DRAXIS Health Reports Third Quarter Results; Acquisitions Fuel 6th Consecutive Quarter of Greater Than 50 Percent Year Over Year Revenue Growth.MISSISSAUGA Mississauga (mĭsĭsaw`gə), city (1991 pop. 463,388), S Ont., Canada, 12 mi (20 km) W of Toronto on Lake Ontario. A residential suburb of Toronto and a growing transportation and industrial center, it is one of Canada's fastest-growing , ONTARIO--(BUSINESS WIRE)--Nov. 18, 1998--Draxis Health Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DRAXF) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DAX.) DRAXIS Health Inc. today reported results for the third quarter of 1998. Product revenues were $9,828,000, 59 percent higher than the previous year's third quarter which represents the sixth consecutive quarter in which year-over-year increases in product revenues were in excess of 50 percent. In commenting on the third quarter results, Dr. Martin Barkin, 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 DRAXIS, stated: "DRAXIS has emerged as a diversified diversified (di·verˑ·s pharmaceutical company having achieved the objectives of revenue growth and full integration of R & D, manufacturing, marketing and sales in its various niche categories. Quarterly revenues have approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. tripled in less than 24 months as a result of acquisitions and intrinsic intrinsic /in·trin·sic/ (in-trin´sik) situated entirely within or pertaining exclusively to a part. in·trin·sic adj. 1. Of or relating to the essential nature of a thing. 2. growth. Our pipeline is very advanced with five products submitted for regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals. Of these, the cognitive indication for Anipryl(R) in 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. is expected before year end. This approval is expected to fuel further growth in revenues and profitability in the coming quarters. Regulatory approval for Anipryl(R) is expected in the coming months from Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . In 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 , we are awaiting approval of Alertec(R), the Company's product to treat narcolepsy narcolepsy, a sleep disorder characterized by excessive daytime sleepiness and recurring unwanted episodes of sleep ("sleep attacks"). People with narcolepsy may abruptly fall asleep at almost any time, including while talking, eating, or even walking. ." Dr. Barkin continued, "The research and development trials of Fibrimage(R), our innovative imaging product for deep vein thrombosis A blood clot (thrombos) in a vein deep within the muscle, typically in the thigh or calf. It is caused by disease or the lack of activity such as sitting for hours at a computer screen. , has entered Phase II trials, and will be an important new platform of growth for the Company once approved. Amiscan(R), our myocardial infarct Noun 1. myocardial infarct - destruction of heart tissue resulting from obstruction of the blood supply to the heart muscle MI, myocardial infarction heart attack - a sudden severe instance of abnormal heart function imaging agent, is also entering Phase II trials and we recently filed One Alpha D2 for osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia . We are beginning to see the improvement in earnings performance that will be our focus in the quarters going forward. It is encouraging that absent the costs of launching SpectroDerm(R) in the United States, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become would have been solidly positive in the third quarter." -0-
FINANCIAL HIGHLIGHTS
(thousands of Canadian dollars except per share amounts)
1998 1997
Q3 Q2 Q1 Q4 Q3
------------------------------ ------------------
Operations
----------
Product Revenues
----------------
Canadian
Pharma-
ceuticals $ 1,943 $ 2,154 $ 1,564 $ 3,147 $ 2,502
Dermatology 1,717 1,358 1,618 1,681 1,476
Radiophar-
maceuticals 2,145 1,968 1,667 1,455 1,668
Veterinary 873 738 404 1,945 518
Manufac-
turing 3,150 3,227 - - -
--------- --------- -------- ------- --------
$ 9,828 $ 9,445 $ 5,253 $ 8,228 $ 6,164
--------- --------- -------- ------- --------
S G & A 4,454 4,696 3,929 5,643 5,248
EBITDA(1) (963) (1,122) (777) (1,147) (1,623)
Depreciation
and Amor-
tization (1,056) (967) (890) (1,499) (1,579)
Loss From
Operations (2,019) (2,089) (1,667) (2,646) (3,202)
Net Loss (1,268) (1,087) (1,025)(13,412)(2) (2,919)
Net Loss
Per
Share $ (0.04) $ (0.04) $ (0.03)$ (0.45)(2) $ (0.10)
Financial Position
------------------
Cash and
Cash Equi-
valents $ 7,984 $ 6,726 $ 15,100 $ 20,262 $ 8,181
Shareholders'
Equity 48,472 49,653 48,398 48,828 58,308
Weighted
Average
Shares
Outstan-
ding 32,273,654 31,945,854 31,288,331 30,086,415 29,709,723
1 Earnings (loss) before interest, taxes, depreciation and
amortization.
2 Includes non-recurring expenses aggregating $9,315.
FINANCIAL REVIEW Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: third quarter revenues of $9,828,000 represented an increase of 59 percent over the corresponding quarter of 1997. Consolidated year to date revenues of $24,526,000 increased by 63 percent over last year. Included in revenues from May 1, 1998 are the results of DRAXIS Pharma Pharma may be an abbreviation for:
Cost of sales and selling, general and administration expenses (SG&A) increased to $10,069,000 in the third quarter and $25,395,000 on a year to date basis representing increases of 38 percent and 37 percent, respectively, as compared to the corresponding periods in 1997. These increases are primarily as a result of the inclusion of DRAXIS Pharma's results in 1998. Loss from operations before depreciation and amortization (EBITDA) of $963,000 for the third quarter compares with a loss of $1,623,000 achieved last year. Year to date EBITDA losses of $2,862,000 compares with a $4,870,000 loss last year. Expenses associated with SpectroDerm(R) in the United States, including launch costs, totalled approximately $1,400,000 in the third quarter. Depreciation and amortization of $1,056,000 during the third quarter compares with $1,579,000 incurred last year. On a year to date basis, depreciation and amortization amounted to $2,913,000 as compared with $4,019,000 last year. Included in the 1997 figures is amortization related to Anipryl(R) intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , the carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. of which was written off last year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. in conjunction with the global licensing agreement entered into with Pfizer Pfizer Incorporated (NYSE: PFE) is a major research-based pharmaceutical company, which ranks number two in sales The company is based in New York City. It produces the number-one selling drug Lipitor (atorvastatin, used to lower blood cholesterol); the oral antifungal Inc. Depreciation related to the newly acquired DRAXIS Pharma Inc. commenced during 1998. Loss per share for the third quarter was $0.04 and $0.11 on a year to date basis, as compared with $0.10 and $0.25, respectively, last year. Cash and cash equivalents as at September September: see month. 30, 1998 totalled $7,984,000 which represents an increase of $1,258,000 due primarily to the impact of the initial draw-down on DRAXIS Pharma's bank term loan facility partially offset by changes in working capital, funding of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and capital expenditures in the third quarter. UNITED STATES GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). INFORMATION The following table summarizes DRAXIS' results under both United States and 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. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP):
--------------------------------------------------------------
US AND CANADIAN GAAP INFORMATION
(thousands of Canadian dollars except per share amounts)
1998 1997
Q3 Q2 Q1 Q4 Q3
------------------------------ ------------------
US GAAP
-------
Net(Loss)
Income $ (1,153) $ (972) $ (910) $ 13,377 $(8,369)
Net(Loss)
Income
Per Share $ (0.04) $ (0.03) $ (0.03) $ 0.44 $ (0.28)
Canadian GAAP
-------------
Net(Loss) $ (1,268) $ (1,087) $ (1,025) $(13,412) $(2,919)
Net(Loss)
Per Share $ (0.04) $ (0.04) $ (0.03) $ (0.45) $ (0.10)
--------------------------------------------------------------
VETERINARY veterinary /vet·er·i·nary/ (vet´er-i-nar?e) 1. pertaining to domestic animals and their diseases. 2. veterinarian. vet·er·i·nar·y adj. (PFIZER ALLIANCE) Veterinary segment sales for the third quarter of 1998 include Anipryl(R) royalty income and product revenues, which taken together, increased 69 percent to $873,000 over the same period in 1997. Royalty income for the third quarter was consistent with management's expectations. DRAXIS expects Pfizer to commence its consumer marketing campaign for Anipryl(R) following U.S. regulatory approval of Anipryl(R) for canine canine or canid Any domestic or wild dog or doglike mammal (e.g., wolf, jackal, fox) in the family Canidae, found throughout the world except in Antarctica and on most ocean islands. cognitive disorder. Earnings for this business unit were in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with management's expectations for the third quarter. DERMATOLOGY dermatology (dûrmətŏl`əjē), branch of medicine concerned with diagnosis and treatment of diseases and disorders of the skin. (SPECTROPHARM) Third quarter dermatology revenues were ahead of last year by approximately 15 percent. Year to date revenues were also strongly ahead of 1997, which included the results of operations since the acquisition of SpectroPharm Inc. in mid-February n. 1. the middle part of February. Noun 1. mid-February - the middle part of February period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue 1997. Audited market data from A C Nielson continues to confirm SpectroJel's(R) number one position in the growing Canadian soapless cleanser segment. Earnings for this business segment are below management's expectations, mainly due to lower than anticipated off-shelf sales of SpectroDerm(R) in the United States and unbudgeted marketing and selling expenses incurred during the third quarter including stepped up sampling, trade and promotional programs. Management continues to closely monitor the performance of this segment and is evaluating all options to improve results, including potential partnering opportunities for SpectroDerm(R) in the United States. CANADIAN PHARMACEUTICALS (DRAXIS PHARMACEUTICA) The third quarter revenues and earnings for this business unit were below last year's levels on both a quarterly and year to date basis which is within management's expectations. This decline reflects the expected impact of increased generic competition for selegiline selegiline /se·le·gil·ine/ (se-lej´i-len) an antiparkinsonian agent used as the hydrochloride salt in conjunction with levodopa and carbidopa. in Canada. The Company continues to expect to obtain Canadian regulatory approval for Alertec(R) in 1998. RADIOPHARMACEUTICALS (DRAXIMAGE INC.) Third quarter revenues from the Company's radiopharmaceutical radiopharmaceutical /ra·dio·phar·ma·ceu·ti·cal/ (-fahr?mah-soo´ti-k'l) a radioactive pharmaceutical, nuclide, or other chemical used for diagnostic or therapeutic purposes. line increased 29 percent as compared to the same period last year. Year to date revenues also showed substantial growth as compared with 1997, which included only three months of results from the date of acquisition. The Phase II study for Fibrimage(R) is progressing well and is now expected to be completed in the first quarter of 1999. Earnings for this business unit were strong during the third quarter and within management's expectations for the nine months. Plans for the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of this business from Merck Merck may refer to:
MANUFACTURING (DRAXIS PHARMA) Results for this unit in both the third quarter and year to date are within management's expectations. Operating losses experienced in the quarter were fully sheltered by the loss-sharing arrangements entered into as part of the acquisition of this business and will continue to be sheltered into 1999. Activity at the Company's manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in the third quarter was focused on new business development, the various capital projects now underway and integration with the Company's other business units. The facility will become the permanent site for Draximage and will assume manufacturing responsibilities, over time, for the Company's dermatology line and Anipryl(R). In addition, the Company's Canadian distribution activities, currently located in Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , are in the process of being transferred to DRAXIS Pharma. The capital projects underway at DRAXIS Pharma include the construction of a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. radioactive ra·di·o·ac·tive adj. Of or exhibiting radioactivity. radioactive characterized by radioactivity. radioactive decay laboratory and production area and an expanded sterile sterile /ster·ile/ (ster´il) 1. unable to produce offspring. 2. aseptic. ster·ile adj. 1. Not producing or incapable of producing offspring. 2. production department sufficient to accommodate the planned lyophilization lyophilization /ly·oph·i·li·za·tion/ (li-of?i-li-za´shun) the creation of a stable preparation of a biological substance by rapid freezing and dehydration of the frozen product under high vacuum. capability. YEAR 2000 ISSUE The Company has undertaken a detailed review of its potential exposure to Year 2000 systems issues and is actively working to rectify rec·ti·fy v. 1. To set right; correct. 2. To refine or purify, especially by distillation. any resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials situations that may have a detrimental det·ri·men·tal adj. Causing damage or harm; injurious. det  ri·men impact on the
ongoing operations of the business. Remedial action A remedial action is a change made to a nonconforming product or service to address the deficiency.Rework and repair are generally the remedial actions taken on products, while services usually require additional services to be performed to ensure satisfaction. is currently underway throughout the organization, including the implementation of a new enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. system. Risks of third party compliance are not within DRAXIS' control and are difficult to assess. It is not possible to be certain that all aspects of the Year 2000 issues affecting the Company, including those related to the efforts of customers, suppliers, or other third parties, will be fully resolved. However, the Company intends to dialogue with its business partners in order to understand and assess possible Year 2000 issues. Management believes that sufficient funds have been set aside to cover the costs of remedial actions and it is anticipated that all business systems will be Year 2000 compliant a. 1. (Computers) having dates fully and properly represented, and not susceptible to failure due to the year 2000 bug. well in advance of critical failure dates. BOARD APPOINTMENT The Company is pleased to announce that John Vivash has been appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to the Board of Directors effective immediately. Mr. Vivash has over 40 years experience in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry, through senior appointments with several companies including: The Manufacturers Life Insurance Company, Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). , Fidelity Investments Fidelity Investments is a group of privately held companies in the financial services industry. It is made up by two independent but closely cooperating companies, Fidelity Management and Research Corporation (FMR Co. Canada Limited, Midland Doherty
OTHER The Company continues to defend vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. against the claims made by Dr. Jozsef Knoll in the Statement of Claim filed by him with the Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. Court (General Division) on May 1, 1998. The Company regards all of Dr. Knoll's claims to be entirely without merit. OUTLOOK Management continues to anticipate that the material improvement in DRAXIS' financial results in 1998 relative to 1997 will continue into 1999. Revenues are expected to increase substantially over 1997 as a result of the full year effect of including the radiopharmaceutical and dermatology businesses, and the inclusion of manufacturing revenues for the first time during 1998. Milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. payments from Pfizer, which will be received following receipt of the upcoming regulatory approvals for Anipryl(, will have a significant effect on the Company's earnings and financial position. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. are expected to increase over 1997 levels, but at a lower pace than revenue growth. DRAXIS Health Inc. is an emerging, diversified and integrated pharmaceutical company operating in four niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. : veterinary (through a global alliance with Pfizer Inc.) radiopharmaceuticals (Draximage), dermatology (SpectroPharm Dermatology) and Canadian sales and marketing (DRAXIS Pharmaceutica). DRAXIS supports its own as well as third party manufacturing requirements through its subsidiary, DRAXIS Pharma, located in Kirkland, Quebec Kirkland is a municipality on the Island of Montreal in southwestern Quebec, Canada. As of October 2005, the population was 21,735. It is named after Dr. Charles-Aimé Kirkland, a Quebec provincial politician. . Except for historical information, this news release contains certain 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. that involve risk and uncertainties, which may cause actual results to differ materially from the statements made. Such factors include, but are not limited to, changing market conditions, clinical trial results, the establishment of new corporate alliances, the impact of competitive products and pricing, the timely development, regulatory approval and market acceptance of the Company's products, and other risks detailed from time-to-time in the Company's filings with the U.S. Securities and Exchange Commission and Canadian securities authorities. - Financial Tables Attached -
DRAXIS HEALTH INC.
CONSOLIDATED BALANCE SHEET
(stated in thousands of Canadian dollars)
(unaudited)
September 30,
-------------------------
1998 1997
---- ----
ASSETS
Current Assets
Cash and cash equivalents $ 7,984 $ 8,181
Accounts receivable 7,729 3,210
Inventory 7,987 3,597
Income taxes recoverable 2,182 956
Prepaid expenses 1,101 1,069
-------- --------
26,983 17,013
-------- --------
Long-term investments 691 1,895
Fixed assets 16,595 1,748
Goodwill 9,640 12,033
Patents, licenses and other
deferred charges 9,938 38,038
Deferred income taxes 3,881 3,429
-------- --------
$ 67,728 $ 74,156
-------- --------
-------- --------
LIABILITIES
Current
Accounts payable and accrued
charges $ 7,884 $ 2,003
Long-term debt 11,372 13,845
-------- --------
19,256 15,848
-------- --------
SHAREHOLDERS' EQUITY
Capital stock 61,758 54,803
Contributed surplus 9,701 9,701
Deficit (22,987) (6,196)
-------- --------
48,472 58,308
-------- --------
$ 67,728 $ 74,156
-------- --------
-------- --------
DRAXIS HEALTH INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(stated in thousands of Canadian dollars
except share related data)
(unaudited)
For the Three Month
Period Ended
September 30,
---------------------
1998 1997
---- ----
Revenues
Canadian Pharmaceuticals $ 1,943 $ 2,502
Dermatology 1,717 1,476
Radiopharmaceuticals 2,145 1,668
Veterinary 873 518
Manufacturing 3,150 -
------- -------
9,828 6,164
------- -------
Expenses
Cost of sales 5,615 2,047
Selling, general and administration 4,454 5,248
Research and development 832 402
Investment tax credits on research
and development (110) 90
------- -------
Loss from operations before
depreciation and amortization (963) (1,623)
------- -------
Depreciation and amortization 1,056 1,579
------- -------
Loss from operations (2,019) (3,202)
------- -------
Financial
Interest income 15 87
Financing expense (199) (184)
------- -------
(184) (97)
------- -------
Loss before income taxes and
undernoted item (2,203) (3,299)
Recovery of income taxes (935) (383)
------- -------
Loss before undernoted item (1,268) (2,916)
Equity share of loss
of affiliated companies - (3)
------- -------
Net loss for the period $ (1,268) $ (2,919)
------- -------
Net loss per share $ (0.04) $(0.10)
------- -------
------- -------
Weighted Average
Number of Shares
Outstanding 32,273,654 29,709,723
For the Nine Month
Period Ended
September 30,
---------------------
1998 1997
---- ----
Revenues
Canadian Pharmaceuticals $ 5,661 $ 7,749
Dermatology 4,693 3,638
Radiopharmaceuticals 5,780 1,668
Veterinary 2,015 2,007
Manufacturing 6,377 -
------- -------
24,526 15,062
------- -------
Expenses
Cost of sales 12,316 4,332
Selling, general and administration 13,079 14,138
Research and development 2,278 1,462
Investment tax credits on research
and development (285)
------- -------
Loss from operations before
depreciation and amortization (2,862) (4,870)
------- -------
Depreciation and amortization 2,913 4,019
------- -------
Loss from operations (5,775) (8,889)
------- -------
Financial
Interest income 550 447
Financing expense (453) (184)
------- -------
97 263
------- -------
Loss before income taxes
and undernoted item (5,678) (8,626)
Recovery of income taxes (2,298) (1,343)
------- -------
Loss before undernoted item (3,380) (7,283)
Equity share of loss of affiliated
companies - (228)
------- -------
Net loss for the period $ (3,380) $ (7,511)
------- -------
Net loss per share $ (0.11) $ (0.25)
------- -------
------- -------
Weighted Average
Number of Shares
Outstanding 31,839,555 29,564,088
DRAXIS HEALTH INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(stated in thousands of Canadian dollars)
(unaudited)
For The Three Month Period
Ended September 30,
----------------------------
1998 1997
---- ----
Cash Flows (used in) from
Operating Activities
Net loss for the year $ (1,268) $ (2,919)
Non cash transactions
reflected in net income
Depreciation and amortization 1,056 1,579
Deferred Income Taxes 0 (481)
Other non-cash items 0 36
Equity share of loss of
affiliated companies - 3
--------- ---------
(212) (1,782)
--------- ---------
Changes in current assets and
current liabilities affecting
cash flows from operations (4,587) (975)
--------- ---------
Net cash flows used
in operating
activities (4,799) (2,757)
--------- ---------
Cash Flows used in Investing
Activities
Acquisition of fixed assets (252) (77)
Business acquisitions (net of
cash acquired) - (11,855)
(Increase) decrease in other
deferred charges 50 (522)
--------- ---------
Net cash flows used in investing
activities (202) (12,454)
--------- ---------
Cash Flows from Financing Activities
Increase in long term debt, net 6,172 13,845
Other issuances of shares 87 924
--------- ---------
Net cash flows from financing
activities 6,259 14,769
--------- ---------
Net increase (decrease) in cash
and cash equivalents 1,258 (422)
Cash and cash equivalents,
beginning of period 6,726 8,623
--------- ---------
Cash and cash equivalents,
end of period $ 7,984 $ 8,181
--------- ---------
--------- ---------
For The Nine Month Period
Ended September 30,
----------------------------
1998 1997
---- ----
Cash Flows (used in) from
Operating Activities
Net loss for the year $ (3,380) $ (7,511)
Non cash transactions
reflected in net income
Depreciation and amortization 2,913 4,019
Deferred Income Taxes 675 (3,093)
Other non-cash items 0 36
Equity share of loss of
affiliated companies - 228
--------- ---------
(1,142) (6,321)
--------- ---------
Changes in current assets and
current liabilities affecting
cash flows from operations (2,533) (4,981)
--------- ---------
Net cash flows used
in operating
activities (3,695) (11,302)
--------- ---------
Cash Flows used in Investing
Activities
Acquisition of fixed assets (3,643) (303)
Business acquisitions
(net of cash acquired) (15,557) (20,869)
(Increase) decrease in other
deferred charges 198 (1,008)
--------- ---------
Net cash flows used
in investing
activities (19,002) (22,180)
--------- ---------
Cash Flows from Financing Activities
Increase in long term debt, net 7,395 13,845
Other issuances of shares 3,024 1,990
--------- ---------
Net cash flows from financing
activities 10,419 15,835
--------- ---------
Net increase (decrease) in cash
and cash equivalents (12,278) (17,647)
Cash and cash equivalents,
beginning of period 20,262 25,828
--------- ---------
Cash and cash equivalents,
end of period $ 7,984 $ 8,181
--------- ---------
--------- ---------
Cash and cash equivalents comprise cash, commercial paper and
treasury bills.
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