MotorVac Technologies Announces Year-End Results; Sales Up 20 Percent.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--March 12, 1998--MotorVac(R) Technologies (Nasdaq:MVAC MVAC Mississippi Valley Archaeology Center MVAC Motor Vehicle Air Conditioning MVAC Malawi Vulnerability Assessment Committee MVAC Michigan Virtual Automotive College MVAC Milizia Volontaria Anticomunista (WWII) ) today announced results for its fourth quarter and year ended Dec. 31, 1997. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the year climbed 20 percent to $9,875,739 from $8,242,735 a year earlier. For the same period, MotorVac reported net income of $311,808, or $0.07 per basic and diluted share, compared with a net loss of $1,281,090, or $0.31 per basic and diluted share, a year ago. Net sales for the fourth quarter rose 10 percent to $2,668,787 from $2,421,314 in the prior year. Net income for the quarter was $30,202, or $0.01 per basic and diluted share, compared with a net loss of $344,784, or $0.08 per basic and diluted share, in the same period a year earlier. "Results for the year reflect a significant increase in the number of MotorVac CarbonClean Systems sold to Sun/Snap-on, the company's largest distributor. This increase reflects consumer awareness of the benefits of MotorVac's Carbon Clean Systems to help restore `new-car' performance, improve fuel economy and reduce smog problems," stated Lee Melody, president and chief executive officer. The turnaround in profitability for 1997 reflects an improvement in two major operating ratios Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: , with gross profit, as a percent of sales, increasing to 43.1 percent from 39.0 percent in 1996; and, 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. , as a percent of sales, decreasing to 40.3 percent compared to 52.6 percent in 1996, Melody added. He indicated that the company is continuing to globally expand its core business, while also focusing sales efforts on new products. During the fourth quarter, he noted, MotorVac announced an important geographic expansion into the Canadian market, reaching a distribution agreement with Kuntz & Kramer Services, one of the largest independent sales and service suppliers for diesel engines, generator sets and power units in Canada. Kuntz & Kramer will distribute MotorVac's Industrial Diesel Tune(TM) (IDT IDT Integrated Device Technology, Inc. (Santa Clara, CA, USA) IDT I Don't Think IDT Identity Theft IDT Interrupt Descriptor Table IDT Integrated DNA Technologies IDT Inactive Duty Training IDT Instructional Design & Technology ) system to its fleet customers. The Industrial Diesel Tune System is designed to remove the buildup build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of carbon and other contaminants from diesel fuel systems. Subsequent to the end of the fourth quarter MotorVac announced that its Industrial Diesel Tune System was approved by Volkswagen- Audi for inclusion in their dealers' service equipment program 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. . The service equipment program is administered by Equipment Solutions, a division of Snap-on, and is the official Volkswagen of America Volkswagen of America (VWoA) is the U.S. subsidiary of the Volkswagen automobile company in Germany. Formed in April 1955 in Englewood Cliffs, New Jersey to standardize dealership service in the United States, it grew to 909 Volkswagen dealers in the United States by 1965 under the program for approximately 600 VW and Audi dealers in the U.S. Melody also highlighted an agreement with Snap-on Diagnostics, announced during the fourth quarter, to test market MotorVac's new TRANSTECH(TM) Transmission Service System, a portable, "environment-friendly" system designed to facilitate the replacement of automatic transmission fluid Automatic transmission fluid (ATF) is the fluid used in vehicles with a self shifting or automatic transmission. It is typically colored red to distinguish it from motor oil and other fluids in the vehicle. . Snap-on will market the TRANSTECH System under the Sun(R) brand name. The patented process allows for essentially all of the old fluid to be replaced in a safe, simple and expedient manner. Melody noted the company's commitment to expand its Automotive Solutions division. Last month MotorVac announced the appointment of Alan J. Band as vice president of the division, a newly created position. Band's initial focus will be on expanding the division's first product, the CARBON TUNE Premium Engine Decarbonizing and Fuel System Cleaning kit, a three-step chemical cleaning kit offered to shops specializing in quick service oil changes. The new service takes approximately 10 minutes and addresses the market demand for effective and profitable fuel system cleaning products. MotorVac Technologies, Inc., provides proprietary solutions for cleaning internal combustion engines Internal combustion engine A prime mover, the fuel for which is burned within the engine, as contrasted to a steam engine, for example, in which fuel is burned in a separate furnace. from intake to exhaust. The company's MotorVac Carbon Clean System and Industrial Diesel Tune System are used to diagnose, maintain and repair internal combustion engine fuel systems, primarily for the automotive and truck aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. repair and service industry. They are comprised of a fuel system cleaning machine and proprietary cleaning detergent detergent (dētûr`jənt, dĭ–), substance that aids in the removal of dirt. Detergents act mainly on the oily films that trap dirt particles. . They have been proven in independent studies conducted by a laboratory certified by the U.S. EPA EPA eicosapentaenoic acid. EPA abbr. eicosapentaenoic acid EPA, n.pr See acid, eicosapentaenoic. EPA, n. and California Air Resources Board California Air Resources Board (CARB) is the "clean air agency" of the state of California in the United States. Established originally in 1967, it is a part of the California Environmental Protection Agency, an organization which reports directly to the California , to reduce emissions, restore fuel economy and enhance vehicle performance. MotorVac's products are distributed in more than 60 countries worldwide. For further information, visit MotorVac's home page at www.motorvac.com. -0- This press release contains 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. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. The Company intends that such statements shall be protected by the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. , provided for in such sections. In particular, statements regarding future results are subject to the risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive, governmental and technological factors, including, among other things, changes in laws, the size and timing of customer orders, new or increased competition, unexpected increases in expenses, delays in acceptance of new products, product returns, seasonality in product purchases by distributors and end users, and pricing trends in the automotive after-market industry in general and in specific markets in which the Company is active. Any of these factors, or others, could cause operating results to vary significantly from prior periods and those projected in the forward-looking statements. Additional information with respect to these and other factors which could materially affect the Company and its operations is included in the Company's filings with the Securities and Exchange Commission, including its Annual Report or Form 10K for the year ending Dec. 31, 1996 and any subsequent filings.
MOTORVAC
TECHNOLOGIES, INC.
Statement of Operations
Three Months Ended Year Ended
Dec. 31, Dec. 31,
1997 1996 1997 1996
Net sales $ 2,668,787 $ 2,421,314 $ 9,875,739 $ 8,242,735
Cost of sales 1,531,141 1,594,266 5,618,286 5,026,486
Gross profit 1,137,646 827,048 4,257,453 3,216,249
Operation expenses 1,123,581 1,178,059 3,983,205 4,338,332
Income (loss)
from operations 14,065 (351,011) 274,248 (1,122,083)
Interest expense
(income), net (19,878) (7,483) (41,696) 157,751
Income (loss)
before taxes 33,943 (343,528) 315,944 (1,279,834)
Taxes 3,741 1,256 4,136 1,256
Net income (loss) $ 30,202 $ (344,784)$ 311,808 $(1,281,090)
Net income
(loss) per
basic and
diluted share $ 0.01 $ (0.08)$ 0.07 $ (0.31)
Weighted average
shares
outstanding 4,514,918 4,514,918 4,514,918 4,140,845
CONTACT: MotorVac Technologies, Inc. Lee W. Melody, 714/558-4822 or Pondel Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. & Wilkinson Gary S. Maier/E. E. Wang, 310/207-9300 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion