EMJ Announces First Six Months 2003 Financial Results; Sales Growth In 2nd Quarter of 21.5%; 94th Quarter of Operating Profit.Business Editors/High-Tech Writers GUELPH Guelph (gwĕlf), city (1991 pop. 87,976), S Ont., Canada, on the Speed River. It is an industrial and agricultural center located in one of Canada's most densely populated regions. , Ontario--(BUSINESS WIRE)--March 4, 2003 EMJ EMJ Emergency Medicine Journal Data Systems Ltd. ("EMJ") today reported its financial results for the six months ended January January: see month. 31, 2003. Sales for the three months ended January 31, 2003 increased $8.6 million or 21.5% compared to the same quarter the previous year. Sales the six months also increased by $4.1 million to $96.5 million from $92.4 million, an increase of 4.5%. The Company experienced strong sales in consumer related products in the month of December December: see month. . Net income for the six months ended January 31, 2003 was $994,000 or $0.13 per share compared to $2.2 million or $0.28 per share for the same period the previous year. Net income for the second quarter increased by $69,000 or 9.5% to $794,000 or $0.10 per share from $725,000 or $0.09 per share the same quarter the previous year. The Company's twelve-month trailing earnings Trailing earnings Past earnings. Often used in the context of the price earnings ratio. This ratio is usually distinguished as price to trailing earnings (today's price divided by the most recent 12 months of earnings) versus price to prospective earnings (today's price divided by are $0.35 per share. The Company's gross margin in the second quarter was 8.4% compared to 9.1% the previous year. Gross margins in the first half of fiscal 2002 were positively affected by the strategic inventory purchases of distressed companies. As a result of adoption of the new accounting policy relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc foreign currency translation gains or losses on non-hedged exposures will be reflected in net income for the period. In prior years the foreign exchange gain was included in the Company's cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold . The foreign exchange gain for three months ended January 31, 2003 was $120,000 compared to $10,000 the previous year. Although the Company's selling, general and administrative expense for the current quarter showed little variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality from the previous year, bad debts were up by approximately $265,000 due to the adverse economic climate. The Company closely monitors its accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and inventory to minimize any risk. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. EMJ's 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. and President, Jim Estill, "The products offered by our vendors were very well positioned in the marketplace, and we capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. on this opportunity. We are very pleased with these results in a somewhat uncertain economy." This marks EMJ's 94th consecutive quarter of operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . About EMJ Data Systems Ltd.: EMJ Data Systems Ltd., headquartered in Guelph, Ontario Guelph (IPA: gwɛlf) (population 114,943[1]) is a city located in the Southwestern region of Ontario, Canada. , is a 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. , publicly owned Publicly owned can refer to:
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. , Calgary Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Winnipeg Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , Markham Markham City (pop., 1991: 154,000), southeastern Ontario. It is situated on the Rouge River, northeast of Toronto. Settled in 1794, the town was named for William Markham, archbishop of York. It annexed the nearby township of Markham in 1971. , 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. and Halifax Halifax, city, Canada Halifax, city (1991 pop. 114,455), provincial capital, S central N.S., Canada, on the Atlantic Ocean. It is the largest city in the Maritime Provinces and is one of Canada's principal ice-free Atlantic ports. , as well as one office 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. . EMJ is traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension ) under the symbol 'EMJ'. Interested parties can reach EMJ via the World Wide Web at http://www.emj.ca. EMJ Data Systems Ltd. P. O. Box 1012, Guelph, ON N1H 6N1
EMJ Data Systems Ltd.
Consolidated Balance Sheets
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31-Jan 31-Jul 31-Jan
($000s) 2003 2002 2002
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(unaudited) (audited) (unaudited)
ASSETS
Current
Accounts receivable
- Trade 20,998 21,916 29,400
- Other 51 221 468
Inventory 17,702 21,496 19,143
Prepaid expenses 279 1,016 251
Notes receivable
- current portion 625 290 -
Mortgage receivable
- current portion 8 - -
Income taxes recoverable 97 - -
Future tax asset 1,145 1,984 1,970
Investment in sales-type
leases - current portion 517 463 520
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Total current assets 41,422 47,386 51,752
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Notes receivable - net
of current portion 827 720 -
Mortgage receivable
- net of current portion 295 - -
Future tax asset - net
of current portion 2,304 1,913 2,672
Investment in sales-type
leases - net of current
portion 287 403 420
Capital assets 4,620 4,930 5,050
Investments 187 183 178
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Total assets 49,942 55,535 60,072
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LIABILITIES AND
SHAREHOLDERS' EQUITY
Current
Bank indebtedness 13,620 16,273 19,991
Accounts payable
and accrued charges 12,458 15,475 17,003
Income taxes payable - 12 64
Deferred tax benefit 741 1,361 1,399
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Total current
liabilities 26,819 33,121 38,457
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Long-term debt 430 420 410
Deferred tax benefit 1,733 1,425 1,895
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Shareholders' equity
Share capital 8,011 7,982 7,823
Contributed surplus 344 344 344
Retained earnings 12,605 12,243 11,143
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Total shareholders'
equity 20,960 20,569 19,310
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Total liabilities and
shareholders' equity 49,942 55,535 60,072
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EMJ Data Systems Ltd.
Consolidated Statements of Income and Retained Earnings
Three Months Ended Six Months Ended
January 31 January 31
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($000s except per share
figures, unaudited) 2003 2002 2003 2002
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SALES 48,820 40,191 96,513 92,376
Cost of goods sold 44,737 36,543 89,069 84,050
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Gross margin 4,083 3,648 7,444 8,326
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EXPENSES
Selling, general and
administrative 3,120 2,564 6,176 5,277
Foreign exchange (120) (10) (174) 75
Interest, net 177 190 310 376
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3,177 2,744 6,312 5,728
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Income from operations 906 904 1,132 2,598
Gain on sale of investments 7 2 7 2
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Income before provision
for income taxes 913 906 1,139 2,600
Provision for income taxes 119 181 145 382
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Net income for period 794 725 994 2,218
Retained earnings, beginning
of period 12,443 11,046 12,243 9,553
Dividends (632) (628) (632) (628)
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Retained earnings, end
of period 12,605 11,143 12,605 11,143
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Earnings per share $ 0.10 $ 0.09 $ 0.13 $ 0.28
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Diluted earnings per share $ 0.10 $ 0.09 $ 0.12 $ 0.28
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Weighted average number
of shares outstanding 7,902,851 7,854,451 7,899,101 7,854,251
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EMJ Data Systems Ltd.
Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended
January 31 January 31
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($000s unaudited) 2003 2002 2003 2002
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OPERATING ACTIVITIES
Net income for period 794 725 994 2,218
Adjustments for non-cash items:
Amortization 66 91 132 142
Allocation of recorded tax
loss benefits 110 135 136 350
(Gain) on sale of
capital assets - - (110) -
Writedown of investments - 30 - 30
(Gain) on sale of
investments, net (7) (2) (7) (2)
Imputed interest expense 5 5 10 10
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968 984 1,155 2,748
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Change in non-cash working
capital components
Decrease (increase) in trade
and other receivables 1,217 3,000 1,088 (8,747)
Decrease (increase) in
notes receivable 727 - (442) -
Decrease (increase) in
inventory 3,739 (1,054) 3,794 (632)
Decrease in prepaid expenses 39 95 737 85
(Increase) decrease in
income taxes recoverable (59) 11 (97) 37
Increase (decrease) in accounts
payable and accrued charges 1,234 (4,075) (3,017) 3,614
Increase (decrease) in
income taxes payable - 64 (12) 64
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6,897 (1,959) 2,051 (5,579)
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Cash provided by (applied to)
operating activities 7,865 (975) 3,206 (2,831)
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INVESTING ACTIVITIES
Proceeds from (investment in)
sales-type leases 100 (182) 62 (134)
Proceeds from mortgage
receivable 1 - 1 -
Proceeds on sale of
capital assets - - 11 -
Capital asset additions, net (8) (780) (27) (1,351)
Purchase of investments (4) (156) (4) (156)
Proceeds on sale of investments 7 28 7 28
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Cash provided by (applied to)
investing activities 96 (1,090) 50 (1,613)
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FINANCING ACTIVITIES
(Decrease) increase
in bank loan (7,329) 2,688 (2,653) 5,044
Dividends paid (632) (628) (632) (628)
Issuance of common shares - 5 29 28
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Cash (applied to) provided
by financing activities (7,961) 2,065 (3,256) 4,444
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Cash provided during period - - - -
Cash, beginning of period - - - -
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Cash, end of period - - - -
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NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge 1. Accounting Policies These interim consolidated financial statements have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the same accounting policies and methods of computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. as the annual financial statements as at July July: see month. 31, 2002, except that certain disclosures required for annual financial statements have not been included. The significant accounting policies are consistent with the policies outlined in EMJ Data Systems Ltd. 's ("the Company") audited consolidated financial statements for the year ended July 31, 2002, except for the treatment of foreign currency translation and stock-based compensation as noted below. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended July 31, 2002 as set out in the 2002 Annual Report. Foreign Currency Translation Effective August 1, 2002, the Company adopted the revised CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) Handbook
This article is about reference works. For the subnotebook computer, see .
Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. monetary items will be reflected in net income for the period. The effect of adopting this accounting policy was not significant and accordingly, no retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a adjustment has been reflected in the financial statements. Stock-Based Compensation Effective August 1, 2002, the Company adopted CICA Handbook Section 3870 Stock-based Compensation and Other Stock-based payments. As permitted by CICA 3870, the Company has applied this change prospectively for new awards granted on or after August 1, 2002. The Company has chosen to recognize no compensation cost when stock options are granted to employees and directors under stock option plans with no cash settlement features. However, direct awards of stock to employees and stock and stock option awards granted to non-employees have been accounted for in accordance with the fair value method of accounting for stock-based compensation. The fair value of direct awards of stock are determined by the quoted market price of the Company's stock and the fair value of stock options are determined using the Black-Scholes option pricing model option pricing model A mathematical formula for determining the price at which an option should trade. The model expresses the value of an option as a function of the value of the underlying asset, length of time until maturity, exercise price, yields on . In periods prior to August 1, 2002, the Company recognized no compensation cost when stock or stock options were issued to employees. 2. Earnings per share The diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of disclosure has been calculated using the treasury stock method. Diluted earnings per share computation For the three months ended January 31 2003 2002 --------------------------------------------------------------------- Weighted average common shares 7,902,851 7,854,451 Incremental shares from assumed conversion of employee stock options 261,617 127,607 --------------------------------------------------------------------- Adjusted weighted average shares 8,164,468 7,982,058 --------------------------------------------------------------------- --------------------------------------------------------------------- For the six months ended January 31 2003 2002 --------------------------------------------------------------------- Weighted average common shares 7,899,101 7,854,251 Incremental shares from assumed conversion of employee stock options 258,603 26,155 --------------------------------------------------------------------- Adjusted weighted average shares 8,157,704 7,880,406 --------------------------------------------------------------------- --------------------------------------------------------------------- 3. Share Capital (a) Authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: and Issued Share Capital as at January 31, 2003: The Company's authorized share capital consists of an unlimited number of common, first preference and second preference shares. The rights and restrictions attached to the preference shares are determined by the Board of Directors prior to issue. 7,902,851 common shares have been issued for a total of $8,010,583. (b) Options, Warrants and Convertible Securities Outstanding as at January 31, 2003: The Company has outstanding stock options for 689,956 shares, of which 440,323 are vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) as at January 31, 2003. During the six months ended January 31, 2003, options for 7,700 shares were exercised for cash proceeds of $28,336. 4. Stock-Based Compensation In accordance with CICA Handbook Section 1650, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma information regarding net income is required to be disclosed as if the Company accounted for employee stock options granted after July 31, 2002 under the fair value method. There were 134,200 stock options granted in the three months ended January 31, 2003. The fair value for these options was estimated at the date of granting using a Black-Scholes Option pricing Model with the following assumptions: risk-free interest rate Risk-Free Interest Rate Describes return available to an investor in a security somehow guaranteed to produce that return. The risk-free interest rate compensataes the investor for the temporary sacrifice of consumption. of 3.5%; dividend yield of 4.0%; a volatility of 0.228; and a weighted-average expected life of the options of 2.0 years. For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options' vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: periods. The Company's pro forma net income under Canadian GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). would be reduced by $21,000 for the three and six months ended January 31, 2003, respectively. Basic and diluted earnings per share figures would have been reduced by $0.01 for each of the three and six months ended January 31, 2003. The weighted average fair value of stock options granted during the six months ended January 31, 2003 was $0.49 per option. 5. Comparative Figures Certain comparative figures have been restated to conform with the presentation for the current period. |
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