Spectra Premium Announces its Results of the First Quarter of 1998-1999.BOUCHERVILLE, Quebec--(BUSINESS WIRE)--June 17, 1998--(ME:SPD (Serial Presence Detect) The method used by DIMM memory modules to communicate their capacity and features to the computer. Data such as manufacturer, size, speed, voltage and row and column addresses are stored in an EEPROM chip on the module. .) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :SPD.) - $15.5 MILLION IN SALES, UP 29 PERCENT - 20 PERCENT NET PROFIT MARGIN Spectra Premium Industries Inc., one of the leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. manufacturers of car and light truck parts, announced its results for the quarter ended April 30, 1998 today. During the first quarter, consolidated sales rose 29 percent to $15.5 million, compared with $12 million for the same period last year. Net earnings climbed to $3,054,000, or 20 percent of sales, compared with $2,939,000 (24 percent of sales) one year earlier. Taking into account the 29 percent increase in the weighted average number of shares outstanding following the initial public offering in December December: see month. 1997, earnings per share were $0.13 against $0.16 for the first quarter of the previous year. Earnings per share were calculated on a weighted average number of 24,204,269 shares outstanding, compared with 18,760,000 shares last year. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses totalled $3.7 million, or $0.16 per share. The increase in first-quarter sales is attributable mainly to the contribution of the new subsidiary American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Designers. Last year, the first quarter gave rise to an exceptional performance in light of a major discount program on the most popular fuel tank models. This year, on the other hand, internal growth was affected by mild winter conditions and the early arrival of spring. Nonetheless, management estimates that these sales are simply postponed. "We are pleased that we were able to maintain a 20 percent net margin despite major expansion and reorganization work at our plants in Boucherville (Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. ) and Knightstown There are a number of settlements named Knightstown:
Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). ) and the increase in administrative staff to support our rapid growth. We have also completed the entire transfer of American Designers' production of fuel tanks to our facilities in Boucherville, three months ahead of schedule. Finally, the recent acquisitions give us a strong foothold foot·hold n. 1. A place providing support for the foot in climbing or standing. 2. A firm or secure position that provides a base for further advancement. foothold Noun 1. to pursue and accelerate our growth in the automotive aftermarket," indicated Denis Denis, king of Portugal: see Diniz. Charest, President and Chief Executive Officer. Strategic acquisitions Spectra Premium has already completed three of the four acquisitions announced a few weeks ago, namely Laniel Radiateurs, Multi-Reservoirs 2000 and Coulter Radiator radiator, device used to heat an area surrounding it or to cool a fluid circulating within it. The familiar radiators of steam and hot water heating systems in buildings are misnamed, as they operate principally by convection, in which heat is transferred by air . The acquisition of Rick's Gas Tank Factory should be finalized See finalization. by the end of June June: see month. . On an annual basis and excluding inter-company sales, these new subsidiaries should represent additional sales of approximately $40 million. Management is more than satisfied with the integration of these new companies, which should make a positive contribution to Spectra Premium's profitability starting this year. Overall, the cost of these acquisitions is estimated at about $14.3 million, consisting of $10.8 million in cash and $3.5 million in subordinate voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. of Spectra Premium. The Corporation will also assume $6 million in the 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. of the acquired companies. Second offering Spectra Premium Industries Inc. announced today that it received regulatory approvals for its final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. dated June 15, 1998. The prospectus was filed to qualify for distribution of 4,473,000 subordinate voting shares issuable or transferable without additional consideration upon exercise of 4,473,000 special warrants. The special warrants will be deemed to be exercised into subordinate voting shares on June 22, 1998. The subordinate voting shares issued or transferred upon exercise of the special warrants will also be listed on the 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 Toronto Stock Exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. upon their issuance or transfer. 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). of the investment accruing to Spectra Premium, on the order of $63 million, will be injected in·ject·ed adj. 1. Of or relating to a substance introduced into the body. 2. Of or relating to a blood vessel that is visibly distended with blood. injected 1. introduced by injection. 2. congested. into working capital to finance new strategic acquisitions aimed at intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: consolidation of the industry 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 . The balance of the proceeds will be used for the capital expenditure program and for funding internal growth through new product development. Profile Spectra Premium is the leading North American aftermarket manufacturer and supplier of car and light truck fuel tanks and related parts. Once the acquisitions in progress are completed, Spectra Premium will also have a secure foothold in the North American replacement radiator industry. In addition, the Corporation is developing a line of oil pans. Upon the closing of the planned transactions, it will have 700 employees working in six plants. The Corporation's shares trade on the Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg and the Toronto Stock Exchange under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors SPD. -0-
SPECTRA PREMIUM INDUSTRIES INC.
CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
(in thousands of dollars, except for amounts pertaining to shares)
_______________________________________________________________
For the period of three months
ended April 30th.
________________________________
1998 1997
________________________________
Sales $ 15,466 $ 11,985
Cost of goods sold 7,337 5,595
________________________________
8,129 6,390
Selling, general and
administrative expenses 3,166 1,730
________________________________
EBITDA 4,963 4,660
Depreciation of property,
plant and equipment 562 306
Amortization of goodwill 79 -
________________________________
4,322 4,354
Financial expenses, net (193) 57
Earnings before income taxes 4,515 4,297
Income taxes 1,461 1 358
________________________________
Net earnings $ 3,054 $ 2,939
________________________________
________________________________
Earnings per share
Non diluted (1) $ 0.13 $ 0.16
Fully diluted (2) $ 0.13 $ 0.16
(1) Based on 23,631,876 shares, including 4,840,000 shares issued
during the initial public offering and 31,876 shares issued to
the employees.
(2) Based on 24,204,269 shares, including 572,393 shares,
calculated on the weighted average, already granted through the
employees share option plan.
SPECTRA PREMIUM INDUSTRIES INC.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(in thousand of dollars)
_______________________________________________________________
April 30th. January 31st.
1998 1998
________________________________
Assets
Current assets:
Cash $ 7,479 $ 1,404
Marketable securities 10,132 23,022
Accounts receivable 8,631 6,002
Inventories 4,712 5,645
Prepaid expenses 959 588
________________________________
31,913 36,661
Property, plant and equipment 27,114 21,996
Deferred development costs 94 50
Goodwill, at amortized value 7,744 7,823
________________________________
34,952 29,869
$ 66,865 $ 66,530
________________________________
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $ 3,018 $ 3,690
Income taxes payable 252 330
Current portion of long-term debt 748 2,526
________________________________
4,018 6,546
Long-term debt 281 450
Deferred income taxes 69 46
________________________________
350 496
Shareholders' Equity:
Share capital 53,119 53,119
Retained earnings 9,378 6,369
________________________________
62,497 59,488
$ 66,865 $ 66,530
________________________________
________________________________
SPECTRA PREMIUM INDUSTRIES INC.
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION (UNAUDITED)
(in thousand of dollars)
_______________________________________________________________
For the period of three months
ended April 30th.
1998 1997
________________________________
Cash provided by (used in):
Operating activities:
Net earnings $ 3,054 $ 2,939
Items not affecting cash:
Depreciation and amortization 641 306
Loss on disposal of property,
plant and equipment - 8
Deferred income taxes 23 (108)
________________________________
3,718 3,145
Change in non-cash operating
working capital items: (2,817) (7,693)
________________________________
901 (4,548)
Financing activities:
Repayment of long-term debt (1,947) (590)
Advance from shareholders' - (7)
Share issuance cost (45) -
________________________________
(1,992) (597)
Investment activities:
Deferred development costs (44) (50)
Additions to property,
plant and equipment (5,684) (991)
Proceeds from disposal of
property, plant and equipment 4 8
________________________________
(5,724) (1,033)
Change in cash position (6,815) (6,178)
Cash position, beginning of the
period 24,426 7,737
Cash position, end of the period $ 17,611 $ 1,559
Cash position consist of cash and marketable securities
CONTACT: Spectra Premium Industries Inc. Jacques Mombleau, 514/ 641-3090 or Belanger Legault Communications Design Ltee Daniel Rheault, 514/ 284-2323 |
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