Velan Inc. Reports Its Financial Results for the Third Quarter.MONTREAL--(BUSINESS WIRE)--April 17, 1997--Velan (ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :VLN VLN Violin VLN Vilnius (Lithuanian city) VLN Valencia, Venezuela - Valencia (Airport Code) VLN Very Low Noise VLN Verification Logic Network VLN Virtual Learning Network ) We are pleased to announce our financial results for the nine months period ending February February: see month. 28th, 1997. Velan Inc. became a public company in September September: see month. 1996. The company previously consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results only at the May 31st year end, and comparative third quarter and nine months results are not available. Revenues for the nine month period were $174 million with $58 million in the third quarter. We expect revenues for the last quarter of the year to be higher than the average of the first three quarters which also has been the case in previous years. Net profit for the first nine months was $20 million (11.5 percent of sales) and was $5.6 million this quarter. The gross margin for the nine months remained on last year's level at 33 percent of sales in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a reduced margin in the last quarter of 29 percent, due to the product mix and reduced selling prices, due to devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of major currencies against the dollar. The engineering, research, selling and administration expenses of 12 percent were maintained in the last quarter at the level of the last financial year 95/96. Incoming Incoming is a 3-D shooter developed by Rage Software and published by Interplay. The PC version was released in late 1998, and the Dreamcast version, a launch title for the console, was released in 1998 in Japan and in 1999 in the rest of the world. business remained strong resulting in order booking of $194 million for nine months. This includes sizeable contracts for valves for petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. plants in Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan , Thailand Thailand (tī`lănd, –lənd), Thai Prathet Thai [land of the free], officially Kingdom of Thailand, constitutional monarchy (2005 est. pop. 65,444,000), 198,455 sq mi (514,000 sq km), Southeast Asia. and Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. . Our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of orders at the end of the period was $127 million up from $109 million at the beginning of the fiscal year. At the end of this quarter the company acquired the assets of Securamax, Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing . Securamax is a manufacturer of special metal seated ball valves ball valve n. A valve regulated by the position of a free-floating ball that moves in response to fluid or mechanical pressure. and clamp clamp (klamp) a surgical device for compressing a part or structure. rubber dam clamp a metallic device used to retain the dam on a tooth. clamp n. connectors sold to mining and a variety of other industries around the world. The Company has entered into an agreement to purchase a further 12 percent equity interest in Velan Valvulas Industriais Limitida, the Company's Portuguese subsidiary which manufactures and distributes cast steel valves. The equity interest is being acquired from a company controlled by members of Velan family for $492,000 which is approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. equal to the book value. It is anticipated that the closing of the transaction will be effected within the next 30 days at which time Velan Valvulas will be a wholly-owned subsidiary of the company. The company's overall performance remains in line with our plans and budget. Velan Inc. designs, manufactures and markets on a worldwide basis a broad range of industrial valves for use in many industries, including power generation, oil and gas, petrochemical, chemical, pulp and paper and shipbuilding. The company is a world leader in steel industrial valves used primarily in high temperature or high pressure applications, with one of the most comprehensive industrial valves lines. Velan seeks to enhance its market position in major and developing markets and in existing and new product segments, while maintaining profitability at above-industry levels. -0-
VELAN
Consolidated Statement of Earnings
__________________________________
(Unaudited) (Unaudited) (Audited)
(in thousands of dollars) 3 months 9 months 12 months
ended ended ended
February 28, February 28, May 31,
1997 1997 1996
______ ______ ______
Revenue 57,547 174,240 232,589
______ _______ _______
Gross profit 16,635 57,882 77,350
______ _______ _______
Expenses (other income)
Engineering, research,
selling, general and
administrative 7,080 23,324 29,197
Depreciation and
amortization 1,367 4,185 4,894
Other (434) 73 277
______ _____ _____
8,013 27,582 34,368
______ ______ ______
Earnings before income
taxes and non-controlling
interest 8,622 30,300 42,982
______ ______ ______
Provision for income taxes 2,994 10,287 14,741
______ ______ ______
Earnings before
non-controlling interest 5,628 20,013 28,241
Non-controlling interest 13 44 132
______ ______ ______
Net earnings for
the period 5,615 19,969 28,109
______ ______ ______
______ ______ ______
Earnings per Share 0.25 0.88 N/A
______ ______ ______
______ ______ ______
Consolidated Balance Sheet
__________________________
(in thousands of dollars) (Unaudited) (Audited)
February 28, May 31,
1997 1996
________ ________
Assets
______
Current assets 175,348 169,524
Capital assets 32,258 30,957
Other assets 2,561 1,338
_________ ________
210,167 201,819
_________ ________
_________ ________
Liabilities
___________
Current liabilities 57,614 59,434
Long-term debt 23,701 2,127
Other 2,365 3,772
_________ ________
83,680 65,333
_________ ________
_________ ________
Shareholder's Equity
____________________
Capital Stock 114,854 18,441
Retained Earnings 8,284 113,726
Other 3,349 4,319
________ ________
126,487 136,486
________ ________
210,167 201,819
________ ________
________ ________
Consolidated Statement of Retained Earnings
___________________________________________
(Unaudited) (Audited)
9 months ended 12 months ended
February 28, 97 May 31, 96
_______________ ______________
Balance - Beginning of period 113,726 95,617
Net earnings for the period 19,969 28,109
________ ________
133,695 123,726
Net Share Repurchase Price (125,411) --
Dividends -- (10,000)
________ ________
Balance - End of period 8,284 113,726
________ ________
________ ________
Consolidated Statement of Changes in Financial Position
(Unaudited) (Audited)
(in thousands of dollars) 9 months 12 months
ended ended
February 28, 97 May 31, 96
___________ __________
Cash provided from (required for):
Operations
Cash provided from operations 24,599 33,356
Net changes in non-cash working
capital items (10,627) (30,964)
________ ________
13,972 2,392
_________ ________
Investment
Net Additions to capital assets (5,486) (8,956)
Increase in other assets (1,223) (786)
_________ ________
(6,709) (9,742)
_________ ________
Financing
Proceeds from issue of preferred shares - 5,000
Proceeds from issue of IPO 105,634 -
Repurchase of shares (130,000) -
IPO costs (6,423) -
Increase in Long-term debt 31,167 799
Repayment of Long-term debt (2,316) (19)
Change in non-controlling interest
in translation adjustment (16) 3
Dividends (10,000)
___________ _________
(1,577) (4,217)
___________ _________
Net increase (decrease) in cash 5,686 (11,567)
Cash - Beginning period 15,634 27,201
___________ _________
Cash - End of period 21,320 15,634
___________ _________
___________ _________
CONTACT: Velan Inc. Tom Velan, 514/748-7743 514/748-8635 (FAX) or Velan Inc. David Moszkowski, 514/748-8635 |
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