Coreco Reports Fourth Quarter and Year End Results-EPS Double on Revenue Growth of 28% in Fiscal 2004.MONTREAL Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. -- Coreco Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. ) announces its results for the year ended December December: see month. 31, 2004. For the twelve-month period, revenues increased 28% to US$24,447,080 from US$19,025,777 a year earlier.The gross margin increased to 60% of revenues and net earnings doubled to US$2,416,747 or US$0.34 per share from US$1,184,254 or US$0.17 in 2003. Fourth-quarter revenues increased 23% to US$6,119,356 on a year-over-year basis.The gross margin amounted to 58% of revenues, and net earnings of $723,967 or $0.10 per share were comparable to the previous year. At December 31, 2004, the Company held US$3,202,875 in cash and cash equivalents, and had no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Working capital remained healthy, increasing to US$9,666,142 from US$7,876,685 at the 2003 year end. The Company's 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. operations pay income tax based on earnings measured 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 . The decline in the U.S. dollar versus the Canadian dollar resulted in a loss on exchange and a corresponding reduction in income taxes for both 2004 and 2003. The effect of the tax benefit in the fourth quarter of each year was US$0.04 per share. Sales in all geographic regions showed strong growth in 2004. Revenues from the U.S. rose by 33%, followed by Asia at 30%, Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). at
22% and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of at 13%. In 2004, Asia accounted for 24% of the
Company's total sales, Europe for 27%, the U.S. for 46% and Canada
for the remainder, comparable to the previous year.By product category, sales of embedded Inserted into. See embedded system. products grew by 39%, frame grabbers A device that accepts standard TV signals and digitizes the current video frame into a single, bitmapped still image. Frame grabbers can be stand-alone devices that plug into a port on the computer or a function built into the video capture board or display adapter. by 14% and software by 9%.Revenues from frame grabbers, embedded products and software represented 47%, 41% and 5% of sales, respectively.Revenues from end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. products, which almost tripled over the previous year to reach their highest level to date, accounted for 7% of revenues in 2004. "With growth of 28% in revenues and 100% in net earnings, fiscal 2004 was an excellent year for Coreco," reported Keith Keith may refer to: People with the given name Keith:
 `bən), in the Bible, Jacob's eldest son and eponymous ancestor of one of the 12 tribes of Israel. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Coreco Inc."This strong performance
reflects our continuing success in providing the latest in machine
vision technology to a diversified diversified (di·verˑ·s customer base, which spans a wide
range of industries throughout the world.""Both our IPD IPD Institut für Programmstrukturen und Datenorganisation IPD Investment Property Databank (UK) IPD Integrated Product Development IPD Intellectual Property Department IPD Invasive Pneumococcal Disease IPD Implicit Price Deflator and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and groups contributed to our success in the past year," continued Mr. Reuben."Our end-user applications accounted for 9% of total revenues in the fourth quarter, making this the best quarter ever for our IPD group.In our OEM group, our products were selected for design into 66 OEM applications compared with 56 last year.In fiscal 2005, we look forward to realizing the full benefits of this growing momentum." Subsequent Event On February February: see month. 16, 2005, DALSA Dalsa is a Canadian company specializing in the design and manufacture of specialized electronic cameras. The company was founded in Waterloo, Ontario, Canada in 1980 by imaging pioneer Dr. Corporation and Coreco Inc. announced that they had entered into an arrangement agreement, pursuant to which DALSA will acquire all of the issued and outstanding shares of Coreco, subject to certain conditions, including regulatory approvals.The total consideration paid by DALSA for Coreco is approximately C$72 million representing C$10.00 per Coreco share. The transaction is expected to close in April 2005. About Coreco Coreco Inc. is a leader in the design, development, manufacturing and marketing of hardware and software that help enhance the productivity, quality and cost-competitiveness of manufacturing processes.The Company serves two target markets: Original Equipment Manufacturers (OEMs) and End-users.The OEM group provides a full range of frame grabbers, embedded products and accompanying software for integration in high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" machine vision applications in the industrial vision, medical imaging, multimedia and surveillance markets.The Intelligent Products group (IPD) specializes in providing user-friendly user-friendly - Programmer-hostile. Generally used by hackers in a critical tone, to describe systems that hold the user's hand so obsessively that they make it painful for the more experienced and knowledgeable to get any work done. , cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. vision appliances for task-specific factory floor applications, such as gauging, high-precision alignment, inspection, assembly verification and machine guidance.Coreco employs a staff of 140 people and has operations in Montreal (QC), Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. (BC), and Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. (MA), with additional sales offices in Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and (OH), San Juan Capistrano San Juan Capistrano (săn wän kăpĭsträ`nō), city (1990 pop. 26,183), Orange co., S Calif.; inc. 1961. San Juan Capistrano has some manufactures, including aircraft parts, medical apparatus, and boats, but the economy is (CA) and Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. (Japan). This press release contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated.The Company has no intention or obligation to update or revise any 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. as a result of new information, future events or otherwise. Webcast The Company's fourth quarter conference call will be webcast on coreco.com at 10 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Monday, March 14, 2005.
CONSOLIDATED BALANCE SHEETS
December 31, 2004 December 31, 2003
In US dollars (audited) (audited)
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Assets
Current assets:
Cash and cash equivalents $3,202,875 $3,520,879
Accounts receivable 3,270,461 2,834,561
Research tax credits receivable 2,441,789 670,164
Inventories 3,829,030 3,043,077
Prepaid expenses 369,910 321,086
Future income taxes 108,196 170,541
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13,222,261 10,560,308
Capital assets 589,327 610,671
Research tax credits 405,000 525,896
Future income taxes 1,432,562 818,886
Investment, at cost 987,888 987,888
Goodwill 2,694,122 2,694,122
Deferred financing fees - 20,246
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$19,331,160 $16,218,017
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $2,032,658 $2,273,585
Income taxes payable 1,241,789 301,366
Future income taxes 215,000 42,000
Deferred revenues 66,672 66,672
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3,556,119 2,683,623
Long-term portion of deferred revenues 38,882 30,550
Future income taxes 125,000 168,000
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3,720,001 2,882,173
Shareholders' equity:
Share capital 10,527,360 10,503,902
Cumulative translation adjustment 115,663 115,663
Retained earnings 4,968,136 2,716,279
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15,611,159 13,335,844
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$19,331,160 $16,218,017
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CORECO INC.
CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended Twelve months ended
December 31 December 31
2004 2003 2004 2003
In US dollars (unaudited)(unaudited) (audited) (audited)
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Sales $6,119,356 $4,973,604 $24,447,080 $19,025,777
Cost of goods sold 2,561,982 1,927,338 9,722,161 7,798,882
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Gross profit 3,557,374 3,046,266 14,724,919 11,226,895
Expenses (income):
Research and
development
expenditures 1,315,276 1,220,514 4,861,602 4,360,233
Less research
tax credits (515,000) (468,000) (1,425,000) (1,300,000)
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800,276 752,514 3,436,602 3,060,233
Selling and
marketing 1,418,586 999,360 5,365,476 4,131,144
General and
administrative 694,973 654,666 2,501,100 2,382,036
Amortization
of capital assets 85,365 97,572 333,749 423,985
Financial, net (135,793) (57,942) (48,755) 41,243
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2,863,407 2,446,170 11,588,172 10,038,641
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Earnings before
income taxes 693,967 600,096 3,136,747 1,188,254
Income taxes (30,000) (102,000) 720,000 4,000
---------------------------------------------------------------------
Net earnings $723,967 $702,096 $2,416,747 $1,184,254
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Earnings per share,
basic and fully diluted $0.10 $0.10 $0.34 $0.17
Weighted average number
of shares outstanding
Basic 7,003,757 7,039,014 7,022,135 7,073,132
Diluted 7,021,141 7,039,014 7,099,854 7,073,476
CORECO INC.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
Three months ended Twelve months ended
December 31 December 31
2004 2003 2004 2003
In US dollars (unaudited) (unaudited) (audited) (audited)
---------------------------------------------------------------------
Retained earnings,
beginning of
period $4,253,917 $2,053,134 $2,716,279 $1,655,101
Net earnings 723,967 702,096 2,416,747 1,184,254
Excess of purchase
price over book
value of common
shares (9,748) (38,951) (164,890) (123,076)
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Retained earnings,
end of period $4,968,136 $2,716,279 $4,968,136 $2,716,279
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CORECO INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended Twelve months ended
December 31 December 31
2004 2003 2004 2003
In US dollars (unaudited) (unaudited) (audited) (audited)
---------------------------------------------------------------------
Cash flows from
operating
activities:
Net earnings $723,967 $702,096 $2,416,747 $1,184,254
Adjustments for:
Amortization of
capital assets 85,365 97,572 333,749 423,985
Amortization of
deferred
financing fees 5,061 5,061 20,246 20,245
Future income
taxes (348,203) (464,975) (421,331) (456,975)
Changes in
non-cash working
capital items:
Accounts
receivable 368,350 (114,730) (435,900) (118,862)
Research tax
credits
receivable (941,314) 1,046,311 (1,771,625) 190,920
Inventories 114,442 187,435 (785,953) 472,839
Prepaid expenses 79,272 (127,006) (48,824) (5,594)
Accounts payable
and accrued
liabilities (805,368) (11,515) (240,927) 148,980
Income taxes 127,832 301,366 940,423 207,461
Research tax
credits 220,000 (525,896) 120,896 (525,896)
Deferred revenues (16,667) 8,333 8,332 97,222
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(387,263) 1,104,052 135,833 1,638,579
Cash flows used
for financing
activities:
Repurchase of
shares (17,277) (87,700) (264,010) (256,876)
Proceeds from
issuance of
common shares - - 122,578 -
Repayment of
long-term debt - (343,750) - (1,781,250)
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(17,277) (431,450) (141,432) (2,038,126)
Cash flows from
investing
activities:
Purchase of
capital assets (75,150) (23,192) (312,405) (243,280)
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Increase (decrease)
in cash and cash
equivalents
during the
period (479,690) 649,410 (318,004) (642,827)
Cash and cash
equivalents,
beginning of
period 3,682,565 2,871,469 3,520,879 4,163,706
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Cash and cash
equivalents, end
of period $3,202,875 $3,520,879 $3,202,875 $3,520,879
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Coreco Inc. (TSX:CRC) |
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