RW Packaging-2005, 1st Quarter Results.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. , Manitoba Manitoba (mănĭtō`bə), province (2001 pop. 1,119,583), 250,934 sq mi (650,930 sq km), including 39,215 sq mi (101,580 sq km) of water surface, W central Canada. -- RW Packaging Ltd. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:RWP RWP - Remote Write Protocol ) (FOR THE THREE MONTHS ENDED MARCH 31, 2005) The Board of Directors announced today the Company's unaudited financial results for the three (3) months ended March 31, 2005. OVERALL PERFORMANCE 2005 first quarter results showed an improvement in sales, margins and earnings compared to the preceding fourth quarter of 2004 as compensating price increases announced at year-end in response to higher freight and material costs took effect near the end of the period, although results were lower than the record first quarter earnings posted in 2004. With higher selling prices now in effect, an expected increase in production volumes resulting from new business, and material costs stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. , management expects an improvement in sales, margins and earnings through the balance of the year. In particular, management expects a continued gradual improvement in gross margins in the second and subsequent quarters of 2005 from the current period being reported on, as well as, expecting gross margins on a percentage point basis to be higher for the remainder of the year than the comparative quarters in 2004. 2005-second quarter results in particular, should see a significant improvement over comparative last year results at which time the Company's existing Alberta operation ceased production on April 15, to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. to the Company's new St. Albert St. Albert could refer to:
RESULTS OF OPERATIONS The Company reported net earnings for the three (3) months ended March 31, 2005 of $29,067 (or 0.4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) on sales of $2,712,508 compared to net earnings of $110,355 (or 1.6 cents per share) on sales of $2,780,235 for the same period in 2004. A 6.0 per cent increase in comparative sales ($1,389,284 versus $1,310,114) from the Company's Winnipeg pharmaceutical facility and a 21.5 per cent comparative decline in sales ($933,090 versus $1,188,966) at its St. Albert location resulted in domestic sales for the period declining 7.1 per cent. The decline in comparative first quarter sales at the Company's St. Albert facility was the result of customers purchasing larger orders during March last year to increase their inventories in advance of the Company's planned closure and relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of operations during April and May. Accordingly, management expects the decline in first quarter revenues at its St. Albert location will be reversed during the second quarter with revenue growth expected through the remainder of 2005 at both of the Company's operations. U.S. sales for the first quarter increased 38.8 per cent ($390,135 versus $281,155) fueled by higher selling prices and an increase in case sales. As a result, overall sales for the quarter were 2.4 per cent lower than the same period a year ago. Gross profit for the three (3) months ended March 31, 2005 was $555,280 (or 20.5%) compared to $448,619 (or 18.5%) during the preceding fourth quarter, an improvement of 2.0 percentage points, and compared to $704,737 (or 25.3%) for the three months ended March 31, 2004. The 4.8 percentage point decrease in comparative gross margin during the first quarter was the result of; an increase in raw material costs, customer rebates, and freight and delivery expenses. In response to the rise in material and freight costs, compensating price increases were initiated to the wholesale and retail trade prior to the 2004 year-end most of which took effect late in the first quarter of this year. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. are expected to improve further during the second quarter and remainder of 2005. Warehouse, Selling and Administrative expenses were $381,837 (2004 - $425,141) for the three (3) months ended March 31, 2005, a decline of 10.2 per cent. The decrease in comparable Warehouse, Selling and Administrative expenses is attributed to the elimination of occupancy costs Occupancy costs are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. Occupancy costs are those costs related to occupying a space including; rent, real estate taxes, personal resulting from the closure of the Company's leased facility in Edmonton, Alberta last year. Warehouse, Selling and Administrative expenses for the first quarter were 14.1 per cent of sales compared to 15.3 per cent the year prior. The aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. reduction in 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. reduced the effect of the decline in comparative sales and gross margin for the period. As a result, Earnings before Interest, Taxes and Amortization (EBITA EBITA Earnings Before Interest Taxes Amortization ) were $173,443 compared to $279,596 in the first quarter of 2004. A 24.7 per cent increase in amortization expense ($71,608 versus $57,404) in addition to an 18.5 per cent increase in interest expense ($59,268 versus $50,013), caused a decline in comparative first quarter earnings before tax of $127,888, to $42,567 from the record $170,455 first quarter in 2004. As previously reported, amortization expense for 2005 is expected to increase approximately $46,425 or 19.2 per cent as a result of the additional property, plant and equipment purchased in 2004. The higher reported interest expense for the period reflects the additional long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. obligations arranged to finance and construct the Company's new St. Albert facility. Interest expense for the full year is expected to increase approximately $34,261 or 16.1 per cent over 2004 as a result of the additional debt used to finance property, plant and equipment. An expense to the Company's future income tax benefit of $13,500 (2004 - $60,100) was recorded during the period. As a result, net earnings for the first quarter were $29,067 or 0.4 cents per share compared to $110,355 or 1.6 cents per share the year prior.
RW Packaging Ltd.
Statement of Operations and Retained Earnings
---------------------------------------------
Three (3) months ended
Mar. 31, 2005 Mar. 31, 2004
Revenue $ 2,712,508 $ 2,780,235
Manufacturing & Operating Costs $ 2,539,065 $ 2,500,639
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EBITA $ 173,443 $ 279,596
Amortization $ 71,608 $ 57,404
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EBIT $ 101,835 $ 222,192
Bank Charges and Interest $ 59,268 $ 50,013
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Earnings Before Other Items $ 42,567 $ 172,179
Relocation & Disposition Costs $ 0 $ 1,724
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Earnings Before Tax $ 42,567 $ 170,455
Current Income Tax $ 0 $ 59,000
Future Income Tax Benefit $ 13,500 $ 1,100
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Net Earnings for the Period $ 29,067 $ 110,355
Retained Earnings,
Beginning of Period $ 1,806,177 $ 1,647,847
Retained Earnings,
End of Period $ 1,835,244 $ 1,758,202
Net Earnings per Share -
Basic and Fully diluted $ 0.004 / share $ 0.016 / share
Cash Flow from Operating
Activities $ 12,159 ($ 396,171)
Shareholders Equity per Share $ 0.451 / share $ 0.440 / share
Issued and Outstanding Common
Shares 6,934,398 6,934,398
RW is GMP GMP (guanosine monophosphate): see guanine. and ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 & 9002 registered. The Company blends and packages liquid and powder private brand consumer products for major retailers and national brand marketers across North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Additional information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company is available online at www.sedar.com or the Company's website at www.rwpackaging.com. Shares Issued 6,934,398 2005-05-18 Close $0.23 The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. (TSX Venture) has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this release. RW Packaging Ltd. (TSX VENTURE:RWP) |
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