Commercial Consolidators Reports Year End Earnings Up 202%.Business Editors TORONTO--(BUSINESS WIRE)--May 3, 2001 COMMERCIAL CONSOLIDATORS CORP. (the "Company") (CDNX CDNX See Canadian Venture Exchange (CDNX). :CCZ CCZ Cyber Condition Zebra (Washington Naval Yard) CCZ Command and Control Zone CCZ Carlet-Charpin-Zinoviev (Equivalence Relation of Functions) .) (Frankfurt:CJ9), a diversified diversified (di·verˑ·s distributor of business technologies and consumer electronics to the Americas A·mer·i·cas , the See America. (North, South and Central), reports record sales and earnings for the year ended February 29, 2001. Sales revenue increased 129% to $103.5 million for the year ended February 28, 2001 from $45.1 million for the year ended February 29, 2000. Net after tax earnings for the year increased 202% to $7.1 million, or $0.38 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $2.4 million, or $0.18 per fully diluted share, for the same period last year. The Company's financial results are summarized in the following table:
Year ended Year ended
Feb. 29, 2001 Feb. 29, 2000
(in thousands)
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Sales $103,506 $45,127
Cost of sales 83,115 36,072
Gross Profit 20,391 9,055
Gross Margin 19.7% 20.0%
Expenses 12,442 6,505
Income - before foreign
exchange, income taxes and 7,950 2,550
amortization of goodwill
Income Margin 7.7% 5.7%
Net income $7,111 $2,357
Net earnings per share (fully diluted) $0.38 $0.18
Fourth quarter sales growth of 126%, from $14.6 million to $33 million, and net earnings after tax growth of 183%, from $0.6 million to $1.7 million, compared to fourth quarter of last year, was driven by continued growth in our Wireless Products Division as well as by the integration of our recent acquisition for our Computer Products Division. For the fiscal year, sales growth and profitability reflects continued strong results across our Business Technologies and Consumer Electronics Divisions and the contribution of our three successfully completed acquisitions throughout the year. Profit margins remained strong in both the fourth quarter and throughout the fiscal year. This was due to the strategic diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of the Company's product lines as well as its commitment to stringent cost management. Overall operating and finance expenses as a percentage of sales decreased in both the fourth quarter and fiscal year compared with the fourth quarter and fiscal year, respectively, for fiscal 2000. "Our fourth quarter results and overall 2001 performance reflect the Company's continued growth and the successful integration of our three acquisitions during the year," states Commercial Consolidators Corp.'s Chief Executive Officer, Mr. Guy Jarvis. "We are proud of our overall performance, our diversification of products and our expansion into geographic markets across the Americas. Our team expects to achieve continued growth in revenue and profits in the year ahead through a combination of organic growth within our existing business divisions and an ongoing program of strategic acquisitions within our target markets." ABOUT COMMERCIAL CONSOLIDATORS CORP. Commercial Consolidators Corp. is a diversified distributor of business technologies (cellular phones and accessories, computer systems and components and proprietary software) and consumer electronics to the Americas (North, South and Central). The Company has aggressively pursued strategic acquisitions, satisfying management's primary objectives, namely: 1. Focus on converging con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. communication delivery devices, namely: televisions, computers, wireless products and proprietary software; 2. Leverage existing supply chain relationships from our expanding revenue base, to facilitate new distribution channels throughout the Americas; 3. Via acquisitions, provide turnkey See turnkey system. solutions to our target customers through the selective expansion of complimentary product and service offerings; and 4. Alter our sales mix sales mix See product mix. to focus on higher margin products, while maintaining an enviable en·vi·a·ble adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. standard of customer service and order fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. . ON BEHALF OF THE BOARD OF DIRECTORS GUY JARVIS, Chief Executive Officer The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has neither approved nor disapproved the information contained herein. |
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