. Food products, apparel, construction materials, and transportation equipment are produced. , 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 Paving Division facility is now operational and will officially open July July: see month. 18, 1996. We have invested approximately $5 million in new plant and equipment that has been financed by a Pennsylvania Industrial Revenue Bond. In addition, we have assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. a very talented group of people to run this operation. Our new highway class pavers are performing well and continue to gain market acceptance. "The implementation of our strategy to build a complete road building and maintenance equipment company is well underway. Our current and future investment in both capital and people is building an exciting foundation for future profitable growth." 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 around the world. -0-
Champion Road Machinery Limited
Consolidated Statement of Income (unaudited)
Second quarter 1996 results
Thousands of Canadian dollars, except earnings per share data
Three months ended
June 29, 1996 July 1, 1995 %change
------------- ------------ --------
Net sales $56,362 $60,990 (8%)
Cost of sales 45,668 49,904 (8%)
-------------------------------------------
Gross profit 10,694 11,086 (4%)
Selling, general and
administrative expenses 7,002 6,283 11%
------------------------------------------
Operating income 3,692 4,803 (23%)
Interest expenses/(income) 205 652 15%
-------------------------------------------
Income before income taxes 3,487 4,738 (26%)
Income tax expenses 1,355 1,807 (25%)
-------------------------------------------
Net income $2,132 $2,931 (27%)
-------------------------------------------
-------------------------------------------
Basic earnings per share $0.19 $0.26 (27%)
-------------------------------------------
-------------------------------------------
Average number of
common shares outstanding 11,171,200 11,170,300 0%
-------------------------------------------
-------------------------------------------
Six months ended
June 29, 1996 July 1, 1995 % change
Net sales $112,591 $116,113 (3%)
Cost of sales 90,073 94,837 (5%)
-------------------------------------------
Gross profit 22,518 21,276 6%
Selling, general and
administrative expenses 14,233 12,187 17%
--------------------------------------------
Operating income 8,285 9,089 (9%)
Interest expenses/(income) 96 163 (41%)
--------------------------------------------
Income before taxes 8,189 8,926 (8%)
Income tax expenses 3,162 3,403 (7%)
--------------------------------------------
Net income $5,027 $5,523 (9%)
--------------------------------------------
--------------------------------------------
Basic earnings per share $0.45 $0.49 (8%)
------------------------------------------
-------------------------------------------
Average number of
common shares outstanding 11,171,200 11,170,200 0%
-------------------------------------------
--------------------------------------------
Champion Road Machinery Limited
Consolidated Balance Sheet (unaudited)
Second quarter 1996 results
Thousands of Canadian dollars
As at
Assets June 29, 1996 July 1, 1995
Current assets
Accounts receivable $31,252 $33,246
Notes receivable 161 203
Inventory 45,126 32,870
Income taxes recoverable 332 -
Prepaid expenses 1,253 816
------------- ------------
78,124 67,135
Property, plant & equipment 21,076 13,886
Other assets 1,154 1,258
------------ -----------
Total Assets $100,354 $82,279
------------- -----------
------------- -----------
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness $5,977 $410
Accounts payable & accrued
liabilities 30,422 27,678
Income taxes payable - 859
------------ ----------
36,399 28,947
Long-term debt 3,829 -
Deferred income taxes 73 52
----------- ----------
40,301 28,999
Shareholders' equity
Share capital 30,694 30,694
Retained earnings 29,359 22,586
----------- ----------
60,053 53,280
------------ -----------
Total Liabilities and
Shareholders' Equity $100,354 $82,279
------------ ------------
------------- ------------
Champion Road Machinery Limited
Consolidated Statement of Cash Flow (unaudited)
Second quarter 1996 results
Thousands of Canadian dollars
Three months ended
June 29, 1996 July 1, 1995
--------------- -------------
Cash provided by / (used in)
Operations:
Net Income $2,132 $2,931
Add / (deduct): Charges / (credits)
not involving cash
Depreciation and amortization 890 741
Loss/(Gain) on sale of property,
plant & equipment (31) -
--------------------------
2,991 3,672
Net change in non-cash working
capital items (2,832) 679
----------------------------
Total from operations 159 4,351
Investments:
Business acquisitions - (3,175)
Additions to property, plant &
equipment (4,732) (1,143)
Proceeds from sale of property,
plant & equipment 31 -
---------------------------
(4,701) (4,318)
Financing:
Dividends (558) (558)
Issue of common shares - 14
Net increase / (repayment) of
long-term debt 3,829 -
---------------------------
3,271 (544)
---------------------------
Net increase / (decrease) in
cash during the period $(1,271) $(511)
Cash / (bank indebtedness),
beginning of period $(4,706) $101
----------------------------
Cash / (bank indebtedness),
end of period $(5,977) $(410)
----------------------------
----------------------------
Six months ended
Operations:
Net income $5,027 $5,523
Add / (deduct): Charges / (credits)
not involving cash
Depreciation and amortization 1,885 1,466
Loss/(Gain) on sale of property,
plant & equipment (31) (5)
----------------------------------
6,881 6,984
Net change in non-cash working
capital items (6,267) 1,368
----------------------------
Total from operations 614 8,352
Investments:
Business acquisitions 1 (5,020)
Additions to property, plant &
equipment (7,121) (1,773)
Proceeds from sale of property,
plant & equipment 31 22
----------------------------
(7,090) (6,771)
Financing:
Dividends (1,117) (1,005)
Issue of common shares - 14
Net increase / (repayment) of
long-term debt 3,829 -
----------------------------
2,712 (991)
---------------------------
Net increase / (decrease) in cash
during the period $(3,764) $590
Cash / (bank indebtedness),
beginning of period $(2,213) $(1,000)
----------------------------
Cash / (bank indebtedness), end
of period $(5,977) $(410)
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-----------------------------
CONTACT: Champion Road Machinery Scott E. Hall, VP/Finance and CFO See Chief Financial Officer. , 519/524-2601 |
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