EMJ Reports 2001 Year End Results; Sales Grow by 18.7% Despite Slowing North American Economy.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)--Sept. 18, 2001 EMJ EMJ Emergency Medicine Journal Data Systems Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :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 announced its financial results for the fiscal year ended July July: see month. 31, 2001. Sales for the year were $197.5 million compared to $166.4 million for the previous year representing an increase of $31.1 million or 18.7%. Sales in the fourth quarter were $43.7 million compared to $44.3 million in the previous year, a decrease of $622,000 or 1.4%. This slowing economy also affected EMJ through short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. pricing pressures from an increasingly competitive marketplace resulting in a decrease of 1.8% in the Company's gross margin compared to the same period in the previous year. "Overall, 2001 showed strong sales growth for EMJ," said Jim Estill, 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 EMJ. "A more competitive marketplace impacted gross margin in the fourth quarter but we expect the current market environment to present strategic buying opportunities that will allow margins to return to more normal levels in the early part of 2002." Net income from operations in 2001 was $4.4 million or $0.57 per share compared with $5.7 million or $0.75 per share reported in the previous year. Included in the Company's net income in 2000 was a $1.3 million gain on investments. Net income for the fourth quarter decreased to $78,000 or $0.01 per share from $1.5 million or $0.19 per share reported in the corresponding quarter in the previous year. Selling, general and administrative expenses increased from $8.9 million to $10.2 million but decreased as a percentage of sales from 5.4% of sales to 5.2% for the 12 month period ending July 31, 2001. EMJ did not undertake any special inventory purchases at the end of this fiscal year as had been done at the end of the previous year. As a result, inventory at July 31, 2001 was $18.5 million compared to $24.8 million the previous year and bank debt decreased to $14.9 million from $26.7 million at the end of the prior year. Subsequent to July 31, EMJ continued with its growth strategy through the purchase of the assets of Empac and an offer to purchase the assets of SDMS SDMS - A query language. . "Empac presented EMJ with an opportunity to purchase quality inventory below cost. This will allow us to sell products at great prices and still make slightly more than our usual gross margin," said Mr. Estill. "The SDMS acquisition is more strategic and will 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. our positioning in the bar coding and point of sale markets. SDMS was a $14,000,000 distributor of bar code and point of sales hardware which is a core component of our business." About EMJ 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, publicly-owned distributor of computer products and peripherals. EMJ specializes in niche-market 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 (Redundant Array of Independent Disks) A disk subsystem that is used to increase performance or provide fault tolerance or both. RAID uses two or more ordinary hard disks and a RAID disk controller. In the past, RAID has also been implemented via software only. , Unix and Wireless applications. EMJ Data Systems Ltd. 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. . 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. (TSE) under the symbol EMJ. Interested parties can reach EMJ via the World Wide Web at www.emj.ca.
Trade Symbol TSE:EMJ
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
Year End and Fourth Quarter Report - July 2001
EMJ Data Systems Ltd.
Consolidated Statements of Income and Retained Earnings
Three Months Ended Year Ended
July 31 July 31
(unaudited) (audited)
($000s except
per share figures) 2001 2000 2001 2000
--------------------------------------------------------------
SALES 43,678 44,300 197,456 166,365
Cost of goods sold 40,499 40,271 181,033 151,256
--------------------------------------------------------------
Gross margin 3,179 4,029 16,423 15,109
--------------------------------------------------------------
EXPENSES
Selling, general and
administrative 2,890 2,221 10,181 8,903
Interest, net 186 321 1,039 997
--------------------------------------------------------------
3,076 2,542 11,220 9,900
--------------------------------------------------------------
Income from operations 103 1,487 5,203 5,209
Gain on sale of
investments, net 0 173 24 1,327
--------------------------------------------------------------
Income before provision
for income taxes 103 1,660 5,227 6,536
Provision for income taxes 25 205 850 851
--------------------------------------------------------------
Net income 78 1,455 4,377 5,685
Retained earnings,
beginning of period 15,752 11,229 12,071 7,610
Dividends on
common shares (6,277) (613) (6,895) (1,224)
--------------------------------------------------------------
Retained earnings,
end of period 9,553 12,071 9,553 12,071
--------------------------------------------------------------
Earnings per share $0.01 $0.19 $0.57 $0.75
--------------------------------------------------------------
Fully diluted
earnings per share $0.00 $0.19 $0.56 $0.74
--------------------------------------------------------------
Weighted average
number of shares
outstanding 7,772,796 7,665,619 7,725,097 7,576,578
--------------------------------------------------------------
EMJ Data Systems Ltd.
Consolidated Balance Sheets
As at July 31
-------------------------------------------------------------
($000s audited) 2001 2000
-------------------------------------------------------------
ASSETS
Current
Accounts receivable
- Trade 20,602 19,896
- Other 494 941
Inventory 18,511 24,766
Prepaid expenses 336 375
Income taxes recoverable 37 -
Future tax asset 2,055 2,486
Investment in sales-type leases
- current portion 422 1,269
-------------------------------------------------------------
Total current assets 42,457 49,733
-------------------------------------------------------------
Future tax asset
- net of current portion 3,740 5,202
Investment in sales-type leases
- net of current portion 384 49
Capital assets 3,841 3,332
Investments 103 33
-------------------------------------------------------------
Total assets 50,525 58,349
-------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness 14,947 26,688
Accounts payable and accrued charges 13,389 5,821
Income taxes payable - 431
Deferred tax benefit 1,432 1,951
-------------------------------------------------------------
Total current liabilities 29,768 34,891
-------------------------------------------------------------
Long-term debt 400 381
-------------------------------------------------------------
Deferred tax benefit 2,665 3,491
-------------------------------------------------------------
Shareholders' equity
Share capital 7,795 7,171
Share purchase warrants 344 344
Retained earnings 9,553 12,071
-------------------------------------------------------------
Total shareholders' equity 17,692 19,586
-------------------------------------------------------------
Total liabilities and shareholders' equity 50,525 58,349
-------------------------------------------------------------
EMJ Data Systems Ltd.
Consolidated Statements of Cash Flows
Three Months Ended Year Ended
July 31 July 31
(unaudited) (audited)
-------------------------------------------------------------
($000s) 2001 2000 2001 2000
-------------------------------------------------------------
OPERATING ACTIVITIES
Net income 78 1,455 4,377 5,685
Adjustments for non-cash items:
Amortization 60 73 265 288
(Increase) decrease in
benefits from tax
losses, net (12) 174 548 566
(Gain) on sale of
investments, net - (173) (24) (1,327)
-------------------------------------------------------------
126 1,529 5,166 5,212
-------------------------------------------------------------
Change in non-cash working
capital components
Decrease (increase) in
trade and other
receivables 6,610 (44) (259) (1,233)
(Increase) decrease in
inventory (457) (9,534) 6,255 (13,675)
Decrease in prepaid
expenses 229 280 39 337
Increase (decrease) in
accounts payable and
accrued charges 1,600 (362) 7,568 (1,580)
(Decrease) increase in
income taxes payable (109) 257 (431) (689)
(Increase) in income taxes
recoverable (37) - (37) -
-------------------------------------------------------------
7,836 (9,403) 13,135 (16,840)
-------------------------------------------------------------
Cash provided by
(applied to) operating
activities 7,962 (7,874) 18,301 (11,628)
-------------------------------------------------------------
INVESTING ACTIVITIES
Capital asset additions (231) (30) (774) (54)
(Investment in) proceeds
received on sales-type
leases (39) (17) 512 1,258
Proceeds on loans receivable - 492 - 412
Purchase of investments - (623) (70) (650)
Proceeds on sale of
investments - 590 24 1,977
-------------------------------------------------------------
Cash (applied to) provided
by investing activities (270) 412 (308) 2,943
-------------------------------------------------------------
FINANCING ACTIVITIES
(Decrease) increase in
bank loan (1,244) 6,009 (11,847) 9,387
Repayment of note payable - - - (1,600)
Issuance of common shares 422 - 624 800
Dividends paid (6,277) (613) (6,895) (1,224)
Other 5 235 19 16
-------------------------------------------------------------
Cash (applied to)
provided by financing
activities (7,094) 5,631 (18,099) 7,379
-------------------------------------------------------------
Net cash provided
(applied) during period 598 (1,831) (106) (1,306)
(Book overdraft),
beginning of period (2,947) (412) (2,243) (937)
-------------------------------------------------------------
(Book overdraft),
end of period (2,349) (2,243) (2,349) (2,243)
-------------------------------------------------------------
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