NBS Technologies -- Fourth Quarter Results.TORONTO--(BUSINESS WIRE)--Dec. 24, 1996--NBS Technologies Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : NBS (National Bureau of Standards) See NIST. NBS - National Bureau of Standards: part of the US Department of Commerce, now NIST. ) reported today its results for the fourth quarter and the year ended Sept. 30, 1996. For the quarter ended Sept. 30, 1996, net income increased to $3.8 million ($0.13 per share) compared to $1.2 million ($0.04 per share) in the prior year. This significant improvement is due to a 6 percent increase in sales and a reduction in depreciation, interest, income tax expenses, and foreign exchange losses. These decreases in expenses were partially offset by increases in selling, general and administrative, and research and development expenses, a result of the higher sales volume and investments to support future growth initiatives. For the year ended Sept. 30, 1996, net income increased to $14.8 million ($0.49 per share) compared to $2.2 million ($0.11 per share) in the prior year. The results for the year include a gain of $14.5 million, before income tax, from the settlement of a lawsuit lawsuit: see procedure; tort. against the former auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together of the company. Offsetting this gain is a provision of $2.8 million to provide for costs associated with repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. the company. For the year, sales decreased $9.7 million due to lower sales of transaction systems in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and the completion of certain driver's licence driver's licence Noun Canad & Austral an official document authorizing a person to drive a motor vehicle also called (in Britain and certain other countries): (driving licence) Noun 1. contracts 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. . Gross profit is 37 percent of sales, comparable to the prior year, with changes in product mix being offset by productivity improvements. Selling general and administrative expenses increased $1.8 million compared to the prior year, due to investments to support future growth initiatives. Research and development costs increased 16 percent reflecting an increase in new product development programs. Depreciation and amortization decreased $1.5 million reflecting the fact that assets related to certain driver's licence contracts are now fully depreciated Fully depreciated An asset that has already been charged with the maximum amount of depreciation allowed by the IRS for accounting purposes. fully depreciated Of or relating to a fixed asset that has been depreciated to a book value of zero. . 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. and long-term Long-term 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. interest expense decreased $5.0 million due to lower debt levels and lower interest rates. Foreign exchange losses decreased $3.5 million, a result of more favourable exchange rates and the reduction in $US denominated debt. Other income includes the gain of $14.5 million noted above, less provisions of $2.8 million. Ken Kivenko, President and Chief Executive Officer, stated that: "While we are disappointed with the decline in sales for 1996, there have been many new growth initiatives launched that will benefit the company in the future. Furthermore, the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). received from the settlement of the lawsuit in 1996 significantly strengthens our balance sheet, thereby providing a good foundation for growth." Operating results on a quarterly basis will continue to fluctuate based on factors such as shifts in customer buying patterns, the timing of new product introductions, and the scheduling of sales and marketing programs. While the outlook for 1997 is favourable, income for the first quarter of 1997 is not expected to equal income for the same quarter of 1996 due to larger investments in research and development, and sales and marketing activities. NBS Technologies Inc. is a multinational multinational Of, relating to, or being a company with subsidiaries or other operations in a number of countries. The diversity of operations of such companies subjects them to unique risks (for example, exchange rate changes or government nationalization) information technology company that designs, manufactures and markets an integrated line of point of sale transaction automation and imprinting imprinting, acquisition of behavior in many animal species, in which, at a critical period early in life, the animals form strong and lasting attachments. Imprinting is important for normal social development. systems, secure identification and access control systems, plastic cards and card personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. products and services. Customers cover a wide range of market segments including financial institutions, hospitals, universities, government agencies, retailers, oil companies, and marketing organizations. -0-
Consolidated Statement of Operations
(Unaudited)
Three Months Ended Twelve Months Ended
September 30, September 30,
(in thousands of Canadian dollars, except per share amounts)
1996 1995 1996 1995
-------- -------- -------- --------
Sales $37,689 $35,407 $142,617 $152,303
Cost of sales 23,519 22,089 89,361 96,209
-------- -------- -------- --------
Gross profit 14,170 13,318 53,256 56,094
-------- -------- -------- --------
Expenses and other income
Selling, general
and
administrative 6,646 5,946 26,487 24,691
Research and
development 1,934 1,221 6,298 5,450
Depreciation and
amortization 617 1,799 6,243 7,761
Interest 1,374 1,856 5,556 10,583
Foreign exchange
and other income (303) 673 (11,209) 4,017
-------- -------- -------- --------
10,268 11,495 33,375 52,502
-------- -------- -------- --------
Income before
income taxes 3,902 1,823 19,881 3,592
Income taxes 142 631 5,106 1,365
-------- -------- -------- --------
Net income for
the period $ 3,760 $ 1,192 $ 14,775 $ 2,227
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per share
-basic and
fully diluted $ 0.13 $ 0.04 $ 0.49 $0.11(1)
-------- -------- -------- --------
Weighted average
common shares
outstanding
(thousands)(1) 29,981 29,981 29,981 18,550(2)
-------- -------- -------- --------
-------- -------- -------- --------
(1) Includes dividends accrued on Class AAA Preferred Shares of
$212,457.
(2) On Febr. 24, 1995 the company issued 28.4 million common
shares for total consideration of $85 million.
Consolidated Balance Sheets
as at September 30,
(in thousands of Canadian dollars)
1996 1995
----------------------
(Unaudited)
Assets
Current
Accounts receivable $ 25,709 $ 20,291
Inventories 14,484 14,184
Prepaid expenses and deposits 1,495 1,323
-----------------------
41,688 35,798
Capital assets 26,724 22,088
Deferred financing costs 1,048 1,605
-----------------------
$ 69,460 $ 59,491
-----------------------
-----------------------
Liabilities
Current
Bank indebtedness $ 8,683 $ 12,115
Accounts payable and
accrued liabilities 26,391 20,263
Deferred revenue 3,372 2,335
Current portion of long-term debt 6,593 3,822
-----------------------
45,039 38,535
Long-term debt 41,608 53,081
Deferred foreign exchange loss on
long-term debt (341) (504)
-----------------------
86,306 91,112
-----------------------
Shareholders' Deficiency
Capital stock 90,712 90,712
Deficit (107,558) (122,333)
-----------------------
(16,846) (31,621)
-----------------------
$ 69,460 $ 59,491
-----------------------
-----------------------
Consolidated Statement of Changes in Financial Position
(Unaudited)
Twelve Months Ended
September 30,
(in thousands of Canadian dollars) 1996 1995
-----------------------
Operating Activities
Net income for the period $ 14,775 $ 2,227
Depreciation and amortization 6,243 7,761
Amortization of deferred financing
costs 721 --
Amortization of deferred foreign
exchange loss on long-term debt 708 3,446
Change in non-cash working capital 2,009 (6,763)
-----------------------
Cash generated by operating
activities 24,456 6,671
Investing Activities
Purchase of capital assets, net (10,879) (4,377)
-----------------------
Cash applied to investing activities (10,879) (4,377)
Financing Activities
Issuance of long-term debt 5,863 55,798
Repayment of long-term debt (15,844) (104,834)
Issuance of common shares,
net of expenses -- 84,312
Exchange of preferred shares and
accrued dividends -- (8,483)
Deferred financing costs (164) (1,605)
-----------------------
Cash (applied to) generated by
financing activities (10,145) 25,188
Increase in cash during year 3,432 27,482
Bank indebtedness at beginning of year (12,115) (39,597)
-----------------------
Bank indebtedness at end of year $ (8,683) $(12,115)
-----------------------
-----------------------
CONTACT: NBS Technologies Inc. J. Kenneth Rutherford Rutherford (rŭth`ərfərd), borough (1990 pop. 17,790), Bergen co., NE N.J., a residential suburb of the New York City–N New Jersey metropolitan area; inc. 1881. Several pre-Revolutionary houses remain there. , 905/671-3334 ext. 19 http://www.nbstech.com (internet) |
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