Milastar reports significant improvement in operating results.PALM BEACH, Fla.--(BUSINESS WIRE)--March 18, 1997--J. Russell Duncan Russell Duncan (born 15 September 1980, in Aberdeen) is a Scottish professional footballer currently playing for Inverness Caledonian Thistle in the Scottish Premier League. Russell joined ICT from Aberdeen in 2001, and has since played in just under 200 games, scoring 5 goals. , chairman of Milastar Corp. ("Milastar"), traded on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the symbol "MILAA," today reported the company's results for the third quarter fiscal 1997, ended Jan. 31, 1997. Third quarter sales climbed to $1,672,000, 22% greater than the $1,374,000 reported for the corresponding period ended Jan. 31, 1996. The sales rise was mostly attributable to an expansion of metallurgical services offered to the industrial trade, volume produced by a new mesh-belt installation, and incremental sales volume from New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. Metal Treating Company acquired in fiscal 1996. The company continues to search for acquisitions. Milastar reported a small after tax loss of $57,000 ($.02 per share) for the third quarter of fiscal 1997 ended Jan. 31, 1997, compared to an after tax loss of $229,000 ($.08 per share) for the same quarter last year. The improvement at the bottom line results from higher revenues which absorbed a larger proportion of fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). , implementation of cost-cutting measures, and improving labor productivity. Sales per employee increased by $25,000 this fiscal period compared to the same period last year. Sales for the initial nine months of fiscal 1997 increased 8% to $5,412,000 compared to $5,020,000 reported for the same period last year. The sales increase, cost reductions and rising productivity produced the significant improvement in operating results. Milastar experienced an after tax loss of $114,000 ($.04 per share) for the initial three quarters of fiscal 1997 compared to an after tax loss of $205,000 ($.07 per share) for the same first three quarters the prior fiscal year. The company's strong financial posture is supportive of future growth. As at Jan. 31, 1997 working capital amounted to $199,000, and the current ratio was 1.2-to-1. The company is not required to carry a large inventory investment because in practice its outsourcing customers consign consign v. 1) to deliver goods to a merchant to sell on behalf of the party delivering the items, as distinguished from transferring to a retailer at a wholesale price for re-sale. Example: leaving one's auto at a dealer to sell and split the profit. the components to be processed. Even so, as at Jan. 31, 1997 current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. amounted to $1,371,000, 23% of total assets. The consolidated debt remains relatively low, resulting in a debt to equity ration of 0.7-to-1. Milastar's revenue stream flows primarily from a diversified list of original equipment manufacturing clients located throughout the Midwest and New England regions without captive facilities, who traditionally outsource specialized metal processing. Special services include commercial heat treating, induction brazing brazing, method of joining metal parts using nonferrous filler metals with high melting points such as copper, silver, and aluminum alloys. Brazing differs from soldering (see solder) by using a higher temperature; and unlike welding, the parts are not melted. , metallurgical engineering and surface finishing Surface finishing is used to describe a number of industrial processes that can be applied to improve the surface of a manufactured item. The major reason to apply these processes is to improve appearance, improve adhesion or ink wettability, corrosion protection, wear resistance and , all applied to customer-owned components. 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. Duncan, Milastar expects to sustain sales growth by strategically building an even stronger presence in its markets. He noted, management is optimistic about achieving full year growth targets. CONTACT: Ron Como & Associates Inc. 212/227-3010 or Milastar Corp. J. Russell Duncan, 407/833-8800 |
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