DOMCO Industries Ltd. reports third quarter results.MONTREAL, Quebec--(BUSINESS WIRE)--Oct. 23, 1995--DOMCO INDUSTRIES LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability (ME:DOC) The Board of Directors of Domco Industries Ltd approved the consolidated unaudited statements unaudited statement A financial statement prepared by an auditor but not in accordance with generally accepted auditing standards. Unaudited statements are prepared to less rigorous standards than audited statements. Compare audited statement. for the third quarter ended September 23, 1995. For the nine months ended September 23, 1995, revenues have shown a 16.8 percent increase to $238.7 million primarily due to the full nine-month contribution from Nafco which was acquired in May 1994. The commercial flooring sector also contributed to the revenue growth, while sales of residential flooring continue to be impacted by weak Canadian consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. . Net income for the nine-month period increased to $14.4 million, compared with $14.1 million for the same period a year ago. Earnings per share amounted to $2.09 per share ($1.91 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. ) versus $2.06 the previous year. During the third quarter, the implementation of a corporate-wide reorganization was underway. This reorganization is intended to bring increased cross-selling opportunities and reduced administrative and operating costs operating costs npl → gastos mpl operacionales through the streamlining of operations along functional lines and other organizational changes. Management believes, however, that there have been some short-term set-backs in financial results as a consequence of the many changes being made. The reorganization is expected to be completed by mid-November, so the benefit will start to occur at the beginning of 1996. For the three-month period ended September 23, 1995, revenues were $81.1 million versus $85.8 million in the prior year. The sluggish Canadian consumer market adversely affected sales of residential flooring. However, sales of commercial flooring have continued to increase in both the U.S. and Canada, and we anticipate for 1996 an increase of our residential sales in the U.S. thanks to new distributors. During the quarter, the Corporation was faced with significant increases in raw material costs which it has been unable to fully recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. through product price increases. The combined effect of higher raw material costs, decreased sales and some mechanical problems at the Houston plant which have since been resolved, resulted in a decline in the Corporation~s gross margin to $32.1 million for the quarter or 39.6 percent of sales, from $36.8 million or 42.9 percent of sales for the same period in 1994. Net income for the third quarter was $4.8 million or $0.69 per share ($0.60 fully diluted) as compared with $6.6 million or $0.96 per share a year earlier. Based on the financial results of the third quarter, and taking into account the non-recurrent cost of the reorganization, the Corporation does not expect to achieve the progression of results foreseen in the budget and prospectus dated March 31, 1995, for the total 1995 year. The Board of Directors has approved that a semi-annual dividend of $0.25 per share on the common shares of the Corporation be declared, payable December 6, 1995 to shareholders of record at the close of business on November 23, 1995. Profile Domco Industries Ltd, headquartered in Farnham, Canada, is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. manufacturer of vinyl floorcovering. Through its three product groups - Domco Residential Flooring, Azrock Commercial Flooring and Nafco Luxury Vinyl Tile - Domco Industries Ltd offers one of the most extensive, high quality product lines in the flooring industry. CONTACT: DOMCO INDUSTRIES LTD Robert Van Buren 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. 514/293-3173 or Robert O. Desautels Senior Vice-President of Finance & CFO See Chief Financial Officer. 514/293-3173 REPEATS: 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 212-575-8822 or 800-221-2462; Boston 617-236-4266 or |
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