Consoltex announces first quarter results.MONTREAL--(BUSINESS WIRE)--May 7, 1997--CONSOLTEX (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ;ME:CTX CTX Context (Management; Tandem) CTX Centex Corporation (stock symbol) CTX Centrex CTX Cyclophosphamide CTX Corporate Trade Exchange CTX Cytoxan CTX Cholera Toxin CTX Clinical Trial Exemption ) Consoltex Group Inc. announces its results for the quarter ended March 31, 1997. Consolidated sales increased from $108.4 million in the first quarter of 1996 to $126.6 million in the current quarter. This $18.2 million increase is attributed to additional sales of $12.5 million in the Apparel Operations and $5.7 million in the Polypropylene polypropylene (pŏl'ēprō`pəlēn), plastic noted for its light weight, being less dense than water; it is a polymer of propylene. It resists moisture, oils, and solvents. Operations. The Company reported net earnings of $1.7 million, or $0.10 per share, during the quarter ended March 31, 1997 compared to a loss of $0.5 million, or $0.04 per share, during the same quarter in 1996. Cash flow was $8.0 million, or $0.48 per share, during the current quarter as compared to $5.1 million, or $0.38 per share, in the quarter ended March 31, 1996. The increase in earnings and cash flow reflects improved operating results in all major operating companies operating company A business that engages in transactions with outsiders. compared to the prior year. On January January: see month. 13, 1997, the Company issued, through a private placement, 3.4 million Subordinate Voting Shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. at a price of $1.80 per share which represented the approximate market price of the shares. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this share issue were used to repay a portion of the Company's term bank debt. As a result of this transaction, the total number of outstanding shares increased to 17,025,217. Apparel Operations First quarter sales in the Apparel Operations increased by 17.8 percent in 1997 over the same period in 1996. The Performance Fabrics Sector sales increased by 31.3 percent in the March 31, 1997 quarter over the same quarter in 1996. This increase is attributed to the additional sales contributed by the Erlanger Erlanger, city (1990 pop. 15,979), Kenton co., N central Ky.; inc. 1897. Its manufactures include chemicals, sheet metal, medical supplies, and sports and aerospace equipment. Blumgart business acquired in May 1996 and increased demand for fabrics for the recreational markets and acetate acetate (ăs`ĭtāt'), one of the most important forms of artificial cellulose-based fibers; the ester of acetic acid. The first patents for the production of fibers from cellulose acetate appeared at the beginning of the 20th cent. linings in the U.S. market. The Fashion Sector sales decreased by 2.3 percent primarily as a result of weaker sales demand for our polyester-based woven A woven is a cloth formed by weaving. It only stretches in the Bias directions (between the warp and weft directions), unless the threads are elastic. Woven cloth usually frays at the edges, unless measures are taken to counter this, such as the use of pinking shears or hemming. fabrics and also from lower sales from our Maison Condelle division which was sold in late February 1997. Sales in the Home Furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. division continue to grow due to good demand for our curtaining fabrics. Polypropylene Operations Sales in the Polypropylene Sector increased by 14.9 percent in the quarter over the same quarter in 1996. This increase is mainly attributed to improved sales of carpet backing and intermediate bulk container An Intermediate bulk container (IBC) is a container constructed of molded plastic, fiberglass, or plywood with steel reinforcing and is used for storage and transportation of goods. fabrics from LINQ LINQ Language Integrated Query (Microsoft) in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , as well as continued growth in sales from Rafytek in Mexico. Results in the Polypropylene Sector were good as polypropylene resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing costs have been relatively stable. Production efficiencies in the South Carolina plant have significantly improved and the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum operations have benefited from a stable peso, growth in Mexican domestic sales and synergies with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. operations. OUTLOOK We expect the Polypropylene Operations to continue to benefit from stable polypropylene resin costs, improved operational efficiencies and a stable peso in Mexico, while our outlook for the Apparel Operations is cautious due to increased import competition in the 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. markets. Financing expenses are expected to be lower for the remainder of the year as the amortization of deferred financing expenses related to the senior bank debt facility will decrease by $0.9 million per quarter compared to the current quarter. Consoltex Group Inc. is a North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. textile company, with activities divided between its Polypropylene and Apparel Operations. Consoltex is vertically integrated from the production of yarn yarn, fibers or filaments formed into a continuous strand for use in weaving textiles or for the manufacture of thread. A staple fiber, such as cotton, linen, or wool, is made into yarn by carding, combing (for fine, long staples only), drawing out into roving, then , in the Polypropylene Operations, through to weaving weaving, the art of forming a fabric by interlacing at right angles two or more sets of yarn or other material. It is one of the most ancient fundamental arts, as indicated by archaeological evidence. , dyeing Dyeing The application of color-producing agents to material, usually fibrous or film, in order to impart a degree of color permanence demanded by the projected end use. , printing, finishing and coating. The Company also conducts its own research and development and maintains its own sales, marketing and distribution network throughout 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. , including major centres such as Montreal, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi . Consoltex operates 11 manufacturing plants, which together employ approximately 3,700 associates. The Company is listed on the Montreal and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol CTX. -0-
CONSOLTEX GROUP INC.
CONSOLIDATED
STATEMENT OF EARNINGS
(in thousands of Canadian dollars,
except per share amounts) Quarter ended March 31
(unaudited)
1997 1996
------- -------
Sales - Canada $22,058 $24,530
- Exports from Canada 23,190 21,288
- United States 63,855 47,793
- Latin America 17,464 14,838
------- -------
126,567 108,449
Cost of sales 98,872 84,660
Selling and administrative expenses 12,001 11,050
Depreciation and amortization 4,757 4,616
------- -------
Earnings from operations 10,937 8,123
Financing costs:
Interest expense 6,013 6,431
Factor expenses 543 507
Amortization and write-off
of deferred financing
expenses 1,457 761
------- -------
8,013 7,699
Earnings before income taxes 2,924 424
Provision for income taxes 1,207 924
------- -------
Net earnings (loss) $1,717 $(500)
------- -------
------- -------
EBITDA $15,694 $12,739
Earnings (loss) per share $0.10 $(0.04)
Average number of shares
outstanding 16,534,106 13,625,217
CONSOLTEX GROUP INC.
CONSOLIDATED
BALANCE SHEET
(in thousands of Canadian dollars) March 31 December 31
1997 1996
----------- -----------
ASSETS (unaudited) (audited)
Current assets -
Cash $1,882 $2,111
Accounts receivable and prepaid
expenses 68,690 57,398
Inventories 102,826 97,898
------- -------
173,398 157,407
Fixed assets, net 146,858 145,704
Goodwill 51,594 51,634
Other assets 13,255 14,480
------- -------
Total assets $385,105 $369,225
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities -
Bank loans and acceptances $29,061 $27,796
Accounts payable and accrued
liabilities 69,389 56,365
Income taxes payable 3,417 3,500
Current portion of long-term debt 4,830 4,797
Current portion of other long-term
liabilities 870 1,653
------- -------
107,567 94,111
Long-term debt 199,671 204,048
Other long-term liabilities 1,438 1,333
Deferred income taxes 14,468 14,800
Shareholders' equity -
Share capital 92,965 86,845
Retained earnings 4,506 3,384
Deferred translation adjustment (35,510) (35,296)
------- -------
61,961 54,933
------- -------
------- -------
Total liabilities and shareholders'
equity $385,105 $369,225
-------- --------
-------- --------
CONSOLTEX GROUP INC.
CONSOLIDATED
STATEMENT OF CASH FLOWS
(in thousands of Canadian dollars) Quarter ended
(unaudited) March 31
1997 1996
-------------------
Funds provided by operations:
Net earnings (loss) $1,717 $(500)
Depreciation 3,646 3,490
Amortization of goodwill and
other assets 1,111 1,126
Amortization and write-off of
deferred financing expenses 1,457 761
Deferred income taxes 38 260
------ ------
7,969 5,137
Changes in -
Accounts receivable and
prepaid expenses (10,950) (11,719)
Inventories (4,492) (4,610)
Accounts payable and accrued
liabilities 12,553 18,397
Income taxes payable 97 (2,339)
------ ------
Net funds provided by operations 5,177 4,866
Investments:
Purchase of fixed assets,
net of disposals (4,255) (2,542)
------ ------
Net funds provided before financial
transactions 922 2,324
Financial transactions:
Issuance of long-term debt - 47,593
Repayment of long-term debt (5,700) (30,531)
Decrease in other long-term
liabilities (676) (1,699)
Issuance of share capital 6,120 -
Share issue costs (959) -
Increase in other assets (1,201) (4,073)
------ ------
Increase (decrease) in available
funds (1,494) 13,614
Bank loans and acceptances at the
beginning of the period (25,685) (39,596)
------- -------
Bank loans and acceptances at the
end of the period $(27,179) $(25,982)
-------- --------
-------- --------
Represented by:
Cash $1,882 $1,124
Bank loans and acceptances (29,061) (27,106)
-------- --------
$(27,179) $(25,982)
-------- --------
-------- --------
Cash flow per share (/a) $0.48 $0.38
(/a) Cash flow per share is net earnings (loss) plus depreciation,
amortization, deferred income taxes and non-cash, non-recurring
items, the sum of which is divided by the average number of shares
outstanding.
CONTACT: CONSOLTEX GROUP INC. Mr. Paul J. Bamatter, 514/335-7021 |
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