EMJ Announces Nine Months 2001 Financial Results; Sales Up 26% for the Nine Months.Business Editors 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)--May 31, 2001 EMJ EMJ Emergency Medicine Journal Data Systems Ltd. ("EMJ"), a leading 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. distributor of computer hardware and peripherals, today reported its financial results for the nine months ended April 30, 2001. Sales for the nine months ended April 30, 2001 increased $31.7 million or 26% to $153.8 million compared to the same period the previous year. In the current quarter, sales were particularly strong in networking products and the Company continues to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. its position in the Apple third party market. Net income for the nine months ended April 30, 2001 was $4.3 million or $0.56 per share, an increase of approximately $100,000 from the same period the previous year of $4.2 million or $0.56 per share. Income from operations was $5.1 million for the nine months ended, an increase of $1.4 million from the previous year. Net income for the third quarter was $1.7 million or $0.22 per share compared to $2.7 million or $0.35 per share for the comparable quarter the previous year in which there was a gain on sale of investment which represented $1.2 million or $0.15 per share. 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 per share are $0.75. This marks EMJ's 87th 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. . According to Jim According to Jim is an American situation comedy television series originally broadcast by ABC. The show premiered with little publicity in October 2001, following the surprise hit comedy My Wife and Kids. Estill, "Clearly, we are very pleased with the Company's operating results this quarter. EMJ tends to focus on niche products which are less impacted by changes in the marketplace." The Company's gross margin increased to $13.2 million from $11.1 million, and was 8.6% of sales for the nine months ended compared to 9.1% for the previous year. Increased sales in the month of April resulted in an increased balance in 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 at April 30, 2001. The Company's inventory level has returned to normal levels from its 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. balance of $24.8 million, which was due to an opportunity buy of product, that subsequently sold through in the first two quarters. EMJ's bank debt decreased to $16.8 million at April 30, 2001 from its year-end balance of $26.7 million and $18.8 million the previous year primarily as a result of cash provided from its operating activities. Headquartered in Guelph, Ontario Guelph (IPA: gwɛlf) (population 114,943[1]) is a city located in the Southwestern region of Ontario, Canada. , EMJ Data Systems Ltd. (Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. symbol: EMJ) is a publicly owned Publicly owned can refer to:
superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" products for Apple, Bar Coding/Auto-ID/Point-of-Sale, Digital Video, Internetworking internetworking - The interconnection of two or more networks, usually local area networks so that data can pass between hosts on the different networks as though they were one network. This requires some kind of router or gateway. , RAID, Unix and Wireless applications. EMJ has branch offices in 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. , 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. , Ottawa Ottawa, city, Canada Ottawa (ŏt`əwə), city (1991 pop. 313,987), capital of Canada, SE Ont., at the confluence of the Ottawa and Rideau rivers. Hull, Que. , 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. . Interested parties can reach EMJ via the World Wide Web at www.emj.ca. For information, contact: Jim Estill, Chief Executive Officer (519) 837-2444, ext. 213 EMJ Data Systems Ltd. P. O. Box 1012, Guelph, ON NlH 6N1
EMJ Data Systems Ltd.
Consolidated Balance Sheets
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30-Apr 31-Jul 30-Apr
($000s) 2001 2000 2000
-------------------------------------------------------------
(unaudited)(audited)(unaudited)
ASSETS
Current
Accounts receivable - Trade 27,151 19,896 19,840
- Other 555 941 953
Inventory 18,054 24,766 15,232
Prepaid expenses 565 375 655
Future tax asset (See note) 2,440 2,486 2,472
Loans receivable - current portion - - 200
Investment in sales-type
leases - current portion 338 1,269 1,252
-------------------------------------------------------------
Total current assets 49,103 49,733 40,604
-------------------------------------------------------------
Future tax asset (See note) 3,372 5,202 5,797
Loans receivable - net of
current portion - - 317
Investment in sales-type
leases - net of current portion 429 49 49
Capital assets 3,670 3,332 3,375
Investments 103 33 33
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Total assets 56,677 58,349 50,175
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness 16,789 26,688 18,849
Accounts payable and accrued
charges 11,789 5,821 6,183
Income taxes payable 109 431 174
Deferred tax benefit (See note) 1,922 1,951 1,940
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Total current liabilities 30,609 34,891 27,146
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Long-term debt 395 381 376
Deferred tax benefit (See note) 2,204 3,491 3,909
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Shareholders' equity
Share capital 7,373 7,171 7,171
Share purchase warrants 344 344 344
Retained earnings 15,752 12,071 11,229
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Total shareholders' equity 23,469 19,586 18,744
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Total liabilities and
shareholders' equity 56,677 58,349 50,175
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EMJ Data Systems Ltd.
Consolidated Statements of Income and Retained Earnings
Three Months Ended Nine Months Ended
April 30 April 30
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($000s except per share
figures, unaudited) 2001 2000 2001 2000
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SALES 50,398 44,674 153,778 122,065
Cost of goods sold 45,988 40,507 140,534 110,985
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Gross margin 4,410 4,167 13,244 11,080
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EXPENSES
Selling, general and
administrative 2,311 2,140 7,291 6,682
Interest, net 176 222 853 676
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2,487 2,362 8,144 7,358
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Income from operations 1,923 1,805 5,100 3,722
Gain on sale of investments - 1,154 24 1,154
-----------------------------------------------------------
Income before provision for
income taxes 1,923 2,959 5,124 4,876
Provision for income taxes 260 304 825 646
-----------------------------------------------------------
Net income for period 1,663 2,655 4,299 4,230
Retained earnings, beginning
of period 14,089 8,574 12,071 7,610
Dividends - - (618) (611)
-----------------------------------------------------------
Retained earnings, end of
period 15,752 11,229 15,752 11,229
-----------------------------------------------------------
Earnings per share
(Basic and Diluted) $0.22 $0.35 $0.56 $0.56
-----------------------------------------------------------
Weighted average number of shares outstanding
7,729,719 7,665,619 7,708,463 7,546,897
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EMJ Data Systems Ltd.
Consolidated Statements of Cash Flows
Three Months Nine Months
Ended Ended
April 30 April 30
----------------------------------------------------------------
($000s unaudited) 2001 2000 2001 2000
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OPERATING ACTIVITIES
Net income for period 1,663 2,655 4,299 4,230
Adjustments for non-cash
items:
Amortization 69 74 205 215
(Gain) on sale of
investments, net - (1,154) (24) (1,154)
----------------------------------------------------------------
1,732 1,575 4,480 3,291
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Change in non-cash working
capital components
(Increase) decrease in
trade and other
receivables (7,105) (3,188) (6,869) (1,189)
(Increase) decrease in
inventory (3,068) (2,674) 6,712 (4,141)
Decrease (increase) in
prepaid expenses 170 (177) (190) 57
Decrease in income taxes
recoverable - 20 - -
Decrease in future tax
asset 228 177 560 392
Increase (decrease) in
accounts
payable and accrued
charges 4,191 (527) 5,968 (1,218)
Increase (decrease)
in income taxes payable 58 174 (322) (946)
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(5,526) (6,195) 5,859 (7,045)
---------------------------------------------------------------
Cash (applied to)
provided by operating
activities (3,794) (4,620) 10,339 (3,754)
---------------------------------------------------------------
INVESTING ACTIVITIES
Proceeds from sales-
type leases 512 1,765 551 1,275
Capital asset
additions, net (487) (21) (543) (24)
Proceeds on loans
receivable - (517) - (80)
(Purchase of)
investments (34) 349 (70) (27)
Proceeds on sale
of investments - 1,387 24 1,387
--------------------------------------------------------------
Cash (applied to)
provided by
investing activities (9) 2,963 (38) 2,531
--------------------------------------------------------------
FINANCING ACTIVITIES
Increase (decrease)
in bank loan 1,864 1,982 (10,603) 3,378
Repayment of note
payable - - - (1,600)
Other 5 (227) 14 (219)
Dividends paid - - (618) (611)
Issuance of common shares 8 89 202 800
--------------------------------------------------------------
Cash provided by
(applied to)
financing activities 1,877 1,844 (11,005) 1,748
--------------------------------------------------------------
Net cash (applied)
provided during period (1,926) 187 (704) 525
Bank overdraft,
beginning of period (1,021) (599) (2,243) (937)
--------------------------------------------------------------
Bank overdraft,
end of period (2,947) (412) (2,947) (412)
--------------------------------------------------------------
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 31, 2000, except for the adoption of the new accounting standard referred to below. 2. Adoption of New Accounting Standard Effective August 1, 2000, the Company adopted the liability method of accounting for income taxes as recommended by the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. . Under the liability method, future tax benefits and obligations are determined based on differences between the financial reporting and tax bases of assets and liabilities, and measured using the substantively enacted tax rates and laws that will be in effect when the differences are expected to reverse. In addition, the benefit of acquired tax losses in excess of the purchase price is recorded as a future tax asset and a deferred credit on the balance sheet. Prior to the adoption of the new recommendations, income tax expense was determined using the deferral deferral - Waiting for quiet on the Ethernet. method of tax allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as . Under this method, future tax expense was based on items of income and expense that were reported in different years in the financial statements and tax returns and measured at the tax rate in effect in the year the difference originated. The Company has adopted the liability method of tax allocation retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin in the accompanying financial statements. As a result of this change in accounting policy, there was no effect on net income of the current or prior periods. Future tax assets and deferred tax benefits were increased by $4,126,000, $5,442,000 and $5,849,000 at April 30, 2001, July 31, 2000 and April 30, 2000 respectively. 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 April 30, 2001: 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. 7,730,519 shares have been issued for a total of $7,373,804. (b) Options, Warrants and Convertible Securities Outstanding as at April 30, 2001: (I) The Company has outstanding stock options for 468,564 shares, of which 344,929 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 April 30, 2001 (ii) The Company has oustanding share purchase warrants to acquire 150,000 common shares at an exercise price of $15.00, if at the time of exercise the market price of the Company's common shares is $22.50 or less. If the market price exceeds $22.50 at the time the share purchase warrants are exercised, the exercise price will be $15.00 plus the amount by which the market price exceeds $22.50. The share purchase warrants expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. on August 12, 2001. As at April 30, 2001 no warrants have been exercised. |
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